REAL ESTATE NEWS:
June 2013 - Rising Home Prices Mean Fewer Investor Purchases and Rising Interest Rates Could Mean Fewer Primary Home Purchases by Those Who Want to Own
A survey by ORC International revealed that more than half of investors plan to keep their investment properties for five years or more. The "flippers" have realized the benefits of rising rents and low vacancy rates. The only problem is the effect this may have on the housing market, construction employment, and the economy recovery.
We are also hearing interest rates have begun to rise so if you know someone who is considering a home purchase and will need a mortgage they may want to proceed with that purchase.
Lack of Homes For Sale Inventory Could Hurt Economy
The declining number of homes for sale through foreclosure, short-sale, or regular normal sales could hurt the economy. New home construction may take up some of the gap.
Home Values Post Biggest Annual Increase Since 2006
Home values in January posted their biggest annual increase since July 2006, beating national gains in rent, according to a recent report from Zillow. The Zillow Home Value index rose for the 15th straight month in January 2013. The improvement represents a 6.2 percent year-over-year gain and a 0.7 percent increase from December 2012. The winter season slowed gains but they are still 4.3 percent higher compared to a year ago.
2013 House Resolution 8 was signed by the President and several items affect the real estate industry:
* Mortgage Cancellation Relief is extended for one year to January, 2014
* Mortgage Interest Deduction remains unchanged
* Deduction for Mortgage Insurance Premiums for filers making below $110,000 is extended through 2013 and made retroactive to cover 2012
* Leasehold Improvements: The 15 year straight-line cost recovery for qualified leasehold on commercial properties extended through 2013 and made retroactive to cover 2012
* Energy Efficiency Tax Credit: The 10% tax credit (up to $500) for homeowners for energy efficiency improvements to existing homes is extended through 2013 and made retroactive to cover 2012
* Return of the Pease Limitations
The Pease Limitations are permanently repealed for most tax payers. The limitations will only apply to individuals earning more than $250,000 and joint filers earning more than $300,000. The thresholds are indexed for inflation and will rise over time.
* Capital Gains rate stays at 15% for those individual filers earning $400,000 or joint filers earning $450,000. After that any gains above those amounts will be taxed at 20%. The 250/500k exclusion for sale of principle residence remains in place.
* Estate Tax: The first $5 million in individual estates and $10 million for family estates are now exempted from the estate tax. After that, the rate will be 40%, up from 35%. The exemption amounts are indexed for inflation.
2013 Results from Fannie Mae's latest National Housing Survey indicate purchase activity may see a boost in coming months.
The Pending Home Sales Index, a forward-looking indicator based on contract signings, edged up 0.3 percent to 99.5 in September 2012 from 99.2 in August and is 14.5 percent above September 2011 when it was 86.9. The data reflect contracts but not closings.
2012 Real Estate Market Began to Stabilize and Home Prices Rise in Half of the U.S. Cities as single family home prices climbed during the year. According to the National Association of Realtors the median sales price increased from a year earlier in 74 of 146 metropolitan areas measured.
Lenders Expect Delinquencies To Drop As Reports Suggest Better Days Ahead For Real Estate! Major mortgage lenders expecting delinquencies in mortgage payments to drop. Also in major real estate markets if the foreclosures are taken out of the picture, the prices for normal sale homes has shown a slight increase. What that all means is as the foreclosures dry up the homes being sold under normal circumstances may actually sell for a realistic value. According to sources such as HomeValueForecast.com home prices in many areas are already rebounding from the bottome of the market.
WHAT'S HAPPENING IN THE MYRTLE BEACH AREA:
Myrtle Beach and the surrounding areas in South Carolina and North Carolina have seen an increase in real estate sales, especially in new construction homes, but the dollar reductions in the Asking Price are beginning to disappear. Buyers who have been sitting on the fence even though interest rates are at all time lows may want to rethink making a purchase.
The economy in the Myrtle Beach, South Carolina area has been helped by new construction home sales because of the jobs those new communities create.
The southern U.S. saw home prices rise by 0.6% quarter-over-quarter in December 2012 and prices increased by 4% yearly. Projections for 2013 show growth will stand at 2%.
Highway I-73 Under Construction From Canada To South Carolina.
The Myrtle Beach Boardwalk and Promenade extends 1.2 miles from close to the 2nd Ave N Pier to the 14th Ave N Pier. The section from Plyler Park to 8th Ave N has cafes, arcades, amusements and more to remind visitors of a nostalgic carnival atmosphere.
Local Hospitals have Expanded
Grand Strand Regional Medical Center, 809 82nd Parkway, Myrtle Beach, South Carolina 29572
"Ranked #1 in South Carolina" for Cardiac Surgery; "Ranked among the top 5% in the Nation" for Cardiac Surgery; Ricipient of HealthGrades® Cardiac Surgery Excellence Award; 5 stars for Coronary Bypass Surgery; 5 stars for Heart Surgery.
Grand Strand Regional Medical Center in Myrtle Beach had a $54 million expansion that includes the addition of Level II trauma services. The project increases the beds by 50, and expand the Emergency Department. The new construction will add 71,650 square feet to the building and renovating will be done to 20,995 square feet.
North Myrtle Beach, Little River and Longs, South Carolina benefit from their own hospital. Seacoast Medical Center now called McLeod Seacoast Medical Center located at 4000 Hwy. 9 E near North Myrtle Beach had the appearance of a hospital but was a testing and outpatient facility until June 2011. On January 18, 2009 the Groundbreaking took place for the new expanded full service hospital that includes 50 inpatient rooms and care. $32 million 63,399 square foot expansion that added 32 medical-surgical beds, 10 - bed progressive care unit, and 8 - bed ICU.
Loris, South Carolina also saw the expansion of the Loris Community Hospital located at 3655 Mitchell Street. Their groundbreaking took place in January 2009 with the replacement and expansion of the ED, ICU and pharmacy.