CTAR Market Update for the MLAGC

Charleston Trident Association of REALTORS®The voice of Lowcountry real estate for more than 100 years

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In 2012…•Stable - 1% increase•Traditional sellers increasing•Banks listing less property

Why so flat?•Uncertainty•Greed




In 2012…•13% increase from 2011

•Demand is sky-high

•First time since 2007 more than 10k homes sold

•Distressed sales declining




In 2012…•Healthy, steady increases

•Sustainable 4% growth

•Varies by area, neighborhood

•Prices have fallen JUST 8.6% from the peak in 2007




In 2012…•Major declines in inventory (- 21% since 2011!)

•Sellers have less competition

•Well-priced, good looking listings get avg. 92% of list

•Are we on the brink of a housing shortage?




Financing Breakdown







Outlook for 2013

• Continued sustainable growth in prices and sales

• Seller confidence should continue improving

• Buyer demand should continue growing

• Inventory may be an issue in some areas

• QM, QRM may have an impact

• Issues in Washington




2013 Sales Forecast




MLAGC CTAR




The battle in Washington




Protecting the MortgageInterest Deduction

• Untouched in 'Fiscal Cliff' bill

• Will be debated as a cut in upcoming future budget and deficit talks

• Elimination vs. cap

• Major benefit for current homeowners

• Major incentive for future homeowners




Qualified Mortgage (QM)Qualified Residential Mortgage (QRM)

• All FHA, VA, Rural Housing, Fannie Mae and Freddie Mac loans are given safe harbor.

• Loans with no risky feature and debt to income ratio less than 43% are given safe harbor.

• All government backed loans qualify and jumbo loans where the borrower’s debt will be less than 43% of monthly income.

• This will provide certainty and define the mortgage market with clear standards; gives banks 1 year to implement rule

• QRM guidelines are coming




Protecting the MortgageInterest Deduction

• Untouched in 'Fiscal Cliff' bill

• Will be debated as a cut in upcoming future budget and deficit talks

• Elimination vs. cap

• Major benefit for current homeowners

• Major incentive for future homeowners




We can accomplish so much moretogether!

A partnership between CTAR and the MLAGC could have a large impact locally

• CTAR has opposed:

• Real estate transfer fees (proposed by City of Charleston in 2010)

• Residential rental restrictions

• Increased taxes on both commercial and residential property ownership




Thank You!

Please contact me about getting involved in local legislative issues or CTAR events and programs.

[email protected]

Real Estate

CTAR Market Update for the MLAGC