Home Buyers Poll

Here are the results of a recent poll of realtors nationwide that asked the question "In thinking of your most recent potential buyer in 2008, did the client postpone their home buying decision?"
50 percent said no, and said the buyer bought in the end
23 percent said the potential buyer did not buy, preferring to wait for prices to fall further
6 percent said the potential buyer did not buy because of mortgage difficulties
4 percent said the potential buyer could not locate that 'perfect' home
7 percent said the potential buyer needed to first sell the current home
9 percent said the potential buyer changed their mind due to various personal reasons

What is striking is the second bullet point. There are a measurable number of potential buyers who have the financial capacity and mortgage qualifications, yet are refusing to jump into the market because of price decline fears. These hesitant buyers far outnumber the people who are unable to secure a mortgage.

The implication is that once there are signs of market stabilization then we may see a rush of buyers returning to the market. The recovery could be robust rather than tame. It also implies that the homebuyer tax-credit being discussed in Congress right now as part of the housing stimulus bill could make a big impact in drawing buyers to the closing tables.

12 Ways to Get a Down Payment

Not long ago, no-down payment loans were the height of fashion for homebuyers. But now that lenders have tightened their standards, borrowers once again are expected to "put some skin in the game," to use the industry's favorite catchphrase. That "skin" refers to the borrower's own cash, and it means down payments are definitely back in style.

Here are 12 Ways to Get a Down Payment:
• Set up an automatic saving plan.
• Get a gift from your parents, grandparents, other relatives or friends.
• Sell a car, boat, motorcycle, collectibles or other assets.
• Liquidate stocks, mutual funds, savings bonds or other investments.
• Allocate your income tax refund.
• Take a loan from your 401(k) retirement plan and repay yourself with interest.
• Withdraw funds from your 401(k) plan, subject to taxes and penalties.
• Collect on a loan that you made to someone else.
• Get a bonus from your employer.
• Explore homebuyer programs for public servants, if you qualify.
• Apply for a state or local government homebuyer down payment program.
• Use a private down-payment assistance program.

A down payment needs to be "sourced and seasoned." That means the lender needs to know how you obtained the funds and that you've had control of those funds for at least several months. Gifts and seller's concessions are acceptable, up to the percentage allowed by the loan program, but borrowed money can't be used as a down payment because it is debt that has to be repaid.

Two government-run programs are designed to aid homebuyers who haven't saved much for a down payment. The Federal Housing Administration, or FHA, offers mortgage insurance that allows qualified buyers to purchase a home with a 3-percent down payment, all of which may be a gift. The U.S. Department of Veterans Affairs offers a home-loan guarantee program that helps military veterans buy a home with no down payment.

Charleston Single Family Home Statistics

Here are the sales of single family homes so far this year compared to the same time last year. First line for each area is from 1/1/07-7/8/07 while 2nd line is from 1/1/08-7/8/08 and the 3rd line is percentage change from '07 period.

Area # of sales median sales price
All 5411 $222,575
MLS 3610 $212,000
-33.3% -4.8%

James 317 $292,500
Island 185 $274,000
(21) -42% -6.3%

West 549 $247,500
Ashley 365 $249,911
(11,12) -33.5% +1%

Mt. P. 687 $415,000
(41,42) 529 $398,000
-23% -4.1%

Summ/GC 2151 $192,879
(61,62,63, 1480 $175,000
72,73,74) -31.2% -9.3%

N. Chas 440 $157,000
(31,32) 321 $164,700
-27.1% +4.9%