Curb Appeal

It's official...Fall is here and temperatures are cooling! ("Cool" for Myrtle Beach is currently in the 80s!) Now is a great time to take advantage of cooler temperatures and the changing season to update your flower gardens and yards and create eye-catching curb appeal for your home!

If you are selling or planning to sell your home this Fall or Winter, know that first impressions count. Take some time to increase your curb appeal and make your home stand out among all other homes for sale. To help you, Lowe's gives you some ideas in "9 Fall Tips to Make Your Landscape Shine."

Curb appeal is especially important for condo and townhouse owners. Even though you have a smaller space, you can update your curb appeal with container gardens! To make your condo or townhouse "pop," check out the container garden section on the Lowe's website. You will find tips, tools, designs and plants great for container gardens.

Tax Consequences of Short Sales and Foreclosures

What are the tax consequences of a short sale or a foreclosure for a property owner? The IRS has provided some answers in "Questions and Answers on Home Foreclosure and Debt Cancellation". While short sales and foreclosures can have tax consequences, special rules can lessen the tax burden to the homeowner. Every situation is different though. Please consult a tax professional to discuss your specific situation if you may be effected by a short sale or foreclosure.

Fed Lowers Fed Fund Rate

Sept. 18 (Bloomberg) -- The following is the full text of the statement released today by the FederalReserve:The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 4 3/4 percent.Economic growth was moderate during the first half of the year, but the tightening of credit conditions has the potential to intensify the housing correction and to restrain economic growth more generally. Today’s action is intended to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and to promote moderate growth over time.Readings on core inflation have improved modestly this year. However, the Committee judges that some inflation risks remain, and it will continue to monitor inflation developments carefully. Developments in financial markets since the Committee’s last regular meeting have increased the uncertainty surrounding the economic outlook. The Committee will continue to assess the effects of these and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth.Voting for the FOMC monetary policy action were: Ben S. Bemanke, Chairman; Timothy F. Geithner, Vice Chairman; Thomas M. Hoenig; Donald L. Kobn; Randall S. Kroszner; Frederic S. Mishkin; Charles L. Evans; William Poole; Eric S. Rosengren; and Kevin M. Warsh.In a related action, the Board of Governors unanimously approved a 50 basis point decrease in the discount rate to 5 1/4 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve banks of Boston, New York, Cleveland, St. Louis, Minneapolis, Kansas City and San Francisco.Last UpdatecJ’ September 18, 2007 14:15 EDT
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What will happen to mortgage interest rates? I do not believe rates will change immediately. However, I do believe the stock market will see an increase based on the news from the Fed. A long-term stock market gain could mean lower bond prices.

Regardless of interest rates, Myrtle Beach is in a full-fledged Buyer's market. If you have been thinking of purchasing a home or investment property, now is a great time. Many sellers are offering great incentives, and many are willing to negotiate their prices. Call or email me if you have any questions.

For Sale - Two Bedroom Condo at Sweetwater

Two bedroom, two bathroom condo located in the Sweetwater complex for sale. Great investment opportunity - tenant in place! Call for details.

The Basics of Home Owership

Homeownership is a critical part of The America Dream. Many potential buyers are worried about the current mortgage industry and where they stand in their goal of homeownership. Lenders are “getting back to the basics,” and potential buyers should “get back to the basics as well.

BASICS OF HOMEOWNERSHIP

• Create a Budget – As tough as it may be, create a budget and stick to it! To own a home, you will need to save money for a down payment. Know where every dollar comes from and where it goes. Staying on a budget is not always fun, but keep your long-term goal in mind – homeownership. Owning your own home will be well worth the sacrifices.
• Save, Save, Save – The more you can put down on a home, the better. Avoid having to pay Private Mortgage Insurance (PMI) by putting down 20%. Look over your budget and see where you can cut costs to save more money. Lenders like to see money for a down payment plus money for unexpected expenses. Top financial advisers recommend having 3-6 months of expenses saved in an emergency fund.
• Read Your Credit Report – Get your free credit report at www.AnnualCreditReport.com. Federal law states that you can check your credit report each year for free. Other sites claim to be free, but www.AnnualCreditReport.com is the only federally approved site. If you find any discrepancies within your report, follow the directions to correct the report. Having a good credit score can save you money when it comes time to apply for a loan.
• Lending Basics – Fixed rate loans are safer than adjustable rate mortgages. With a fixed rate interest rate, you will be protected from shifts in the market and world events affecting interest rates. Depending on your loan, a 15-year mortgage can save you thousands versus a 30-year mortgage.
  
  If you need help with any of these basics, consult a financial advisor, a loan officer, your real estate agent or a friend of family member. May books and online resources are available as well.

Under Contract

Good news! This efficiency condo in the Landmark Resort (an ocean front building) in Myrtle Beach is under contract. Check back later to get the "sold" details. Information about this condo can be found at http://514landmarkresort.kathyrukat.com/

August 2007 MLS Stats

I defined residential homes as single family detached homes and single family new construction as these are the most popular residential properties.

Total Active SFH - 5,016
Average Listing Price - $511,177
High Price - $26,500,000
Low Price - $15,000

Total Pending SFH - 781
Average Listing Price - $295,058
High Price - $3,800,000
Low Price - $6,000

Total Sold SFH - 337
Average Sold Price - $290,175
Average List Price - $304,641
High Price - $1,700,000
Low Price - $1,900

New SFH Listings Added in June - 1,011

As you can see with the number of sold listings versus total listings, the Myrtle Beach market is a Buyers' Market. Currently, we have over a year supply of single family homes to sell. However, when you compare the sold price versus the list price, homes are selling for an average of 95% of the listings price. This percentage has held over the last few years.

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The condo and townhouse category includes condos, townhouses, 1/2 duplexes and new construction projects.

Total Active Condos/Townhouses - 7,932
Average Listing Price - $290,565
High Price - $2,995,000
Low Price - $44,900

Total Pending Condos/Townhouses - 1,514
Average Listing Price - $285,957
High Price - $1,675,000
Low Price - $56,900

Total Sold Condos/Townhouses - 227
Average Sold Price - $214,352
Average List Price - $226,650
High Price - $1,495,000
Low Price - $40,000

New Condos/Townhouses Listings Added in June - 1,151

The condo market is similar to the single family home market in that we currently have a high level of inventory. Specifically, we have about a 35 month inventory based on current sales. Our sale price versus list price is holding high. Sellers are receiving, on average, 95% of their listing price.

Labor Day Factoids

I hope everyone enjoyed an extra day off this week! I know I did. Here are some interesting facts about Labor Day...

• The first Labor Day observance is believed to have been September 5, 1882. A parade of 10,000 workers in New York City marked the occasion. The parade was organized by Peter J. McGuire the secretary of the Carpenters and Joiners Union
• By 1893, more than half of the states were observing Labor Day in some way or another. Celebrations took place on different days.
• In 1894, Congress passed a bill to establish a federal holiday and designated the first Monday in September as the official Labor Day. President Glover Cleveland signed the bill into law.

For other Labor Day facts, go to http://realtytimes.com/rtapages/20070903_laborday.htm.