The numbers are in and home sales nationally have improved in the second half of the 2009!
Sales Activity in the Richmond Metro Area for the 4th quarter, was up 38% over 2008! More than half the homes sold in this quarter were priced below $200,000. By contrast, in 2008, only 40% of homes sold were under the $200,000 price range. The uptick in sales activity was driven by the 1st Time Home Buyers Tax Credit.
Home Prices in Central Virginia including Metro Richmond were down 14% in 2009 compared with 2008. Prices were down in every quarter of 2009 and there is still little evidence that they have reached a turnaround point.
The Outlook for 2010....calls for an increase in sales activity for the first half of 2010. As the number of potential buyers increases in early 2010, so will the confidence of potential sellers. As a result, it is expected that the number of listings will multiply, giving buyers more options.
While sales activity will likely continue to improve, it is not certain that prices will rise. Foreclosures remain a potential problem as the economic recovery continues to unfold. These homes will generally be lower-priced and will continue to dampen prices in the overall market. Second, sellers have been holding off listing their homes, therefore, it is possible that the new supply of homes may be greater than demand, keeping prices from rising appreciably.
Wednesday, January 27, 2010
Friday, January 15, 2010
The 5 Most Common Home Inspection Issues
Whether you are thinking about selling your house in the next few months or whether you plan to stay put for the foreseeable future, it is important to stay on top of home maintenance issues so a minor problem doesn't lead to a more expensive issue or damage down the road. A recent article in REALTOR magazine highlighted the following as the 5 most common issues that arise during home inspections and what you can do to ensure these issues are not a problem.
1. Improper Electrical Wiring - Open wires, faulty wiring, inadequate overload protection - all of these are very common occurrences that could be cited on a home inspection report.
Preparation Tip: Call a qualified and licensed electrician to evaluate the wiring prior to the inspection so that you may alleviate costly repairs cited in the report.
2. Roof Deterioration - Old or damaged shingles can lead to leaks but easy and inexpensive repairs to damaged tiles or shingles can stave off more costly and extensive damage; i.e., water stains, damaged sheetrock or plaster, etc.
Preparation Tip: Use binoculars to check for any damaged, loose or missing shingles. Cut overhanging tree branches back from the roof.
3. Improper surface grading or drainage - Water can enter a home and cause major damage if proper drainage isn't in place. Basements and crawl spaces are most vulnerable.
Preparation Tip:When it rains, grab an umbrella and observe how your home sheds water. Does it disappear into a window? You might need to install, realign or repair a damaged gutter and downspout system to ensure proper drainage.
4. Plumbing problems- Dripping faucets, corroding or mismatched piping, faulty fixtures, rocking toilets and improperly installed hot water heaters are all sources of common plumbing problems.
Preparation Tip:Make sure toilets are securely bolted. Check all faucets, valves and hose bibs for potential leaks and fix them right away so they do not lead to more damage such as mold, mildew or structural damage.
5. Poor overall upkeep- Cracked, peeling or dirty painted surfaces, inside and out can signal overall neglect. Decayed caulking around windows and doors may be more than an eyesore -it may be compromising the efficiency of your heating and air systems leading to higher utility costs.
Preparation Tip: Walk around the interior and exterior of your house at least once a year with a scrutinizing eye. Consider hiring a home inspector for a maintenance inspection to identify any conditions that may lead to more serious defects later.
1. Improper Electrical Wiring - Open wires, faulty wiring, inadequate overload protection - all of these are very common occurrences that could be cited on a home inspection report.
Preparation Tip: Call a qualified and licensed electrician to evaluate the wiring prior to the inspection so that you may alleviate costly repairs cited in the report.
2. Roof Deterioration - Old or damaged shingles can lead to leaks but easy and inexpensive repairs to damaged tiles or shingles can stave off more costly and extensive damage; i.e., water stains, damaged sheetrock or plaster, etc.
Preparation Tip: Use binoculars to check for any damaged, loose or missing shingles. Cut overhanging tree branches back from the roof.
3. Improper surface grading or drainage - Water can enter a home and cause major damage if proper drainage isn't in place. Basements and crawl spaces are most vulnerable.
Preparation Tip:When it rains, grab an umbrella and observe how your home sheds water. Does it disappear into a window? You might need to install, realign or repair a damaged gutter and downspout system to ensure proper drainage.
4. Plumbing problems- Dripping faucets, corroding or mismatched piping, faulty fixtures, rocking toilets and improperly installed hot water heaters are all sources of common plumbing problems.
Preparation Tip:Make sure toilets are securely bolted. Check all faucets, valves and hose bibs for potential leaks and fix them right away so they do not lead to more damage such as mold, mildew or structural damage.
5. Poor overall upkeep- Cracked, peeling or dirty painted surfaces, inside and out can signal overall neglect. Decayed caulking around windows and doors may be more than an eyesore -it may be compromising the efficiency of your heating and air systems leading to higher utility costs.
Preparation Tip: Walk around the interior and exterior of your house at least once a year with a scrutinizing eye. Consider hiring a home inspector for a maintenance inspection to identify any conditions that may lead to more serious defects later.
Tuesday, December 22, 2009
5 things to think about as we head into 2010!
As you know, the real estate environment has changed and we are charting new territory everyday with new lending regulations, never-before available tax credits and historic levels of affordability. As we close out 2009, here are 5 things to keep in mind as we enter a new decade!
1. Historic Interest Rates - There has never been a better time to buy a house. The mortgage interest rate is a key determining factor in what the home will cost you over the term of the loan. That is why, even though prices may still recede another 10%, a person should probably buy now instead of waiting and trying to time the bottom of the housing market. If prices drop another 10%, but interest rates increase by 1% point, that would mean the same monthly payment today versus waiting. If you have a steady job, good credit and money for a down payment, you are truly being offered a gift of a lifetime!
2. Homebuyer Tax Credits - Up to $8000 for first-time homebuyers and up to $6500 for current homeowners having lived in their current residence for the last 5 out of 8 years. But don't wait too long - you must be under contract by April 30th and close by June 30th.
3. Changes in the Settlement Process - No more last-minute changes to the HUD statement and certain changes will necessitate closing 3 days later. How does this affect you? Your closing date may be a moving target and back-to-back closings on separate properties may be a thing of the past. More to come on these new restrictions next month.
4. Real Estate as an Investment - Wealth is built by purchasing real estate at the right time, right price and right terms. While your current house may have lost value, keep in mind that your dream house may have lost a similar percentage of value as well - thus making it more attainable. In the future, when prices begin to appreciate again, the additional equity in the larger home will increase the family's net worth.
5. Use the Davenport Plageman Team for all your real estate transactions!
1. Historic Interest Rates - There has never been a better time to buy a house. The mortgage interest rate is a key determining factor in what the home will cost you over the term of the loan. That is why, even though prices may still recede another 10%, a person should probably buy now instead of waiting and trying to time the bottom of the housing market. If prices drop another 10%, but interest rates increase by 1% point, that would mean the same monthly payment today versus waiting. If you have a steady job, good credit and money for a down payment, you are truly being offered a gift of a lifetime!
2. Homebuyer Tax Credits - Up to $8000 for first-time homebuyers and up to $6500 for current homeowners having lived in their current residence for the last 5 out of 8 years. But don't wait too long - you must be under contract by April 30th and close by June 30th.
3. Changes in the Settlement Process - No more last-minute changes to the HUD statement and certain changes will necessitate closing 3 days later. How does this affect you? Your closing date may be a moving target and back-to-back closings on separate properties may be a thing of the past. More to come on these new restrictions next month.
4. Real Estate as an Investment - Wealth is built by purchasing real estate at the right time, right price and right terms. While your current house may have lost value, keep in mind that your dream house may have lost a similar percentage of value as well - thus making it more attainable. In the future, when prices begin to appreciate again, the additional equity in the larger home will increase the family's net worth.
5. Use the Davenport Plageman Team for all your real estate transactions!
Tuesday, November 17, 2009
Extended and Expanded Home Buyer Tax Credit
~ Up to $8000 credit for First-Time Buyers and up to $6500 for Current Homeowners.~
The First-Time Homebuyer Tax Credit has been expanded to include current homeowners. As of September, over 1.4 million first-time homebuyers have taken advantage of the credit since its introduction and locally, we have seen increased sales activity in the under $300,000 price range. Now that the credit is being offered to current homeowners, we anticipate an increase in sales in all price ranges. If you have been thinking about "moving up" or downsizing - there is no better time than the present to make that next home purchase.
The First-Time Homebuyer Tax Credit has been expanded to include current homeowners. As of September, over 1.4 million first-time homebuyers have taken advantage of the credit since its introduction and locally, we have seen increased sales activity in the under $300,000 price range. Now that the credit is being offered to current homeowners, we anticipate an increase in sales in all price ranges. If you have been thinking about "moving up" or downsizing - there is no better time than the present to make that next home purchase.
Key points of the legislation include:
- Current homeowners must have owned their current home consecutively for 5 of the last 8 years.
- First-time homebuyers cannot have owned a principal residence for past 3 years.
- New home purchase price is limited to $800,000.
- Home must be under contract by April 30,2010 and must close by July 1, 2010.
For detailed information and restrictions, please visit the NAR web site.
Friday, November 6, 2009
River City or Festival City
I often think that Richmond should be called “Festival City”. We seem to have a festival to celebrate everything – folk music, wine, chocolate, watermelon, beer, bbq, hanover tomatoes, and a host of nationalities and cultures.
This Saturday, get outside and meander downtown to the Brunswick Stew Festival at 17th Street Farmer’s Market. Sample a few different varieties of stew, listen to live music and enjoy the downtown scene. Nothing like a full tummy and a little toe-tapping to make you appreciate our great city.
This Saturday, get outside and meander downtown to the Brunswick Stew Festival at 17th Street Farmer’s Market. Sample a few different varieties of stew, listen to live music and enjoy the downtown scene. Nothing like a full tummy and a little toe-tapping to make you appreciate our great city.
Monday, October 19, 2009
Are Buyers and Sellers getting on the same page?
About a year ago, we saw buyers test the market with "low-ball" purchase offers in hopes that a Seller might be in a distressed financial position and would sell their home below market value. Today, these same offers that were considered a "low ball" have become fair market value. For several months, Realtors have worked hard to convince Sellers that if they want to sell their home they must "shrink the gap" between Buyers and Sellers. If both parties are realistic about price, DEALS ARE BEING MADE!
We are seeing a behavioral shift in Buyers - they are exhibiting a renewed confidence and interest in real estate. The uptick in activity that started in the late Spring/Summer has carried over into Fall, and a new batch of closed sales are providing more accurate information so both Buyers and Sellers can gain a clearer understanding of their property's value.
Make no mistake: these transactions are trading at lower prices than last year but if all parties get on the same page, we will see more accepted offers come within 2-5% of the list price instead of 15-20%. If Sellers continue to align with the market, properties that have languished for months will begin to move and the inventory levels will SHRINK, thus helping us all get back to a more stable market!
We are seeing a behavioral shift in Buyers - they are exhibiting a renewed confidence and interest in real estate. The uptick in activity that started in the late Spring/Summer has carried over into Fall, and a new batch of closed sales are providing more accurate information so both Buyers and Sellers can gain a clearer understanding of their property's value.
Make no mistake: these transactions are trading at lower prices than last year but if all parties get on the same page, we will see more accepted offers come within 2-5% of the list price instead of 15-20%. If Sellers continue to align with the market, properties that have languished for months will begin to move and the inventory levels will SHRINK, thus helping us all get back to a more stable market!
Thursday, September 17, 2009
Spotlight on the City of Richmond Tax Abatement Program
With the current real estate market adjustment, we have not only seen downward adjustments related to sales prices but also to real estate tax assessments. Lower taxes is always a good thing, right?!
Well, here is a cautionary note for homeowners who currently own a property that is currently registered with the City of Richmond’s Tax Exemption for Rehabilitated Structures program. Assessments are based on the total of your improvement value and the land value. The final value used to determine the amount of your abatement was based on real estate values at the time the property was renovated and accepted into the Rehab program. If the total value of your improvements has decreased from that amount shown as the “Rehab Final Improvement Value” (FIV), the abatement will also decrease by a proportionate amount until such time as the assessment of the “improvements” again equals or exceeds the “FIV”.
The tax abatement cannot be applied toward land value so ensure that you review both the improvement value and the land value when you receive your tax assessment notice in January.
A tax abatement is transferable to new homeowners so home buyers should be aware that a tax abatement may be adjusted downward -- especially if you are purchasing a house that has decreased in value since the time of its rehabilitation.
The good news? If real estate values increase (and assessments increase as well), then you are still eligible for the total value of the abatement as determined when your house was entered into the program.
If you have questions regarding the tax abatement program, please contact Kristy Davis at 804-646-5227 at or Richard Woodson at 804-646-5198 with the City of Richmond Assessor's Office.
Well, here is a cautionary note for homeowners who currently own a property that is currently registered with the City of Richmond’s Tax Exemption for Rehabilitated Structures program. Assessments are based on the total of your improvement value and the land value. The final value used to determine the amount of your abatement was based on real estate values at the time the property was renovated and accepted into the Rehab program. If the total value of your improvements has decreased from that amount shown as the “Rehab Final Improvement Value” (FIV), the abatement will also decrease by a proportionate amount until such time as the assessment of the “improvements” again equals or exceeds the “FIV”.
The tax abatement cannot be applied toward land value so ensure that you review both the improvement value and the land value when you receive your tax assessment notice in January.
A tax abatement is transferable to new homeowners so home buyers should be aware that a tax abatement may be adjusted downward -- especially if you are purchasing a house that has decreased in value since the time of its rehabilitation.
The good news? If real estate values increase (and assessments increase as well), then you are still eligible for the total value of the abatement as determined when your house was entered into the program.
If you have questions regarding the tax abatement program, please contact Kristy Davis at 804-646-5227 at or Richard Woodson at 804-646-5198 with the City of Richmond Assessor's Office.
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