The front page of The Wall Street Journal on Wednesday stated,   Home Prices Rise across the U.S

This same day, USA Today quoted that ”house prices rounded a corner”.

This initial increase might be small, but it is the first rise in three years

It is important to realize that this is talking about the national market; some areas are better than others.  I do think that this proves that the market has bottomed out

For months people have been saying that they want to buy but they want to make sure that the market has bottomed out.  I tend to think that it is hard to know where the bottom of the market is until it has turned around.

Most people wait until the market has increased 10%-12% before they buy.

How does this relate to Hilton Head?  Our market is slower than the national market, but the important news is that we are finally getting some positive press.

We still have unbelievable values, a lot of foreclosures and we have people who really want to sell.

Just remember, time is a friend of the buyer and an enemy of the seller.

I was at a real estate conference and heard this quote.  After I thought about it, it made more sense to me. 

It seems like most people who talk to me about their real estate on Hilton Head are waiting for the rain to stop.

We will likely be in a rough real estate market for the next three years.   

One out of 10 homeowners are in some kind of problem with their mortgage – I find this hard to comprehend.

I think we need to look at the present situation and make the best of it.  Many people are talking to their banks about loan modification.

Will the market return?  We have been through multiple recessions where values have gone down.

I think it is important to realize that the situation is not going to change in the short run and people who take advantage of the situation will be better off.

This Saturday, August 1, 2009, the 3rd annual Pet Expo will take place at the Mall at Shelter Cove from 11am to 2pm; proceeds of the fundraiser will go to the Hilton Head Humane Association. 

Events will include fashion show, glamour shots and opportunities for adoption.  For more information on this event visit The Island Packet.

Harbourfest, Shelter Cove’s signature summer event on Tuesday nights offers visitors and locals with live entertainment, food, shopping and fireworks.  Even better, this event is open to the public and free of charge.  This year’s Tuesday night event runs from June 2 through August 18. 

For more information on HarbourFest visit the Hilton Head Chamber of Commerce website.

Closed sales for Hilton Head Island MLS which includes villas and lots in May of 2008 were 196 and 185 in May of 2009 for a 5.6% decrease.  Median price of these sales:  May of 2008 - $311,000 and May of 2009 – $274,000 for a decrease of 11.9%.

These statistics are based on closed sales (sales happened 60 days before).  Pending sales for the same time period showed home sales up and villa sales down.  Statewide there were 4,715 in May of 2008 versus 3,04 in May of 2009 for a 21.4% decrease.  The median price for statewide sales went from $154,000 to $142,000 for a decrease in sales of 7.6%. 

Most MLS Boards saw quite drastic decreases in 2009 sales compared to 2008 sales; Aiken was down 32%, Beaufort was down 12%, Charleston was down 19%, Myrtle Beach was down 10%, Columbia was down 21%, Greenville was down 48% and Spartanburg was down 20% – showing that sales were down across the board. 

What does this mean?  It means that the rest of the state started to slow down.  They had not been experiencing the slowdown of sales that coastal areas had seen.  The economy has hit us all.

Visit the Bluffton Farmers Market on Thursdays throughout the summer for local and seasonal produce.  You will also find food vendors with delicious local delicacies.  This is a great initiative to support local farmers! 

The market is open on Thursdays from 2-6pm through November 19th in Old Town Bluffton.  Click here for more information on the Market.

I do not have an official count but I was recently told that there were about 300 Realtors who were active in 2008 who did not renew their license in 2009. 

I was also told that there were 600 Realtors who did not make a sale in 2008.

Several Realtors have decided to continue selling real estate, but have gotten other full-time jobs to supplement their income.  The slowdown in the market has had a detrimental effect on full-time Realtor’s salaries.   

You have a lot of retirees who do this part time so they are not affected quite the same. 

It has also had an effect on real estate companies; several have closed or merged.

The slow real estate market has also had an effect on other professionals; repairmen, home inspectors, appraisers and real estate closing attorneys have all seen a slow down in business.

I just got off the phone with a client who I was working with who bought a house and was trying to do everything he could to get the bank to finance.  Because it was a large ticket item the bank would not give him favorable terms to finance it.  They kept telling him that he was going to have to put more down.

In today’s market, we are seeing that availability of financing is really holding the market back.  In 2004 and 2005, 100% financing was available to anyone who wanted it.  Now the banks have overreacted and have swung so far back to the other side that availability of financing is becoming harder and harder and you do not want to get in a situation where the only buyers you have are cash buyers or buyers willing to put 50% down.

For years, the industry standard was 80%.  Most people understand that putting 20% down is the way it should be.  On larger ticket items, banks are requiring as much as 40%-50% down and most people are not willing to release that much cash – especially when they have sufficient income and are very comfortable with the monthly payments. 

When will this turn around?  It has been my experience that once the Federal Government gets more involved it seems to take longer. 

I hope it turns around soon and banks will adjust their thinking to be more in line with what is reasonable in financing.

After selling real estate on Hilton Head Island for 29 years, it amazes me how some people do not understand how to prepare a house to show. 

I was recently showing property to some prospects; I had made an appointment and the people knew we were coming.  When we arrived, every light in the house was off and all of the drapes were pulled which made the house show a little darker.

I later commented to the listing agent that I felt that the house would have shown better if the lights would have been on at which time the listing agent said that doing that cost money and my seller would never spend that much money.  Sometimes you have to spend money to make money – we both laughed. 

The listing agent later went on to say that this particular seller was a little tighter than most people and that it probably cost him a lot of money over the years.

When one is selling their home, you have to make the house present the best possible because your competition is doing the same thing.

I recently showed property to someone who sold airplanes; he said that they have a real estate trick they use – they cut the lights on in the airplane.  I laughed because that is a real estate trick.

Sellers should see how their home shows compared to the competition.  Buyers are doing that; most sellers never think to do that.  They assume that theirs is the best and that might not be true and it usually is not. 

Selling homes on Hilton Head is a very competitive market.  Today, the three most important factors in selling your home are price, price and condition – it used to be location, location, location.  You can have a great price and great location, but if your condition is not good in this slow market – it is not going to sell.

I recently had a seller of a condo on Hilton Head give me a call and said he was interested in testing the market.  When I went over what was listed for sale in his complex with the same view and floor plan, he wanted 20% more than similar villas listed for sale.  I told him that I thought he was going to be wasting his time in doing that. 

You don’t have to test the market because the market is what it is.  That would be similar to calling your stock broker and saying that you would like to sell your “ABC” stock for $80/share when it is only selling for $70/share.

Buyers are smart on Hilton Head as they probably are in most places.  They also have use of the Internet and they can see similar priced properties. 

I think people sometimes assume incorrectly that it “only takes one buyer”.  That one buyer is very astute and informed and in today’s market they are only willing to buy the properties that they feel are the best values. 

You might be able to get away with “testing the market” in a fast market where we have more buyers than sellers, but in a market where you have more sellers than buyers there is no need to “test the market” – it is what it is.