Greetings from Shipyard! With the Thanksgiving Holiday Weekend now behind us and with this past Sunday's tree lighting here on Hilton Head Island, Black Friday consumer madness and Holiday songs on the radio, we are now firmly in the throes of, in the words of Clark Griswald - "a 4 alarm Holiday emergency!" All of us at Shipyard Real Estate want to wish you and yours a Happy and Healthy Holiday Season.
Financial News Update: Last weeks big real estate news was that the National Median Home Price lowered to early 2004 pricing. This week's news stated that interest rates continue to vacilate wildly. I had a closing today that is being held up because the lender needed to reissue the financial package because interest rates are lower today than last week! Let's examine these issues.
Median Price of homes drops to early 2004 pricing. In Shipyard early 2004 pricing of villas and homes were as follows- 1BR-$218,000; 2BR-$273,000; 3BR-$340,000; Homes-$428,000. Perhaps one reason we seen sales activitity fall off dramatically from '03 and '04 levels is because of overpricing. There are other reasons of course, like lack of buyer demand, Shipyard transfer fee, taxes, unrealistic seller price expectations and so on.
Interest rates have been drfting down but like the financial markets rates are vacilating wildly. That being said, 30 year mortgage rates have been in the low-mid 5% range of late. Even more astonishing is that Jumbo Rates (mortgages above $417,000) have come down too! I work closely with one local bank that has Jumbo money up to $2.5M for a fully documented borrower at 75% LTV (25% down- loan to value) offering 1, 3, 5, 7 or 10 year adjustable rate mortgages in the mid-5% range. If you would like additional information, just call or email.
What does it all mean? Where do we go from here? What it means is- if you have been waiting for a reason to purchase your dream home or villa, there is no better time than now! Yes, Santa is loading up his sleigh and news on the financial front can be unnerving to say the least, but now is the opportune time for owners to speak to their lender about refinancing their home or villa or to consider moving up (or down) to a new home or villa. Sellers have never been more ready to negotiate than right now!
For those buyers waiting for the right time to buy, the time is now! Even if prices of homes and villas drift a bit lower, your monthly payments should be lower at today's prices and lower interest rates than if you wait and interest rates go up while property prices come down a tad more. This coupled with the fact that in 60-90 days owners will be less inclined to negotiate, as they are right now, with the upcoming Rental Income Producing Season upon them.
Lower home prices + Lower interest rates + Available inventory = Great Opportunity!
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