Jeff McIlhenny

I think it is safe to say that the $8000 first time homebuyer tax credit has made an impact nationwide on home sales. I know I have seen it here in the Charleston SC real estate market.

So, once it expires December 1 later this year, then what? There have been discussions on if the government will extend the credit into 2010. There are suggestions to expand the credit to all homebuyers, not just first timers. And possibly increasing the credit.

There are many arguments for each of these options--but they all boil down to further helping the real estate market recovery and increasing home sales. Just what kind of impact might these have?

Weichert.com recently did a survey of 500 guests to the website. While this is by no means a true, scientific research, it does show that any of these possibilities could have a tremendous impact on the real estate market for 2010.

By expanding the current tax credit to $15,000, the number of highly motivated first time buyers would increase by 40%.

Of current homeowners, 4 out of 5 said they would be somewhat to highly motivated to buy another home if they were to receive the $8000 tax credit. If the credit was expanded to $15,000, existing homeowners motivated to buy would increase to 94%.

While just a small slice, this survey seems to reflect what many people feel, and are starting to voice. Recent bills were submitted in Congress seeking to expand and increase the tax credit. When Congress was passing the original tax credit bill for first time buyers, the original amount was $15,000. This will be an interesting development to watch over the next few months.

Thinking of selling or buying Charleston SC real estate? Be sure to visit my website, your resource for information about selling or buying Charleston homes.

Jeff McIlhenny is a licensed Realtor and Broker with Weichert Realtors Palmetto Coast in Mt Pleasant SC and serves the entire Charleston SC real estate market. He can be reached at 843-452-2953 or jeffm@weichertpc.com.

Here is a breakdown of sales in the Charleston SC real estate market through the end of June. The stats are from the Charleston Trident Area Realtors Association (CTAR) Multiple Listing Service, and the ones I am focusing on are total number of solds, average sale price, median sale price, average days on the market (DOM), inventory numbers (active listings) each month, and absorption rate.

One quick note--absorption rate is calculated by dividing the currently active listings by the sold listings. This figure shows how many months it would take to sell out of inventory at that month's rate of sale.

Month Solds Avg Price Median Price DOM Current Inventory Absorption Rate

Jan 411 $268,401 $179,181 112 10,329 25.13

Feb 424 $255,927 $185,995 110 10,498 24.75

March 600 $258,382 $185,463 125 10,688 17.81

April 555 $274,594 $184,000 121 10,710 19.29

May 687 $267,693 $192,900 119 10,818 15.74

June 710 $271,016 $195,000 118 10,871 15.31

Average: 3387 (total) $266,002 $187,090 118 10,652 19.67

The Charleston SC real estate market wasn't as greatly impacted by all of the real estate turmoil the last few years as many markets were across the nation. However, our market has seen declines. Charleston is better poised to make a recovery sooner than most markets. These numbers do seem to show things may be slowly getting better.

Forbes released a report in January, the "Top 25 Markets" in the US. They examined major metro areas to see which markets were best poised to make a recovery. They didn't rank the markets from 1-25, but they did list Charleston among the 25. They predicted prices would fall in Charleston an additional 1% over 2009 before finally hitting bottom.

So, the million dollar question, Have we hit the bottom?

The numbers so far in 2009 look promising, with sales increasing, average prices increasing, and absorption rate decreasing.

There are a few factors at work here. First, sales traditionally increase in the Spring and Summer. Plus, the $8000 first time buyer tax credit has brought out many home buyers that otherwise wouldn't have bought a house.

On the positive side, with the tax credit expiring at the end of November, more first time buyers should be entering the market. If we have hit bottom remains to be seen, but the more people sense that the bottom is here, the more motivation we will see--buyers may sit on the fence in a down market, waiting for the "bottom", fearful of overpaying. However, once it appears that bottom has hit, then traditionally there will be an influx of buyers fearful of missing the opportunity and buying on the uptick.

Could the tax credit be extended, maybe even expanded? Could they increase the credit amount? Could they make it eligible for buyers other than just first time buyers? Any of these would help the recovery, and get more buyers off the fence, as well as bring buyers into the market that otherwise would not be looking to buy (such as move up buyers).

Another positive factor for Charleston is the fact that it is a strong market well poised for a recovery. The Charleston SC real estate market still looks to have good potential for the future, based on several factors: destination location (coastal), strong economy, and cheaper that many markets--especially in the Northeast, the largest feeder market for Charleston.

It would be wise to remain cautious regarding the Charleston SC real estate market. Keep in mind, there are still short sales and foreclosures lurking out there. I haven't checked the numbers, but based on recent surfing on the MLS, it would appear that short sales and foreclosure sales have dipped in the last few months. But I believe this to be misleading.

There was the foreclosure moratorium imposed by the federal government, and the SC State Supreme Court also enacted one a couple months back--this was done to allow more time for home owners with Fannie or Freddie backed loans to seek loan modifications. So this has held up many would be foreclosures.

Also, half of loan modifications wind up in foreclosure. Not all home owners that received the reprieve will be eligible for a modification. Of those that do, many will still wind up in foreclosure down the road. So I think it is a safe bet we will still see at least another wave of foreclosures. Getting through all of the short sale and foreclosure inventory will help things and take us from recovery to prosperity faster--but that is a whole different subject to blog about.

Bottom line, depending on your objectives and time frame, there are great deals out there on the Charleston SC real estate market for buyers, especially first time buyers. It will be a long time before we see the fast appreciation days we saw a few years ago (and we probably won't see it like that again, ever), however, that doesn't mean investing in Charleston SC real estate isn't a good idea in the current market conditions--it looks to be a sound investment, but not a get rich quick idea.

Stay tuned, I will have future posts regarding stats of specific towns within the Charleston SC real estate market.

Looking to sell or buy in the Charleston SC real estate market? Visit my website for helpful information for buyers and sellers of Charleston homes.

Jeff McIlhenny is a licensed Realtor and Broker with Weichert Realtors Palmetto Coast in Mt Pleasant SC and serves the entire Charleston SC real estate market. He can be reached at 843-452-2953 or jeffm@weichertpc.com.

If you are a first time homebuyer in the Charleston SC real estate market, there is almost no excuse not to buy a home!

Prices have pretty much hit bottom, interest rates are still at or near their 40 year lows, and inventory is high--all ingredients for a buyer's market.

There is also the $8000 first time home buyer tax credit, that is a true credit and not a deduction. What is the difference?

You can be refunded up to the full $8000 on your taxes--if you owe $2000 on your taxes, now you will instead see a REFUND of $6000! Plus, it is not too late to claim the credit on your 2008 taxes--even if you have already filed them!

Now, the government has added a new wrinkle to this credit--they are now allowing home buyers to access the credit at the closing table so that you can use it for your down payment! Free money for buying a home courtesy of Uncle Sam (of course, you have to remain in the home for a minimum of 3 years so that there is no recapture).

This doesn't have to be your first home to qualify--if you have not had ownership interest in a primary residence in the last 3 years, you qualify for the credit!

If you are a married couple, and neither of you have had ownership interest in a primary residence in the last 3 years, then you are eligible. However, if one of you has had ownership interest in the last 3 years, then neither of you are eligible.

For couples planning a Charleston SC wedding, it might be best to buy a home first, before marrying, in order to take advantage of the tax credit. More information for Newlywed homebuyers looking for Charleston homes for sale.

If you are a first time buyer, you have until December 1, 2009 to take advantage of this unique opportunity--it is truly a "Perfect Storm" of opportunity for first time buyers!

Get more information about buying Charleston homes for sale, including helpful info about the $8000 tax credit and first time homebuyer information.

Jeff McIlhenny is a licensed Realtor and Broker with Weichert Realtors Palmetto Coast in Mt Pleasant SC and serves the entire Charleston SC real estate market. He can be reached at 843-452-2953 or jeffm@weichertpc.com.

When you buy a home in Charleston SC, it's important to get advice and expertise from experienced individuals. The three most important advisors you'll find during the home buying process are: An experienced Charleston SC real estate agent, your loan officer and your home inspector. In this article, we'll talk about about what each of these professionals can do for you.

Your Charleston SC Real Estate Agent

Your real estate agent is the single most important real estate professional you'll be working with throughout your home buying process. Your real estate agent is the person who's responsible for finding properties you might be interested in, educating you on the buying process, and finally helping you negotiate a great deal on a property.

Choosing a good Charleston SC real estate agent is absolutely vital. The best real estate agents to work with are the agents that are experienced and have your best interest at heart.

Your Loan Officer

Your loan officer is the "go between" person between you and the lender. For example, your lender might be "Washington Mutual," and the loan officer is the person from Washington Mutual who deals directly with you about your loan.

Having a good loan officer is absolutely essential to the mortgage process. Your loan officer is the person who'll make sure that your loan goes through. Your loan officer is also the person who will educate you on the different types of loans available and your mortgage options.

Loan officers are paid on commission. It's important to have a loan officer who looks out for your best interest rather than a loan officer who's trying to make the highest commissions.

Your Charleston SC real estate agent can recommend a good loan officer to work with if you do not have one.

Home Inspector

Your home inspector is another important professional in the home buying process. The inspector is the person who will inspect your property and let you know if anything is wrong before you make your purchase.

Make sure you ask a lot of questions during the inspection process. Remember that you're paying for a professional service, so make the most out of it. Ask questions, even if they seem stupid.

There is a lot of free information available to you about buying a home in Charleston SC real estate. For complete information about the Charleston SC real estate market including current homes for sale, property values and more please visit the most complete website online dedicated to everything Charleston SC real estate.

Jeff McIlhenny is a licensed Realtor and Broker with Weichert Realtors Palmetto Coast in Mt Pleasant SC and serves the entire Charleston SC real estate market. He can be reached at 843-452-2953 or jeffm@weichertpc.com.

Charleston SC has long been a destination for tourists. In fact, many people end up moving to Charleston because of a visit they made. One trip and it is easy to see why people fall in love with the "Lowcountry": close proximity to the Atlantic Ocean, all of the water that surrounds us (tidal creeks, marshes, rivers, inter coastal waterway, etc.), the historic charm and architecture, the great history of one of the oldest cities in the US. the warm, sub tropical climate, and of course, all of the friendly folks that inhabit this fine city.

Many people do not consider now a good time to buy a home in Charleston SC, or anywhere for that matter. However, that couldn't be any further from the truth, and recent reports show that Charleston SC is indeed a great place to buy a home.

First, Charleston SC is a buyers market--it is a great opportunity for relocating, for move up buyers, investors and first time buyers.

Inventory is still high--over 10,000 homes currently listed! Prices have dropped. Interest rates are at all time lows. Plus, the new $8000 first time homebuyer tax credit. This is the time to buy, especially if you are a first time buyer. Remember the old saying, Buy Low, Sell High!

There may be some trepidation for those looking to buy a home in Charleston SC. What about the state of the economy and the Charleston SC real estate market?

Forbes released a report at the beginning of the year in which they looked at real estate markets in metro areas with populations of 500,000 or greater to determine the strongest markets. They wanted to see which markets are the closest to recovery. The greater Charleston SC real estate market made their Top 25 Strongest Markets list.

The Charleston SC real estate market wasn't as greatly impacted by the housing bubble bursting as other real estate markets. In fact, we were affected more indirectly--many people that were trying to relocate here were unable to do so because they could not sell their homes. Our decline was minimal compared to the rest of the nation.

Inc.com released a report in which they rated the Top Cities For Business. They wanted to determine the best locales for short term and long term job growth, important indicators of future econmic vitality. Overall, Charleston ranked #35, and for mid sized cities ranked #6.

Another survey, performed by Milken Institute, determined their list of Best Performing Cities, where jobs are created and sustained. Charleston SC finished ranked #10.

All of these reports help illustrate that Charleston SC is a solid choice to call home. These factors indicate a strong future economy, an important factor for a strong and thriving home market.

Buying a home in Charleston SC is an emotional process--we buy homes with our hearts. After our heart finds "The Right Home", we then rationaloze our decision. The Charleston SC real estate market offers the best of both worlds right now: the emotional part of the equation has always been there, but it also makes excellent sense from an investment standpoint. There are simply too many positive factors that exist, and many positive indicators that it will continue to be a strong market.

Just as you must crawl before you can walk, you must be strong before you can thrive (again).

Need more incentive? National Geographic did a survey of their own, "50 Best Places To Live: The Next Great Advebture Towns". Guess what? Charleston SC made that list also!

Visit my website for more info about buying a home in Charleston SC.

Jeff McIlhenny is a licensed Realtor with Weichert Realtors Palmetto Coast in Mt Pleasant SC and serves the entire Charleston SC real estate market. He can be reached at 843-452-2953 or jeffm@weichertpc.com