Affordable Homes Gain Stock in Myrtle Beach

Construction has started on a new affordable housing community near the intersection of Mr. Joe White Avenue and Robert Grissom Parkway in Myrtle Beach.

The development, which will be called Bay Pointe, will have 50 apartments. It is designed to be a family community, and the apartments will have two or three bedrooms.

The development will have a central community center, playgrounds, a gazebo and picnic benches.

The project will be one of a few communities with the same concept at that corner.

The apartments should be available for lease by low-income residents in June or July.

There will be requirements as to who can rent apartments in the building because the project is funded through the state’s Low Income Housing Tax Credit.

The credit is an indirect federal subsidy that is used to finance the development of affordable rental housing for low-income households, according to the U.S. Department of Housing and Urban Development Web site.

In exchange for their financial backing, the investors will receive a tax credit.

Compliments of the Sun News, Myrtle Beach, South Carolina

Tax Credit Extended for First Time Home Buyers…Great News for Myrtle Beach

I am VERY excited to report that Congress has answered our call to extend and expand the homebuyer tax credit!

As of Thursday, November 5^th, both the House and the Senate have passed an unemployment insurance bill, which includes an amendment that expands and extends the tax credit.

That bill will be sent to President Obama for his signature in the next day or so.

When the President signs the bill, the expiration date for the credit will move to April 30, 2010.

First-time buyers who have not had interest in a principle residence for three years are still eligible, and the maximum amount remains the same – $8,000 for married couples, $4,000 for those filing separately.

Current homeowners, who have consecutively maintained the home they want to sell as their primary residence for five of the last eight years, are also eligible. However, the maximum amount for those homeowners is lower: $6,500 for married couples and $3,200 for those filing separately.

The tax credit may not used to purchase a home for more than $800,000.

All buyers who want to get the credit must include documentation of the purchase on their tax returns.

The income limits for both tax credits have been raised to $125,000 for single buyers and $225,000 for married couples.

This is a major victory for consumers and the housing market.

Tax Credit Ups Home Sales by 9%, Helping the Myrtle Beach Area

Racing to complete their purchases before a tax credit for first-time owners expires, home buyers pushed sales up last month by the largest amount in more than 26 years.

After jumping 9.4 percent in September, home resales are up nearly 24 percent from the bottom in January, as of Friday October 23, 2009. But the housing market’s momentum could easily stop if Congress doesn’t extend the credit of up to $8,000 for first-time buyers beyond its current Nov. 30 deadline.

Nationwide sales rose to a seasonally adjusted annual rate of 5.57 million last month, from a downwardly revised pace of 5.1 million in August. It was the strongest month in two years and beat economists’ forecast of 5.35 million, according to Thomson Reuters. Sales, however, are still down 23 percent from their peak four years ago.

In another positive sign, the inventory of unsold homes on the market fell almost 8 percent to 3.6 million. That’s less than an eight-month supply at the current sales pace, and the lowest level since March 2007.

Real Estate Jumping Up along the Myrtle Beach Grand Strand

Real estate sales along the Myrtle Beach Grand Strand jumped in September, for the fourth consecutive month of increases in part of the market, and that boost is driving down the supply of houses for sale.

It will take about 23 months to sell the single family homes on the market and 30 months to sell the condominiums, based on the number of properties on the market and the number sold in the past year, according to statistics from the Multiple Listing Service.

The number of months it will take to sell properties on the market has decreased for the first time in almost two years.

A healthy market will have a six- to 12-month supply of houses or condominiums, real estate analyst for the Coastal Carolinas Association of Realtors stated.

This is yet another verification that we’re starting to see some improvement in the market along the Myrtle Beach Grand Strand.

These numbers can be used to help determine when the market will be more balanced; it will take about 17 months for single family homes and 24 months for condos.

The Sun News, Myrtle Beach, SC

Great Places to Live in the South Strand Area of Myrtle Beach

Garden City, SC is an unincorporated town that has a population of approximately 10,000 people and is considered South Strand’s hidden treasure. Garden City boasts marshes and winding creeks that are just a few feet above sea level, where you’ll see animals such as birds and alligators. This small ocean village features little neighborhood eateries, taverns, souvenir shops and a bait and tackle store for fishing off the almost 700-foot Garden City Pier. The pier offers free sightseeing for the family. The cafe at the pier’s end offers lunch and dinner with cocktails and live music most weekend evenings. The median age of residents is 54.5 years and the median household income is $37,200.

Surfside Beach, SC is located on 2 miles of pristine beach, just south of Myrtle Beach. Surfside Beach is all about family fun. Surfside Beach features great restaurants with every imaginable cuisine, a fantastic fishing pier, a water park and a live theatre with tribute artists singing songs from artists such as Elvis, Marilyn Monroe and Garth Brooks. There are many seaside, 2^nd and 3^rd row condos with ocean views that allow for easy beach access. Surfside Beach is reminiscent of what Myrtle Beach was like in the 80’s and 90’s, featuring wooden two and three story stilted beach homes and cottages without the high rises interrupting the beautiful ocean views. The median age of residents are 44; and 17.8% of the households having children 18 or younger. The median family income is $49,847.

Murrells Inlet, SC, The quaint fishing village of Murrells Inlet is hailed as the “Seafood Capital of South Carolina,” and prides itself on the natural beauty of the marshes that surround the area. With a population of approximately 5,519, Murrells Inlet is an active community with many yearly festivals and events that show the area’s rich history. Murrells Inlet’s reputation for savory cuisine began long ago when many of the steamboats’ cooks settled in Murrells Inlet and opened their own restaurants. A marshwalk and creekside park encourages residents and visitors to stop and enjoy the view and the abundant fresh seafood. The median age of resident is 47; and the 17.6% of the households have children 18 and younger. The median family income is $47,194.

Litchfield, SC, Litchfield has a population of approximately 3,800. Once known as Magnolia Beach, Litchfield is located on what is called the Waccamaw Neck. Litchfield draws both retirees and families to its quiet, relaxed and upscale neighborhood atmosphere. Features of this unincorporated community included lower-density housing, beautiful landscaping, country clubs and planned undeveloped natural areas and preserved marshlands. Home to the historic Litchfield Plantation which began its roots in the 1700’s and later turned in to South Carolina’s first canning factory in the early 1900’s. Also beautiful, the Litchfield Country Club features a pristine golf course full of southern charm designed by Willard Bird. The median age of residents is 36.9 and the median household income is $46,529.

Pawley’s Island, SC, Pawley’s Island is one of the earliest resort towns in South Carolina and has population of just 138. Pawley’s Island is a barrier island less than 4 miles long, separated from the mainland by beautiful salt marsh accessible by two short causeways. Remaining in the historic district are 12 residences which date from the late 1700’s to the mid 1800’s, boasting antebellum homes. Known for its laid-back lifestyle, including crabbing in adjacent creeks, fishing, and relaxing on the area’s famous rope hammocks and unspoiled beach; this is a perfect place for young retirees who are ready to enjoy a long, active, social retirement. The median age of residents is 55 years, while the median family income is $97,125. Less then 10% of Pawley’s Island’s households include children 18 years old or younger.

Georgetown, Sc is a small river port town with colorful downtown buildings and brick-lined sidewalks that originally began as a Spanish settlement in 1526. Located on the Sampit River, Georgetown has a population of approximately 9,000 and growing. With large manufacturing companies such as International Paper moving into the area’s new industrial parks, Georgetown County offers business and area citizens’ new opportunities for growth. Orman Crampton, author of The 100 Best Small Towns in America, featured Georgetown as one of the top 100. The median age of Georgetown residents is 35. Georgetown’s population is primarily young, diverse families: 32.8% of Georgetown’s house holds include children under 18.

New Homes Sales Rise 0.7 Percent in August

New U.S. home sales posted a tepid 0.7 percent increase last month, missing Wall Street expectations and providing more evidence that the housing market recovery remains tentative.

The Commerce Department said Friday sales inched up to a seasonally adjusted annual rate of 429,000 from a downwardly revised 426,000 in July. Economists surveyed by Thomson Reuters had expected a pace of 440,000.

While it was the fifth straight increase and the strongest report in 11 months, sales were 4.3 percent lower than the same month last year. Sales have risen 30 percent from the bottom in January, but are off about 70 percent from the peak of four years ago.

The report was the second straight disappointing sign for the U.S. housing market, which is struggling to emerge from the most severe bust in generations. On Thursday, the National Association of Realtors said sales of previously occupied homes, which make up the bulk of the market, dipped 2.7 percent last month.

Builders continue to make severe cuts in prices to attract buyers. The median sales price of $195,200 was off 11.7 percent from $221,000 a year earlier, and 9.5 percent below July’s level of $215,600. That was the largest monthly drop on records dating to 1963.

There were 262,000 new homes for sale at the end of August, down more than 3 percent from July and the lowest in nearly 17 years. At the current sales pace, that represents 7.3 months of supply — the smallest amount since early 2007. The decline means builders have scaled back construction to the point where supply and demand are coming into balance.

Buyers, meanwhile, are rushing to take advantage of a federal tax credit that covers 10 percent of the home price, or up to $8,000 for first-time owners. Home sales must be completed by the end of November for buyers to qualify. Builders and real estate agents are pressing Congress for that credit to be extended.

Sales varied dramatically around the country. The best performance was in the West, where sales rose more than 12 percent, and the worst was in the Northeast, where sales sank more than 16 percent. They were unchanged in the South, and down nearly 6 percent in the Midwest.

Meanwhile, major builder KB Home posted a smaller third-quarter loss of $66 million on Friday as it reduced costs and said new home orders increased. Still, the results missed analysts’ expectations.

Copyright Associated Press, Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Pending Home Sales Up Seven Months in a Row…

Pending-home-sales index rose 6.4 percent in August to its highest level since March 2007, the National Association of Realtors reported Thursday.

The index, which tracks sales contracts signed on existing homes and is designed to forecast actual sales, has risen for seven months in a row for the first time since the gauge was created in 2001, the industry trade group said.

Buyers may be rushing to complete their purchase before Nov. 30 to qualify for an $8,000 tax credit from the federal government. The tax credit is “adding to a more fundamental recovery in demand that reflects low prices and mortgage rates,” said economists for UBS Securities.

On Thursday, Freddie Mac reported average mortgage rates fell below 5 percent for 30-year fixed loans, and to a record-low 4.36 percent for a 15-year fixed.

Buyers who’ve been on the fence could also be jumping in now, after seeing prices rise for several months. Still, credit conditions remain tight for potential buyers, with banks reporting that they’ve tightened up on the criteria to get a loan.

Meanwhile, the Commerce Department reported that spending on construction projects increased 0.8 percent in August, led by a 4.7 percent rise in spending on private residential buildings, the largest monthly gain since 1993.

In the past year, construction spending is down 11.7 percent, while spending on private homes is down 27 percent.

With increases in the past few months, residential investment is on track for the first quarterly gain in nearly four years.

The pending home-sales index has been much stronger than existing home sales, which are recorded at the closing of the sale – usually a month or two after a sale contract is signed. The pending-sales index has risen 19 percent since December, while closed sales are up about 8 percent, according to data from the real-estate group.

Presented by The Sun News, Myrtle Beach, SC, October 3, 2009

August Pending Home Sales Rise to 2 1/2 Year High

Pending Home Sales Rise for Seventh Straight Month in August to Highest Level since March 2007

Aspiring homebuyers rushed to take advantage of a tax credit for first-time owners that expires in November, driving up the number of signed sales contracts for the seventh straight month in August.

Construction spending also rose unexpectedly in August on the biggest jump in housing activity in nearly 16 years, another sign the real estate market is recovering from its four-year slump, data Thursday showed.

Sales and homebuilding are being fueled by a tax-credit of up to $8,000, low mortgage rates and cheap foreclosures. In some of the most hard-hit areas, like Phoenix and Las Vegas, there are bidding wars for deeply discounted properties. And in all but a few cities, home prices are slowly starting to rise, reversing their three-year descent.

To make sure first-time buyers can complete their purchases by the Nov. 30 deadline, real estate agents “have been pushing buyers to sign a contract at least a couple months in advance” according to Abiel Reinhart, an economist with JPMorgan Chase.

More than a dozen bills have been introduced in Congress to extend the credit, but it’s unclear if lawmakers want to continue to subsidize the market.

The National Association of Realtors said Thursday its index of sales agreements rose 6.4 percent from July to 103.8, beating forecasts. It was the highest since March 2007 and 12 percent above a year ago. Economists surveyed by Thomson Reuters expected the index would rise to 98.6.

Typically there is a one- to two-month lag between a contract and a done deal, so the index is a barometer of future sales. However, new rules for home appraisals and rigid lending standards have scuttled many sales agreements recently. In addition, the index may also double-count some buyers who agree to purchase other homes after the first deal falls through.

These factors have made the index a less reliable gauge for completed sales. Despite a steady increase in the number of signed contracts this summer, for example, completed sales actually took an unexpected 2.7 percent dip in August.

“Perhaps the real question is how many transactions are being delayed in the pipeline, and how many are being canceled,” Lawrence Yun, the Realtors’ chief economist, said in a statement. “Without historic precedents, it’s challenging to assess.”

Pending sales were up 16 percent in the West and 8 percent in the Northeast. They were up 3 percent in the Midwest and nearly 1 percent in the South.

Home prices, meanwhile rose 1.2 percent from June to July, according to the Standard & Poor’s/Case-Shiller home price index of 20 major cities. On a seasonally adjusted basis, prices rose in all but three metro areas, Las Vegas, Detroit, and Seattle.

Housing experts, however, remain divided on whether the price gains signal a definite bottom to the worst housing downturn in decades or just a brief respite from plummeting prices.

Copyright 2009 The Associated Press. All rights reserved.

US Home Loan Demand Hits Highest Since Late May

U.S. mortgage applications jumped last week to their highest since late May as interest rates tumbled below 5 percent, data from an industry group showed on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week to September 18 increased 12.8 percent to 668.5, the highest since the week ended May 22.

While consumers clamored for home refinancing loans, their appetite was also robust for applications to buy a home, a tentative early indicator of sales. The overall trend bodes well for the hard-hit U.S. housing market, which has been showing signs of stabilization.

Eric Belsky, executive director at Harvard University’s Joint Center for Housing Studies, said several months of improvement in new and existing home sales is a positive sign.

“Low interest rates on mortgages are important to the fledgling housing recovery,” he said, and this has made a significant impact on the affordability front.

“While an uptick may bring buyers anxious that rates will keep rising into the market temporarily, a material increase in rates could threaten the rebound,” he said.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 4.97 percent, down 0.11 percentage point from the prior week and the first time since the week to May 22 the rate on this most widely used home loan was below 5 percent.

However, the rate remained above the all-time low of 4.61 percent set in the week ended March 27. The survey has been conducted weekly since 1990. Nevertheless, interest rates were well below year-ago levels of 6.08 percent.

The U.S. government has embarked on an aggressive plan to bring mortgage rates down to levels that would spur demand and help the battered housing market to begin to recover.

The Federal Reserve has set a goal to buy up to $1.25 trillion of agency MBS, $300 billion of Treasuries and $200 billion of agency debt in 2009. The Fed expects to have bought all the Treasuries by end-October while purchases of agency MBS and agency debt are due to be completed by year-end.

On Wednesday the Fed’s policy-making Federal Open Market Committee will make a statement after a two-day meeting. Any changes, such as plans to end programs early or not use the full amounts budgeted, could make interest rates on mortgages rise, which would be negative for the housing market.

Low mortgage rates, high affordability and an $8,000 tax credit for first-time home buyers — part of the government’s stimulus bill — have helped stabilize the market.

But with the tax credit set to end November 30 and distressed properties making up a high proportion of sales, the flurry of activity masks uncertainty about the long-term outlook.

“While it is by no means a slam-dunk, it does feel increasingly likely that the tax credit will be extended beyond the end of November or revived some time next year,” said Celia Chen, senior director of housing economics at Moody’s Economy.com in West Chester, Pennsylvania.

The MBA’s seasonally adjusted purchase index rose 5.6 percent to 288.3, driven by applications for government-insured loans. The government purchase index was at the highest level ever recorded in the survey and the share of purchase applications that were government-insured was 45.7 percent, the highest share since November 1990, the MBA said.

The four-week moving average of mortgage applications, which smoothes the volatile weekly figures, was up 4.3 percent.

The MBA’s seasonally adjusted index of refinancing applications increased 17.4 percent to 2,881.5, its highest since the week ended May 29.

The refinance share of applications increased to 63.8 percent from 61.0 percent the previous week, but remained significantly lower than the peak of 85.3 percent in the week to January 9. The adjustable-rate mortgage share of activity increased to 6.7 percent, up from 6.0 percent the prior week.

The National Association of Realtors on Thursday releases August data on U.S. existing home sales and on Friday the Commerce Department releases August data on new home sales

(Copyright © 2009 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.)

Easy As 1-2-3

The decision to purchase a home can be an immense decision. You first need to ask yourself questions like, Where do I want to live? What type of neighborhood? What can I afford? Following the three steps below just may help with the decision on starting the process to finding your dream home.

It is as easy as 1-2-3.

Step One: In What Kind of Neighborhood do I Feel Comfortable Living?

For example, do you like to golf? If you do, you might want to look only at golf course communities.

If you like to boat or fish, you may want to look at neighborhoods near a waterway or the ocean.

Are you tired of doing lawn maintenance? If so, you might want to look only at townhomes and condos.

Step Two: What Kind of Home do You Need?

How many rooms do you need? Think of adding an extra room for company.

Do you have children? Maybe think of having a bonus room.

Do you need large amounts of storage or parking? What size lot suits your needs?

Sit down and make a list of things you need, as well as things you want.

Step Three: Now, Crunch the Numbers…

What is your budget? Getting a loan pre-approved will help you decide what this amount could be.

What upcoming financial expenses have to be considered? Getting married or having a child needs to be factored into your home purchase decision.

Once you have itemized all of the details you want in a home, you are ready to contact a Real Estate Agent. Being able to communicate your needs and wants in your future home, will better assist your Agent in finding the perfect home for you.