U..S. Home Prices Showing Consistent Gains

Finally, home prices across the country are showing consistent increases most likely due to a decline in foreclosures and the lowest mortgage rates in history.  In fact, some of the cities hardest hit by the real estate bust have seen impressive price increases: Phoenix up nearly 14 percent, Miami up 4.4 percent. 


Even with these gains, prices have a long way to go to recover from their plunge during the housing bust of 2006-2008.  Nationally prices were down 31.6 percent below the April 2006 peak, based on the S&P/CaseShiller index which covers about half of U. S. homes.
 
And keep in mind we're not yet seeing price increases in the Grand Strand market, though we are seeing more sales.  What's holding us back?  Possibly that we have more second homes and investment properties, categories that have more distressed inventory.

National Flood Insurance Re-Authorized

The Biggert-Waters Flood Insurance Reform Act of 2012 was passed late last week as part of a transportation funding bill and signed into law by the president on July 6, 2012. The legislation extends National Flood Insurance Program (NFIP) authority through September 30, 2017.


This 5 year re-authorization of the National Flood Insurance Program ensures access to affordable flood insurance for millions of home and business owners across the country. The 5-year re-authorization will end the uncertainty of NFIP stopgap extensions and shutdowns.


This legislation is especially important to Grand Strand property owners as flood insurance is required for mortgages. Without NFIP flood insurance rates would sky rocket, pricing many out of the market and further depressing coastal South Carolina prices.

Help For SC Home Owners Facing Foreclosure

Need help with your mortgage?

The S.C. Homeownership and Employment Lending Program has given about $26 million in aid to South Carolinians facing foreclosure since January 2011, but that's not even 10 percent of the $295 million it was given by the U.S. Treasury after South Carolina became one of five states to qualify in 2010 for the Obama administration's "Hardest-Hit Fund," based on high unemployment rates


Aid per home is capped at $36,000, meaning the program still has the resources to help you or someone you know.


The program has been endorsed by most of the large lenders in the state, including Citibank, Bank of America and Wells Fargo.


Applicants must meet at least one of several criteria: being unemployed, underemployed, dealing with the death of a spouse or facing unforeseen health issues.

The program is a nonprofit division of the SC state Housing Finance and Development Authority.

For more information: www.scmortgagehelp.com

But hurry,Whatever money SC HELP has left after 2017 must be returned to the U.S. Treasury.

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Harvard: Home Sales Finally Poised to Improve

Harvard: Home Sales Finally Poised to Improve


Click the link above to read the article...

Forecosures Take Big Jump in 1st Quarter

In the first quarter of 2012, Horry County foreclosure filings were up 95% compared to last year with about 1460, most of which were lis pendens, the papers lenders file to start the foreclosure process.  About 1 out of every 127 properties in the state has a foreclosure filing, the 3rd highest in the state and the 10th highest in the nation.

What brought about the jump?  The economy is still weak and some of increase is those folks who were struggling to keep ahead and now they've had to let go.  Also federal and state lawsuits against 5 of the largest lenders has been settled, so a lot of pending foreclosures moved to foreclosure. 

The foreclosures continue to push down prices, in March the median price of a home or condo along the Grand Strand was $130,000 down 10.3 % from the same month last year.  With the tough financing environment, it's investors who are keeping the market going, paying cash--51 % of 1st quarter sales were cash.

FHA TIGHTENS LENDING AGAIN!

Beginning April 1, borrowers with on going credit disputes totaling more than $1000 will not be able to get a mortgage insured by the Federal Housing Administration.

This is a significant tightening for the FHA; previously there was no requirement that disputed credit account be paid off--before this rule a direct endorsement underwriter could determine if any of the borrower's debts should have an impact on the FHA's approval.

Now a borrower must either pay off the outstanding balance or document a payment arrangement that the lender must submit to the FHA before closing.  The payment arrangement will be counted into the debt-to-income ratio for the new home loan.

The rule excludes disputed accounts from more than two years ago, along with those related to theft.  But the lender must document an identity theft or a police report on the fraudulent charges.

The unintended consequences could be severe for those in the pipeline--kicking out many buyers, perhaps as many as 50%.  Bottom line, borrowers must clean up their credit reports before applying.

South Carolina Real Estate Tax Law Change

The South Carolina Real Property Valuation Reform Act of 2006 requires properties to be reassessed when there is a an "assessable transfer of interest", usually a change in ownership due to a sale.  Also known as a point of sale reassessment, it can cause large increases in property tax bills.

Last year the General Assembly changes the rules for commercial property, including rental property and second homes.  Such property is still reassessed, but the new value is discounted by 25 percent if the owner applies for the "commercial exemption."  The discounted assessment cannot be lower than the assessment prior to the sale or transfer.

So what's the affect been?  Large commercial deals are benefiting while the impact on second home sales is limited as many second homes are located along The Grand Strand where prices have been falling in recent years.  Still, if you've owned property for a long time and still have a gain, the break may help you get a higher price than the guy next door who bought a few years ago.