This is a "sequel" to my April 7, 2008 blog entry, "A Real Estate Silver Lining," focusing on the real estate market in Bluffton, Hilton Head Island and the Lowcountry of South Carolina.
It's easy to become discouraged about the housing market. Pick up any paper and read about record foreclosures, the plunge in new home sales and now, recession. With the endless flow of bleak news, many consumers just assume it's a bad time to do anything with real estate. But in every market there are opportunities for certain segments of the population. Today, particularly in the Lowcountry, there are a number of situations where people have more opportunities than they may think.
First Time Buyers
Excess inventory and evidence of flat and, in some cases, falling prices, have made it tough on sellers. But for those who only want to buy a home, this is perhaps the best market we've seen in a decade. Right now, with a little patience, a buyer should be able to find just what he or she wants in a home and at the right price. This is particularly true in Bluffton where home prices were already 20 to 25 percent below those on Hilton Head Island.
Many potential first-time buyers aren't looking however because they've been frightened by reports of tight credit. While lending requirements have certainly tightened with the subprime crisis, a wide array of new and different programs are available and rates are low. According to Jason Natale of The Money Store in Bluffton: "First time homebuyer loans allow buyers to get into a home more easily with many options and looser credit requirements. These programs offer such things as very low or no down payment, limited fees, and closing cost assistance, all at a very affordable interest rates."
Second Home Buyers
In 1998, while on vacation here, we bought a second home on Hilton Head. We were scared to death but were able to cover most of our annual costs renting to other vacationers. In 2005 we sold the home for a considerable profit. Many today feel they've missed this opportunity.
Yet for all the appreciation we've experienced over the past 10 years, ours was still a relatively under-valued coastal resort community before the recent market down-turn. The current "dip" offers the same opportunities for second home buyers as first-timers. This is particularly true for foreign buyers who can take advantage of the falling dollar.
Moving Up
One of the most common complaints I hear as a Realtor is "I'd love to move, but I can't sell my current home." Some are waiting for the market to "pick up" before selling, forgetting that the market rebound, when it inevitably arrives, will increase the price of the home they buy as well.
The simple fact is that homes in our area are selling when they are prepared to show well and, most importantly, priced realistically. When sellers who want to move set the right price, they can focus on the same expansive buying opportunities that the other groups above enjoy. What they may sacrifice on the selling end can be made up on the new purchase. Additionally, the likelihood of moving to a better neighborhood means greater long term appreciation potential.
Conclusion
There is good reason for optimism here. Experts predict that over 50% of the 75 million baby boomers will be looking to move to the Sun Belt in the coming years, with most of that growth coming along the coasts. Those who take the time to examine their own particular situation carefully may very well find that despite the national hand-wringing about the real estate market, things aren't really so bad.
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