Justin Winter’s Carolina Lake and Mountain Blog

Don’t Lag on Winter Home Maintenance

Homes may require some extra attention when it comes to maintenance to protect itself against the cold, harsh weather. A recent article at Realty Times offers up some maintenance tips for the winter months:

Keep out drafts. Twice a year check your windows and doors for any air leaks, and add caulking, if needed. If extra caulking won’t suffice and you don’t have the money for a replacement, consider adding a storm door to keep out drafts or at least purchasing a draft blocker, which lies at the bottom of your door to block out the cold air.

Check the heating system. “Central heat and air units need to be checked over,” the Realty Times article notes. “When a unit is well-serviced it will save you fuel and thus money.”

Assess the ductwork. Make a trip to the attic to ensure that any parts haven’t become disconnected as well as a critter hasn’t chewed through any duct work.

Clean the gutters. Gutters can become clogged of leaves or other debris. When that happens, they can hold water, which can eventually rot away the siding or roof of your home. Make sure to keep the gutters clean.

Prevent freezing pipes. “When the weather drops below freezing you need to keep your pipes from freezing,” the Realty Times article notes. “Let faucets drip and unhook all outdoor hoses.”

Source: “Winter Home Maintenance,” Realty Times (Jan. 19, 2012)

What They’re Saying

COLUMBIA, S.C. – Governor Nikki Haley delivered her second annual State of the State message last night. Here’s what people across South Carolina are saying about the governor’s speech:

“We all have to admit she’s done a great job of creating jobs in South Carolina,” said Senate Majority Leader Harvey Peeler, R-Cherokee, after the speech. “Not since (the late Gov.) Carroll Campbell have we had such a great salesman for the state of South Carolina.” (Gina Smith, The State, “Haley: Our state is surging,” 1/19/2012)

“Rep. Dan Hamilton, R-Taylors, called the speech ‘a positive look at what we’ve actually accomplished in a year and a positive look forward’ and praised the emphasis on tax changes…” (Associated Press, “Responses to Gov. Haley’s State of the State,” 1/18/2012)

“Sen. Larry Martin, R-Pickens, says the governor set a great tone overall in her speech…” (Robert Kittle, WSPA 7 On Your Side, “Gov. Haley Delivers State of the State,” 1/18/2012)

“She drew applause when she hailed the state’s success in adding jobs and bringing industrial investment in the past year, and for her plans for 2012.” (Editorial, The Post and Courier, “First, finish restructuring,” 1/19/2012)

“…Haley devoted most of her time behind the podium to speaking about jobs for South Carolina’s residents. She said that by the end of January, state government will unveil a restructured workforce training program to further drive down the unemployment rate, which fell below double-digit figures at the end of 2011.” (Allyson Bird, The Post and Courier, “Haley criticizes port ‘bickering’,” 1/19/2012)

“Her budget proposal also would set spending caps, cut taxes for some South Carolinians and businesses and create a $25 million fund to improve the state’s ports.” (Gina Smith, The State, “Haley: Our state is surging,” 1/19/2012)

“Haley pledged to fight unions and called the National Labor Relations Board’s lawsuit against Boeing ‘one of the most fundamentally un-American decisions ever handed down by the federal government.’” (Allyson Bird, The Post and Courier, “Haley criticizes port ‘bickering’,” 1/19/2012)

“Her speech focused on jobs, as she recognized a dozen companies that made job announcements for South Carolina in 2011, including Continental Tire, TD Bank, Bridgestone and BMW. Companies have announced some $5 billion in investments and promised nearly 20,000 new jobs, she told a joint session of lawmakers and others gathered in the House chambers.” (Seanna Adcox, The Associated Press, “Gov. Haley calls for tax cuts, tort reform, spending caps in State of the State speech,” 1/18/2012)

Rob Godfrey
Office of Gov. Nikki Haley
O: (803) 734-5074 | C: (803) 429-5086

Greenville’s Upcountry History Museum Presents “An Evening in ‘The Dark Corner’ ” on January 26

On select evenings, Upcountry History Museum invites you to visit after hours for exceptional programs & scrumptious receptions. ”The Dark Corner”: one of the notorious and mysterious places in South Carolina. But how did this region develop its reputation?

Join local historian Dean Campbell, the Squire of the Dark Corner, as he introduces the award winning documentary,”The Dark Corner”. Featuring a moonshine still on display courtesy of Dark Corner Distillery in the Museum lobby.

Upcountry History Museum offers cultural events and student programs encourage community involvement. The success of these programs and the various events hosted at the museum provide learning opportunities for all ages. Weaving together the threads of the past, the Upcountry History Museum is poised to preserve and promote the region’s history for years to come.

http://www.greenville.com/news/corner0112.html

$900,000,000 expansion for BMW’s Spartanburg plant

Justin’s Commentary on Buyer/Seller Expectations

Buyer & Seller Expectation

You may have heard me speak about the widening gap between buyer and seller expectation in the marketplace today. It’s every Buyer’s expectation to purchase a short sale or bank foreclosure at 50% of replacement cost. Regrettably, a few of those deals have closed recently at The Cliffs and The Reserve at Lake Keowee. It’s deals like those that propagate demand. When pricing a resale home today we begin with replacement cost for the home site and house construction. In some instances home site prices are down 50% or more from the developer’s high. We use that cost as a base line, then add or subtract from the number based on the property’s specific characteristics such as age, uniqueness, style, decor and market competitiveness. Although you may have built ten years ago, don’t necessarily think that today’s home site and building costs are greater, thanks to the downward pressure from distress sales over the past 24 months.

In the article below, Laurence Yun (National Association of Realtors (NAR) Chief Economist) comments on the widening gap between new and resale home prices. Although our average home sale price is much higher (closer to $1,177,250), the same dynamic holds true when comparing the price of new and resale homes in our Cliffs/Reserve market. This is a major reason why there’s been very little speculative building of homes in our developments over the past three years. Today’s buyer would expect to purchase that “spec” home well below cost, and the builder would lose money. I’m afraid that’s the market we have for the time being.

The good news is that over the past two years Justin Winter & Associates have sold over 35 resale homes (some were distressed) at The Cliffs and The Reserve, and the replacement inventory is not coming to market as quickly as we’ve been seeing of late. The supply-demand curve is shifting, which will lead to pricing recovery and increased building starts in our communities as Buyers simply can’t find new or resale homes that meet their expectations. This changing dynamic will of course result in an alteration of expectations: away from “distress price” driven sales and back to “need based” driven sales.

There is light at the end of the tunnel.

Justin Winter

Broker-In-Charge

Justin Winter & Associates, REALTORS®

P.S.: Be sure to read my next commentary on the impact of developer financial hardship on resale property.

The Widening Gap between New and Existing Home Prices

Though construction workers’ wages have not changed in the past four years (stuck at $38 per hour on average), the costs of construction materials have been rising.

By Lawrence Yun, Chief Economist NAR

Palm Coast, FL – September 13, 2011 – The price of newly constructed homes refuses to budge downwards. After hitting the cyclical low of $204,000 in October of 2010, the typical transaction price of new homes has been around $220,000. In July, the median sold price of a new home was $222,000. Though construction workers’ wages have not changed in the past four years (stuck at $38 per hour on average), the costs of construction materials have been rising. As a result, homebuilders simply cannot lower the price without suffering a financial loss. That is, it is better not to build than to build and then have to slash the price.

Meanwhile, existing home prices have to respond to supply and demand pressures, and supply has so far had a better hand. As a result, lowering the price was the only option for many homeowners, other than pulling the home out of the market completely.

Due to the stubbornly high new home prices and lower existing home prices, the gap between the two has opened up. From consumers’ point of view, therefore, existing homes offer an increasingly better value. Because of this, we should expect new home sales to lag behind in the recovery as compared to existing home sales.

CMHC Report for August 2011: “North and South Carolina market may offer particularly good opportunities”

Market Intelligence
United States — CMHC Releases Four New Market Research Studies

CMHC International’s Atlantic and Quebec regions have released in-depth Market Research Studies on four of the most promising markets in the United States: New Hampshire, Maine, Massachusetts and North and South Carolina.

In addition to providing a comprehensive overview of each of the key markets, the reports cover such issues as:
Long-term outlook, trends and expectations;
Key sectors of activity;
Most promising geographic areas and prospects for Canadian exporters;
Most promising market segments and types of housing;
Specific market needs and recommended product solutions; and
Best strategies for entering or expanding in the target markets.

According to the reports, the North and South Carolina market may offer particularly good opportunities for Canadian exporters. While the housing markets in these two states are experiencing the same downturn as the rest of the U.S., primary and secondary research suggests that certain metropolitan areas in the region are faring slightly better than many other parts of the country. This is most evident in the Triangle in North Carolina and Charleston in South Carolina.

In Massachusetts, growth in the housing market in 2011 is anticipated to be slow. However, the favourable views of Canadian manufacturers and building products that are held by many key players in the state, combined with the proximity to Eastern Canada and a gradually improving economic climate, nonetheless make Massachusetts a reasonably promising area to pursue.

The short-term outlook for Maine’s residential housing market is slow growth, with construction activity not anticipated to return to pre-crash levels until approximately 2013. The long-term outlook is similarly cautious but positive, with a sense that the worst of the crisis has passed, economic conditions have stabilized, credit is once more available and, as consumers regain their confidence, that the housing market will begin to improve.

New Hampshire is in a better position than many other states in terms of its likelihood to rebound from the effects of the recession. It ranks third among all states in the U.S. as both a vacation destination and a location for second homes. Combined with better-than-average employment figures, this suggests that New Hampshire may be a market to watch for design and construction companies, especially those with a focus on low-income housing, group housing and energy conservation.

To find out more about these markets or to receive a copy of any of the Research Reports, visit CMHC’s website at www.cmhc.ca/international, or contact the CMHC representative at the numbers below for the target market(s) that interest you.

Contacts:
New Hampshire and Maine:
Ron Drisdelle, CMHC
t: 902-426-8462
e: rdrisdel@cmhc.ca

Massachusetts:
Bryan Decontie, CMHC
t: 514-283-2764
e: bdeconti@cmhc.ca

North and South Carolina:
Stephane Forget, CMHC
t: 514-283-0124
e: sforget@cmhc.ca

Danie Couture, Consulate of Canada in Raleigh
t: 919-573-1821
e: danie.couture@international.gc.ca

To see additional reports from Canada Mortgage and Housing Corporation for August 2011, see the below link:

http://secure.campaigner.com/Campaigner/Public/t.show?Muim–9Fkz-cNvBQ4

Social Networking

We recognize that social networking is growing more and more relevant in the business world.  Justin Winter & Associates recognizes these advantages and now has its own channel on YouTube.  Watch videos that overview our communities as well as individual listings!  You can also find us on Facebook, where we post daily price reductions, new listings, and more!  These online communities, in addition to our website and this blog, will make it even more convenient for you to see what’s going on in our market today!

See you online!

Our 2011 Sales Activity

January:
429 August Way in The Reserve at Lake Keowee, $1,475,000

February:
116 Sun Drop Court in The Cliffs at Keowee Vineyards, $1,575,000
1015 Longshore Drive in Keowee Bay, $630,000
F7 in The Reserve at Lake Keowee, $625,000

March:
E225 in The Reserve at Lake Keowee, $550,000

April:
688 Lake Breeze Lane in The Cliffs at Keowee Falls North, $1,850,000

May:
C12 in The Reserve at Lake Keowee, $450,000
E8-161 in The Reserve at Lake Keowee, $130,000
E163 in The Reserve at Lake Keowee, $497,000

June::
2-125 in The Cliffs at Keowee Springs, $355,000
105 North Lawn Drive in The Reserve at Lake Keowee, $975,000
E6 in The Reserve at Lake Keowee, $107,500
A18 in The Reserve at Lake Keowee, $209,900

July:
438 Old Shallowford Bridge Road in The Cliffs at Keowee, $1,660,000
B28 in The Reserve at Lake Keowee, $399,900
400 Moonlit Trail in The Cliffs at Keowee Falls South, $1,450,000

August:
S16 in The Cliffs at Keowee Vineyards, $325,000

You Won’t Find South Carolina on THIS List!

“The 50 U.S. states are in a beauty contest. Whether they know it or not, they are being judged by a tough jury of 76 million or so baby boomers looking for the best place to retire. These baby boomers are hard to please, they are used to moving to new places, and are not going to settle for second or third best when it comes to enjoying their retirement years. This article provides our list of the 10 (or so) worst states for retirement, 2010 edition……”  Click here to see the full article on TopRetirements.com -  including the top 10 list.  

TopRetirements.com, December 7, 2010, “Our Worst States to Retire List”

Words from a satisfied buyer

Patti Shull served as our realtor in purchasing a home in the Reserve development in Sunset  SC. She was very professional and tireless in setting up showings within our parameters, pursuing additional information when requested and in finalizing the deal once our bid was accepted. This was all during 2009, when the housing market was very unstable. Because of our successful transaction and interactions with Patti, we subsequently listed  a land parcel we have decided to sell. We would highly recommend her to anyone looking for a professional realtor.

Sincerely,
John and Mary O’Connell