The Law of Supply and Demand

The principle is a driving fore in prices and values in Palmetto Dunes, as we are moderately priced compared to other high-end oceanfront resort communities. i bring this point to your attention to ensure that you have a realistic understanding of your property's worth, as well as the fact that we cannot create more inventory. When the market rebounds, supply will never keep up with demand because Palmetto Dunes is a non-speculative, internationally acclaimed oceanfront destination family resort community and we are virtually sold out of developer inventory. We have a narrowly defined niche in the world-class oceanfront resort market due to superior land planning, a subtropical climate with four seasons, mild winters, an overabundance of amenities and our 15-hour drive-to-radius of more than 100 million potential owners or visitors.

Because of our finite limit on available land and strict density regulations, established by the Town's Land Management Ordinance, as well as our location in the "Sun Belt," which is projected to grow 20 to30 percent during the next 25 years, we will never be able to satisfy the demand for prime oceanfront/ocean-oriented property 5, 10, or 20 years from now.

A subtle pattern is developing regarding narrowing the spread between the listing price and the final selling price. We will not remain a buyer's market indefinitely. This is a once-in-a-decade opportunity to take advantage of a great selection of inventory at exceptionally attractive prices, along with low interest rates. We, at Schembra Real Estate Group, Inc., are starting to see much more activity in calls from prospective buyers or agents. Real estate is all about confidence and, hopefully, we are at that tipping point today. There seems to be a pent-up demand and a general mood that it is time to buy, more on with our lives and plan for our future!

Sometimes we take things for granted. We have a very special community and, based on my 33 years of specializing in Palmetto Dunes, if you can afford to buy or reinvest, mow is as good a time as any!

Tax Reassessment

If you have questions about your recent Beaufort County Tax Reassessment, please contact us for a detailed overview. Steve Linsday, a full time State Certified Residential Real Estate Appraiser, recently attended a seminar by Ed Hughes, the Beaufort County Assessor, on the issue and has provided us a full page explanation for our owners.

Reduced Density

Twenty-five years ago my wife's cousin, Ben Racusin, invited me to participate in his campaign to become Hilton Head Island's first mayor. It was through Ben's leadership and guidance that the Land Management Ordinance (LMO) was created and enacted. The LMO significantly reduced development and density on Hilton Head Island, which created a shortage of inventory for years to come. Today, Hilton Head Island is devoid of any major development, which is highly beneficial to all owners as island Realtors rely on individual owners for property to sell. Actions taken by our town highlighted below, helped create this supply and demand imbalance. The town spend $120,500,000 purchasing 102 parcels, totaling 1,149 acres resulting in:

• A reduction of 4.15 million sq. ft. of commercial development
• A reduction of 1,365 hotel and motel rooms
• A reduction of 26,246 peak-hour driving trips
• A reduction of housing unit projections by 35%
• A reduction on 19,942 projected housing units in the '04 Comprehensive Plan, compared to the '85 plan.

Maintaining tight building restrictions and superior land planning is a huge advantage over other world-class destination resort communities that do not do so.

Finally, Good Real Estate News!

This morning while I was reading articles online from newspapers throughout the Country, I was pleased with the following headlines:

• Strong Report On Home Sales
• US Home Prices Post Gains
• Single Family Home Prices In June Were Up 1.4%
• July Sees Rise In Home Sales
• Home Prices Post First Quarterly Rise In 3 Years

Nationally, it appears we have started a real estate recovery, which has been long overdue. I believe that the American people now have more confidence and now realize that today's real estate market offers an exceptional once-in-a decade opportunity to buy...something I have personally felt for some time.

Real estate is all about confidence, and hopefully we are at that tipping point today. In Palmetto Dunes, Shelter Cove and Leamington we are starting to see much more activity in calls from prospective buyers or agents because of our great prices, great selections and historically low interest rates. There seems to be a pent-up demand and general mood of our buyers realize that it is time to buy, move on with our lives and plan for our future!

Today's market represents an incredible value which is evidenced by the fact that in the last month, three oceanfront homes have sold and an additional four are under contract. I am extremely proud to say that I have been involved in four of these transactions. If you are thinking about buying, don't wait and miss the opportunity that this market offers; price and location, with great interest rates.

Have a wonderful weekend!

The honors keep rolling in!

Association names Arthur Hills state's top golf course

The Arthur Hills Course at Palmetto Dunes Resort on Hilton Head Island was selected as South Carolina Golf Course of the Year by the board of the SC Golf Course Owners Association.

The announcement was made late Thursday, making Arthur Hills the first Beaufort County course to receive the honor since the Robert Trent Jones Course at Palmetto Dunes earned the distinction in 2002.

After being named local course of the year last month, Arthur Hills beat out three other state finalists for the award: Shaftesbury Glen in Conway, Oak Hills Golf Club in Columbia and Dunes West Golf Club in Charleston.

Voting was based on quality of the course, management, contribution to the community and contribution to the game.

"They do so many things well on so many different levels," said Brett Borton, executive director of the Lowcountry Golf Course Owners Association. "A big part of it is the commitment that goes into it from the top. Greenwood Development's stewardship and involvement in this community has been significant for many years. it's not just about being a great golf course. it's being a very well-rounded operation."

Arthur Hills will now represent South Carolina in the national course of the year competition, an award given out by the National Golf Course Owners Association later this year. The winner will be announced Feb. 8-12 at the 2010 Golf Industry Show in San Diego. No Beaufort County course has received the national award.

Taken from THE ISLAND PACKET

Sunday, August 16, 2009

From Staff Reports

Why Would You Wait?

We have been receiving positive news from the National Association of Realtors for the last few months and it looks like the market has bottomed out and is starting to move up. With great selections to choose from, great prices and low interest rates, now is a smart time to buy before prices increase. Fear of overpaying for property in today’s market is very natural.

From my recent conversations with lenders, interest rates will be going up in the near future because of increased demand and the high probability of inflation. Please keep in mind that if prices remain the same and interest rates go up by 1 point, you will be paying 17% more for the same piece of property thus, why wait and run the risk of paying more for the property at even a higher interest rate, It makes no sense.

$1,000,000 @ 5% Int. Only = $4,166/mo. payment
$1,000,000 @ 6% Int. Only = $5,000/mo. payment
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The difference in payment is 17%.

It doesn’t make sense to wait. Why pay more money for what you want to buy and pay more interest? Now is the time to buy!

Summer Update

In typical fashion, this summer has been like a roller coaster, which seems to be predictable for this past year also. We have been generating calls and property showings the past few weeks, but we are not seeing the sales results that we would like to see.

My focus with buyers is to emphasize “family first, family second and family third” in order to help them better understand that buying in a recession can be extremely beneficial both personally and financially. Our typical summer pattern in years past has been that potential buyers look throughout the course of the summer and make decisions at the end of the summer. Hopefully, this year that pattern will hold true as we built up a backlog of potential buyers. Today’s market truly represents a once in a decade opportunity for buyers to take advantage of exceptional prices and great selections.

Why Buy In a Recession?

Why Buy In a Recession? Today’s market offers a once-in-a-decade opportunity for buyers to take advantage of exceptionally attractive prices, a great selection of inventory and historically low interest rates while they enjoy all the benefits of ownership with their families.

Many real estate fortunes are made during recessions. If history repeats itself, there is no better time to buy than today. Today’s challenge is not having families fall in love with Palmetto Dunes – they do that naturally, but to help them understand “Why Buying In a Recession” can be extremely beneficial both personally and financially.

During the recession of 2002, my focus was family first, family second and family third. As a result of this focus, I was honored to be recognized as one of the “Top 100 Sales Teams” by the National Association of Realtors (NAR), which has a membership of 1,400,000. This mindset of buying in a recession for family enjoyment while knowing the purchase represents a solid real estate investment has thus far resulted in a terrific year for me. Since January 1, 2009, I have closed or scheduled to close $30,000,000 of resales in Palmetto Dunes, Shelter Cove and Leamington, which is exceeded by only $1,000,000 through the combined efforts of a company with 90+ agents.

Paradise Found!

Hilton Head Island, paradise found in South Carolina… looks more beautiful than ever with the tropical, lush, green foliage! During the month of May we had a total of 9.69 inches of rainfall; nearly breaking the 1915 record of 11.13 inches. The beauty and reputation of our world-famous Island makes it easy to fall in love with the community. With a fabulous selection of property at outstanding prices and excellent financing, the timing is perfect to take advantage of this unique opportunity to purchase your real estate investment before the onslaught of Summer traffic, which historically, is our strongest selling season. Don’t put family enjoyment on hold.

Positive News!

It is hard to believe that spring break, Easter and the Verizon Heritage Golf Tournament have come and gone so quickly.

Although, we saw a marked increase in homes, homesites and condominium sales in Palmetto Dunes, Shelter Cove and Leamington that were placed under contract, it is not the level of activity that I had hoped for.

Positive News: This past week, for the first time, Federal Reserve Chairman Ben Bernanke made a positive statement indicating that our economy is poised for a rebound the latter part of 2009.

This is bolstered by the announcement of The National Association of Realtors (NAR) that gave a positive report that there were more home sales than expected for the month of March. Pending home sales jumped 3.2%, defying the consensus of industry experts who had predicted no increase. Many experts feel that, at this time, we are at or near the bottom of the slow down.

Another bit of good news! The April Gallup Poll found that 71% of Americans thought that “now is a good time to buy a home”. This is very positive news as in the past several years the media has conditioned Americans that real estate was not a good long-term investment.

I am very pleased to report that the South has experienced the largest gain of pending home sales of any region in the country, jumping 8.5%, which is 7.7% higher compared to a year ago.

While this very difficult period of time in the real estate market not only on Hilton Head Island but also throughout the country, I am very excited and optimistic to see positive information released about the real estate market and why the time to buy is…NOW!