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Smart Money is Buying Now!

You’ve read the headlines. You’ve seen the news. It’s no secret that America’s housing
market has taken a two-year detour. But the national trend is proving to be a mere speed bump for the Lowcountry. “Real estate, like all markets, is cyclical. After a few years of double-digit price appreciation across the area, it’s only natural to see a slowdown,” said Bill Baldwin, 25-year Hilton Head Island real estate veteran and director of sales and marketing for Dunes Marketing Group.

“The cool down is over locally,” he continued. “If you are still waiting for prices to hit bottom, you are playing a dangerous game in 2008, as buyers are returning this spring to claim their piece of paradise.”

According to Baldwin, there are several reasons why today is a particularly good time to buy property in the Lowcountry. “In spite of the fact that sales were down in 2007, the value of a home has not dropped
considerably here,” he said. “Whatever is going on elsewhere, we are somewhat insulated because of our desirable location.”

Data from the Multiple Listing Service of Hilton Head Island confirms Baldwin’s statement. While home and villa sales suffered a decline just slightly above 10 percent in 2007, the median price remained
relatively stable, dropping less than three percent. This is just one sign pointing to the overall strength of our local market compared to the general numbers being reported nationally.

“I think that’s because of the Spanish moss and moonbeams,” said Baldwin, referring to the natural beauty, desirable weather conditions and luxurious amenities that attract potential buyers to the
area. “Regardless of what’s going on in the world, Hilton Head Island and the Lowcountry will always be some of the most prime real estate available anywhere,” he said..

LOOK WHO'S BUYING

U.S. demographic studies and current economic trends indicate that several population
sectors, including baby boomers, corporations and foreign investors, are set
to drive area sales today and in the near future. Numbering about 78 million, the baby
boomer generation continues to have a significant impact on U.S. real estate, particularly
in terms of second homes, vacation properties and retirement venues. Where
are they buying? In the red-hot South.

There is a huge migration to the South, and for good reason. First, southern states offer a more comfortable climate. As baby boomers age, they are ready to leave the snow and ice behind for sunshine, blue skies, golf courses and beaches. The Lowcountry of South Carolina offers the perfect solution for those who enjoy seasonal changes minus the extremes. Secondly, southern states have more space to share. As urban areas become increasingly congested, people are looking to trade the hustle and bustle for a more tranquil way of life. Development restrictions and strong environmental protection laws make Hilton Head Island and the surrounding area particularly inviting. Thirdly, southern states offer a sense of community that is often lost in big cities. Southern hospitality is a big draw for visitors, many of whom decide to stay. A friendly base population mingled with many social as well as cultural opportunities makes the Lowcountry a perfect place for retirees as well as their families to settle.

In addition to boomers looking for vacation and retirement properties, big corporations
are starting to buy properties in bulk. “Some major U.S. and foreign investment groups are on the move. This is a sign we’ve reached the bottom,” said Baldwin, also citing a recent influx of buyers from
Canada and Europe, including Eastern Europe. Since the first of the year, DMG is working with many new customers from Canada or Europe. Ironically, over half of those are from Eastern Europe. “In my
25-plus years here, I’ve never seen buyers from Eastern Europe,” said Baldwin, attributing
the trend in foreign sales to greater buying power. “The softening U.S prices combined with favorable exchange rates makes homes here big bargains for many Canadian and European buyers,” he explained.


WHY BUY NOW?
If you are considering buying property in the South Carolina Lowcountry, here are a few reasons why you should make your move to purchase now:

• Find your perfect place: With inventories at an all-time high, you can afford to be picky. Whether you are looking for a primary residence, vacation home or a lot for your future use, by choosing to
buy now, there’s a much greater chance that you’ll find the property that is ideally suited to your needs. While it is impossible to predict the exact bottom of a market, the prime properties will sell first. Even if prices should dip slightly lower, it’s more likely that they will head back up soon. Why risk
missing out on your first choice?

• Get more bang for your buck: Now is the time to pick up a prime piece of property at a good price. Sellers competing for your business are doing everything they can to make their property most attractive. You can afford to demand the best location, best condition and best value.

• Build or make improvements for less: In today’s market, you have the option of building or making improvements for substantially less than it would have cost several years ago. According to
the National Association of Home Builders, the rate of new home construction has dropped and prices of many building materials have dropped as a result. Construction labor costs are down as well.
If you’ve found the perfect lot or if the house you love needs additions or remodeling, now is the time to take action.

• Secure a great rate: Interest rates are historically low and plenty of mortgages are available. With an average 30-year, fixed-rate mortgage below six percent, nothing should stop qualified buyers.

• Reap the rewards: Historically, real estate in the Lowcountry has appreciated an average of more
than 10 percent each year over the last 10 years. Commit to the long term and watch your money
grow.

If you are still not convinced that now is the right time to buy, consider the pleasure factor. There is
no doubt that the value of coastal properties will increase over time. Why wait to start enjoying the
Lowcountry lifestyle?

Yes, smart money is buying now.