Carolina Realty Hilton Head Island Real Estate Newsletter for June 2009
Blog - Hilton Head Island
Written by Dan Prudhomme   
Carolina Realty Hilton Head Island Real Estate Newsletter for June 2009...
Header
Carolina Realty Group
June 2009
In this Issue
The Housing Market
Island Hot Topics & Tidbits
Insider Information
Quick Links
Visit our Website
Share your Secrets about the Island
Contact Us
Based on our web-site traffic, showings and MLS inventory it appears that purchase activity is slowly regaining some momentum. As a result of that this month’s Housing Market Update is going to focus on topics that will be of important consequence to buyers. � Sales in the Hilton Head Island MLS market were off considerably during the first third of 2009 compared to the previous year, no doubt a residual effect from the constant barrage of bad news that hit the economy in late 2008. Locally, our entire MLS saw a 29% decline in activity during that time. The drop off was across the board. Home sales fell by 29%, villa sales fell by 31% and lot sales fell by 26%. � However, since April 1st the number of contracts pending sale have returned to last year’s levels. As of the writing of this report (May 25, 2009) the number of new contracts is exactly the same as the year before (412 properties are pending sale). � The single most significant change in the market is foreclosure activity. In early 2008 foreclosure activity accounted for less than 5% of all transactions. A review of home sales since April 1 shows some pretty significant changes in market dynamics. Of the 159 sales on Hilton Head Island, Bluffton off-plantation and the off-island private golf course communities 48 have been foreclosures. Another 11 of those sales were short sales. These 59 transactions account for 37% of all sales. � While sales on the island (80) and off the island (79) are very similar, it is obvious that there is a greater frequency of sales involving banks off the island. Of the 59 home sales that have closed in the last 55 days 38 have been in Bluffton and the private golf course communities. � The vast majority of the financially distressed sales are properties that were purchased in 2005 and 2006, otherwise defined as the peak of our market values. While the number of sales off-island and on-island are nearly the same, the fundamental reason that we see more foreclosures off the island is the amount of leveraging done at the time of purchase. Many of those properties were purchased with little to no-money down by first-time homebuyers who have been ill-equipped to meet the challenges of our current economic circumstances. � If foreclosures are happening with greater frequency off the island than on the island it might be tempting to conclude that values of properties near the beach have been able to better handle these challenging times. However, sales data does not support that conclusion. � For example, right now there are four villas at The SeaCrest in North Forest Beach that are under contract. The sales prices reflect about 59% of peak-market value and only one of these properties was in financial distress. Similarly, the two most recent sales of beach-oriented homes in Sea Pines Plantation reflect values of about 61% of market highs. Comparatively, the 23 homes that have sold in Bluffton since April 1, 2009 have sold for 59% of their market highs. � What this tells us is that the loss of value seems to be pretty consistent across the board. It also suggests that the buyer who is coming into the market may not want to focus exclusively on financially distressed real estate. That is, there are some great opportunities in the market that are not necessarily foreclosures or bank short sales.. � If you enter into a negotiation on a foreclosure you will typically be dealing with an asset manager assigned to the property by the lending institution. These transactions are normally negotiated within a matter of days because the banks have already established an acceptable sales price for the property. These properties are sold “as is,” meaning that in most cases the bank will not participate in fixing problems found during inspections. � Interestingly enough, when you look at the whole foreclosure market banks are selling at about 65% of market highs (compared to the 60% noted above). Hilton Head Plantation, which has a high number of foreclosures during the last 55 days (8 transactions) skews the numbers because the banks are getting about 75% of market highs. � If you pursue a bank short sale you must be patient. Only on a rare occasion will a lender give you a response within 10 days to two weeks. Most short sale negotiations take 30 to 60 days and if the listing agent and/or seller haven’t already started the loss mitigation process with the lender it can take longer. The biggest problem is that usually a bank hasn’t started any due diligence in establishing the value of a home. Most loss mitigation departments are busy trying to help home owners keep their property, not liquidate. � So, when a bank is requested to consider a short sale they will have to look at a seller’s financial status. This means copies of tax returns, bank statements and financial statements have to be filed before they will even look at an offer. This process can be implemented by a seller well before listing a property for sale, but in many cases is not. Once the lender determines that the seller is unable to keep the property they will request an evaluation of the property. They may ask for a professional appraisal or a Broker’s Price Opinion, and sometimes both. With that information in hand they will then respond to an offer. As you can well imagine, banks are swamped with financially distressed sellers right now and requests to sell are dealt with on a first-come-first-serve basis. Getting an answer requires great patience on all parties involved.
Webinars
As part of our full-service approach we are offering “State of the Market” webinars for each specific market on and off the island.
Photobucket
Whether you are a seller or a buyer, these fact and figure presentations will help you to make an informed real estate decision. This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
Market Reports
Don’t forget, if you want to keep tabs on how real estate sales are going in your specific community,visit the Market Report page on our website.
Market Reports
If you don't find your neighborhood, drop us an This e-mail address is being protected from spambots. You need JavaScript enabled to view it and we'll be happy to send you a customized report.
Meet Dan Prud'homme
Dan Prudhomme
Dan is a Broker and Parter at Carolina Realty Group. He's called Hilton Head Island home for more than 18 years. Read More about Dan.
Office: (843) 341-5660
Mobile: (843) 384-3169
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
If you have real estate related thoughts you would like to share with other readers, we well use this section for posting in future additions. We are looking for positive thoughts, funny experiences or an insight that might prove useful to other readers. If you are writing to complain about a service or company on the island, we will not publish specific names, so concentrate on how someone could avoid the same pitfalls. Send Your Requests & Suggestions
Forum
If you want to tell everyone about a great restaurant, event, or something of the ilk click on this link FORUM and feel free to blog away.
Dear Friends, Much of what we write in our monthly newsletter is in direct result to your comments, questions and inquiries. There should be no surprise that our last newsletter on beach regulations and accessibility was met with a lot of enthusiasm. This month we’re going to provide some tips for those of you who own vacation-rental properties. We know that generating income is extremely important and that this year has presented you with some challenges. We hope these pointers will help you get the most out of your property. If you’re coming to the island soon, stop by and talk with us. We would love to see you.
About Your Vacation Rental Property
If you’re happy with the job being provided by your current rental management company let us be the first ones to say “congratulations.” Most rental managers will give their owners a list of things to do during the off-season and those who follow the instructions are the ones who reap the benefits. Our friends in the rental business tell us that the biggest obstacle to getting the most out of a property is the condition of the unit. If you generate your own rental income, or work in conjunction with a property manager to subsidize your rental income, here are some tips we picked up from HomeAway.Com that you might find helpful.
10 Easy Ways to Give Your Property A Facelift
  1. Slipcovers are a tried-and-true way to refresh tired couches and chairs — even (yes, really!) at the most upscale properties. To avoid the sloppy, “billowing sheet” effect, opt for a custom-tailored version – these can even be made with built-in zippers or Velcro to accommodate fold-outs.
  1. To tone down the formality of a coordinated dining set, Dame suggests subbing in an old church pew, a vintage iron bench, or even an upholstered armchair, stool or loveseat. To punch up more traditional dining sets, recovering the seats of existing chairs is an easy do-it-yourself project — all it takes is a few yards of fabric and a staple gun.
  1. Even just a little bit of color can make a big difference in a room with four white walls. If you're worried about going too bold, start with just one brightly-colored accent wall behind the sofa or around kitchen cabinets. (Some colors to consider: robin's egg blue, deep turquoise, terra cotta, lemon yellow, or lime green.) In more formal spaces, a painted border in a color like indigo can add depth and character to a room without molding.
  1. Take down any wall art that's been water damaged (especially in the bathrooms) or faded by the sun. You might replace those items with an assemblage of even the most mundane objects (wooden canoe paddles, vintage sports pennants, a pair of colorful canvas kites). They can create a striking visual focal point for a room.
  1. Resurfacing can give new life to grungy bathroom tile or a shabby-looking sink for a fraction of the cost of a full remodel. A professional refinishing company can re-glaze a bathtub with a spray-on finish in about 5 hours, and they guarantee it'll be ready to use just 12 hours later.
  1. To make any bathroom feel more luxurious, switch out your regular shower curtain for a curved one (the few inches of added elbow room feel wonderfully spacious), and add larger mirrors above the sink. Consider adding a dimmer switch (especially if you have a big soaking tub), and for the finishing touch, pick up a few gleaming new switch plates in chrome, glass, or just clean, bright white.
  1. Be sure to clean out the screens on your faucets and showerheads (especially if you live in a hard-water area) and unscrew the stopper in sinks and tubs to make sure drains are clear of clogs. For leaks, you can easily replace old faucets and showerheads with new low-maintenance models or upgrade to a luxury rain-style or massaging showerhead for just a bit more. Just be sure to add those new amenities to the description of your property listings!
  1. When replacing dirty or worn area rugs, consider natural fibers such as sea grass or sisal. In addition to adding great texture and a coastal flair to your décor, both sisal and sea grass rugs are durable enough for high-traffic areas. Sisal is particularly well-suited to humid climates — the fibers are resistant to stains and bacterial growth, making it non-toxic and non-allergenic.
  1. To prevent sand and dirt getting tracked indoors, consider adding an outdoor foot shower. Although free-standing outdoor showers run in the $1000-range, a wall-mounted unit can be had for less than $200. Or, to save money without skimping on charm, a simple teak shower mat and an ordinary steel watering can is a great low-tech solution.
  1. Last but not least: don't forget to root out any dust lurking among your refrigerator condenser coils, in your air conditioner filters, and your dryer vent. You'll save yourself from future maintenance headaches and protect yourself from fire hazards while cutting your energy costs as well.
10 Fun Things To Add That Renters Love
  1. Ping pong tables are great for unfinished square footage, garages, and screened-in porches. Ping pong tables are cheaper than their billiard counterparts ($100-$300 vs. $300+) and have fewer pieces for your guests to lose.
  1. A soft serve ice cream maker is ideal for summer destinations.
  1. Who doesn’t love coffee? An espresso machine will woo the coffee connoisseurs who will love having a tasty cup in the morning without having to leave the house.
  1. A horseshoe set is inexpensive to buy and easy to set up.
  1. Terrycloth bathrobes will make your guests feel like they're staying at the Ritz.
  1. A Belgian waffle maker. Guests love playing with kitchen gadgets that they don't have at home.
  1. A Bocce Ball set is an easy game that your guests can play in the yard or at the beach.
  1. Get a margarita machine for your beach property and watch the inquiries roll in.
  1. A karaoke machine. Kids and adults alike enjoy channeling their inner Cher.
  1. A dart board is an easy amenity to add to your 400 sq. ft. studio home. All you need to set up a dart board is a little bit of wall space.
Make The Outdoors Part Of Their Vacation
Outdoor games and toys are a great (and inexpensive) way to offer your guests some options for free entertainment and could make your home stand out over another. Both children and adults appreciate yard games like horseshoes, croquet or bocce ball as well as toys like Frisbees, footballs or water guns. If you have a large enough yard, consider adding a swing set, badminton or volleyball net or even a basketball goal. But again, you don't have to go overboard – a few extra touches can go a long way in keeping your guests entertained.
Carolina Realty Group's Best Buys
56 Glencairn Avenue
List Price Reduced to $299,000
Custom Built in 2006
3 Bedrooms & 2 Bathrooms
Priced to Sell!
56 Glencairn Avenue
56 Glencairn
175 Mooring Buoy
Price Reduced to $899,000 furnished
Located on 11 Mile Lagoon
3Bedrooms & 3 Baths
Beautiful Pool & Spa
175 Mooring Buoy
175 Mooring Buoy
12 Wood Ibis
Price Reduced to $1,295,000
4th Row
4 Bedrooms/4 & 1 Half Baths
Great Rental
12 Wood Ibis
12 Wood Ibis
Carolina Realty Group 3 Executive Park Road Hilton Head Island, South Carolina 29928 Office 843.341.5660 Fax 843.341.5668
Property of Carolina Realty Group

AddThis
 
Hilton Head Area
Quick Property Search
Save and Sort your Listings!
Take control of your Property Search.
Sign up now...
Hilton Head Realtor Dan Prud'homme
Dan Prud'homme
Broker in Charge/Partner
Long Term Rentals
For all your Hilton Head and
Bluffton Real Estate Rentals
 
Bluffton Real Estate Rentals
 

Hilton Head
Homes for Sale

Villas
for Sale

Bluffton
Homes for Sale

 

Live Real Estate Chat
Live chat by SightMax