Good News about Housing in Charleston County
October 8, 2008 – 8:36 am
Everyone loves pretty flowers and good news
One of the things that I always enjoy about flowers is that whoever gets them usually smiles. These days, we could all sure use a smile. So I thought I’d share some good news that might just make you smile. Let’s bust the myths about the housing market, shall we.
Doom and Gloom: This entire crisis was the fault of the mortgage industry who preyed on homeowners.
The Truth: The average mortgage holder in Charleston County is making his/her monthly payments on time. The only homeowners who are suffering are those who took out more loan than they could have afforded in the first place. Not one of my clients is in foreclosure right now. Why? Because I counseled them to buy what they could afford.
Doom and Gloom: The entire mortgage industry is going down the tubes
The Truth: Most banks are holding strong. They may be in a temporary credit crunch but they will recover. Those that won’t will be bought out by stronger banks and credit will resume. IF you don’t believe me, check the X List at www.thestreet.com for your particular bank.
Doom and Gloom: Houses are not selling.
The Truth: Since the beginning of this year 2489 Single Family Homes have sold in Charleston County alone, with an average price of approximately $400,000 (Remember that includes a lot of million dollar homes so the median price is closer to $285,000.) This time last year, 3491 homes sold at an average price of $433,400. That’s only a 30% drop and we are still in one of the highest sales years since the 1990’s.
Doom and Gloom: Mortgage money is not available.
The Truth: FHA is still offering loans to qualified buyers with 3% downpayment and there’s a $8000.00 first-time homebuyer’s incentive to assist with closing costs. Conventional loans are being offered as low as 5.25% interest.
Doom and Gloom: If I buy now, my home’s value will go down next year.
The Truth: Perhaps a little, but only 2-3% and then it will begin to climb again faster than you can catch it. That’s the way the market works. Even Suzy Orman cannot argue with that. In the Charleston area, real estate appreciates at approximately 6-8% per year over a 10-year period.
Remember: Negative News sells and perpetuates negativity. Positive news sends out positive thoughts, but doesn’t sell television time so you never get the whole picture from CNN. That’s why our motto is, We put the REAL back in Real Estate. Real facts you can trust. Have a great day.
