Buying Properties in Charleston

Why now is the time to buy

Charleston boasts beautiful beaches, lush suburbs, an award-winning historical district, a wide variety of shopping, nationally-recognized restaurants, and many, many opportunities for outdoor sporting. With all of this to offer, it is no wonder than Charleston is a favorite spot for locals and tourists alike. No matter if you’re a summer-time visitor looking to make Charleston your new year-round home or a long-term renter from the area, now is the time that you should consider purchasing a slice of Charleston to make your own.

But why should you act now? Real estate experts are pointing to several trends in the housing and financial markets that translate to the perfect opportunity to get in on your dream condo, townhouse, or home in the near future.

1. The U.S. had seen record low interest rates in the last few years, which has been great for those who were looking to purchase property. However, nothing lasts forever, and now interest rates are climbing slowly back up. If you didn’t purchase when the rates were extremely low, don’t worry. They are still far below historic averages, so you still have time to make use of this great opportunity.
2. Along with rising interest rates, there are other signs of economic rebound occurring here in Charleston. While this rebound is wonderful for job security and availability, it also signals a transition from a buyers’ market (with plenty of inventory, low interest rates, and sellers hungry to close a deal) to a sellers’ market (with low inventory, higher rates, and sellers who might be willing to wait longer to accept a bid).  If you act while the buyers’ market is in place, you have a much better chance of getting a great piece of property at a great price.
3. The listing inventory in the Charleston area MLS is at a record low with only 5600 homes currently listed. This low inventory, combined with the attractive interest rates and economic rebound, could encourage more people to purchase a home. But with more people interested in a limited amount of homes, the sellers might be less apt to negotiate—so find your property and scoop it up before word gets out!
4. In 2012, South Carolina realtors saw an increase of 7% in residential sales. If the Charleston area follows the state average into 2014, more people will be choosing to move to the area, upgrade from their existing home, or make the leap into homeownership after renting. Get ahead of the trends and start your real estate search in early 2014.
5. The Federal Reserve is considering scaling down the stimulus plan that has been in place for the past few years. This stimulus plan was directed at helping the country out of the recent recession in part by providing special loan terms and packages to prospective homebuyers. Without this stimulus in place, the potential homebuyer could face a steep increase in closing costs and interest rates. Why pay more when you don’t have to? Don’t wait and miss out on these valuable discounts.

If you have any questions or would like to discuss real estate on any level, feel free to reach me directly at 843.437.8386  or email me at [email protected].

Why Rent When You Can Buy?

There are many reasons that some people like apartment living; they tout the amenities offered at the complexes, the convenience of having a landlord, and the affordability of a rental payment. However, with the wide variety of real estate available here in Charleston, renters can easily become homeowners–while still retaining all of the benefits of renting. Here are a few things to consider if you’re still renting:

• Purchasing a home doesn’t mean you need to save up thousands of dollars. Some renters are wary of making the jump into home ownership because of the down payment required at closing. Traditionally, 20% of the purchased home’s value is required at the closing, which translates to the purchasers needing a significant amount of cash available. However, there a several programs that can make the down payment more affordable. If you’re a first time homebuyer, consider an FHA loan, which requires only 3.5% down at closing. You might also consider an 80/10/10 loan (only available through banks), which includes a simultaneous home equity line of credit (called a HELOC) and a mortgage; you only have to bring 10% to the table. If you are a teacher, firefighter, police officer or active military, you may be eligible for down payment assistance through Hometown Heroes.
• You can keep all of the cool amenities that you love. Since there’s a huge push towards resort-style living in the current real estate market, developers have begun to include more amenities in their planned communities. Daniel Island, Park West, and Dunes West all have miles and miles of walking trails. I’on has playgrounds, on-site shopping, and concerts at the neighborhood ampitheatre. Most larger developments have clubhouses with pools and weight rooms. In developments like Carolina Park, expect to find all of the above as well as barbecue pits and outdoor entertaining space, a dog park, and an oyster pavilion. You won’t sacrifice fun when you make the transition from your old apartment.
• Home ownership is accessible to more people than ever. Between the down payment programs mentioned above and the low mortgage rates available right now, it’s extremely affordable to purchase a home. With rental rates in the Charleston area averaging around $900 for a 2 bed/ 2 bath unfurnished apartment, you can actually get more for your money with your own home. With low interest rates, you can easily get more square footage for the same amount of money. For example, if you were to purchase a home for $130,000 with an FHA loan (so with 3.5%–$3,500–down) and a 4.1% rate, your monthly payments would be $758 a month.  It’s cheaper, you can paint your walls any color you want, and you’re investing in your future.

Consider purchasing a home today, and call Matt Anderson of Matt Anderson Properties to help you through the process.