The Affordability of Hilton Head Homes Sets Record High
With low prices and low interest rates, the affordabilty of a monthly mortgage payment for a medium priced single family home has improved dramatically in recent years, $700 now compared to $1,140 in 2006 according to David Stiff, Chief Economist at Fiserv. Mortage payments have declined by 40% in the last 5 years. Now purchased mortgage payments account for only 13% of a monthly medium family income nationally, the lowest on record since 1971!
A state by state study done by Professor Ken H. Johnson of Florida Internation University and Editor of The Journal of Housing Research shows that in South Carolina, the ratio of housing price to income is between -5% to -15% less than the 30-year average for this ratio.
While these are national and state trends, they have been generally true for the Hilton Head real estate market in recent years. The affordability of Hilton Head homes and villas is more affordable now than in many years. Affordabilty is a fourth big reason to buy real estate in 2012 along with low prices, low interest rates and large selection.
To find the home or villa on Hilton Head that is affordable for your budget, please call me, Richard Kadesch of Go Gated Realty®, the Gated Communities Specialist® today. My cell number is 843-684-2933 and email rich@gogated.com.
Richard Kadesch, Owner and Broker-in-Charge Go Gated Realty ® The Gated Community Specialist ® Hilton Head Island, South Carolina
Cell 843-684-2933
Email rich@gogated.com
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Hilton Head Mortgage Interest Rates At Historic Lows
Today's low interest rates for homes on Hilton Head are at historic lows and offer you the financial opportunity of a lifetime. You can lock in today's rate for 30 years.
Hilton Head banks are lending money to Hilton Head homes and villa buyers at multi-decade low interest rates. Any article about “Why Buy Now?” features low interest rates as one of three important reasons why. The other two biggest reasons are low prices and a large selection.
Rates for home loans on Hilton Head Island have been in a tight range of 4.00-4.5% for many months, now at the bottom of that range. Your interest rate will make a difference in your monthly payment and how much you can afford. Most people agree that both real estate prices and interest rates will go up in time but for now you can lock in a historic low interest rate for 30 years, sit back and enjoy.
Go Gated Realty is a real estate broker and not a mortgage lender however service to my clients includes helping you find the right lender for your needs. Not all lenders will loan on the proeprty that you want. Some deals fall apart for lack of buyers understanding the mortgage market and your agent should be active to prevent this from happening. Another important thing to remember for anyone buying a foreclosure home or short sale is that the bank will not consider your offer unless you have pre-qualified or been pre-approved by a lender on the property. For anyone with questions about how to find and buy foreclosures and short sales, please contact me at rich@gogated.com.
Low Mortgage Rates Are Among Top Reasons to Buy NowBelow are interest rates cherry picked from two major mortgage lenders on Hilton Head Island as of December 22, 2011. These rates quoted with no discount points and no origination points, are fully amortized, have 30 day rate locks and are subject to credit qualification and full documentation. LTV, property type, and occupation restrictions apply.
Conforming ($417k and under) Jumbo
30 yr Fixed 4.00% 4.25%
20 yr Fixed 4.125% 4.00%
15 yr Fixed 3.50% 3.50%
10 yr Fixed 3.25% ——–
10 yr ARM 3.25% 3.50%
7 yr ARM 2.875% 3.00%
5 yr ARM 2.50% 2.75%
These lenders may offer:
*Preferred Pricing for Private Bank Clients,
*Renovation Financing
*Construction Lending
*Home Equity Lines of Credit
*Lending in All 50 States
*FHA and VA Loans with 0%-3.5% down
*Super Jumbo Loans/PMB
*HomePath Financing
Your Buyer’s Agent will help you find a LenderI recommend that you choose a Buyer’s Agent on Hilton Head Island at the start of your search and as soon as possible. Finding the right lender for your needs is just one of many ways that an experienced agent can help you succeed in buying the home, villa and income property that you want on Hilton Head Island. Please call or email today with your questions and concerns. I am very interested in working with you .
Richard Kadesch, Owner and Broker-in-Charge Go Gated Realty ® The Gated Community Specialist ® Hilton Head Island, South Carolina
Cell 843-684-2933
Email rich@gogated.com
Canadians Read About Hilton Head Island
In 2010 I wrote a blog post entitled Canadians Love Hilton Head Island about why Hilton Head Island is a great place for Canadians to vacation and own real estate. Canadians buy more Hilton Head Real Estate than any other foreign nationals and I was hoping that Canadians would read the blog and come on down to Hilton Head Island. Hilton Head has much to offer Canadians who vacation in winter when Hilton Head Island has off-season discounted prices on accommodations. The Island is not busy in winter and golf prices are low. Of special interest for Canadians is that Hilton Head Island has a branch of Royal Bank of Canada, coincidentally the new sponsor of the Heritage, the PGA golf tournament on Hilton Head Island. Having an RBC an make it easier for Canadians to get loans to buy homes on Hilton Head Island than getting loans from an American bank.
Toronto Star financial writer Tony Wong read my blog. He called to ask about the Hilton Head real estate market and his story was published on June 3, 2011. It highlights the opportunities for Canadian vacationers and real estate buyers on Hilton Head and elsewhere in the Carolinas, areas that Canadians do not know as well as Florida. It was great meeting Tony and I am glad to be part of his story.
To read newspaper version, click here. To read the longer online version, click here.
For real estate information, Canadians and Americans should call:
Richard Kadesch, Owner and Broker-in-Charge Go Gated Realty ® The Gated Community Specialist ® Hilton Head Island, South Carolina
Cell 843-684-2933, Email Rich@gogated.com, www.GoGated.com
The Sales Trend for Hilton Head Homes
The average monthly sales price of Hilton Head Island homes: June 2010 until June 30, 2011
The 13-Month June to June Trend Line shows home price decline of 4%
What is the direction of Hilton Head Island home prices? The chart above is taken from MLS data* and it shows the monthly average sales prices of Hilton Head Island homes sold from June 2010 until June 2011. Charts and data can be presented and interpreted differently. This is my interpretation of this data:
- The average June 2011 home sold for $723,371 vs $753,959, a decline in average price over the last 12 months of 4%.
- During the last 12 months, average prices fell to a low of $664,524 in November, 2010 before increasing every month since then.
- A shorter term trend line (below) from September, 2010 until June 2011 shows an increase in average sales price of 5%, from $689,126 to $723,371.
- Sales prices of homes in August-December 2010 were below the 12 month trend line seen above. This may mean that the second half of 2011 will be a good time to buy.
The 10-month trend line from Sept 2010 to June 2011 shows an increase in average increase in Hilton Head home prices of 5%
The average monthly sales price of Hilton Head Island homes Sept 2010 to June 2011
What Does this Data Mean?
The two graphs above suggest that Hilton Head homes prices may have bottomed out. We will not know for sure until more time has passed but something worth remembering is that this data is broad (as is most data presented in the media) and includes a variety of areas with low prices and very high prices. There are markets within markets and you should ask your real estate broker for comparables for the specific market that interests you.
I believe that the lowest prices have come and gone. As long as buyers stay in the lower price range of what is offered today, they should not regret their purchase price in time and to the contrary, I believe that they will be very happy with their price. Therefore, if you find a house that you really like and it has a good price, do not wait. This is an excellent time to buy and there are many outstanding homes for sale at low prices today. Today’s low mortgage are also an excellent reason not to wait with rates that have ranged from 4.5-4.87% for many months.
To find a bargain on a good Hilton Head home, please call or email me, the Hilton Head Gated Communities Specialist today. My cell phone is 843-684-2933 and my email is rich@gogated.com.
*The Hilton Head MLS requires a disclosure for sales data that says that the data is not guaranteed to be accurate, should not be used for any purchase or sale decision and is not a representation of any fact whatsoever.
To find a bargain on a Hilton Head home or villa, please call:
Richard Kadesch, Owner and Broker-in-Charge Go Gated Realty ® The Gated Community Specialist ® Hilton Head Island, South Carolina
Cell 843-684-2933, Email Rich@gogated.com, www.GoGated.com