The Associated Press reported that Americans felt better about the economy in August as a barometer of sentiment posted the biggest rise in two years amid falling gas prices.

Two reports suggested a bottom could be nearing for the housing market.

The Conference Board, a private research group, said Tuesday that its consumer confidence index rose to 56.9 from a revised 51.9 in July. That’s the largest gain since August 2006 and was above the 53 expected by economists surveyed by Thomson/IFR.

It’s also the second month in a row that sentiment improved, after a six-month slide since January, but it remains about half what it was a year ago.

The second quarter figures for Downtown Charleston in the area inside the Crosstown reflect the current trend in the housing market. The statistics spanning April to June of 2008 show an increase from the first quarter in certain areas, and will be compared to the quarter preceding as well as the same quarter of the previous year. As the number of sold properties increases in the second quarter, the number of listed properties begins to decrease and listing prices begin to climb.

As the market continues to change, we notice that the second quarter of 2008 leads in number of sold properties in relation to the first quarter. The sold price in relation to the asking price remains a constant 94% during the 2nd quarter of 2007 as well as 2008. South of Broad continues to sustain an average return of 94% of the asking price despite lower listing prices from 2007 to 2008. Please click here for the full report.

Note: The second quarter for 2007 had an average price per square foot of $1,011 which is abnormally high. This is because in June 2007 four houses inside the Crosstown sold between $3,955,000 and $7,200,000 which increased the price per square foot for the entire area. In the second quarter for 2008 no houses sold for over $3,200,000.

Realtors are working very hard to get our State Legislators to rescind the point of sale increase in property taxes. Read about all the details of Point of Sale Tax Increases. We have met with our local Charleston delegation recently to get their support and pass new legislation next year. Everyone needs to be aware that taxes are now based on the new sales price. For millage rates for Charleston County see Millage rates.

A recent article in the San Francisco Chronicle outlined ten characteristics that real estate agents possess to ease the process of buying or selling a property. Only professional licensed real estate agents possess these ten characteristics therefore reinforcing the importance of only working with licensed agents.

“Ten Things Realtors Know (That you probably don’t)”

1. They know your local market.

2. They know how much your home (or the one you want to buy) is worth.

3. They know the easiest ways to increase your home’s value.

4. They know how to negotiate the best deal.

5. They know which types of properties are the best investments.

6. They know about loan approvals.

7. They know about appraisals and inspections.

8. They know about title searches and insurance.

9. They know about disclosures.

10. They know about the closing process and prices.

Across the country the housing values that are suffering the most are located in communities with the longest commute. Yesterday Morning Edition reported that housing prices in many urban areas have not decreased in the past year but that in many areas there has been an increase. Further, in large cities like Atlanta, new construction has almost stopped in suburban neighborhoods while development downtown is continuing on a steady basis.

Too bad there weren’t enough Jane Jacob’s followers (if any) in Atlanta’s city planning and development groups during the last 40 years.

The old saying “drive ’til you qualify” may not be good advise for those who hope to resell within the next few years.

Buyers!!!! Great article in Broker Agent News last month, full article here.
Two points in this article struck me. No bidding wars and patience is tolerated. A couple of years buyers had very little time to make a decision if they were interested in purchasing a property. There are still plenty of buyers for property in Charleston. The good news for these buyers is that they are in a great position to negotiate a price for a property without giving up a fair period of time for due diligence, home inspections, appraisals, etc.

1) Clean, clean, clean!! Scrub baseboards (they might not need painting), move furniture around and get rid of dust bunnies. Organize closets. This doesn’t have to be overwhelming. Take small steps.
2) Rearrange furniture to open up spaces. Look in magazines for new ideas to inexpensively jazz up your home.
3) Consider repainting in neutral colors. Just because you like a certain color does not mean that the next person will. Remember, they are trying to visualize themselves living there.
4) Remove as many personal pictures as possible. I cannot tell you the number of times I have been showing a home and the prospective buyers get caught up looking at the owner’s pictures instead of the house.
5) Plant flowers in the front yard and in pots on porches. When I first drive someone up to a home that has nice colorful flower beds it always brings on the oohs and ahhs!

I was showing some clients a number of properties recently in neighborhoods with large yards. There was one house in particular that I thought would be perfect for my clients. The house had numerous bedrooms and baths, the kitchen and bathrooms had recently been redone and the front and back yards were large with gorgeous shade trees. My clients were moving from a large metropolitan city and were anticipating a family home with plenty of outside space. As I drove up to the property the yard was completely overgrown, leaves were everywhere, and the flower beds were unkempt. First impressions are everything and this was definitely not a good one. My clients liked the house but felt the yard would be too much work…and “suddenly” there were other things that bothered them about the house. They ended up buying something else. Though I know this was the house for them, they ultimately didn’t buy it because of the yard and the first impression of what they saw.

Spending a small amount on plants, and putting in a few hours of landscaping to your yard will add more value than almost any other improvement. If you are planning on selling your house in less than a year these three suggestions will work wonders: edge your beds, nourish the grass, and scatter color with a variety of plants throughout your beds. While your house is on the market make sure you maintain the yard, keeping the grass cut, beds mulched, and walkways, decks, and porches swept.

In many parts of the country a condominium can be difficult to sell at just about any price level. However, in downtown Charleston, a condominium can be just the right fit for many types of buyers. Over the past few years we have seen college parents, retirees, first time home buyers, and second home buyers choose a condominium over a single family home. So, here are the stats on our condo market:

between $300,000 – $1,000,000:

• there are a little over 200 for sale
• about 80 are under contract
• a little over 80 have sold in the past year

These residences are located in just about every neighborhood in the city and include renovated properties in historic buildings as well as new construction.

The statistics on the luxury market are even better:

Over $1,000,000:

• there are less than 40 for sale
• about 25 are under contract
• about 15 have sold in the past year

Often a major consideration in condominium purchase is whether the regime fees are too high. A good way to check this is simply by comparing them to fees in similar properties. Often fees will be lower in new construction than in a historic building because of maintenance which may be deferred. Also, if you are considering a condominium, be sure to read the rules and regulations. You’ll want to know whether pets are allowed and if you are thinking of renting the unit check to see if there are any restrictions concerning long term vs. short term.