Across this country homeowners are in financial trouble especially those families that lost jobs in the last several months that has pushed the Nation’s Unemployment Rate to the highest it has been in many years. The fear in our economy is growing and along with it so are the unemployment lines. Undoubtly the number of foreclosures will also continue to rise. Understanding the reasons for and the effect foreclosures have on any given market is essential in order to evaluate home values and why foreclosures have far reaching effects in areas hit by the foreclosure crisis.
Busting the Housing Bubble – Certainly there are a large number of homeowners who purchased more home than they could afford by falling prey to lenders with numerous creative financing options. Sad but true, these buyers and maybe your neighbor falls under this senario. They bought in the best neighborhood or school district and their ARM is about to or has already reset to a monthly payment that is more than they can now afford. They honestly had all intentions and the good credit to refinance before the loan reset or they planned to sell before the higher interst rate kicked in and higher payment would be their responsibility. We all know how this story ended and see the fallout daily with falling home prices and increasing foreclosures.
Mortgage Fraud – In the Coastal Market I would suspect there could be a number of cases where individuals claimed they were going to use property as a second home on the loan application. Having no intention of occupying the property and placing it back on the market for sale hoping to reap gains by appreciating home prices could have drawn any number of scammers to participate in such actions for a quick profit. Another storybook ending with default and foreclosure that have a definite effect on the innocent homeowners losing value.
Family crisis – Life events such as job loss, divorce, illness or death of a family member are indeed a tradegy in that many of these families end up with financial difficulties that lead to foreclosure. Again if this is someone in your neighborhood, chances are your home value will suffer. One bright spot for individuals that find themselves facing one of these events should be able to work with their lender to avoid foreclosure but it takes honest efforts on the part of the homeowner and communication with the lender should not to be delayed.
The effect on your homes value is directly tied to the number of foreclosures in your neighborhood. In newer neighborhoods builder closeouts and special offers can also put a strain on home prices. Sure prices will rebound but if you need to sell your home in the coming year and there are foreclosures or short sales in your neighborhood your home value will suffer.
It is said that for every foreclosure in a neighborhood that home prices can decline by as much as $10,000. Real Estate is and will remain a solid investment in our families overall wealth and offers advantages over the long term. By nature all real estate prices are local and if foreclosures are increasing in your neighborhood consult your agent for how it is affecting your home value. Contact me for more information. Copyright©2008 Sandra Bundy, Broker-in-Charge, B&P, Inc. This work may not be copied or reproduced in any manner without the express written consent of the Author.
Murrells Inlet Creek
Housing options - Many housing options in all price ranges exist in Murrells Inlet. Private golf communites, Oak lined Streets, Creekfront or waterway, Murrells Inlet has something for everyone.
Amenities - Salt Creek with access to the Atlantic, Intercoastal Waterway, Waccamaw Community Hospital, Inlet Square Mall, Restaurants, Murrells Inlet Boat Ramp, Huntington Beach State Park, Brookgreen Gardens, Marshwalk, Veteran’s Pier & Bike Path.
Climate – Sunny & Mild.
Recreation – On land or water numerous recreational opportunites can be found in Murrells Inlet.
Home Prices – While other markets across the country have seen price declines, home prices along the Waccamaw Neck have remained stable. Copyright©2008 Sandra Bundy, Broker-in-Charge, B&P, Inc. This work may not be copied or reproduced in any manner without the express written consent of the Author.
For 17 years Murrells Inlet residents have devoted time and effort towards cleaning up the streets and the creek in Murrells Inlet. Chip Smith’s vision for cleaning up the creek after Hurricane Hugo in 1989, has continued to pull the community together for a cleaner environment. Many volunteers have helped to continue this annual clean up in Murrells Inlet.
The full moon tide enables boats and kayaks to get into the marsh and gather trash that has accumulated in those areas. All debris is collected at Morris Park Landing and the Hot Fish Club in Murrells Inlet and an after cleanup BBQ, chowder and live music will be held throughout the afternoon.
A recent poll conducted by the South Carolina Association of REALTORS® revealed that over 90% of agents thought the media was having a negative influence on clients. Not surprising since a majority of the media stories on housing appear to be negative.
There is no doubt that many homeowners have been experiencing difficulties in making mortgage payments and are in some stage of default with their home loans. There are also markets all over the county that have seen losses in home values.
What the media does not seem to report is that all markets are not the same and many locations in South Carolina are not seeing the sky falling or drastic price drops in home values. In addition, the media does not seem to report the value of homeownership. A home is the most valuable asset we possess and you can’t live in your 401K, or other investment accounts nor can they store your belongings and keep you warm and dry or give you a good place to raise your family.
By overlooking the local nature of real estate and failing to emphasis the benefits of owning a home, the media is certainly affecting the home buying and selling public in a negative way. The rise and fall of home prices in many markets should be cause for alarm but the media hype appears to be bias and could be cause for further price reductions in some areas.
Having a REALTOR® evaluate the local market can help buyers and sellers make informed decisions. Unlike some of the media reports, your local Real Estate Professional may not be so negative on the value of homeownership and the purchase of real property.
In the Murrells Inlet market along with a majority of the Waccamaw Neck home prices have remained stable and new homes continue to be built in many areas. The decline in the number of homes sold could be linked to the negative media and only time will reveal if our area will see price declines experienced in other markets across the country. Copyright©2008 Sandra Bundy, Broker-in-Charge, B&P, Inc. This work may not be copied or reproduced in any manner without the express written consent of the Author.
