Home Buying in Kiawah Island>Question Details

Donovan, Home Buyer in Cincinnati, OH

My financial advisor advised me to wait until end of summer/ early fall as she thinks that prices will fall given the uptick in mortgage rates.

Asked by Donovan, Cincinnati, OH Fri Jun 14, 2013

She also said there is uncertainty surrounding the new management company. There are some who feel that liquidity is an issue. I am not familiar with the management questions so I would like ton hear your thoughts.

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Answers

11
I agree with Lyndy, we are in a unique market and we most likely will not see much of a change.
3 votes Thank Flag Link Fri Jun 14, 2013
She thinks the prices of what will fall? Real estate? The stocks she has you in? Every time there is a spike in interest rates there is also a spike in purchase transactions, people jump in not out when rates hike, they fear they will go higher. Not a bad speculation if you ask me. I think they will go a lot higher in order to attract real investment in mortgage backed securities. The feds are buying the lion’s share now, when they stop doing that who in their right mind would buy a 30 year bond at current yields? The only direction they can go is up. They certainly aren’t going to pay you to borrow money, (I hope not).

Besides, buying real estate to live in isn't an investment, it is a home. There is uncertainty driving on the expressway but I made it again today, I love a trend!

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Sat Jun 15, 2013
No one has a crystal ball but I would like to know how she came up with that advice. I started selling real estate 17 years ago and interest rates were almost 8%. The rates went down a year or so later and at first there was an increase in buyers. After the rate stayed the same, the buyers dropped off. I had four buyers "sitting on the fence" waiting for rates to go lower. As soon as rates started to increase, all four got scared and bought homes within 30 days.

Housing inventory is shrinking across the country as big investors are buying up houses with cash. These investors know they the economy is recovering and that prices are on the rise. There are multiple offers on all nice house. Wait and I am pretty sure you will pay more for your house as well as your mortgage interest rate.
0 votes Thank Flag Link Sat Jun 15, 2013
Well in Myrtle Beach single family homes have gone up in price,The time to buy is now! Theres a lot of great deals here at the beach.
0 votes Thank Flag Link Sat Jun 15, 2013
She thinks prices will fall...

Well:

She may be right
I may be crazy
But it just may be a lunatic you're looking for
Turn out the light
Don't try to save me
She may be wrong for all I know
But she may be right

While higher interest rates will moderate prices that doesn't mean the net effect will result in a lower monthly payment. but then again, I may be right. I may ........................

good luck

Fred
0 votes Thank Flag Link Fri Jun 14, 2013
i love taylor swift!!

Thanks
Flag Sat Jun 15, 2013
Thanks Fred. I am a big Taylor Swift fan like it seems you are.

Appreciate the response.
Flag Sat Jun 15, 2013
Thank you all for the responses, they were very helpful.

Is it better to build versus buy in the near term?
0 votes Thank Flag Link Fri Jun 14, 2013
Hi Donovan,
I would have to agree with Lyndy. While prices are starting to rise they may be even higher later in the year. Also with talk of rates going up you could end paying even more. I am not an expert in the area you are referring to but you will typically end up just exchanging dollar for dollar if you choose to wait and either of the scenarios tends to happen. Good luck to you.
0 votes Thank Flag Link Fri Jun 14, 2013
Here in Charleston, SC prices on homes have risen. We have a unique market here and I don't expect housing prices to fall regardless the mortgage influx. I believe that people will buy now to get a mortgage rate that is record low.

Just my opinions.

Lyndy Palmer
Exit Realty The Tracey Group
0 votes Thank Flag Link Fri Jun 14, 2013
Donovan-
I work mostly in the Isle of Palms/Wild Dunes/Sulivans Island area. What we are seeing is the number of properties for sale falling, investors coming back and prices starting to rise. Most investors in the 2nd home market were waiting for us to hit the bottom. Now that we have and are starting to rebound they want to start buying again. Although I agee that interest rates will likely rise towards the end of the summer, I don't think they will rise to the extent that rates will scare buyers away. Even if they top 4% for a 30 year fixed, that's still very low historically.
Regarding Kiawahs new ownership/management, any group that invests $300 to $400 million to purchase a real estate assest like Kiawah, will want that assest to maintain a quality reputation and grow the value. And a rising tide floats all boats as they say.
Chris Haviland
chaviland@carolinaone.com
0 votes Thank Flag Link Fri Jun 14, 2013
Donovan,

I will be the first to admit I am not an expert on the Kiawah Island Real Estate Market. With that said, you are doing the right thing by asking this question here for local real estate expert advice as all markets are different.

My company has an office that serves the Kiawah and Seabrook markets and I would be glad to put you in touch with one of our expert agents for those areas if you would like?

Please feel free to contact me if so.

Sincerely,

Donnie

Donnie Whitaker
Dunes Properties of Charleston, Inc.
Real Estate Sales
(843) 607.0954
dwhitaker@dunesproperties.com
http://www.donniewhitaker.com
0 votes Thank Flag Link Fri Jun 14, 2013
Have you looked at Wild Dunes?
0 votes Thank Flag Link Fri Jun 14, 2013
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