Category Archives: Home Buying (For Buyers)

This category features information about buying property.

07/03/2024 · 10:54 am

Housing Market Forecast For The Second Half of 2024

As we move into the second half of 2024, here’s what experts say you should expect for home prices, mortgage rates, and home sales.

Home Prices Are Expected To Climb Moderately

Home prices are forecasted to rise at a more normal pace. The graph below shows the latest forecasts from seven of the most trusted sources in the industry:

The reason for continued appreciation? The supply of homes for sale. Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), explains:

“One thing that seems to be pretty solid is that home prices are going to continue to go up, and the reason is that we don’t have housing inventory.”

While inventory is up compared to the last couple of years, it’s still low overall. And because there still aren’t enough homes to go around, that’ll keep upward pressure on prices.

If you’re thinking of buying, the good news is you won’t have to deal with prices skyrocketing like they did during the pandemic. Just remember, prices aren’t expected to drop. They’ll continue climbing, just at a slower pace.

Mortgage Rates Are Forecast To Come Down Slightly

One of the best pieces of news for both buyers and sellers is that mortgage rates are expected to come down a bit, according to Fannie Mae, the Mortgage Bankers Association (MBA), and NAR (see chart below):

When you buy, even a small drop in mortgage rates can make a big difference in your monthly payments. For sellers, lower rates will bring more buyers back into the market, which can help you sell faster and potentially at a higher price.

Home Sales Are Projected To Hold Steady

For 2024, the number of home sales will be about the same as last year and may even rise slightly. The graph below compares the 2024 home sales forecasts from Fannie Mae, MBA, and NAR to the 4.8 million homes that sold last year:

The average of the three forecasts is about 5 million sales in 2024 – a small increase from 2023. Lawrence Yun, Chief Economist at NAR, explains why:

“Job gains, steady mortgage rates and the release of inventory from pent-up home sellers will lead to more sales.”

With more inventory available and mortgage rates expected to go down, a few more homes are expected to be sold this year compared to last year.

The average of the three forecasts is about 5 million sales in 2024 – a small increase from 2023. Lawrence Yun, Chief Economist at NAR, explains why:

“Job gains, steady mortgage rates and the release of inventory from pent-up home sellers will lead to more sales.”

With more inventory available and mortgage rates expected to go down, a few more homes are expected to be sold this year compared to last year. This means more people will be able to move.

If you have considered buying or selling, feel free to contact me anytime! I have 25 years’ experience and can help you navigate today’s market to reach your goals.

Gena Glaze

Data from KCM

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06/17/2024 · 12:54 pm

SC Real Estate Property Tax Discounts

Owner Occupant Rate

As a general rule in South Carolina, legal residences are taxed based on a 4% assessment ratio. Only owner-occupants are eligible to apply for the 4% special assessment. If the property has any rented residences on it or any business for profit, the 4% assessment does not apply. Investment properties are typically taxed at a higher rate – usually a 6% assessment ratio. However, you must apply to receive the lower owner-occupied rate. Check with your county’s Tax Assessors office for full details and see if you meet the qualifications of the 4% assessment ratio.

The Homestead Exemption

The Homestead Exemption is an exemption of taxes on the first $50,000 of Fair Market Value of your Legal Residence for homeowners over age 65, totally and permanently disabled, or legally blind.  If you think you may qualify for the Homestead Exemption, contact the County Auditor’s Office for full details of the reduction and information about the application process.

Gena Glaze

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06/05/2024 · 4:25 pm

The Price per Square Foot of an Average U.S. Home Jumped More Than 50% Since 2019 – How Does Charleston compare?

The latest monthly housing report from Realtor.com® reveals that the typical listed price per square foot grew by a whopping 52.7% from May 2019 to May 2024.

The price per square foot is a crucial metric in real estate because it allows for easy comparison between different properties, regardless of their size. And while this is valuable information, it’s only one data point of many that buyers and sellers should consider.

Examining the markets with the steepest rises in price per square foot reveals substantial growth in popular metropolitan areas. Based on listing price, properties in the New York City metro area (+84.7%), Boston (+72.9%), and Nashville, TN (+68.6%), have seen the great increases in price per square foot since May 2019.

LOCAL – CHARLESTON MLS

Locally, our median price per sqft has increased about 65% from May of 2019 to May of 2024. Our median price per/sqft in May of 2019 was $150 / sqft and in May of 2024 it was $229 / sqft .

Our median sales price has increased about 67% from May of 2019 to May of 2024. Our median sales price in May of 2019 was $285,000 and in May of 2024 it was $425,000

Gena Glaze

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04/12/2024 · 7:37 pm

When Will Mortgage Rates Go Down?

Many forecasters still expect mortgage rates to decline this year, but for now, stubborn inflation numbers are keeping rates higher than hoped.

Greg McBride, CFA, chief financial analyst for Bankrate stated. “It’ll be difficult for mortgage rates to post a meaningful and sustained pullback until there is greater consensus on what is next with inflation.”

It is expected that Mortgage rates will decline when the Federal Open Market Committee cuts the benchmark interest rate, which is likely to happen in the second half of 2024. But as long as inflation runs hotter than the Fed would like, rates will remain at their current levels.

“Strong incoming economic and inflation data has caused the market to re-evaluate the path of monetary policy, leading to higher mortgage rates,” says Sam Khater, Freddie Mac’s chief economist

Most economists agree that rates should pull back gradually during each quarter, but forecasters don’t see eye to eye on how far rates will eventually fall: Some believe rates will decline to around 6% by year-end, while others think rates will stay elevated in the mid-6% range. Here’s what experts have to say about their predictions for this year

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04/12/2024 · 6:58 pm

Mortgage Loan; APR vs Interest Rate

While the interest rate determines the cost of borrowing money, the annual percentage rate (APR) is a more accurate picture of total borrowing cost because it takes into consideration other costs associated with procuring a loan.

  • Interest rate: The annual cost of borrowing the principal loan amount, expressed as a percentage, and does not include all fees.
  • APR: The annual cost of the loan, including fees, and reflects the true cost of borrowing. It is often higher than the interest rate.

Interest rates fluctuate based on various factors, including inflation, economic conditions, and Federal Reserve policies. Your personal financial situation can also affect the rate offered by a lending institute. Your credit score, debt ratio, down payment amount, loan type and over-all creditworthiness can influence the interest rate offered by a lending institute.

A loan’s annual percentage rate (APR) measures the total cost of borrowing money. APR is designed to represent the long-term cost of a loan, from closing day to the date it’s paid off. Rather than looking at interest rate alone, the APR on a mortgage includes lender charges and fees like:

  • Mortgage insurance
  • Discount points
  • Mortgage origination fees
  • Other closing costs

APR is calculated by finding the total cost of a mortgage loan’s upfront fees, then spreading them over the life of the loan to estimate the yearly cost. This is added to the interest rate to find the ‘real’ annual cost of financing. The APR indicates the true amount you will pay on top of the balance of the mortgage and helps borrowers compare loans. The higher the APR the more the loan costs.

Mortgage lenders are mandated by the Truth In Lending Act to disclose a home loan’s APR as well as the interest rate each time they provide a loan offer. The APR is helpful when comparing loans.

Gena Glaze

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04/11/2024 · 6:21 pm

$12,000 Down Payment Assistance for Palmetto Heroes! – SC Real Estate

Palmetto Heroes program returns April 15th, 2024!

SC Housing is offering $12,000 in down payment assistance along with competitive interest rate loans for Palmetto Heroes! The program is offered to eligible service personnel who provide vital support to South Carolina communities, these include teachers, nurses, law enforcement officers, correctional officers, fire fighters, emergency medical technicians, paramedics, veterans, active-duty military, and National Guard members.

The initiative is available on a first-come, first-served basis starting April 15th and requires an executed sales contract on a home. Funds get exhausted quickly and could be gone in a few months. Get pre-approved now so you can start looking for a home and secure your funds!

Rates for the program will be quoted on Monday, April 15th.

Eligibility is determined by South Carolina State Housing Finance and Development Authority.

For more information, Contact Me!

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03/29/2024 · 3:56 pm

Spring Housing Market Predictions!

If you’re planning to move soon, you might be wondering if there’ll be more homes to choose from, where prices and mortgage rates are headed, and how to navigate today’s market. If so, here’s what the professionals are saying about what’s in store for this season.

Odeta Kushi, Deputy Chief Economist, First American:

“. . . it seems our general expectation for the spring is that we will see a pickup in inventory. In fact, that already seems to be happening. But it won’t necessarily be enough to satiate demand.”

Lisa Sturtevant, Chief Economist, Bright MLS:

“There is still strong demand, as the large millennial population remains in the prime first-time homebuying range.”

Danielle Hale, Chief Economist, Realtor.com:

“Where we are right now is the best of both worlds. Price increases are slowing, which is good for buyers, and prices are still relatively high, which is good for sellers.”

Skylar Olsen, Chief Economist, Zillow:

“There are slightly more homes for sale than this time last year, and there is still plenty of competition for well-priced houses. Buyers should prep their credit scores and sellers should prep their properties now, attractive listings are going pending in less than a month, and time on market will shrink in the weeks ahead.”

Jiayi Xu, Economist, Realtor.com:

“While mortgage rates remain elevated, home shoppers who are looking to buy this spring could find more affordable homes on the market than they saw at the same time last year. Specifically, there were 20.6% more homes available for sale ranging between $200,000 and $350,000 in February 2024 than a year ago, surpassing growth in other price ranges.”

If you’re looking to sell, this spring might be your sweet spot because there just aren’t many homes on the market. Sure, inventory is rising, but it’s nowhere near enough to meet today’s buyer demand. That’s why they’re still selling so quickly.

If you’re looking to buy, the growing number of homes for sale this spring means you’ll have more choices than this time last year. But be prepared to move quickly since there’ll be plenty of competition with other buyers.

If you need assistance buying or selling a home in the Charleston Area, feel free to contact me! I would be glad to help!

Gena Glaze

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03/09/2024 · 12:58 pm

Palmetto Heroes Down Payment Assistance Program Coming Soon – SC Real Estate.

Palmetto Heroes program COMING SOON!

SC Housing Palmetto Heroes Program honors educators, first responders and
community service personnel in the fields of law enforcement, corrections, firefighting, emergency medical services and health care, as well as active-duty military, members of the SC Army National Guard, SC Air National Guard and Veterans of the U.S. Armed Forces.
The program typically offers a variety financing options with a reduced fixed interest rate AND Down Payment Assistance.

The program is first come first serve and lasts until funds are depleted. Last year (2023) the program featured $10,000 down payment assistance for qualified applicants. 2024 details have not been released yet, but should be announced very soon, within the coming weeks.

I am watching for the details of the new issue. If you are interested in this program, please contact me and I would be glad to help!

Gena Glaze

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03/09/2024 · 9:46 am

What is Title Insurance? A Basic Overview.

Title insurance is a form of indemnity insurance that protects lenders and homebuyers from financial loss that could be sustained from defects in a title to a property. The two basic types are The lender’s title insurance, which the borrower purchases to protect the lender and the other type is the owner’s title insurance.

A title search is completed before title insurance is issued. This is an examination of public records to determine and confirm a property’s legal ownership and determine whether there are any claims to the property. The goal is to pass “clear title”, free of any encumbrances or claims, to the new purchaser.

Title insurance protects against loss or damage occurring from liens, encumbrances, or defects in a property’s title that were unable to be detected during the title search. Some common claims that could subsequently be filed against a title are back taxes, liens, conflicting wills, forgeries and / or survey disputes. Unlike traditional insurance, which protects against future events, title insurance protects against claims for past occurrences.

Almost all lenders require the borrower to purchase a lender’s title insurance policy (usually detailed in the lender’s closing costs).  A lender’s policy only protects the lender against loss.  Buyers, at closing, typically have the option of purchasing an owner’s title policy that helps protects them from financial loss.

Since title searches are not infallible and an owner of real estate remains at risk of financial loss, it is wise to purchase protection in the form of an owner’s title insurance policy.

A basic owner’s title insurance policy typically covers the following hazards:

  • Encumbrances or judgments against property
  • Flawed records
  • Property border disputes
  • Encroachments
  • Easement disputes
  • Forged documents
  • Third-party claims
  • Errors in recorded documents
  • Incorrect property deed

Title insurance costs in South Carolina range from 0.5% to 1% of your home sale price. It’s a one-time fee, and the coverage lasts as long as you or your heirs own the property.

The legal costs to defend your title from any one of the title defects mentioned would far outweigh the cost of title insurance, thus making it a sensible purchase.

Gena Glaze

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03/09/2024 · 6:59 am

Mortgage Rates take a slight dip but Where are They Headed?

Freddie Mac reports the 30-year FRM averaged 6.88 percent as of March 7, 2024, down from last week when it averaged 6.94 percent. A year ago, at this time, the 30-year FRM averaged 6.73 percent.

As the rates took a small dip, mortgage applications rose, evidence that purchase demand remains sensitive to interest rate changes. Mortgage rates continue to be one of the biggest hurdles for potential homebuyers looking to enter the market.

SEE FREDDIE MAC RATE AVERAGES HERE

Where are Rates Headed? No one has a crystal ball but here is what some experts are predicting:

  • Freddie Mac. With the current stance of monetary policy holding steady, we expect mortgage rates to move sideways, remaining above 6.5% through this quarter and drifting down to about 6% by year’s end.
    Fannie Mae Housing Forecast. The 30-year fixed rate mortgage will average 6.3% in Q2 2024 and slowly decline over the year, landing at a Q4 average of 5.9%.
  • National Association of Realtors chief economist Lawrence Yun. “The budget deficit remains high, and the various inflation metrics remain above the comfort level. That means the mortgage rates will likely be in the 6% to 7% range for most of the year.”
  • Mortgage Bankers Association (MBA). MBA’s baseline forecast is for mortgage rates to end 2024 at 6.1% and reach 5.5% at the end of 2025 as Treasury rates decline and the spread narrows.
  • Bright MLS chief economist Dr. Lisa Sturtevant. During the early part of the year, expect some bumpiness in rates as new economic data are released and as more buyers get back into the market. However, the overall outlook for mortgage rates in 2024 suggests more rate drops, with Bright MLS forecasts predicting rates to hit 6.2% by the fourth quarter.

If you are considering buying a home and would like help navigating through the process, feel free to contact me.

Gena Glaze

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