Shout it From the Roof Tops ..... We Have Hit Bottom !!

Why is it a good time to buy? All real estate transaction are based on location,location, and location. Every location is going to have a different scenario of events effecting the market. Sea Pines Resort has a diversified market from multi-million dollar oceanfront homes to smaller residential homes. Sea Pines also offers a variety of villas or as some people like to call condominiums. We prefer villas, and their are definitions differences. Their are three villa complexes in Sea Pines that represent the market quite well.

Beachside Tennis; they are located on the ocean and near the South Beach marina complex. They are nice size (2) bedroom (2) bath villas. A swimming pool is located on the property and the POA does a good job of taking care of the property.
Bluff Villas; they are also located near the South Beach Marina Village. There are efficiencies, (1) bedroom, (2) bedroom & (3) bedroom villas. I use the (2) bedroom villas in my comparison of market conditions. Bluff Villas are located near the beach and are an entry level villa for Sea Pines.
Plantation Club Villas; they are located on the ocean side of the Harbour Town corridor. It's a good location for the beach, Harbour Town and golf and tennis. This villa complex offers (2) bedroom flats or (3) bedroom townhomes. I used the (2) bedroom flats for my market analysis.

The Sea Pines master plan has clusters of resort activity around South Beach and the Harbour Town Beach Club corridor. Meandering around these areas are residential neighborhoods, some high end homes, and others at entry level prices for Hilton Head.

So why is it a good time to buy? If you wait for someone to tell you we have hit the bottom then it it is to late, prices have begun to go up. We experienced a fairly consistent appreciation of around 8.5% between 1999 and 2003. In 2003 to 2005 we had a 21% jump in the average price of the (3) villa complexes. Since 2005 the price has dropped of 14%. If you were to chart a time line of 8.5% growth since 1999 we would be in line with the current average list price in 2008. In other words we have hit bottom but no one is willing to shout it from the roof tops.

Don't wait for the prices to go up again, and remeber that real estate is a long term investment. If you had bought a Bluff Villa in 2002 and sold it in 2007 you would of had a capital gain of $168,600. If you had a magic crystal ball and sold it in 2005 it would have been higher, but the point is real estate is a long term investment.


The graph below illustrates the sales of the three villa complexes, Average Sales of the Three & the 8.5% growth .

These percentages are not necessary reflective of all the different market segments on Hilton Head, but they are a good barometer. So don't wait on someone to tell you it is time to buy, because it is time to buy.

Charlie B. Fraser is President of the CHARLES FRASER REALTY GROUP. He has a collective team of professionals that can help you make the right decision about real estate on Hilton Head Island. Contact the office (843) 671-3312 or email info@FraserRealty.net

Visit our website

http://fraserrealty.net/

Copyright 2008 Charlie B Fraser

Statistical information from Hilton Head Multiple Listing Service

Charles Fraser Realty Group is a member of the Hilton Head Multiple Listing Service and the Hilton Head Area of Realtor's. Charlie specializes in Sea Pines, but sells "island wide"

USA Today Article 4/25/2008 Travel/ Destinations

Life on Vacation: Hilton Head homes sport 'natural beauty'

Article from USA Today April 25, 2008 in the Travel; Destinations Section

By Larry Olmsted, Special for USA TODAY
You won't hear phrases such as "up and coming," "trendy" or "newly discovered" around Hilton Head, S.C. The second-largest barrier island on the East Coast has been a premier vacation-home community for decades.
It was created in 1956 by Gen. Joseph Fraser with a novel "master plan," with one developer controlling everything from laying out roads to designing homes, a now-common model. To preserve the island's natural state, strict covenants were enacted and are maintained to this day in all 11 "plantations," as the island's mostly gated communities are known.
"We poll visitors regularly to find out why they come," says the Chamber of Commerce's Charlie Clark. "The answer we get most is 'the natural beauty.' … Fraser was maniacal about blending nature and homes. Today there are still no white houses allowed because they would stand out. No neon signs. No street lights, because they interfere with the night sky. No homes between the dunes and water. No high-rises."
For many homeowners, the appeal here is sports and recreation. The 12-mile-long, 5-mile-wide island has two dozen golf courses, including famed PGA Tour venue Harbour Town, ranked in the nation's top 20. There are five major tennis complexes with more than 100 courts, nature preserves and continuous beach spanning 12 miles. Biking and walking paths crisscross the island, and more than 250 restaurants serve a year-round population of fewer than 40,000.
In February, the island's average home price was $515,238; median, $405,000. Real estate prices are largely driven by proximity to the ocean. Plantations fall into three categories: 1) Resort communities have a mix of homes, condos (called "villas") and hotels. Facilities such as golf courses, beaches and tennis are open to the public. The biggest are Sea Pines and Palmetto Dunes. 2) Semi-private communities allow public access to golf and other amenities, but don't have hotels or allow owners to rent their homes. 3) Private communities have no public access or rentals, often allow only homes, not condos, and require owners to pay club dues for golf and other amenities.
FIND MORE STORIES IN: South Carolina PGA Tour East Coast Atlanta Falcons Chamber of Commerce Harbour Town Sea Pines Home Depot CEO Palmetto Dunes
A look at the three types of plantations
• Sea Pines (resort). The island's original development is the most extensive, with four 18-hole golf courses by top designers, including Harbour Town, a large tennis center, more than 50 shops, 10 restaurants, five miles of beach, two marinas, a yacht club and a hotel. According to Drew Butler of Charter 1 North Realty, the average price is $1.6 million for homes and $545,000 for villas; both start at about $400,000. Arthur Blank, former Home Depot CEO and owner of the Atlanta Falcons, owns a home worth at least $12 million. seapines.com
• Hilton Head Plantation (semi-private). Homeowners enjoy the privacy that comes with a no-rental policy, but amenities including three golf courses, a marina and restaurants are open to outside use. Homes average $575,000; villas, $560,000, with some starting at just over $300,000. hiltonheadplantation.com
• Long Cove Club (private). With only single-family homes, no rentals and a relatively small number of lots (570), Long Cove has a private country club aesthetic. Famed for its Pete Dye-designed golf course, it also has the largest yacht club on the Carolina coast, tennis and more. New homeowners pay a $15,000 initiation fee, plus $9,470 in annual fees, which include golf and tennis. Average home price is $965,000; starting price, about $450,000. longcoveclub.org

LIFE ON VACATION
Life on Vacation is a weekly look at a second-home market. This week: Hilton Head, S.C.
Best for: Families whose passions are split among beach and water sports, golf and tennis.Claim to fame:Preservation of nature and strict zoning for more than half a century.Don't miss:The unique indigenous Low Country cuisine: Think shrimp and grits, she-crab soup.Getting there:Small on-island Hilton Head Airport has commuter flights from US Airways and Delta Connection, while an array of airlines serve Savannah/Hilton Head International airport, 40 minutes away.Tourism information:800-523-3373, hiltonheadisland.org


ON THE MARKET
Nantucket-style in Long Cove Club on a golf lot with lagoon view
High-end price: $1,495,000 Bedrooms: 5 Bathrooms: 6.5 Size: 5,000 square feet Features: All new construction in 2007, separate living room and family room, office/study, each bedroom with private bath, large lawn.

For the latest up to date real estate information contact Charlie Fraser at CHARLES FRASER REALTY GROUP. Charlie grew up on Hilton Head and knows the real estate market as good as anyone if not better that all the agents on the island. The Fraser name is synoumous with the development of Sea Pines and pioneering a new way to develope resort residential communities.

Charlie has a team dedicated to lowcountry from residential on Hilton Head to the commercial needs of our costomers on and off the island.

Visit our website for more information.

http://fraserrealty.net/

or email us for additional inofrmation.

info@FraserRealty.net

Charlie "Fishing For Real Estate Leads"

Coming soon:

1] Barometers of the Villa Market in Sea Pines Plantation?

2] How to get the most our your investment rental Property

South Carolina Rides the Wave

Not every market is doom and gloom, not every market is facing a credit crunch, and not every market has mortgages being foreclosed on in the thousands daily. South Carolina has seen it's bruises from the national market trends, but we also have our "Hot Spots". Real Estate along the coast is still a good investment (see the MLS Stats chart below) If you had boght property in 2001 and wanted to sell it today, you would still have made a good investment. The median price in South Carolina rose 30% over that time period or a 5% annual increase per year.

What does this tells us about the SC market:

1. Real Estate is a long term investment five (5) years or more.
2. Location is the key to real estate investing.
3. Some markets are better than others.
a] Coastal and Lake properties over urban properties.

The market has been active in the last month with interest rates going down. We have seen more activity on Hilton Head in recent weeks that we had during the fall. Buyer's are begining to release we are getting close to the bottom of the market, and with inventory high it is a good time to buy, and South Carolina is a good place to buy.

Article from South Carolina Realtor's Association
CEO COMMENTARY
Statewide growth will boost home sales in 2008
COLUMBIA, S.C. (January 2007) — According to the South Carolina REALTORS® (SCR) real estate market data, 2007 was one of the best years on record for South Carolina home sales. With over 61,000 total sales last year, the year-end totals represent a 55% increase in sales and a 32% increase in median price since 2000.
While the total number of homes on the market is consistently higher than recent years, average prices are holding steady and even growing in some areas of the state. A total of 61,678 homes were sold in South Carolina last year, while the median price remained at $159,000. According to Nick Kremydas, SCR's CEO, “Although sales are off from the record peak in 2005, there was a historically high level of home sales taking place this year – one of the best ever. We are looking forward to a great 2008.“
“Look at the population growth, historically low interest rates, and our state’s healthy job market—you can see why we’re optimistic about the housing market in South Carolina,” said Kremydas. South Carolina is the tenth-fastest growing state in the country. The state has grown by 10% (400,000 new residents) over the last seven years for a total estimated population of 4.4 million, according to latest census estimates.

MLS Stats 2007 vs 2006

http://www.screaltors.com/mls/SC_MLS_2007_YearEnd(2).pdf

MLS Stats 1998-2007 Chart
http://www.screaltors.com/mls/SC_MLS_Totals_chart(2).pdf

Compared to sales in 2006, total sales in 2007 declined 10.6 percent to 61,585. The Rock Hill area (+8%) continues to lead the state in growth, while the Myrtle Beach area (-29.2%) and Beaufort (-22.7%) reported the largest sales declines. Despite the overall decline, only one of the 15 reporting regions (Southern Midlands) showed significant price declines this quarter, according to “We are already seeing increased activity on the coast, that’s a good sign for the next quarter,“ said Kremydas. Pending sales activity shows that home sales will to hold fairly steady over the next few months. Total sales are expected to rise later in the year and continue to improve in 2009, according to the latest forecast by the National Association of Realtors®.
“The market’s biggest challenge? - A lack of consumer confidence. Too many consumers are focused on the national numbers,” Kremydas said. “The challenge is that national numbers are pretty much irrelevant. Talking about national averages is about as effective as having a national weather forecast. Like the weather, all real estate markets are local. You can count on your REALTOR® to give you the facts regarding your local market.”

Charlie B. Fraser is President and Broker in Charge of Charles Fraser Realty Group specializing in the Hilton Head market. If you are interested in the "Island Lifestyle" contact his team at:

http://fraserrealty.net/ or charlie@fraserrealty.net

Is it Time?

We all want to buy low and sell high. That is the optium in any kind of of investment strategy. In the real estate market, as like in other markets, it is difficult to predict when the market has peaked and when it has hit bottom. The traditional investment strategy for real estate is long term and hence will weather the highs and lows over time. Buyer's in the real estate market between 2005 and 2006 forgot the fundamentals of real estate investing. We were caught up in the price going up over night and kept on buying over inflating the market. As we all should know what goes up comes down.

Real Estate is a long term investment of five years or more. If you had bought a property on Hilton Head in 2004 and still had it today you would still have a good investment. By 2009 this piece of property should end up being a great investment. Why? You purchased your real estate with the guiding principals of owning the property for a minimum of five years.

So where are we today? We are caught up in the pademonia of the press that the "sky is falling". When in fact the real estate market on Hilton Head is doing fine. We have taken our hit in a price correction and with interest rates at near record lows it is time to start buying. We can never predict that one moment in time that the market has changed, we can only look in the past and see when it changed. Because real estate is a long term investment it does not hurt to be early in a changing market. Time will weather the short term change in market.

The properties that are best to buy are still the traditional cliche"location, location, location". On Hilton Head that is water !!!

Articles of Interest: Delta Sky Magazine

http://delta-sky.com/ginc/portrait/hilton_head_island/pdf/05_hhi_fraser.pdf

http://delta-sky.com/ginc/portrait/hilton_head_island/pdf/01_hhi_starressay.pdf

http://delta-sky.com/ginc/portrait/hilton_head_island/pdf/04_hhi_golf.pdf

http://delta-sky.com/ginc/portrait/hilton_head_island/pdf/06_hhi_conted.pdf

http://delta-sky.com/ginc/portrait/hilton_head_island/pdf/07_hhi_smalltowns.pdf