| Lowcountry Real Estate Update Your Source for Charleston, SC! Michelle Whitbeck, Realtor, MBA (843) 270-6057 www.MichelleWhitbeck.com [email protected] |
January 2013
Real Estate Tax Update
• The Mortgage Forgiveness Debt Relief Act has been extended to Jan. 1, 2014. This is a tax waiver on real estate debts forgiven in mortgage refinancings, foreclosures, or short sales. This is a big one for sellers who know they have a short sale situation. You have a another year to try. Just don’t wait to get it listed because short sales take months to get approved by the lender and close.
• A deduction for mortgage insurance premiums for filers earning below $110,000 has been extended through 2013, and retroactive to include 2012.
• A 10% tax credit, which is capped at $500, for homeowners who make energy improvements to existing dwellings was extended through 2013 and retroactive to include 2012. Here are some examples of projects/items: windows and doors, energy saving insulation, roofs, HVAC, water heaters (non-solar) and biomass stoves. The Act renewed (actually, revived) the business tax credit of up to $2,000 for contractors or developers that construct or significantly renovate "dwelling units" (apartments, condos or single-family homes) that meet certain energy efficiency standards.
Area Median Sales Prices for 2012
The majority of areas in Charleston have experienced an increase in the median sales price of real estate. The area that took the greatest hit was Sullivan’s Island and Isle of Palms. The area that increased the greatest in price is Folly Beach.
• The Mortgage Forgiveness Debt Relief Act has been extended to Jan. 1, 2014. This is a tax waiver on real estate debts forgiven in mortgage refinancings, foreclosures, or short sales. This is a big one for sellers who know they have a short sale situation. You have a another year to try. Just don’t wait to get it listed because short sales take months to get approved by the lender and close.
• A deduction for mortgage insurance premiums for filers earning below $110,000 has been extended through 2013, and retroactive to include 2012.
• A 10% tax credit, which is capped at $500, for homeowners who make energy improvements to existing dwellings was extended through 2013 and retroactive to include 2012. Here are some examples of projects/items: windows and doors, energy saving insulation, roofs, HVAC, water heaters (non-solar) and biomass stoves. The Act renewed (actually, revived) the business tax credit of up to $2,000 for contractors or developers that construct or significantly renovate "dwelling units" (apartments, condos or single-family homes) that meet certain energy efficiency standards.
Area Median Sales Prices for 2012
The majority of areas in Charleston have experienced an increase in the median sales price of real estate. The area that took the greatest hit was Sullivan’s Island and Isle of Palms. The area that increased the greatest in price is Folly Beach.
| N. Charleston | $104,000 down 1% from 2011 |
| Goose Creek / Moncks Corner | $161,000 up 5% from 2011 |
| Summerville | $168,000 up 5% from 2011 |
| Hanahan | $174,000 the same as 2011 |
| Wando | $175,000 down 5% from 2011 |
| West Ashley | $186,750 up 7% from 2011 |
| James Island | $207,000 up 10% from 2011 |
| Mt. Pleasant | $309,000 down 1% from 2011 |
| Downtown Charleston | $375,000 up 10% from 2011 |
| Folly Beach | $417,500 up 26% from 2011 |
| Daniel Island | $457,250 up 13% from 2011 |
| Sullivan’s Island / Isle of Palms | $659,000 down 12% from 2011 |
Cash Sales Have Doubled Since 2007
I had a feeling cash buyers were on the rise this past year just from my own experience of taking buyers out and going up against cash buyers on multiple offer situations. Boy, was I surprised to see the actual statistics on how many cash deals closed in 2012!
Forty-one percent of all real estate transactions in the tri-county Charleston area were financed with cash. This is twice as many as how many cash deals closed in 2007!
Tight lending conditions and an increase in investor sales can be attributed to the increase in more buyers paying cash for real estate. Also an increase in the number of international buyers, who often have financing difficulties when purchasing a home in the U.S., can be a reason for the rise in cash sales. National Association of Realtors (NAR) research shows that 62% of international purchases were all cash.
Recent NAR research on down payment sources may offer insights into how cash buyers are receiving funds for home purchases. According to the 2012 NAR Home Buyers and Sellers Profile, 40 percent of repeat buyers use the proceeds from the sale of their primary residence as a source of down payment, but downsizing boomers may have enough equity left from their home sale to pay all cash for their next purchase. One in 10 buyers rely on proceeds from the sale of stocks or 401K disbursements for down payments; those with stable jobs and who saw investment gains in recent years may be using those cash funds to buy a home outright rather than financing the purchase.
Mortgage Rate Quote for Charleston, SC as of 1/7/13
Brandon Buchardt, senior loan officer of Prime Lending, is offering the following home mortgage rates with no origination fees. You can reach Brandon at 843-478-3876 or visit his website at [email protected].
CONVENTIONAL
30 year fixed 3.5
15 year fixed 2.625
FHA/VA
30 year fixed 3.25
30 year fixed 3.25
JUMBO CONVENTIONAL
30 year fixed 4.125
15 year fixed 3.125
JUMBO ARMS
5/1 ARM 2.75
7/1 ARM 3.125
30 year fixed 3.5
15 year fixed 2.625
FHA/VA
30 year fixed 3.25
30 year fixed 3.25
JUMBO CONVENTIONAL
30 year fixed 4.125
15 year fixed 3.125
JUMBO ARMS
5/1 ARM 2.75
7/1 ARM 3.125
*Rates are subject to change due to market fluctuations and borrower's eligibility. Payment amounts do not include amounts for taxes and insurance. Actual monthly payment could be higher.
To receive this newsletter automatically via email, Sign Up for E-news.
