Economic glimpse from a local mortgage lender...

Last Week’s Economic News in Review Below you will see a newsletter from one of the mortgage lenders I personally use, Stephen Perry. The other lender I use is Lucey Mortgage in Mt. Pleasant and they are both very good at what they do and very customer friendly. Check out Stephen's newsletter on the local economy below.  In short it says we are doing very well. Unemployment continues to drop and the housing continues to grow. Surprisingly, the new construction dropped and preexisting home sales grew.  Maybe the trend is starting to change.  We still have a strong, very strong, seller's market. My last listing went under contract in 2 weeks for a full price offer. Call me and I'll tell you how I did it and how I can do it for you. "Existing home sales rebounded, while new housing construction retreated, and layoffs continued to fall to historic lows." Existing Home Sales: Existing home sales bounced back in April with transactions of single-family homes, town-homes, condominiums, and co-ops growing 5.1 percent to an annual rate of 5.33 million in March, the National Association of Realtors reported last week. “Closings came back in force last month as a greater number of buyers — mostly in the Northeast and Midwest — overcame depressed inventory levels and steady price growth to close on a home,” NAR (National Association of Realtors) Chief Economist Lawrence Yun said. “Buyer demand remains sturdy in most areas this spring and the mid-priced market is doing quite well. However, sales are softer both at the very low and very high ends of the market because of supply limitations and affordability pressures.” The median price for existing homes of all types in March grew to $222,700, which marked a 5.7 percent increase over March 2015’s $210,700. Looking at inventory, March’s supply of existing homes increased 5.9 percent to 1.98 million units for sale, marking a 4.5-month supply, but when compared annually was down 1.5 percent from March 2015. Price and supply will continue to be key influences on overall sales volume. Housing Stats: Housing stats dropped to their lowest level since October, with construction stats on private housing in March falling to an annual rate of 1,089,000, an 8.8 percent decline from February’s rate of 1,194,000, according to last week’s report from the Census Bureau. That said, March’s starts were 14.2 percent over March 2015’s rate of 954,000. Starts on single-family homes in March dipped to a rate of 764,000, which was 9.2 percent below February’s pace of 841,000. Building permits issued in March for construction of private housing dropped to an annual rate of 1,086,000, which was 7.7 percent below February’s rate of 1,177,000, but was 4.6 percent over March 2015’s rate of 1,038,000. Permits for single-family homes in March dipped to a rate of 727,000, which was 1.2 percent below February’s pace of 736,000. That decreasing pace of permits worried Joel Naroff of Naroff Economic Advisors Inc. “That is somewhat more worrisome as the permit demand has lagged starts for the last two months,” Naroff told the Wall Street Journal, adding that declining permits “could signal continued softness in the market.” Initial Jobless Claims Layoffs continued to fall with first-time claims for unemployment benefits filed during the week ending April 16 dropping to 247,000, a decline of 6,000 from the preceding week’s level of 253,000, the Employment and Training Administration reported last week. This marked the lowest level for initial claims since November 24, 1973’s 233,000, and was the 58th straight week of initial claims being below 300,000, a level economists consider indicative of a growing job market. The four-week moving average — considered a more stable measure of unemployment activity — dropped to 260,500, a decrease of 4,500 from the prior week’s average of 265,000. This week we can expect: Monday — New home sales for March from the Census Bureau. Tuesday — Durable goods orders for March from the Census Bureau; April consumer confidence from The Conference Board. Thursday — First quarter GDP from the Bureau of Economic Analysis; initial jobless claims for last week from the Employment and Training Administration. Friday — Personal incomes and spending for March from the Bureau of Economic Analysis; consumer sentiment for April from the University of Michigan."     STEPHEN PERRY  Loan Officer direct: (843) 343-5295 fax: (843) 628-0755 NMLS: 474166 1180 Sam Rittenberg Blvd, Suite 105 Charleston, SC 29407 https://movement.com/lo/stephen-perry/

Sawmill Branch Trail in Summerville, SC
Pic taken from VisitSummerville

If you have not taken a stroll or a bike ride along the Sawmill Branch you have not partaken in on the Low Country joys of Summerville. My friend and I used to leave Scotts Mill Subdivision on our bikes and ride to the trail head and do a round trip back to home.  This was about 18 miles door-to-door and so much fun. Often times we hit downtown Summerville for a drink or lunch before our return home.  This is a 6.5 mile paved, flat trail that is approximately 10 feet wide.  A year or two ago the Dorchester Chamber Leadership class did some beautification projects along the way which made it even nicer.  While you stroll along or take a ride you'll notice it parallels the Sawmill Branch Creek where you may see wildlife or kids playing.  There are many places to park along the trail which makes it easy to get on and off and the map above can help you find some locations. The easiest is probably to go to the YMCA fields and the trail ends (or begins) there by the creek.If you go far enough and need re-fueled you can stop at the Sunoco Station on Bacon's Bridge before it splits onto Trolley for a beverage or snack. 

Go take a walk or ride and enjoy our amazing spring weather.  Grab lunch or a drink downtown and don't forget this Thursday is our 3rd Thursday.

-Jason

Spring is Here - April Update

     April is here and the azaleas are in bloom and Charleston is beautiful!  Summerville just had a boom weekend with its Flowertown Festiva0l where they expected 200,000 people.  How cool for our “small” town to get National attention and visitors.  What a great month to take a stroll through Middleton or Magnolia Gardens.  It’s truly a must see.  We just had 35k people in town for the Cooper River Bridge Run.  It was a little rainy, but that didn’t really seem to bother anyone.  The big events this month are the WTA tennis tournament at Daniel Island, Currently sponsored by Volvo Cars and that goes from April 2-10 as well as all the house and garden tours.  The 69th Annual Festival of Houses and Gardens goes on all month until the 25th.  And the farmer’s market in Marion Square and Summerville gets started again on April 9.  You can also go see acts such as Gregg Allman, Widespread Panic, David Sedaris, and Amy Schumer.  Of course, you need to start planning for Spoleto in May.

Here’s your April calendar of events for the Tri-County:

2: Cooper River Bridge Run

2-10: Volvo Car Open WTA tennis tournament (formerly Family Circle Cup), Daniel Island

8: 16th Annual Kiawah Island House and Art Tour

8-9: 81st Garden Club House and Garden Tour

10: Aaron Neville, Chas Music Hall

13-17: Ringling Brothers and Barnum Bailey Circus Legends, N Charleston Coliseum

14: Greg Allman, Chas Music Hall

14-21: Charleston Race Week, International Sailboat Regatta

15: North Mississippi All-stars, Chas Music Hall

15: Charleston Outdoor Festival, James Island County Park

15-17: Kiawah Motoring Retreat

15: Out to Lunch with the Conservancy, Hampton Park

16-17: Zac Brown’s Band Southern Ground Music and Food Festival, Daniel Island

16: Bird Songs, Center for Birds of Prey

19: David Sedaris, Gaillard

21: Welcome to Night Vale, Chas Music Hall

22: Widespread Panic, N Chas Coliseum

22,23: CSO Masterworks Series, Tchaikovsky and Brahms

24: Music of Janis Joplin, Gaillard

24: 29th Blessing of Fleet and Seafood Festival, Memorial Waterfront Park Mt Pleasant

28: Amy Schumer, N Chas Performing Arts Center

29: Dave Rawlings Machine and Punch Brothers, Chas Music Hall

30: Paula Poundstone, Chas Music Hall

Our real estate market is really booming.  Buying activity is extremely high and inventory is low.  Prices are going up, but at a very reasonable pace.  January and February buying activity was up 10% over 2015 and prices were up 6.6% over Jan and Feb 2015.  Median sales price is maintaining at about $235k.  It will be interesting to see if buying activity can exceed the 2005-2006 records.  2015 was the 3rd busiest year ever.  2016 will likely exceed 2015, but I don’t know if we’ll break the records set in 2005-6.  While we are often the #1 or #2 best city by Conde Nast Travel Magazine, we also get rated high by other publications.  US News and World Report just ranked us 19th Best Place to Live in the country.  Charleston’s suburbs are expanding westward with more growth in Summerville.  Summerville has now annexed property on the Goose Creek side of I26 and the Nexton home development there will be huge.  They are currently doing some major road construction in that area to handle all the new population coming to that area.  Google already has a plant up there and that’s also where the new Volvo plant is going to be.  What a great place to live!!

Summerville, SC Flowertown Festival

Who doesn't want to save on taxes? Keep Reading

Here is a great article from Realtor.com on what you can deduct on your taxes regarding your home and mortgage:  

You probably already know that owning a home comes with some sweet tax benefits, like the mortgage-interest and property-tax deductions. But did you know there’s a whole list of other homeowner-related tax breaks that you might be leaving on the table?

We’re not talking chump change, either. Homeowners already save an average of $3,000 a year in taxes from mortgage-interest and property-tax deductions, according to the National Association of Realtors. When you add in some of the lesser-known homeowner tax breaks, you could really be amping up the savings—and beating the IRS at its own game.

Back in December, Congress passed the Protecting Americans From Tax Hikes Act of 2015, which extended many exemptions that were about to expire and made others permanent. But to reap the benefits, you first have to know about them.

So, here we go! Check out these common—and not-so-common—homeowner deductions that you should take advantage of this year:

1. Mortgage interest deduction
2. Private mortgage insurance
3. Property taxes
4. Capital gains on a home sale
5. Medical improvements
6. Home office
7. Renting out your home on occasion
8. Discount points
9. Energy-efficiency tax credit
10. Loan forgiveness deduction

If you’ve taken out a loan to buy a house, you can deduct the interest you pay on a mortgage, with a balance of up to $1 million. To access this deduction, you will have to itemize rather than take the standard deduction. The savings here can add up in a big way. For example, if you’re in the 25% tax bracket and deduct $10,000 of mortgage interest, you can save $2,500.

Of course, there are some limitations. For example, if you’re helping a family member pay his or her mortgage, you can’t deduct that interest on your tax return.

Qualified homeowners can deduct payments for private mortgage insurance, or PMI, for a primary home. Sometimes you can take the deduction for a second property as well, as long as it isn’t a rental unit. Here’s the catch: This only applies if you got your loan in 2007 or later.

Another restriction: This deduction only applies if your adjusted gross income is no more than $109,000 if married filing jointly or $54,500 if married filing separately.

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You can include state and local property taxes as itemized deductions. An interesting note: The amount of the deduction depends on when you pay the tax, not when the tax is due. As a result, paying property taxes earlier could have a positive impact on your return.

The dreaded capital gains tax can be avoided when the gain from selling your personal residence is less than $250,000 if you are a single taxpayer or $500,000 if you are a joint filer. To qualify, you must have owned and used the home as a primary residence for at least two years out of the five years leading up to the sale.

If you’ve made improvements to your home to help meet medical needs, such as installing a ramp or a lift, you could deduct the expenses—but only the amount by which the cost of the improvements exceed the increase in your home’s value. (In other words, you can’t deduct the entire cost of the equipment or improvements.)

“A lot of this comes down to fact and circumstance,” says Gil Charney, director of The Tax Institute at H&R Block. “For example, if you’ve recently installed a heated therapy spa or hot tub in your home, you may be able to deduct the expense if there’s also evidence that, say, a physical therapist visits your home three times a week and you’re over a certain age.”

If you have a dedicated space in your home for work and it’s not used for anything else, you could deduct it as a home office expense.

“It doesn’t have to be an entire room,” Charney says. “It can just be a dedicated space.”

If you rented out your home for, say, a major sports event like the Super Bowl or the World Series, or a cultural event such as Mardi Gras, the income on the rental could be totally tax free—as long as it was for only 14 days or fewer throughout the course of a year.

Discount points, which are paid to lower the interest rate on a loan, can be deducted in full for the year in which they were paid. In addition, if you’re buying a home and the seller pays the points as an incentive to get you to buy the house, you can deduct those points, Charney explains.

You can take advantage of an energy-efficiency tax credit of 10% of the amount paid (up to $500) for any green improvements, such as storm doors, energy-efficient windows, and air-conditioning and heating systems.

If you’re the owner of a foreclosed or short-sale home, you can take advantage of mortgage-debt forgiveness. For example, if you make a short sale of your primary home at $250,000 but owe $300,000 on your mortgage, the lender will forgive the extra $50,000 owed—and you don’t have to pay taxes on that amount.

For more tax tips, check out IRS Publication 530 for a list of what homeowners can (and cannot) deduct.

Link to article - http://www.realtor.com/advice/finance/these-little-known-tax-deductions-can-save-you-thousands/?identityID=56c6204b698ab9a903015dbf&MID=2016_03_MonthlyNewsletter&RID=3739612622&cid=eml-2016-03-MonthlyNL-sub1-blogs_buy

How Organized Are You Really?

I used to pride myself in organization...and then something happened - it flew out the window. If you saw my desk right now you'd understand. I used to keep things organized and everything had a spot when I was younger (or maybe I thought I did) but as I get older that skill went bye-bye.  I find myself about once/week cleaning up my office and/or my desk after I can't find something I need. Click HERE for the site that I "borrowed"the following article from. It gives 5 apps that will help me, and you, keep our lives organized.

5 Game Changing Organization Apps for 2016

Getting more done in the day often requires leverage. Technology has given us many new means of leverage, and apps are chief among them. Since we carry our smart phones around with us everywhere we go, apps are a great way to keep organized at home, in the office, and on the go.

Evernote and IFTTT are the go-to organizational apps, but we’ve found a few more that can help you get everything on track in 2016 and make your ONE Thing a reality this year. 

Trello – The All-Around Organizer

After more than 52,000 reviews Trello has garnered a nearly perfect rating. Why? It’s a solid all-around life organizer that blends tools for both work and home. The company describes the app as a “whiteboard with superpowers”, and it’s just as easy to use. The best part is that this powerful app is free to use.

What it can do:

Create dynamic checklists with “to-do” cards

• Create boards to organize projects
• Share and collaborate with co-workers, friends, or family
• Assign tasks to anyone on a project
• Attach files or media like photos and videos
• Syncs with the cloud to update all devices automatically

Devices it works on: iOS and Android 

Snupps– Keeping Your Items and Inventory Organized

If you have a lot of stuff at home or the office the Snupps app is an easy way to keep a record of everything and organize your inventory. Whether it’s your closet or a massive warehouse, all you have to do is take a photo with your phone to make a record of an item.

What it can do:

• Add items to “virtual shelves” with a snap
• Follow other users that have stuff you love
• Get product recommendations from other users
• Share organization tips
• Share your “shelves” with other users
• Keep track of inventory
• Makes moving a breeze by helping note what is in every box
• Keep track of donated items for your taxes
• Record gifts received for birthdays, graduations and showers to send out thank you notes

Devices it works on: iOS and Android 

BrightNest – Putting Your Domestic Tasks on Autopilot

Now the honey do list is easy and automated. The BrightNest app is made specifically for getting organized at home and keeping it in the best shape possible.

What it can do:

• Get reminders on what needs to get done and when
• Find practical, custom tips for house cleaning, maintenance and more
• Access local offers from vendors
• Set the app up to include kids and pets in the house
• Track home maintenance so everything stays on schedule
• Create schedules for regular home maintenance

Devices it works on: iOS and Android 

30/30 – Organize Your Daily Time Blocking

Earlier this month we discussed how breaking your schedule down into 1-hour blocks can help increase productivity. The 30/30 app takes it one step further by helping you create daily calendars that are broken into 30-minute increments.

What it can do:

• Create tasks in 30-minute blocks or set your own time for tasks from one minute to an hour
• Get notifications so that tasks don’t go undone
• Fully customizable task lists

Device it works on: iOS 

Week Menu – Organize Your Diet

The majority of people list eating healthy as their number one resolution at the start of the year. Easier said than done – unless you have the Week Menu app. This app will make it easy to plan out your meals for the entire week.

What it can do:

• Create a weekly menu
• Create your own recipe book
• Add notes to recipes for future reference
• Make grocery lists based off your menus
• Add ideas and recipes that you find on the web
• Get suggestions based on ingredients

Device it works on: iOS (if you use Android try the Food Planner app)

There you have it - Download these 5 easy apps and Voila - your life gets better!

Can I really buy a home?

Have you ever thought this to yourself?  Have you said "I can't afford it" or "I don't have enough to put down" or "They are just too expensive?"  Well, according to Realtor.com there are 6 reasons, false reasons, people say this.

1. I don't have enough for a down payment.  Very few people have 20% to put down. The average price of a home in the low country is around $225K so that would be $45,000.00 in a down payment. I don't know about you but I sure don't have $45K sitting around.  There are so many types of loans out there and this is a perfect time to reach out and talk to a mortgage lender about options. One great option out there is a FHA loan where you only need 3.5% down in order to buy a house. Even with a conventional loan you still only need 5% but remember that a lot of this will depend on your credit score.

2. I can't afford a mortgage payment.  Right now in the Charleston area most rental costs are more than a mortgage payment. Realtor.com has a great Rent vs. Buy calculator on their site you can use to compare and contrast.  If you can pay rent - you can start to build credit and equity and pay a mortgage payment - plus you get tax breaks too.

3. I don't have enough credit history.  So, you have a rough credit score and you're sure you won't get approved. All you need for a FHA is a score of 580 (some lenders require a 620).  You can start today paying down your credit cards, keep a steady job and you can get an application approved.  If not today start working on it now so in 6 months you may have more options. If you have a lower credit score this usually is accompanied by a higher mortgage rate.  It's best to get your score as high as possible so you get a better rate.

4. I don't have a credit history at all.  Maybe you're fresh out of college, just not used credit cards or made a large purchase such as a car. There are ways to start building credit so purchasing a house may not happen today but if you build healthy credit it won't take too long. If you are a renter you can ask your landlord to report your payments and establish credit that way. Experian makes it pretty easy to do.

5. I have not been at my job long enough.  Most mortgage lenders tell me they want you to be steadily employed at one place for 2 years.  Work history is very important to lenders because it shows stability and lenders and banks want to make sure they get paid if they lend you money.  If you are out moving jobs every 6 months there is an issue there and they won't lend you anything. If you move jobs though in the same field and industry and your income has been steady this will be taken into account.

6. I can't find a home I can afford.  One thing I am seeing with buyers in our market is they feel the need to buy a home in perfect, move-in condition.  You do not need to buy your final home right now. Start small and maybe even a fixer upper. Be less picky!  It's better to own a small, starter home now than throw away money as a renter.  Working with a Realtor who is experienced (like myself) will walk you through the process and help you find the right home.

MUSC

You want to know one of the great things about Summerville?  It's close to many hospital systems, including MUSC.  Just up the road at Carnes Crossing are even more medical facilities coming in.  I, for one, though am happy that we are close to MUSC.  I just spent 8 days there after having found squamos cell cancer for the 2nd time in my left ear. The first time it was a relatively minor surgery but after it returned with a vengeance the second time it got a bit more involved.  I usually joke my middle name is Murphy, short for Murphy's Law because whatever seemingly can go wrong will.  In 2008 I underwent a double lung transplant and have been on immunosuppressant drugs ever since.  These medications cause my immune system to be squashed so I am susceptible to pretty much anything and everything under the sun, including cancer.  To fix my 2nd bout of cancer the docs at the Head and Neck Department at MUSC decided to take a large skin graft out of my right leg and use that tissue to fill in the gap they cut out from my ear and neck.  In order to have the best chance at beating this cancer they removed my entire ear canal, the lower 1/2 of my ear, bone in and around my ear, salivary glands, lymph nodes and other glands.  They then took my leg tissue and blood supply and filled in the gaps around the ear so right now I look and sounds like a mess.  Of course there were complications so I ended up being intubated (tube down my throat breathing for me) for 5 days which meant I was in the ICU for 5 days also.  This caused all kinds of throat and vocal cord damage so as I type this I cannot speak above a whisper and can only swallow soft foods.  There's a lot more to this story but let's all be glad we are close to a top-rated hospital system that has the docs and means to treat just about anything.

A huge thanks to all my docs, surgeons and wonderful nurses that cared for me during my tenure in the hospital. The staff was great and I appreciate all of them!

-Jason