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For more information, contact:
Walt Molony 202-383-1177 wmolony@realtors.org

Fourth Quarter Existing-Home Sales Surge in Most States, Prices Up in More Areas

A Realtor takes a stand!

Hilton Head Island’s conforming loan limit too low! 

The market is correcting and real estate is selling, but there is one more thing that is holding us back from full recovery in Hilton Head.  We are currently working with a conforming loan limit of $417,000 which is not indicative of the coastal area we live in with its $695,000 median house cost(2009).  Something must be done about this!

All conforming loan limits are not the same!
We did not show up on the radar when it came time to assign conforming loan limits because HUD assigns these values based on the county that these properties are located in.   There is just too much of a difference between our conforming loan limit and our average price home(almost $400,000).  Conforming rates should match the area, but in this case they do not!  We need HUD to establish a conforming loan limit based on our town’s average median home sales price(or zipcode).  This is like a small drip, if we do nothing it will cost all of us a lot of money.

Robbie Bunting, Broker Associate
Hilton Head Island
www.robbiebunting.com
robbie@robbiebunting.com
800-932-3652

An Appraiser takes a stand!

The present loan limit of $417,000 significantly impacts our local market.                 

It is evident in the appraisal assignments I have received in the past year.  In 2009, I only had fourteen assignments where the contract amount exceeded $417,000.  In 2003, before our inflationary period, I had forty-seven assignments where the amount was in excess on $417,000.

If you just analyzed sales data in Sea Pines Plantation, ignoring 2004 through 2007, here is the sales data that you would see.

• 2003 Medium Sales Price = $605,000 and the average Selling Price was  $   815,000.
• 2008 Medium Sales Price = $799,500 and the average Selling Price was  $1,012, 387.
• 2009 Medium Sales Price = $685,000 and the average Selling Price was  $   924, 224.

We are not Beaufort County; we are a Coastal Resort that produces huge tax dollars for our state when we are not hampered by unreasonable lending restrictions.

Bruce A. Goff, Owner Bruce A. Goff, Inc.
PO Box 4652 / Hilton Head Island, SC 29938
SC Professional Appraisers Coalition, Board/Past Chairman
SC State Certified Residential Real Estate Appraiser, CR29
Licensed SC Real Estate Broker / SC Real Estate & Appraiser Instructor
Voice: (843) 686-4444 / Cell: (843) 683-4444 / Fax: (843) 686-4858
Website: www.brucegoffhhi.com / Email: brucegoffhhi@yahoo.com

A Lender takes a stand!

Conforming loans are those purchased by Fannie Mae and Freddie Mac.
Both have set the loan limit at $417,000, but under pressure from Congress have increased the limit in certain “high cost areas” to as high as $800,000 (Hawaii). Hilton Head does not qualify as a high cost area because it is part of Beaufort County. This is clearly wrong and could be corrected very easily by appropriate pressure on our Congressional representatives.

The scoop on conforming vs non confroming loans.

If this anomaly was corrected, then Hilton Head homeowners would enjoy greatly increased access to credit . Since a high number of homes in Hilton Head require lending between $500-$900,000 this would in one single move stimulate our most important market sector. Simple problem: Simple solution. By the way, our representatives would not need to move heaven and earth to get this job done. It does not require a change to law; it only requires a walk down the hall to the chairman of the relevant committee , and a few minutes of old fashioned horse trading.

David Crowell
Senior Loan Officer
dcrowell@mortgagenetwork.com
Mortgage Network, Inc.
1000 William Hilton Parkway
Suite 205
Hilton Head Island, SC 29928
Office: 843-842-4004
Fax: 843-785-6404

An Association takes a Stand!

If the loan limits were set by an area smaller than an entire county, such as a town or city, there would be areas in the state which would be able to take advantage of the new limits.  Coastal properties have historically held a higher value, and since the coastal town is being analyzed with the county, it limits the opportunity for the increase  in the FHA and GSA loan limits.Please read the entire position paper by clicking here>>>

Jean Beck
Executive Vice President
Hilton Head Area Association of REALTORS®
32 Office Park Road, Ste. 124
Hilton Head Island, SC  29928
843-842-2421 x222 (o)  843-301-2160 (c)
www.HHRealtor.com

We need you to take a stand!

We need your help.  Please forward this email to everyone you know that owns property and call your Senators or Congressman. 

Please take these steps:

1. Foward this email to anyone that you know that owns property in Beaufort County!
2. Contact your Senators and Congressman below!

The Honorable James Demint
340 RUSSELL SENATE OFFICE BUILDING WASHINGTON DC 20510
(202) 224-6121
 
The Honorable Lindsey Graham
290 RUSSELL SENATE OFFICE BUILDING WASHINGTON DC 20510
(202) 224-5972
 
The Honorable Joseph Wilson
U.S. House of Represenative
903 Port Republic Street, Beaufort, SC 29902
Mail to: Post Office Box 1538, Beaufort, SC 29901

A higher conforming value will make it attractive to buy and refinance our homes and will have the end result of stabilizing our market.  It will allow people with good credit to lower their cost to buy or re-finance their homes and it will help stop the foreclosures and short sales that are taking place.  IT IS TIME TO TAKE A STAND.