Greenville Home Search Online

Cautious Optimism seems to be the word and the feeling of the day.  Based on information that I review on a regular basis many indicators improved in June, creating a positive 3-month trend.  Such indictors include building permits, housing affordability, fewer jobless claims, and stock prices.

Our area (the Greater Greenville area), as you may know, was among the last areas nationally to feel the housing downturn and appears to be among the first to show recovery.  Our area continues to show improvement.  Among the reasons for this improvement is the quality of life which has driven record setting population growth between July 2007 and July 2008 in Mauldin and Greer.  Quality of life and affordability together are having a positive impact on housing and are bringing the Greater Greenville area out of the recession slowly but surely.

I don’t have any specific numbers on housing affordability in the Greater Greenville area.  However, nationally, housing affordability during the second quarter of 2009 continued to hover near its highest level since the series began 18 years ago.  One index showed that 72.3% of all new and existing homes sold in the second quarter of 2009 were affordable to families earning the national median income of $64,000, down only slightly from the record-high 72.5% during the previous quarter and up from 55.0% during the second quarter of 2008.

The increase in affordability, along with the $8,000 federal tax credit for home buyers is stimulating demand, particularly among young, first-time buyers.  Affordability has driven current homeowners to make a move as well.  Looking specifically with our company’s activity, in the last few months we have sold our listings in price ranges from $139,900 to $725,000 with several sales in the $300,000 range.  The reason for many of these sales has to do with these buyers seeing opportunities to take advantage of the ability to buy a move-up home that might have been out of their financial reach a year or two back.  So, first-time buyers are not the only activity in the market.

Bottom line, there are many positive signs that our recession is coming to an end.  Historically low interest rates, the most affordable inventory of homes currently on the market right now, $8,000 tax credit, and a general “cautious optimism” that things are getting better are among the things that are fueling the end of our recession and creating a better housing market in our area.

(This information is based on articles from Market Click, the GGAR online magazine, and RISMedia, an online real estate news magazine.  Aaron Cole, is the creator of HomeSOLDin60^TM, the simple six-step process created by Aaron Cole that guarantees a home seller the best chance of getting the best price for his or her home in the shortest time.  To learn more about Aaron’s 60-Home Sale program, visit www.HomeSOLDin60.com or contact him at (864) 292-3333.)

Back in October, 2007, the article in our newsletter titled “What’s happening with market?” discussed the beginning of the real estate market slowdown and why.  The article noted one reason for the slowdown in our area was the reduction of corporate relocation of employees.  I just recently came across information in an online real estate news magazine that gives more insight into the state of corporate relocation.

The article notes when the economy tightens, decision making changes. Corporations look for ways to orchestrate moves that are more efficient, to create programs that are leaner relative to benefits available to those being transferred, and to be sure that there are compelling reasons relocation is warranted. Moves must be imperative rather than discretionary. 

An example of increasing the efficiency of the relocation relates to changes to the loss on sale (LOS) provision of many relocation packages. If the home the relocated employee is leaving was purchased for more than is able to be realized in a sale, the transferee is protected from absorbing that loss. Covering the loss on sale is the number one most expensive cost to the corporation. For those who are protected by such a provision, the average cost to the corporation is $20,000. In 2004, 33% of all companies had a LOS policy; 46% have one today. The percentage rose as a result of the value of homes declining and therefore the risk of loss rising quickly. Some corporations are controlling those rising costs by capping the allowable amount of the loss and by not including capital improvements made by the employee as a part of that loss on sale. Transferees might be paid 100% of loss up to a maximum amount of ‘X’.

Reasons for fewer employee relocations according to the article include the condition of the job market and how this has affected the employee’s ability to accept a transfer.  With the job market in turmoil and unemployment high, most people are just happy to have a job or to find one. If the employee is required to move to keep that job, so be it. However, with dual family incomes playing such a crucial role in making ends meet, giving up one salary is not always an option. That applies even in a new hire situation. In good employment times it was fairly easy to help the trailing partner find employment. That is no longer true. The quality of the job market at the destination will play a role in whether the employee is able to make the move.

Additionally, many transferees are ‘upside down’ in their mortgages. They owe more than the house is worth. The amount may be so significant that any loss on sale protection would do little to bridge the gap. Those folks are often just unable to move. It would be unusual for the corporation to just ‘make it happen’ as might have been the case at the height of the market.

As noted back in 2007, a tightening American economy means fewer corporate employee relocations.  Fewer relocations to our area means real estate transactions and therefore more competition for home buyers’ money

(Aaron Cole, is the creator of HomeSOLDin60^TM, the simple six-step process created by Aaron Cole that guarantees a home seller the best chance of getting the best price for his or her home in the shortest time.  To learn more about Aaron’s 60-Home Sale program, visit www.HomeSOLDin60.com or contact him at (864) 292-3333.)

The topic of the economy and the real estate market seems to be on everyone’s minds.  Have we hit the bottom of the market yet?  When is the right time to buy to take advantage of what is going on?  These are some questions that I often hear.

There are some very positive signs that signify that our real estate fall here in the upstate is almost over.  In a recent article in a national financial magazine, the author names the Greenville / Upstate area as one of the areas that will show signs of recovery first, most likely as soon as the end of the 2^nd quarter of 2009.  Another study, called the North American Cities of the Future, named Greenville as the top micro city in the US (email me if you would like the .pdf version of the study).  Positive press regarding our area with respect to near term and future success in economic and real estate sectors is gaining steam.

More specifically, when you look at sale activity for residential real estate over the last 3 months, you notice a distinctively positive trend.  And, even more specifically with regard to our business at Del-co Realty, we have noticed increases in contracts, closings, and call and website activity.  There appears to be a more positive mood in general.

Another item of note is the effect of the First Time Homebuyer Tax Credit of $8000.  Estimates are that around 2000 first-time buyers (nationally) will take advantage of this tax credit by purchasing a home before December 1, 2009.  The overall impact of these buyers is much greater when you think about the fact that the sellers of the homes they buy in many cases buy another home as well, i.e. the domino effect.

The news is not all positive.  The automakers are still struggling to find traction.  There will be more changes to the lending and banking industry.  There are many businesses that will have significant layoffs in the next few months.  Many individuals are still struggling to pay their bills due to job losses and cutbacks.

So, what does all of this mean?  Our current situation is very unique, indeed.  If we are not at the bottom, we appear to be very close to it.  Now may be the perfect time to buy a home.  Prices will probably remain low until inventory levels equalize, due to increases in sales.  But, as the positive news gains more momentum and the market begins to increase, the bottom will be gone.  You’ll never be able to pinpoint exactly when we are bottom, because as you notice things improving, the bottom of the market is already behind you.

(Aaron Cole, the author of this information, is the creator of HomeSOLDin60^TM, the simple six-step process that guarantees a home seller the best chance of getting the best price for his or her home in the shortest time.)

According to a recent article in RISMedia, buyers’ interest in purchasing foreclosed homes is up.  No surprise here.  Foreclosed homes are at the heart of our housing crisis in the US.  In some areas, foreclosure sales make up a large percentage of the sale activity; getting the foreclosure inventory off the market is sure to bring good news for our economy.

The article says first-time homebuyers are a big part of the foreclosure market. Between 50 and 60 percent of foreclosure sales are going to first-time homebuyers (many first time home buyers will be taking advantage of the $8,000 tax credit available to them through the US government stimulus plan); another 30 percent is probably going to investors who are reselling them at another discount or hanging onto them as rental properties. Most of the financing for foreclosures is cash from investors and FHA loans for first-time homebuyers.

But, are foreclosed homes good deals?  The answer is: it depends.  Think about the lending climate in recent years.  Purchasers of homes tended to borrow higher percentages of their home’s value, so that left the borrower little equity in the home.  If the borrow fell behind and ultimately got foreclosed upon by the lender as the lender recovered the home, the lender’s investment in the home (the loan balance and legal costs for the foreclosure) may be so high that once the home hits the market for sale the price may not be a very good deal for a buyer.  The RISMedia article confirms this as one of the contributors to the article states, “In some cases, people are overestimating what they might expect in the form of a discount on a foreclosure property.” 

Another issue that hampers the “deal” associated with purchasing a foreclosure is correctly estimating the cost for repairs.  According to the article, more than 50% of purchasers of foreclosed homes underestimated the costs to repair the home.

So, what’s the deal with foreclosures?  They are a great place to look if you want a deep discount.  But remember: they may not always be a great deal and you should accurately estimate your costs.  Other sources of discounted homes can be pre-foreclosures and short sales.  And you should be sure to not overlook the motivated home sellers that are currently in the market.

You may also want to consider my ”Hot List” which tracks some of the best deals available in the Greenville area.  The “Hot List” is updated weekly and is available on www.GreenvilleHomeSearchOnline.com.

(Aaron Cole, the author of this information, is the creator of HomeSOLDin60^TM, the simple six-step process that guarantees a home seller the best chance of getting the best price in the shortest time.  To learn more about Aaron’s 60-Day Home Sale program, visit www.HomeSOLDin60.com or contact him at (864) 616-1504.)