Charleston SC Real Estate

Home sales up 29%, still boosted by federal tax credit

Residential real estate closings during May rose 29% over last year, benefiting from residual effects of the federal homebuyer tax credit and the seasonal boost that normally comes with spring, the Charleston Trident Association of Realtors said.

A total of 878 home sales closed in May. That’s the highest monthly volume the region has seen since September 2007, the Realtors groups said.

“Low (mortgage interest) rates and an affordable selection of property should continue to support healthy market activity,” said Rob Woodul, president-elect of the group. “This month’s sales show high seasonal activity and the lingering effect of the tax credit, which we anticipate will continue into June and possibly July. We’re optimistic that this is setting the stage for a stable market in the fall and later months.”

The federal tax credit, which provided some first-time buyers with $8,000 and some repeat buyers with $6,500, required contracts to be signed by April 30 and sales to close by June 30.

In the first five months of the year, 3,277 homes have sold in the Charleston region, 28% more than in the same period last year.

Average sales price for the region in May, at $186,497, was about even with the May 2009 median of $187,000. The lowest sales price so far this year came in April, when the median was $180,175, the Realtors said.

“We are pleased to see such high sales volume, but it’s equally important that home prices are continuing to stabilize,” said Jeremy Willits, president of the Realtors group. “So far this year, price fluctuations have been minimal, which is ideal as we see inventory gradually returning to a healthy level.”

At the end of May, 9,867 properties were listed for sale with the Charleston Trident Multiple Listing Service.

County by county
Charleston County home sales totaled 475 during May, a 31% increase over last year. The median sales price was $228,000, up 6% from May 2009.

Sales activity in Charleston County was particularly high in Mount Pleasant south of S.C. Highway 41, where 99 homes sold at a median price of $341,236. Johns Island saw its largest number of home sales since March 2007, the Realtors said. Thirty-two homes sold on the island at a median price of $245,988.

In Berkeley County, sales volume increased 46% to 202 during May. The median price increased 10% to $165,517. Within the county, the majority of sales were in Goose Creek and Moncks Corner from U.S. Highway 52 to the Cooper River. Daniel Island also had a strong month, with 22 home sales at a median price of $540,450.

Sales in Dorchester County rose 10% during May to 170. The median sales price was $168,000, down about 2% from last year. The strongest area of sales was the Summerville/Ridgeville area, the Realtors group said. There, 86 homes sold at a median price of $169,272.

April adjustment
The Charleston Trident Association of Realtors revised its April data to reflect sales completed that month but reported later in May.

Preliminary numbers showed that 784 homes sold during April, an increase of 51% over last year. The median sales price was reported to be $180,175.

Revised numbers raise the total to 844 homes sold at a median price of $181,000.

2010 Charleston Area Home Sales Data

Month January* February* March* April* May

Total Sales 429 541 735 844 878

Median Price $191,100 $179,755 $185,000 $181,000 $186,497

Source: Charleston Trident Association of Realtors

*Numbers adjusted after initial release.

Source: Charleston Regional Business Journal, published June 11, 2010

Housing Starts Maintain Upward Trend in March 2010

By Greg Robb

RISMEDIA, April 20, 2010—(MCT)—Fresh data on new construction of U.S. housing units revealed an upward trend in place since the beginning of the year, with an initial report of February 2010 weakness revised away.

Starts rose 1.6% in March to a seasonally adjusted 626,000 annualized units, the Commerce Department recently reported. This was stronger than the 610,000 pace expected by economists surveyed by MarketWatch.

Even more surprising, February starts were revised higher to a 616,000 pace from the 570,000 previously reported. This was up 1.1% from the prior month. The initial estimate had been a 5.9% drop.

As a result of the revisions, starts have risen for three straight months and are now at their highest level since November 2008. “The bottom line is that there is an upward trend and construction will be moving higher provided that new-home sales improve as well,” said Michelle Meyer, economist at Barclays Capital. Meyer cautioned that one should not get carried away with the improvement as it comes from “an incredibly low level of activity.”

Treasury prices and the dollar added to recent gains after the report. The government cautioned that its monthly housing data are volatile and subject to large sampling and other statistical errors. In most months, the government can’t be sure even whether starts increased or decreased. In March, for instance, the standard error for starts was plus or minus 15.2%. Large revisions are common, but rarely have they been in such a positive direction during this recession.

In March, strength came from multifamily starts. There was a slight decrease in starts of single-family homes. Starts of single-family homes fell 0.9% to a 531,000 rate in March, while starts of multifamily units surged 39.7% to 88,000.

The strength was concentrated in the South; all other regions declined in March.

“This was a modestly positive report. It is nice that construction is improving, but it would be better if the gains were more widespread,” wrote Joel Naroff of Naroff Economic Advisers.

In the past year, starts are down 20.2%. Starts of single-family homes are up 47.1%, while starts of apartments and condominium units have plunged 31.8%.

Building permits rose 7.5% to a seasonally adjusted annual rate of 685,000 in March.

Building permits for single-family homes increased 5.6% to a 543,000 rate—the highest level since August 2008. Many economists consider single-family permits to be the most important number in the government’s release. Permits for apartments rose 15.4% to 142,000.

The National Association of Home Builders recently said its members were more encouraged about their business in April. The builder’s sentiment index rose to 19 in April from 15 in March. “We may be seeing some modest improvement in the fundamentals for new housing construction,” wrote the RDQ economic team in a note to clients.

A tax subsidy for buyers expires at the end of April, and “we will need to see data for May and June before we can put too much weight on this conjecture,” the RDQ note said.

It can take four months for a new trend in housing starts to emerge from the data. In the past four months, housing starts have averaged 606,000 annualized, up from 594,000 in the four months ending in February.

The industry has slashed production of new homes to work off a massive amount of unsold inventory. The number of homes under construction fell 1.4% to a seasonally adjusted 489,000, the lowest on record, dating back to 1970. “Any pickup in demand,” Meyer said, “will warrant an increase in new construction.”

(c) 2010, MarketWatch.com Inc.

Distributed by McClatchy-Tribune Information Services.

The S.C. Golf Course Ratings Panel has selected Harbour Town Golf Links, host of the PGA Tour’s Verizon Heritage, as the top golf course in South Carolina.

The Ocean Course at Kiawah Island Resort, which staged the 1991 Ryder Cup and will host the 2012 PGA Championship, climbed to second place.

Harbour Town, located at The Sea Pines Resort on Hilton Head Island, has been dubbed the state's best in every ranking since the panel, composed of 125 members from throughout the state, began its list in 2005.

"I could play Harbour Town every day and never get bored," former U.S. Open champion Jim Furyk said in 2008.

Although the order changed slightly, the same courses from 2008 composed this year's top 10, which were announced Saturday at the panel's awards dinner at Seabrook Island Resort.

"There are so many outstanding courses that we're really splitting hairs," said Michael Whitaker, the organization's executive director.

Sage Valley Golf Club in Graniteville finished third in the balloting, followed by May River Golf Club at Palmetto Bluff, Greenville Country Club's Chanticleer Course, Long Cove Club in Hilton Head, Secession Golf Club in Beaufort, the Dunes Golf & Beach Club in Myrtle Beach, Kiawah Island Club's Cassique Course and Yeamans Hall Club in Hanahan.

Kiawah Island Golf Resort earned top honors among state golf resorts.

Renovations helped Haig Point Club on Daufauskie Island jump 16 spots to No. 24. The Country Club of Spartanburg, which also was revamped, made the rankings for the first time at No. 34.

Lowcountry

1. Harbour Town Golf Links, The Sea Pines Resort, Hilton Head Island
2. The Ocean Course at Kiawah Island Resort
3. May River Golf Club, Palmetto Bluff
4. Long Cove Club, Hilton Head Island
5. Secession Golf Club, Beaufort
6. Kiawah Island Club, Cassique Course
7. Yeamans Hall Club, Hanahan
8. Bulls Bay Club, Awendaw
9. Kiawah Island Club - River Course
10. Old Tabby Links, Spring Island

Top "Stay & Play" Golf Resorts

1. Kiawah Island Golf Resort
2. The Sea Pines Resort
3. Palmetto Bluff Resort
4. Barefoot Resort & Golf
5. (Tie) Wild Dunes, Grande Dunes

South Carolina's Top 50 Golf Courses

1. Harbour Town Golf Links, The Sea Pines Resort, Hilton Head Island
2. The Ocean Course at Kiawah Island Resort
3. Sage Valley Golf Club, Graniteville
4. May River Golf Club, Palmetto Bluff
5. Greenville Country Club, Chanticleer Course
6. Long Cove Club, Hilton Head Island
7. Secession Golf Club, Beaufort
8. The Dunes Golf & Beach Club, Myrtle Beach
9. Kiawah Island Club, Cassique Course
10. Yeamans Hall Club, Hanahan
11. Palmetto Golf Club, Aiken
12. Caledonia Golf & Fish Club, Pawleys Island
13. Bulls Bay Golf Club, Awendaw
14. Musgrove Mill Golf Club, Clinton
15. Kiawah Island Club, River Course
16. Old Tabby Links, Spring Island
17. Cliffs at Keowee Vineyards, Sunset
18. Chechessee Creek Club, Okatie
19. Colleton River Plantation - Nicklaus Course, Bluffton
20. The Golf Club at Briar's Creek, Johns Island
21. Country Club of Charleston
22. Cherokee Plantation Golf Club, Yemassee
23. Colleton River Plantation - Dye Course, Bluffton
24. Haig Point Club, Daufauskie Island
25. Belfair Golf Club - East Course, Bluffton
26. Tidewater Golf Club & Plantation, Little River
27. Cliffs at Keowee Falls, Salem
28. Belfair Golf Club - West Course, Bluffton
29. The Cliffs at Glassy, Landrum
30. Daniel Island Club - Ralston Creek Course
31. Cliffs at Keowee Springs, Six Mile
32. Wild Dunes Resort - Links Course, Isle of Palms
33. Wachesaw Plantation, Murrells Inlet
34. Country Club of Spartanburg
35. The Reserve at Lake Keowee, Sunset
36. Debordieu Club, Georgetown
37. Thornblade Club, Greer
38. Barefoot Resort, Dye Course, North Myrtle Beach
39. True Blue Plantation, Pawleys Island
40. Greenville Country Club, Riverside Course
41. Grande Dunes Resort Course, Myrtle Beach
42. Camden Country Club
43. Heron Point by Pete Dye, The Sea Pines Resort, Hilton Head Island
44. Berkeley Hall, North Course, Bluffton
45. Daniel Island Club, Beresford Creek Course
46. The Reserve Golf Club of Pawleys Island
47. Florence Country Club
48. Columbia Country Club
49. Pawleys Plantation, Pawleys Island
50. Mount Vintage Plantation & Golf Club, North Augusta

Source: Charleston Regional Business Journal, March 16, 2010

A hybrid energy developer is targeting South Carolina among the states where it plans to build a plant.

NTE Energy of St. Augustine, Fla., announced that it is partnering with Energy Investors Funds, a private equity group, in a joint hybrid energy venture. The two intend to develop plants that combine renewable power systems such as biomass or solar with natural gas turbines, as are found in many more traditional power plants. New projects in South Carolina, Alabama and Florida will be announced soon, the two firms said in a statement. No other details about the S.C. project were available today.

“Hybrid renewable energy is a great way to produce large quantities of clean, renewable energy in a cost-effective manner,” said Seth Shortlidge, president of NTE Energy. “We are delighted to partner with EIF to develop and construct a number of these facilities in the upcoming years.”

Energy Investor Funds is a private equity fund that invests in the independent electric utility industry. It was founded in 1987.

Lucas Missong, vice president of Energy Investors Funds, said, “We are excited to be involved in funding the development and deployment of this exciting technology. We believe it will revolutionize the generation of clean, renewable energy in the United States.”

Source: Charleston Regional Business Journal, April 7, 2010

3 Reasons Why Those Who Don't Buy Now Might Regret It Later

RISMEDIA, March 24, 2010—Buying a home is one of the biggest decisions an individual can make. So it’s understandable that one considering a home purchase may take their time to avoid rushing into such a large financial commitment. However, several factors might leave prospective home buyers who don’t purchase a property now wishing they had taken action sooner.

“Current market conditions have created a perfect storm of sorts that has made it an ideal time to purchase for first-time and trade-up buyers alike,” said James M. Weichert, president and founder of Weichert, Realtors. “Those who have the means and the desire to buy now but don’t, aren’t likely to see such a great opportunity again anytime soon.”

Specifically, Weichert offered three reasons why those who aren’t under contract to purchase a new home by April 30, 2010 might regret it.

1. They won’t receive a sizeable amount of money from Uncle Sam.

For the past two years, the federal government has offered a home buyer tax credit to help stimulate the economy. But that financial incentive is set to expire soon. First-time buyers who aren’t under contract to purchase a home by April 30, 2010 will leave the $8,000 that is available to them through the tax credit on the table. Meanwhile, repeat buyers will miss out on the opportunity to collect up to $6,500 from the government.

2. They might not lock-in on the historically-low interest rates.

Thanks to measures taken by the Federal Reserve including the purchasing of mortgage-backed securities, interest rates have remained historically-low for several years. With the economy beginning to show signs of recovery, it is widely believed that the government will soon put an end to these stimulus efforts.

If that happens, many economists believe we will begin to see a sharp increase in interest rates which could result in a much higher monthly payment for those who wait. For example, an interest rate increase of 1% on a 30-year fixed mortgage of $300,000 could cost a buyer $188 more a month or $67,000 more over the span of the entire loan.

3. They might miss out on record home price affordability.

Home price affordability is at its most optimal level in decades. As a result, those who wait to buy will likely pay more for the home they purchase than what that same home would cost right now. In fact, home prices have already begun to rise slightly in some markets. Instead of getting a better bargain, waiting to buy a home might net buyers a higher purchase price, less appreciation and less house for their buck.

“There is no time to waste for anyone who wants to take advantage of this great buying opportunity. Particularly for those who have a home to sell first,” added Weichert. “If you are prone to saying ‘what if’ and wondering what could have been, you will thank yourself down the road for buying now.”

Provided by: rismedia.com

Tax Credits for Replacing Windows, Doors, and Skylights

By: Gil Rudawsky
Published: September 9, 2009

Does it feel like money is escaping through your home’s drafty windows, doors, and skylights? You might be able to keep at least some of that cash in your pocket by taking advantage of federal energy tax credits for retrofitting your house with qualified energy-efficient replacements. You can claim a tax credit of up to $1,500 for upgrading the windows, exterior doors, and skylights in your primary residence during 2009 and 2010.

Follow the 15-year rule for windows
A good rule of thumb for window replacement: Don’t bother if they’re less than 15 years old, says Jim Rooney, a home inspector in Annapolis, Md. The savings on your energy bills likely will be negligible since window technology hasn’t changed that radically and the integrity of your windows should still be intact. Shoddy installation or poor manufacturing may call for exceptions to the 15-year rule. Windows that are 20, 30, or more years old are prime candidates for replacement.

Adding up the costs—and savings
With windows, doors, and skylights, you get what you pay for. Expect to shell out between $500 and $1,000 per window including installation, or about $10,000 total for a moderately sized house of about 2,000 square feet. New energy-creditqualified doors and skylights are also in the $500 to $1,000 range, including installation.

Tom Herron, of the National Fenestration Rating Council, says products on the higher end of the cost scale are usually better constructed and more energy efficient. NFRC is a non-profit organization that administers the rating and labeling system for the energy performance of windows, doors, and skylights.

Do my replacements qualify?
A label alone doesn’t guarantee your new windows, doors, and skylights qualify for the energy tax credit, but it does provide critical information related to eligibility. To qualify, windows, doors, and skylights must have a U-factor of 0.30 or less and a Solar Heat Gain Coefficient (SHGC) of 0.30 or less. The U-factor measures how well a product prevents heat from escaping, and the SHGC gauges how well a product blocks heat from the sun. Labels also carry information on light transmission, air leakage, and condensation resistance.

Herron, of the NFRC, says about 80% to 85% of the manufacturers in North America provide NFRC labels. All Energy Star qualified windows carry an NFRC label, according to Energy Star, a joint program of the U.S. Department of Energy and the U.S. Environmental Protection Agency that promotes energy-efficient products and practices.

Taking advantage of the tax credit
A credit is especially valuable because it directly reduces the amount of tax owed, as opposed to a deduction, which lowers the amount of taxable income. To be eligible for the full credit you must owe more in federal taxes than you’re trying to claim. Use IRS Form 5695 to take advantage of the credit, which is cumulative for 2009 and 2010 only. You can’t claim $1,500 for each tax year, but you can spread the $1,500 over the two-year period.

Uncle Sam may want proof that your new windows, doors, and skylights meet energy-efficiency standards, so be sure to save receipts, product stickers, and certification statements. The latter can often be found on packaging or manufacturers’ web sites. As for receipts, ask contractors to itemize expenses. Installation costs aren’t eligible for the credit; only materials are.

Keep in mind that a variety of energy-efficiency improvements to your existing home, including insulation, roofs, and HVAC, count toward the credit limit. You can’t claim separate $1,500 credits for each upgrade, nor can you claim the credit for a newly built home. Matt Golden, president and founder of San Franciscobased Sustainable Spaces, says homeowners can often lower energy costs for a lot less, and still get the tax credit, by insulating attics instead.

Gil Rudawsky has been covering business and consumer issues as a reporter and an editor for 18 years, most recently as a deputy editor at the Rocky Mountain News. He lives in a house built in the 1930s, and always keeps the home’s character in mind when making upgrades.

How to Get the Extended Home Buyer Tax Credit

Kiawah picked a leading second-home market

If you’re eying a second home, you may not have to leave the Charleston market.

Provided houses like this one on the Charleston Symphony Orchestra Tour of Homes are indicative of Kiawah Island's standing as among the most popular second home markets, according to Barron's magazine.

A recent article in Barron’s financial magazine named Kiawah Island as the next-to-top place for second homes, trailing only Maui.

“At long last, the market for luxury real estate is coming back to life,” says Steven M. Sears, who wrote the article for Barron’s.

The magazine’s conclusion about second homes: “Now could be an excellent time to buy. Prices are way down – 40 percent off the peak in some locations.”

Barron’s selected the 10 best places in America for second homes. “These alluring locales have it all: gorgeous houses, spectacular views, world-class golf, fishing and skiing, fine dining and great shopping,” Sears says.

Here’s what he wrote about Kiawah Island:

“Languid elegance defines South Carolina’s coast, and Kiawah, just off Charleston, may be its ideal expression.

“The island has one developer, Kiawah Development Partners, and an architectural review board that protects the 4,500 or so properties from the excesses often seen when wealth meets water.

“It has 10 miles of hard-sand beaches and abundant wildlife: bobcats, gray foxes, loggerhead turtles and more. Its Ocean Course has long been favorite of golfers; it hosted the 2007 Senior PGA Championship. Want to tee up some culture? Charleston is just 45 minutes away.”

According to the article, the median home price is $1.4 million, the drop from peak prices is 21 percent and a famed “neighbor” is former Miami Dolphins football great Dan Marino.

Source: Post & Courier (March 13, 2010)