• Home prices are falling everywhere.
  • Not true at all, in fact, the FHFA (Federal Housing Finance Agency) home price index released on February 24th, 2009 showed that 34.2% of the 292 metro areas indexed actually appreciated in 3rd quarter 2008 compared to 3rd quarter 2007.  Not only that, but home values in 93.5% of those indexed areas are still averaging 27% appreciation since 2003 (or 5.4% per year).
  • The same price index from the FHFA showed Greenville-Mauldin-Easley MSA as having the 13th highest appreciation of 291 metro areas indexed in 4th quarter 2008.  A 3.23% increase compared to 4th quarter 2007, a 1.05% increase compared to 3rd quarter 2008, and 22.85% since 4th quarter 2003.
  • On February 12th, 2009, Realtor.com released their home price index, which showed Greenville, South Carolina as having the 17th highest appreciation rate of 152 metro areas in the US, up 1.37% in 2008.
  • Greenville, SC has appreciated by an average of 2.64% every year since 2004.
  • The PMI Group Inc. released their Winter 2009 Price Risk Index, and stated that Greenville has "a minimal risk of decline in average home price over the next two years."
  • Due to the fact that the Greater Greenville area did not experience outrageous price increases, our market has always been expected to recover much earlier than others.  In the April 2009 issue of Money Magazine, they specifically mentioned Greenville, SC as being one of the most stable markets in the country, and predicted our recovery in 2nd quarter 2009.  Article: When Will Home Prices Hit Bottom, Already?
    
• A buyer needs a minimum of 20% for down payment, and perfect credit in order to buy a home.
  • There are many loan programs still available in the Upstate, which offer 5% down payment options, FHA loans still offer down payment assistance programs, and many popular areas are still eligible for USDA Rural Development loans.  Just a few examples of eligible areas are parts of Simpsonville and Taylors.
    • “USDA Rural Development has partnered with local lenders to help them extend 100% financing opportunities to rural individuals and families.” - USDA
  • As for perfect credit, far from the truth in our area.  Yes, the subprime lending market no longer exists, but those with average credit can still find financing, and interest rates are currently averaging around 5% in our area.
  • The rationale behind both statements is the fact that lenders still consider Greenville SC a low-risk market, and they are more willing to lend in our area compared to areas where there is a high risk for further price decline.
    
• The time it takes to sell a home has dramatically increased in Greenville.
  • Resale homes in Greater Greenville have averaged 82.71 days on market since 2005, and the average in 2008 was 82.68 days.
  • While the absorption rate in the US has increased to approximately 13 months, the absorption rate in Greenville, South Carolina is currently about 9 months.

Sincerely,