RAMPING UP!
As we arrive at the mid-year mark, we find ourselves smack dab in the middle of one of our busiest tourist seasons. Across the island, summer crowds are bringing a ton of energy to our area, along with some crowded restaurants, waterways, bike paths and golf courses. This is no surprise, with all the great press Hilton Head Island has been receiving. Enthusiasm for travel has never been higher and Conde Nast Traveler voted us the Best Island in the US! Southern Living also gave us a high honor, voting us #1 Best Beach in the South.
On the real estate front, the market has slowed down, primarily because there are simply not enough homes to sell. This is keeping prices high and demand strong. Some potential sellers who may have considered selling their home are now reluctant to do so because, even though they can sell for top dollar, they cannot replace it without a hit on financing. Unless they own their home free and clear and have cash ready to spend, they will be buying their next home with interest rates much higher than what they previously had. Opinions
vary as to where they will go but most think they will hold steady throughout this year. People freak out about seeing 7% interest, but from a historical perspective they are still very low…anyone who was buying in 1981 saw rates exceed 18%. The newest generation of home buyers who want to live the American dream have never seen rates over 4%, and are accustomed to 2-5-3% rates, so they are totally dismayed by this.
TIGHTENING OF CREDIT STANDARDS
In addition, banks are continuing to tighten credit standards. Those buyers who qualify and are okay with the current interest rates, are more discerning than a few years ago and are heavily favoring new and renovated homes over the older dated ones. If you have a home that needs a little modernization, having a “home makeover” could make a lot of sense. The market will reward you for smart upgrades. Give us a call and we can have a strategy meeting with you about what makes sense to consider that will add to your home’s value and salability and what won’t. We can also connect you with great resources if you need them. That’s what we’re here for!
