Today I found myself amongst a cheering crowd for the housing industry in South Carolina.  It was refreshing to be a voice in the choir, instead of the odd man out when talking about real estate in the Midlands.  Yes, it’s true.  Things have slowed down, but we haven’t come to a screeching halt as portrayed in the popular media.  Unfortunately, many of us are focused on what’s happening nationally and somehow have come to the conclusion that if it’s going on in Michigan, Florida or California, then it must be happening here.

It couldn’t be further from the truth.  We aren’t having entire neighborhoods become vacant due to foreclosures or massive layoffs – yet.  However, if we continue to believe the talking heads on television, then we could create that reality in South Carolina.  I remember when I was in college and grasped the concept of the “self-fulfilling prophesy”.  In a nutshell, if we believe something to be true and take action as if it were, then it will become a reality.  So, if we hold back on purchasing a home because we believe the market is in shambles (and so does everyone else with this same belief), then the real estate economy will slow down and then it will actually occur.  We are in control of our local economies – whether it be for good OR the bad.

At today’s rally, Doug Woodward, director of the research division and professor of economics at the University of South Carolina’s Moore School of Business spoke, stating that 15% of South Carolina’s jobs are in industries affiliated with home building. From the Realtor to the dry wall hanger to the electrician to the stocker at the local building store and even the infamous “Joe the Plumber”, we are all employed because the demand for real estate continues to increase.  These are local jobs, employing your friends, neighbors and maybe even a member of your household.  These are jobs that cannot be sent overseas.

Another interesting fact that was shared during the rally is that Richland II schools are anticipating an additional 1,000 students in this upcoming school year.  Where are these kids and their parents going to live?  They need homes, and that is not something they’ll hold off on because CNN says the economy is in a depression or recession.  Fort Jackson continues to process soldiers who need housing (and services provided by local businesses, such as restaurants and clothing stores).  Contrary to what the popular media is bombarding us with on a daily basis, people are looking for and are purchasing homes right now.

Valarie Williams, executive director of the S.C. State Housing Finance and Development Authority shared with us the overwhelming successes of the Palmetto Hero Program, launched in early 2008.  This program has offered teachers low-interest loans and down payment assistance to purchase homes.  In addition, I am also getting calls on a regular basis from my Bank of America representative, asking if I have new clients who are interested in their latest loan product.

So, there you have it, folks.  Banks want to lend money, the State Housing Finance and Development Authority are continuing to find ways to help people buy houses and unemployment isn’t at 15% (indicating that all of us in real estate affiliated industries are without a job).

The LOCAL real estate economy is continuing to move along, albeit slowly.  Smart Money Magazine has recently placed Columbia, SC as #7 of the top 25 real estate markets to experience a fast rebound from the national slowdown.  In this article, they state that on a national basis “In October 2005, near the peak of the boom, the median sales price for a U.S. home reached 7.3 times per capita income; by this May it had fallen to 5.7, in line with historical norms.”  So, the boom may be over, but signs indicate that we’re getting back to normal nationally – and that’s a good thing.

Your “No Bull” Realtor,

Kathy Smith
Russell & Jeffcoat Realtors, Inc.
(888) 808-4Moo ext. 0
(803) 781-5729
http://www.kathy.smith.net/