Bryan Crabtree

What does the media know?
The media is certainly not helping the stock or real estate markets these days. And, frankly, they don't have a clue what's really going on in the real world. Yes, Miami, Los Angeles, Detroit, Phoenix and Vegas have some of the worst statistics and market realities in a generation. But, that's not every market. In the Charleston real estate market, it would be more accurate to state that it has near-record inventories and traffic is slow in real estate. However, there are thousands of buyers looking right now. There are still many loan programs available as high as 97% loan to value financing (3% down!). And, while prices have corrected, they're aren't falling rapidly. Certain areas within the Charleston market are stable and some are declining. These conditions (some would call "blood in the streets") are the perfect time to make an educated purchase decision. If you purchase now or in the next six months, I'm a firm believe you'll make great money in the long-run. The prices I'm seeing in some areas of our market now are as ridiculously low as they were high in 2005.

View homes and bank-owned properties at www.housedog.com.

I certainly can't speak for everywhere in the Country, but for the Charleston market, I firmly believe the best time to buy real estate in our market (in 10 years) started last month and will end in February. What I'm seeing is that many sellers are deciding not to sell and many owners are deciding to become investors and rent their property. As this happens, combined with the lack of new building starts and the cleansing of the inventory, it has segmented our market into two categories:

Condos/townhomes

Homes.

Homes under $300,000 will recover first, perhaps as soon as late 2009. Homes from 300-500,000 will be next, in early 2010. Condos/Townhomes up to $150,000 will follow in early 2010. Homes under $1,000,000 will begin to recover in early 2010. And the condo/townhome market will recover by late 2010. We should begin to see price acceleration marketwide by late 2010. Howerver, don't confuse that with the fact that prices will be much better over the next six months than any point historically or in the future.

To search for homes or read more about our Charleston SC Real Estate market, visit housedog.com.

The biggest challenge in buying now is having the right experience and professional on your side. If you're shopping or selling real estate in Charleston, SC, Mount Pleasant, SC or Summerville how do you find the right agent that will give you good advice that will make you money in the long run? Here's an insider tip: Ask them for their agent MLS ID number. Then, ask them for a stat report of all the homes they have sold since January 1, 2008. If they don't have that readily available, then don't use them.

Here's what you're looking for. Generally speaking an agent with an ID code of 1111-9999 has been in a slower Charleston SC Real Estate market before. But, let's say they have a code of say, 17566 for instance. Then, that agent is very new to this business. How about agents with codes of 14000 or so? Then, those agents got in the business in 2004-2005-2006, when a monkey could sell real estate.

Now, let's be fair: There are a few very good agents with codes over 9999. That's why you ask for the stats report. If an agent with a code below 9999 has not sold at least 12 homes this year, they aren't interacting with enough business for you to have the experience you need on their side. But, let's say an agent has a code of 14000 (or that range) and they've sold 16 or more homes this year. They should be fine. But still do your research.

In other words, a good way to get the truth of "time in the business" is to ask for their MLS ID number or code. Then a stat report. If you have experience on your side, you will find this is the best time EVER to buy - you just need the right Realtor to help.

Oh, and this is not the kind of market to trust little Bobby who is your aunt's cousin's friend to help you. You need EXPERIENCE.

VISIT OUR WEBSITE AT HTTP://WWW.HOUSEDOG.COM FOR MORE HELPFUL INFORMATION ON CHARLESTON SC REAL ESTATE.

In my previous posting, we discussed where the Dow is headed and where, specifically, the Charleston real estate market will find a bottom. Many people believe they should wait to see the bottom, then buy. Wrong! When you know specifically what the bottom is, the prices will be 5% above the bottom. Unless, you're lucky, there is not sure way to buy a home at market price at the bottom. So, why not bargain shop and buy now? Take today's comparable sales (within the last 3-4 months) and determine a price with your Realtor (if you don't have one in Charleston, SC area, call me 343-4141). Once you have determined the price you need to buy 5% below it. If you find a fitting bank owned home, that's great, but don't be greedy like the sellers of 2005. However, if you're an investor, wait with patience; cash out those crashing stocks, hold the right amount of cash and buy at 8-12% below market. If you get an even better deal, then great! This is a sure formula for success, but an experienced real estate professional must be involved in this process.

Soft spots to watch? Condos in Mount Pleasant, West Ashley and James Island. Those have 10-15% more to go in some cases.

Between this Presidential Election, the Stock Market freefall and the real estate market, it's a wonderful time, huh? Oh, and I forgot about that little financial crisis. So, where is this going? Well, I can tell you that there is money to be made on Put Options right now in the stock market. And, there is a bottom out there in sight for real estate. Oh, and yes, some people are still quite capable of getting a loan.

My suggestion: If you don't know how to play the option game in the stock market, but you have some cash and have been beaten up, then take that cash and put 20% down on a 10-20% undervalued property. In most markets, particularly Charleston, there are plenty of bank owned homes, and most of them are priced very well.

The forecast? I believe the stock market is headed to 8,000. And, if that's any guidance, our real estate prices are headed back to 2002 - and that's the bottom. Some markets, even big markets, are already there (re: Atlanta). Charleston is a bit ahead. Our prices are in 2003-2004 (early 04) territory. What does this mean? There is about 5-10% more to go.

Read my next entry for the Pricing Catch!