Hilton Head Real Estate Blog

According to University of South Carolina economists, a slowing economy in the rest of the country and a weaker dollar might help tourism on Hilton Head.

“I'm thinking Hilton Head Island could actually be one of the beneficiaries of the tourism growth because of the declining dollar. A lot more people will be taking vacations closer to home. Hilton Head Island, with its reliance on tourism, might not see its economy slow as much, if at all.” Doug Woodward and Paulo Guimarares presented this forecast to research economists this week in Columbia, South Carolina.

In rebuttal to the gloom and doom of national news media reports, buying a home isn't stupid, says the National Association of Realtors. The press has been relentless with negative news, but 2007 will be the 5th best housing year on record.

Homeownership is not a quick in-and-out purchase like stocks. Wealth is built over the long term, which is one reason why homebuying is heavily subsidized by tax savings and generous loan programs that enable people to get into homes without large down payments.

Stocks and houses aren't the same. Over ten years, a $10,000 investment in the stock market at a normal 10 percent market rate of return would yield nearly $24,000. The same investment as a down payment on a $200,000 home at a normal appreciation rate of 5 percent would return nearly 5 times the stock market return, or over $110,000.

We are able to get 5.875% on a 30 year fixed conforming loan with no points at this moment. The rates are great and the prices are lower than they have been in years.

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Posted by David Hahn in Real Estate Trends |