Three little boxes on Hilton Head Island
As a mortgage lender we always order an appraisal on the homes and condos that we are financing. The appraisal is full of information about the house, the neighborhood and the overall real estate market. In one section of the appraisal there are three little boxes that pertain to the property values. The little boxes are labeled increasing, stable, and declining. Only in the last few years have we received appraisals with the “declining” box checked.
A good sign for Hilton Head Real Estate
These three little boxes that we never really paid much attention to have become a critical piece of information and an indication of which way the market is moving. Lately we have been receiving more and more appraisals that have the “stable” market box checked and today we received our first appraisal that actually had the box “increasing” checked. This could be a credible sign that our market is starting to make the turn.
Hilton Head Real Estate is cyclical
I began my career in the mortgage business in 1990. At that time the market was similar to what we have today. We had lots of bank foreclosures and distressed sales. It was not uncommon for a home owner to be “upside down” in terms of the value and mortgage balance of their home. I remember in 1991 the appraisals started to indicate a stable and increasing market. From that point the market made a strong run and a lot of people made a lot of money in the real estate market. Nobody can call the bottom until after it has already passed and I’m not saying we are at the bottom now, but when an appraiser checks the box that says “increasing” that is a good sign. If I can help you finance your home please give me a call.
Matt Webster
Mortgage Loan OfficerSunTrust Mortgage Inc.
One Lafayette PlaceHilton Head Island, SC 29926
843-342-8012 office
843-384-3111 cell
843-342-5515 fax
matt.webster@suntrust.com
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