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.

Remodeling 101

As you look around your current home, you may dream of a new kitchen or bathroom. You may even think about an addition. Some remodeling projects are for personal enjoyment while you look to other projects to increase the value of your home. Which projects make the most sense for you? Take a moment to look over 10 Projects with the Biggest Payback to determine the Return on Investment of your project. The 2006 Cost vs. Value Report (a combined effort by Remodeling magazine and REALTOR® Magazine) explains which home improvements pay off when you sell your home - and which do not.

National Association of REALTORs Numbers Say Home Prices Improve; Sales Still Slow in Most States

The latest quarterly survey by the National Association of REALTORS® shows that home price trends are improving in metropolitan areas. But existing-home sales are below where they were a year ago in most states.

In the second quarter, NAR reported 97 of 149 metropolitan statistical areas showed year-over-year increases in median existing single-family home prices.
Total state existing-home sales are down 10.8 percent from a 6.63 million-unit pace in the second quarter of 2006.

The largest singe-family home price increases were seen in the Salt Lake City area, Binghamton, N.Y. and Salem, Ore. The best total sales performance on existing home sales were seen in: Wyoming, Iowa, North Dakota, Oklahoma, Indiana and Nebraska. read the complete press release

For Sale - Ocean View Condo at Monterey Bay

***MOTIVATED SELLER. BRING ALL OFFERS!!***

The Monterey Bay Resort has recently undergone extensive renovations. Room upgrades include tile flooring, granite counter tops, new furnishings and custom upholstery. This condos is an angled ocean front one bedroom with an ocean view. This sale is a short sale and a great opportunity for any investor.