Hilton Head Real Estate Blog

Time to stop surviving and shift to thriving. It’s an ill wind that doesn't blow some good, and you need to make the most of the opportunities that are out there. 

Energize your career. Don't just worry about keeping your job–make it better. Lean times present an opportunity for niche employees to put other skills to work and rebuild their reputations as go-to multitaskers. Employees should actively try to pick up the work of their departed peers. Also, volunteering to take on new responsibilities can pave the way for a negotiation in six to eight months, when an employee can prove that the job has evolved and is now worth more on the market. A new outlook and approach like this will help you hold on to your current job, or pave the way to your new career. 

Refinance your home. Recent Federal Reserve announcements intended to ease the financial crisis have sharply reduced 30-year fixed mortgage rates, to 5.5 percent at the start of the week vs. 6.2 percent just two weeks earlier, according to HSH Associates. “Recession equals lower Treasury rates, which equals lower mortgage rates, which equals a great opportunity to refinance,” says Mike Larson, a real estate analyst at Weiss Research. 

Buy a home. Home prices nationally have already fallen more than 20 percent from their 2006 peak, and in certain boom-and-bust states the declines have been even more precipitous. So if you've got a stable job, good credit, a down payment, and a strong stomach, there are certainly buying opportunities out there for you. “I can point to properties here in [Florida] that are off 40 to 50 percent from their peak bubble levels,” says Larson, who is based in Florida. “This is creating an opportunity.”

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Over a week ago (over Thanksgiving), we saw the lowest fixed rates in history—we were at 5.25% with no origination, again for a short time.  So what happened?  Clients were email who would benefit immediately, and only a few acted and received those rates.  The rest exhibited the typical “greed” and quoted the “news” that the rate is supposed to go to 4.5% (seen on CNN and other news stations).  Now, rates have ticked back up a bit, so many folks missed an opportunity. 

What did we learn last week? 

• You don’t know what you’ve got ‘til it’s gone.  (You don’t know where the bottom is until we pass it.) 
• You must not believe all you see and hear in the news.  Use common sense!  With the highest unemployment in years and people uncertain about their income and jobs (therefore, no consumer confidence), would even a 1% mortgage rate matter, let alone 4.5%?  Lower mortgage rates are not the “silver bullet.” There are bigger issues. 
• Low mortgage rates are not turning around the housing market—at least not yet.  In the past, we have seen low rates with climbing housing prices or high rates keeping a lid on the housing pricing.  Today’s historic low mortgage rates at the same time that we have low housing pricing are something I have not seen in my years in the business.  I would think that customers would be lined up outside your doors and mine taking a number to make an appointment to grab the rates and the housing bargains.  What is everyone waiting for?  Obviously, there are more pressing issues (like unemployment) that need to be solved.   

Volatility in the market continues.  The FEDs meet next week and there is speculation that they will cut the Fed Funds Rate again, but remember, this does not equate to lower mortgage rates.  The cut will lower the PRIME rate, but many users of home equity lines are already at their floor rate (there is always a ceiling and a floor rate on home equity lines). 

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Are you tired of paying for all of those 411 calls? Google has launched a new 411 service that is free, and they take it to the next step by connecting you for FREE . No more of this,” you can be connected for an additional 35 cents”. It even gets better! If your phone is internet capable, they'll send you a map of the listing.

All you have to do is call 1-800-466-4411, and an automated service will answer the phone. After giving them the name of the business you're looking for, you will be asked if you'd like to be connected, or if you'd like additional details. If you ask for additional details, you will be given the name of the business, address, and phone number.

I can't tell you how much time this is going to save for me. As a real estate professional, it seems as if I live on the phone. The convenience factor of this new automated 411 service is great. Just last week I needed to round up some rental projections for a client. I had to pull off of the road, get out of the car, find the phonebook, and then waste another 10 minutes thumbing through all of the yellowpages. The 1-800 number is now programmed into my cell phone, and it works great!

Watch this video to see how this new feature works:

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According to University of South Carolina economists, a slowing economy in the rest of the country and a weaker dollar might help tourism on Hilton Head.

“I'm thinking Hilton Head Island could actually be one of the beneficiaries of the tourism growth because of the declining dollar. A lot more people will be taking vacations closer to home. Hilton Head Island, with its reliance on tourism, might not see its economy slow as much, if at all.” Doug Woodward and Paulo Guimarares presented this forecast to research economists this week in Columbia, South Carolina.

In rebuttal to the gloom and doom of national news media reports, buying a home isn't stupid, says the National Association of Realtors. The press has been relentless with negative news, but 2007 will be the 5th best housing year on record.

Homeownership is not a quick in-and-out purchase like stocks. Wealth is built over the long term, which is one reason why homebuying is heavily subsidized by tax savings and generous loan programs that enable people to get into homes without large down payments.

Stocks and houses aren't the same. Over ten years, a $10,000 investment in the stock market at a normal 10 percent market rate of return would yield nearly $24,000. The same investment as a down payment on a $200,000 home at a normal appreciation rate of 5 percent would return nearly 5 times the stock market return, or over $110,000.

We are able to get 5.875% on a 30 year fixed conforming loan with no points at this moment. The rates are great and the prices are lower than they have been in years.

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