Sunday, March 3, 2013

Myrtle Beach Market Update

We're still in a buyers market. The question is for how much longer? The National Association of Realtors said last Thursday: it’s becoming a seller’s market. I haven't seen that happening in Myrtle Beach yet but I have started to see some multiple offer situations as well as some properties selling for more then the asking price. This January there were 39 closed residential transactions comparing 27 from 2012. That's a 44% increase! With condos 104 closings in January 2013 and 84 from 2012 for almost a 24% increase. January is supposed to be our slow month.

Also, among some of Fannie Mae economists projections for this year: 
  • Home prices: Fannie Mae economists predict that the median price of existing homes will increase 2.3 percent on an annual basis this year, reaching $181,000. The median price of a new home will likely increase 1.6 percent to $248,000. For 2014, economists predict that home prices will increase an extra 2.8 percent. 
  • Home sales: Existing-home sales will likely rise 11.5 percent in 2013, and new-home sales will rise 12.5 percent, economists predict. 
  • Mortgage rates: Rates will likely edge up slightly this year with 30-year fixed-rate mortgages projected to average 3.8 percent this year and rise to 4.4 percent in 2014
The bottom line is, while there is still a lot of uncertainty in the economy, don't miss what's left of this buyers market.

For More info:
US Home Prices Climb in December, Best Yearly Gain Since 2006: S&P/Case-Shiller
U.S. single-family home prices picked up in December, closing out 2012 with the biggest yearly gain in more than six years as the housing market got back on its feet, a closely watched survey showed on Tuesday.
http://www.cnbc.com/id/100495122/

Credit FAQ's

All of the credit agencies calculate a credit score (FICO) between 300 (extremely poor creditworthiness) and 850 (perfect credit). Your credit score may be used to determine the approval or denial of car loans, mortgages and other major credit purchases, as well as the interest rates available to you.

Question: How is a credit score calculated?

  • The highest percentage, 35%, of your score is determined by payment history. Missing payments or frequently paying bills late will drastically lower your score. The good news is, FICO favors recent activity, so you can improve your score by making timely payments or working out payments plans that suit your budget.
  • 30% of the FICO score is based on how much money you owe versus how much credit is available to you. Someone close to maxing out his or her credit cards is seen as a higher risk of default.
  • 15% of your credit score is based on the length of your credit history. The longer your credit history the better.
  • The type of credit you use determines 10% of the FICO score. Having many different types of credit, including mortgages, credit cards, car loans, revolving and installment credit, will generate a higher score.
  • 10% of your FICO score includes searches for credit. Applying for many different types of credit over a short period of time can lower your score. Rate shopping for one specific type of loan should not have much impact on your score.
Question: Do I have a right to know what's in my report?

Answer: Yes, but you have to ask for the information. The reporting companies (Experian, Equifax or TransUnion) must tell you everything in your report and give you a list of everyone who has requested your report within the last year. I encourage everyone to request their one free copy of their credit report once every 12 months. There are many services that offer free credit reports, but not all are what they are cracked up to be even if they have clever commercials.

Question: How do I order a free credit report?

Answer: The three reporting companies use one website, one toll free number and one mailing address.
www.annualcreditreport.com
1-877-322-8228
Annual Credit Report Request Service
PO Box 105281
Atlanta, GA 30348

Important: annualcreditreport.com is the only authorized online source for your free annual credit report from the three reporting companies. Also, you will never be contacted by them requesting personal information.

Be warned: There are ads on the internet, TV, radio and newspaper for companies and services that promise to erase accurate negative information in exchange for a fee. These scam artists not only don't deliver, they can't. Only a plan, time and budget will improve a credit score.

The 7 Craziest Local Laws and HOA Rules

I recently came across some really weird HOA issues and wanted to share them with you. Mostly just for fun, but also to reiterate how important it is to know the HOA laws before closing on a property.

1. Can't park your car in your own driveway.

In Odessa, Fla., a resident was fined by his board for parking his pickup truck in his own driveway because it wouldn’t fit in his garage. Not our problem, the HOA basically told him before slapping him with a lawsuit. After a protracted legal battle, he has since won the right to park his car, but only after two years and $200,000 in legal fees.
2. Don’t plant too many roses.
While foreclosure is an increasingly real threat to homeowners, few expect to lose their house based on gardening infractions. But that’s exactly what happened to a Rancho Santa Fe, Calif., resident who planted too many roses on his property. After $70,000 in fees, he lost his legal battle against the HOA and ultimately lost his home to the flower debacle.
3. Indoor drying only.
As seen in a Colbert Report expose, a Bend, Oregon, resident was shocked by her HOA’s rejection of her outdoor clothesline. Her natural drying method was dubbed a hazard, and they began levying fines that totaled nearly $1,000. She eventually took down the offending line, even after the Right 2 Dry movement got behind her.
4. No mothers-in-laws allowed.
If you’re a married man in Iowa, the government grants you a special privilege: you’re allowed to bar your mother-in-law from your home. While certainly useful to men trying to ditch their spouse’s mom, this law does not extend to women.
5. Only use sanctioned paint.
What appears to be an inoffensive pale blue house has caused a stir recently in one Georgia neighborhood. Unaware of his HOA’s rules, a homeowner painted his house before having the color officially approved by his board. And with a $25 per day fee levied every day his house bares the offending hue, he’s already racked up $6,800 in fines on top of legal fees.
6. No service dog for the hearing impaired.
A Fort Collins, Colo., HOA fined a hearing-impaired resident for keeping Pookee, her Pomeranian service dog. The HOA even threatened to put a lien on the property. All this despite the fact that Fair Housing Act requires condo and home owner associations to make reasonable accommodations in their procedures and rules to allow a person with disability to reside in a unit. This includes allowing service animals.
Have an issue related to service animal? Contact your local HUD office or local or state human rights agency.
7. Don't use 'inconsistent' shingles.
As if it wasn’t tragedy enough when a plane fell out of the sky destroying a Sanford, Fla., man’s home, his HOA then challenged his rebuilding efforts. It threatened litigation because the shingles and elevation in his new house’s plans didn’t match his neighbors’.
Bending the rules
If you fight the law, you may lose. But there are ways to work with the restrictions of a HOA and still get your way. The first line of defense is to make sure you understand the HOA or condo association rules before you purchase the property.
If, after you move in, you’d like your home’s appearance to differ from that of your neighbors, you’ll need to submit a “variance” form of request. This request can be accepted or rejected at the board’s will, so it's good to alert them early in your planning process. One tip to gain HOA support? Understand the challenges and perspective of HOAs, follow the rules to a tee, and offer to help them gain community support for their initiatives. Maybe even run for office. If you can’t beat ‘em, you might as well join ‘em.

What’s the strangest local government or HOA rule you’ve ever heard of?

What are the Effects of the Fiscal Cliff Deal on Real Estate

I thought it would be a good idea to let you know some of the provisions included in the compromise that affect real estate.

* Mortgage Cancellation Relief is extended for one year to January, 2014

* Mortgage Interest Deduction remains unchanged

* Deduction for Mortgage Insurance Premiums for filers making below $110,000 is extended through 2013 and made retroactive to cover 2012

* Energy Efficiency Tax Credit: The 10% tax credit (up to $500) for homeowners for energy efficiency improvements to existing homes is extended through 2013 and made retroactive to cover 2012

* Capital Gains rate stays at 15% for those individual filers earning $400,000 or joint filers earning $450,000. After that any gains above those amounts will be taxed at 20%. The 250/500k exclusion for sale of principle residence remains in place.

* Estate Tax: The first $5 million in individual estates and $10 million for family estates are now exempted from the estate tax. After that, the rate will be 40%, up from 35%. The exemption amounts are indexed for inflation.

Fifteen-year fixed-rate Mortgages Gain Popularity

Record-low rates are driving more borrowers to seek shorter term mortgages.

Freddie Mac reports that nearly 16 percent of the fixed-rate mortgages that lenders sold to the agency during the third quarter were comprised of 15-year mortgages. That’s up from nearly 10 percent a year ago. The data excludes mortgages for refinancing.

For refinancings, 15-year mortgages accounted for nearly a third of loans during the first seven months of this year, according to CoreLogic.

“The 30-year mortgage became the standard in lending because its lower monthly payments made real estate affordable to more Americans,” The Wall Street Journal reports. “While the 30-year remains king, the gap between the two loans’ popularity is shrinking.”

Fifteen-year fixed-rate mortgages have recently averaged 2.81 percent — compared to 5.85 percent in mid-December 2007, according to HSH.com, a mortgage information Web site.

Some refinancers are finding that by switching from a 30-year to a 15-year fixed-rate mortgage they are able to not only get big savings on the life of their mortgage but also even slightly lower monthly payments. Traditionally, refinancing into a shorter-term mortgage meant paying a heftier monthly payment. But with mortgage rates so low, some home owners are finding the monthly payment isn’t increasing and may actually be less by shortening the terms of their mortgage.

Source: “Fringe 15-year Mortgage Becomes Hot Property,” The Wall Street Journal (Dec. 18, 2012)

Happy New Year!

Thank You for a Great Year

I hope you had a fantastic holiday season. Looking back at 2012, I'm very happy I was able to meet so many good people and help several find their new home in Myrtle Beach.

This year, I was accepted onto the Board of Directors for the Humane Society of North Myrtle Beach. Anyone that knows me is well aware of how much I love animals and doing everything I can with animal rescue. With all of the meetings and special events, it's no wonder the year flew by.

I also had the privilege of graduating Leadership Grand Strand after 9 months of hard work volunteering for community projects and developing my leadership skills. A big thanks to the Myrtle Beach Area of Commerce for giving me the opportunity to be involved in such a great program.

Lastly, I'd like to thank you for allowing me to assist with all of your real estate needs for the past year and I look forward to helping you in the future.

So let's pop open the Bubbly and cheers to a great 2013!




Merry Christmas!

Merry Christmas from the Kavanagh Family!

Christmas is not a time nor a season, but a state of mind. To cherish peace and goodwill, to be plenteous in mercy, is to have the real spirit of Christmas.
-Calvin Coolidge

PS. Does this Santa look familiar?