Great article in the Savannah Morning News about the current real estate market in Savannah...and check out the spotlight on the great things happening at Keller Williams!
Posted: December 29, 2010 - 11:04pm Updated: December 30, 2010 - 8:06am
By Adam Van Brimmer
Charles Dickens didn't have the Savannah real estate market in mind when he penned the line, "It was the best of times, it was the worst of times."
The notion certainly applies, however.
The best of times: Available housing and commercial buildings are as affordable as they've ever been. Even with interest rates rallying off historic lows in the last month, it's a buyer's market. And there is plenty of property to choose from. The supply and diversity, particularly on the commercial side, should be an advantage for Savannah.
With Savannah's economic engines - the port, manufacturing facilities, distribution centers - slowly spooling up in the second half of 2010 and tourism booming, the outlook is for a busy 2011.
The worst of times: The real estate bust has handcuffed those who work in the industry and brought community banks to the brink. The area has lost 3,000 construction jobs since 2007, and the local home builder ranks have been halved over the last two years.
A handful of real estate brokerages now handle the majority of transactions. For example, residential brokerage Keller Williams Coastal Area Partners had several record months in 2010 despite the weak housing market.
As for the banks, the drop in real estate values attracted regulator attention. Two Savannah-based community banks were closed in 2010 as was another bank with a Savannah branch. Two more received a public scolding from regulators. Several others are saddled with loads of non-performing loans.
Yet the underlying reasons for the housing slump - limited job creation, stagnant incomes and constrained in-migration - will dissipate as the economy recovers.
Real estate will follow, according to economist Michael Toma, the director of Armstrong Atlantic State University's Center for Regional Analysis.
"We will continue to grow, because in the long run this remains an attractive place to live, work and retire," Toma said. "And as we grow going forward, we'll do so in a much more sustainable and healthier way economically."
Good supply
Savannah has what home buyers and businesses are looking for - and at a good price.
The average sales price of a home is relatively unchanged compared to a year ago. But buyers are getting more for their money: The average list price is down 17 percent.
Sales are up in Chatham County's traditionally desirable areas such as the Historic District, Wilmington Island, Skidaway Island and Isle of Hope. The areas that benefited most from 2009's first-time homebuyer tax credit programs were off those marks in 2010.
Yet inventory remains high across the Savannah metro area, which includes Bryan and Effingham counties, and the result is low prices and a wide range of amenities.
"We do have a little something for everyone, from starter homes to waterfront," said Monica Spillane, president of the Savannah Board of Realtors.
The commercial real estate sector is "starting to percolate," as one broker in town put it. The oversupply of space that resulted from the Port of Savannah's growth prior to the recession will be attractive to companies looking to expand and relocate.
Chatham County alone has more than 40 million square feet of ready-for-lease warehouse and manufacturing space.
"Savannah has all types of facilities, in different configurations and different increments of space," said David Sink, a commercial real estate agent with Collier Neely Dales. "Somebody coming into this market can get what they want. That's not the case anywhere else in the region."
Undeveloped land, complete with City of Savannah services and close to the interstates and the port, is also available. High-profile locations in Chatham County include the State of Georgia megasite, Crossroads Business Park, the CenterPoint Intermodal Center, Dean Forest Business Park and the Newton Tract.
Bryan County features Interstate Centre and Belfast Commerce Centre, and Effingham County boasts the Effingham County Industrial Park and the Research Forest Tracts.
Stability needed
Just as Savannah's real estate collapse trailed most of the rest of the country, the fear is a recovery may come late, too.
Residential sales and sales prices didn't start to trend down here until September 2007 and didn't enter freefall mode until a year later. Foreclosures began to mount about the same time. Values have dropped about 30 to 40 percent - depending on who you talk to - since the bust and continue to creep down.
Some bankers doubt prices have hit bottom while others believe values are "bouncing along" the bottom.
Stemming foreclosures and selling off repossessed properties will lend stability.
Unfortunately, Savannah's foreclosure rate has been climbing since April, according to foreclosure research firm CoreLogic, and the number of bank-owned properties is double what it was 18 months ago. Savannah's community banks alone count repossessed properties as 2.5 percent of their assets on average.
Throw in the market's big banks - Wells Fargo, Bank of America, SunTrust - and it's easy to see why Realtor signs with "bank-owned" scrawled on them dot seemingly every street in town.
"We're going to have to get through the majority of those issues to see across-the-board stability," Spillane said. "There are just too many things we have no control over. When a bank owns 10 foreclosures in one neighborhood, they obviously can't hold on to those, and that impacts prices. Fortunately, some neighborhoods are through it and have stabilized. Are prices moving up or are they going to move up? I'll let the statistics speak to that."
On the commercial side, all rates and prices are negotiable. Vacancy rates have risen from 7.5 percent at the end of 2007 to close to 20 percent currently. Lease rates are averaging $3.73 a square foot for warehouse space and $8.14 per square foot for office space, according to a report by Gilbert & Lattimore Commercial Real Estate.
Commercial values won't stabilize until inventory shrinks and then will likely rise rapidly as no speculative construction is under way or in the planning stages.
"Once the current oversupply of inventory is absorbed, the real estate market should turn around very quickly," said Harvey Gilbert of Gilbert and Lattimore. "It's really just a matter of when."
View original article: http://savannahnow.com/exchange/2010-12-29/real-estate-market-primed-turnaround
Thursday, December 30, 2010
Friday, December 17, 2010
Clean house: Tips for paying down your mortgage
Published: Friday, 17 Dec 2010 1:56 PM ET
NEW YORK - Don't let your biggest debt run your life. There are ways to trim your monthly costs that will move you closer to a mortgage-free retirement.
PAYING EARLY: Make one extra payment every year and apply the extra cash toward principal.
"That will cut about 8 years off your 30-year fixed loan," said Pava Leyrer, president of Heritage National Mortgage in Michigan.
There are several ways to do this. You can make a full extra payment all at once. Leyrer suggests using your tax refund.
Still, it may be easier to pay throughout the year. For example, if your monthly payment is $1,200, pay $100 each month. Another option: Some banks will deduct half the mortgage payment from your account every two weeks, which adds up to 13 payments a year.
However, a lump sum payment will shave an additional five to six months off the life of the loan, Leyrer said. That's because the amount of interest you pay will decline faster.
A note of caution: Know if your mortgage has a prepayment penalty, generally found on loans before 2008. In some cases, the penalty is only in place for the first few years and may only apply if you pay off a substantial amount (like 20 percent). This will add an extra cost if you refinance and pay down some of your debt, or sell early and pay off your loan. You also should be able to opt out of this penalty, but may see a bump in the interest rate as a result.
SEEK A LOWER RATE: You're probably aware that mortgage rates have been at their lowest level in decades. What does that mean for you as a homeowner? You could possibly shave hundreds of dollars off your monthly payment. The rule of thumb is that refinancing often makes financial sense if you can secure a rate that's one percentage point or more lower than your current loan. You will pay off the closing costs with the savings within a couple of years, and realize greater savings on interest over the life of the loan.
There are other refinancing tricks. Some of Leyrer's clients are choosing to go from a conventional, 30-year fixed loan, to one backed by the Federal Housing Administration that offers an assumability feature. It often has a lower rate, but more importantly, it allows a buyer to take on the loan if the homeowner sells the house.
For homeowners looking to increase their home's value through improvements or repairs, opt for an FHA 203K loan for expenses up to $35,000. It wraps all the loans for the repairs and renovations into the home loan and typically offers a lower rate than a personal loan.
Homeowners with jumbo loans — generally defined as mortgages over $417,000 — should consider seeking a lower rate if they come into some extra cash. These borrowers can pay off some of the loan to reduce their debt below $417,000 and then refinance. They'll be able to qualify for a conventional mortgage and likely have a lower interest rate that can slash hundreds off a monthly payment.
Others should weigh a mortgage with a shorter duration. John Stearns, a banker at American Fidelity Mortgage Service Inc., just refinanced a homeowner who had 29 years left on his 30-year fixed mortgage. The borrower refinanced into a 25-year fixed loan. He's paying $24 more each month, but will save $35,212 in interest.
INSURANCE INS & OUTS: Lenders require private mortgage insurance, or PMI, if a borrower owes more than 80 percent of the home's value. This adds to the monthly mortgage payment.
But don't get stuck paying for longer than you have to. Lenders are only required to cancel PMI when the borrower owes 78 percent of the home's value or less, Stearns noted. But borrowers can get an appraisal to prove they owe less than 80 percent and require the lender to cancel the PMI.
BE TAX SAVVY: Part of the perks of being a homeowner is that mortgage interest payments are tax deductible. To increase your deduction, make your January payment before December 31 of the previous year. That will also add up to 13 payments for the year and the bigger tax refund can be used to get ahead.
View original article: http://www.cnbc.com/id/40720989
NEW YORK - Don't let your biggest debt run your life. There are ways to trim your monthly costs that will move you closer to a mortgage-free retirement.
PAYING EARLY: Make one extra payment every year and apply the extra cash toward principal.
"That will cut about 8 years off your 30-year fixed loan," said Pava Leyrer, president of Heritage National Mortgage in Michigan.
There are several ways to do this. You can make a full extra payment all at once. Leyrer suggests using your tax refund.
Still, it may be easier to pay throughout the year. For example, if your monthly payment is $1,200, pay $100 each month. Another option: Some banks will deduct half the mortgage payment from your account every two weeks, which adds up to 13 payments a year.
However, a lump sum payment will shave an additional five to six months off the life of the loan, Leyrer said. That's because the amount of interest you pay will decline faster.
A note of caution: Know if your mortgage has a prepayment penalty, generally found on loans before 2008. In some cases, the penalty is only in place for the first few years and may only apply if you pay off a substantial amount (like 20 percent). This will add an extra cost if you refinance and pay down some of your debt, or sell early and pay off your loan. You also should be able to opt out of this penalty, but may see a bump in the interest rate as a result.
SEEK A LOWER RATE: You're probably aware that mortgage rates have been at their lowest level in decades. What does that mean for you as a homeowner? You could possibly shave hundreds of dollars off your monthly payment. The rule of thumb is that refinancing often makes financial sense if you can secure a rate that's one percentage point or more lower than your current loan. You will pay off the closing costs with the savings within a couple of years, and realize greater savings on interest over the life of the loan.
There are other refinancing tricks. Some of Leyrer's clients are choosing to go from a conventional, 30-year fixed loan, to one backed by the Federal Housing Administration that offers an assumability feature. It often has a lower rate, but more importantly, it allows a buyer to take on the loan if the homeowner sells the house.
For homeowners looking to increase their home's value through improvements or repairs, opt for an FHA 203K loan for expenses up to $35,000. It wraps all the loans for the repairs and renovations into the home loan and typically offers a lower rate than a personal loan.
Homeowners with jumbo loans — generally defined as mortgages over $417,000 — should consider seeking a lower rate if they come into some extra cash. These borrowers can pay off some of the loan to reduce their debt below $417,000 and then refinance. They'll be able to qualify for a conventional mortgage and likely have a lower interest rate that can slash hundreds off a monthly payment.
Others should weigh a mortgage with a shorter duration. John Stearns, a banker at American Fidelity Mortgage Service Inc., just refinanced a homeowner who had 29 years left on his 30-year fixed mortgage. The borrower refinanced into a 25-year fixed loan. He's paying $24 more each month, but will save $35,212 in interest.
INSURANCE INS & OUTS: Lenders require private mortgage insurance, or PMI, if a borrower owes more than 80 percent of the home's value. This adds to the monthly mortgage payment.
But don't get stuck paying for longer than you have to. Lenders are only required to cancel PMI when the borrower owes 78 percent of the home's value or less, Stearns noted. But borrowers can get an appraisal to prove they owe less than 80 percent and require the lender to cancel the PMI.
BE TAX SAVVY: Part of the perks of being a homeowner is that mortgage interest payments are tax deductible. To increase your deduction, make your January payment before December 31 of the previous year. That will also add up to 13 payments for the year and the bigger tax refund can be used to get ahead.
View original article: http://www.cnbc.com/id/40720989
Monday, December 13, 2010
Just Listed!
5607 Cherokee Avenue
Beautiful Dutch Colonial home built on a large lot and with a gambrel roof. This home has well planned space through-out including open porches on each end, wraparound porch on the front leading to a spacious patio on side. All rooms open to outside space. Comfortable Living &Dining Rooms each with the warmth of the centrally located fireplace. The open well planned kitchen is fully equipped and has light birch butcher block style countertops. This home is comfortable, open, spacious and well maintained.
Click on the image above to view a visual tour of the home.
For additional residential or historic real estate in Savannah, Georgia please visit www.DonCallahan.com
Just Listed in Kensington Park!
253 Varn Drive
Awesome mid-century modern architecture in one of Savannah's most desirable communities. This 1954 long and low ranch is on a tree lined road in the center of Kensington Park. It was recently renovated including a beautiful kitchen with raised panel birch cabinets and stainless steel appliances. The kitchen opens to a generous breakfast room. The living room has a most unusual fireplace with a very swank long horizontal hearth and mantle. It is adjacent to a family room or office also with a unique fireplace. Three spacious bedrooms, two full bath rooms and plenty of closets. The house sits on a large lot and has a quiet meditation garden tucked behind tall bamboo.
Click on the image above to view a visual tour of the home.
For additional residential or historic real estate in Savannah, Georgia please visit www.DonCallahan.com
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