Pending Sales & Sales Success
In the Central Virginia Multiple Listing Service, Pending Sales for February are up by 20.73% to 1,124 versus February of last year at 931 that went under contract. With 2,640 newly listed homes this month and 1,124 under contract, the sales success index of 42.58% for February advanced 27.54% versus last year’s index of 33.38% in 2010.
Average Prices
According to the February 2011 statistics, our market area has experienced some downward momentum with the decline of average prices at closing. Prices dipped 16.70% to $178,686 versus the previous year February at $214,496. This is a difference in price of $35,810.
Cautionary Note: This does not mean that the value of an average home went down. It is an indication that there are more buyers for lower priced homes.
New Listings & Months Supply of Inventory
New Listings in this area for the month of February yielded 2,640 available resale dwellings. This was a decline of 5.34% or 149 units in comparison to February 2010. The total housing inventory at the end of February dipped by 9.67% to 11,846 existing homes available for sale. At an average of 1,047 closed sales per month over the last 12 months (March 2010 - February 2011), represented an unsold inventory index of 11.32 Month Supply of Inventory for Central Virginia.
Bottom of the Market
Volatility is the norm for the bottom or top of the market. It is hard for prices and demand to reflect immediately on each other but we are seeing stronger demand and if it continues prices will go up. Reports of multiple offers are occurring more frequently. The only way to know for sure whether this is the bottom is to look back a year or two from now. At that time we will be saying; "I hit the bottom just right" or "I wish I had bought my house earlier and gotten more for my money."
Data Compiled From Central Virginia Regional MLS by RE Stats. on March 3 2011.
Showing posts with label Real Estate. Show all posts
Showing posts with label Real Estate. Show all posts
Friday, March 4, 2011
Tuesday, November 16, 2010
Better questions get better results
REALTORS® all over the country know how tight things are. Statistics show that most are, well let’s just say, underemployed. This tends to make us sympathetic to the needs of clients that want to keep their costs down. However, sometimes the costs that are involved in buying a home should not be the focus.
The other day, I was asked what I consider to be the WRONG QUESTION by another REALTOR®. “Do you have a lower cost home inspector, that charges less than $250.00?” This REALTOR® had a client that was trying to save on the inspection. I get that. But the typical inspection in our area is $300.00 and up depending on scope of work, size of home and age of the home. The inspector I usually use would charge $350.00.
For $350.00 or more he starts at the roof and works his way down into the crawl space. He identifies current and likely future problems, gives an idea of the costs involved in fixing and or avoiding them and how to maintain the house. His analysis and documentation is such that if there is a problem, that my client decides needs to be addressed, the seller understands why we are asking.
Without the thorough analysis and documentation, one of three things will likely happen; problems will not be identified and will create bigger costs later, the seller will not understand the reasons for the requested repairs or credits and the contract will fall apart, or the purchaser will be alarmed and the contract will blow up. More simply put, a bad inspector can keep a purchaser from getting the house that was right for them without hidden costs.
I tend to think a BETTER QUESTION to a REALTOR® is, “Do you have an inspector that you would use to inspect a house that you are buying?”
The other day, I was asked what I consider to be the WRONG QUESTION by another REALTOR®. “Do you have a lower cost home inspector, that charges less than $250.00?” This REALTOR® had a client that was trying to save on the inspection. I get that. But the typical inspection in our area is $300.00 and up depending on scope of work, size of home and age of the home. The inspector I usually use would charge $350.00.
For $350.00 or more he starts at the roof and works his way down into the crawl space. He identifies current and likely future problems, gives an idea of the costs involved in fixing and or avoiding them and how to maintain the house. His analysis and documentation is such that if there is a problem, that my client decides needs to be addressed, the seller understands why we are asking.
Without the thorough analysis and documentation, one of three things will likely happen; problems will not be identified and will create bigger costs later, the seller will not understand the reasons for the requested repairs or credits and the contract will fall apart, or the purchaser will be alarmed and the contract will blow up. More simply put, a bad inspector can keep a purchaser from getting the house that was right for them without hidden costs.
I tend to think a BETTER QUESTION to a REALTOR® is, “Do you have an inspector that you would use to inspect a house that you are buying?”
Wednesday, June 30, 2010
I WANT THIS HOUSE FOR LESS!
I was recently told that I needed to convince a seller, through their agent that a home was over-priced. When that is the case, I feel that I do a pretty good job of selling the right arguments. However, whether it is truly over-priced or not, chances are it will remain that way on the market.
Some observations from 14 years in real estate:
1. Sellers don't change their mind about the value of their home. They may acquiesce to the market, but if they do, they feel cheated.
2. Buyers don't change their mind about the value of the home they are buying. If they negotiate up, they almost always feel like they should have gotten it for less.
3. Most people buy for emotional reasons, logic takes a back seat.
4. Sellers have agents that usually study the market, and have an idea of the value of the home. Those agents are often proud and don't like to hear that they made a mistake.
5. Buyers that are represented, have agents that usually study the market and have an idea of the value of the home. Those agents are often proud and don't like to hear that they made a mistake.
6. Agents need to present information to their clients and let them make the decision.
7. Buyers that chase value, often find it.
8. Buyers that chase deals, in a market where there is competent representation on the other side, seldom find them.
9. Buyers that chase deals, often get no value.
10.REALTORS® subscribe to a code of ethics that includes “honesty” and “truth.” Most REALTORS® take it very seriously.
There are others, but the most important thing to remember when making an offer is that everyone has information and has come to their own conclusions based on their thought processes. Those thought processes are usually a mix of logic and emotion, and are often dominated by the emotional side of the equation.
I always welcome your comments.
Some observations from 14 years in real estate:
1. Sellers don't change their mind about the value of their home. They may acquiesce to the market, but if they do, they feel cheated.
2. Buyers don't change their mind about the value of the home they are buying. If they negotiate up, they almost always feel like they should have gotten it for less.
3. Most people buy for emotional reasons, logic takes a back seat.
4. Sellers have agents that usually study the market, and have an idea of the value of the home. Those agents are often proud and don't like to hear that they made a mistake.
5. Buyers that are represented, have agents that usually study the market and have an idea of the value of the home. Those agents are often proud and don't like to hear that they made a mistake.
6. Agents need to present information to their clients and let them make the decision.
7. Buyers that chase value, often find it.
8. Buyers that chase deals, in a market where there is competent representation on the other side, seldom find them.
9. Buyers that chase deals, often get no value.
10.REALTORS® subscribe to a code of ethics that includes “honesty” and “truth.” Most REALTORS® take it very seriously.
There are others, but the most important thing to remember when making an offer is that everyone has information and has come to their own conclusions based on their thought processes. Those thought processes are usually a mix of logic and emotion, and are often dominated by the emotional side of the equation.
I always welcome your comments.
Tuesday, January 26, 2010
Raising the Bar in Real Estate
There has been a lot of discussion this month among REALTORS® about raising the bar for real estate agents. It started as a result of discussion about how real estate agents are viewed in the business world. It has continued with conversations held on Twitter, Facebook, Google Wave, blogs, conferences, phone calls and face to face discussions about how and what bar to raise.
There has been concern that agents will look bad, for the public nature of the discussion, something I obviously disagree with given where I have placed this particular post. It’s not that I’m not sensitive to the idea that we shouldn’t air our dirty laundry in front of everybody, It’s more a belief that it is out there and everyone needs to see that we are interested in cleaning it up. It is the public that has said their perception of us is low; it can’t hurt to have the public know that they have been heard and we are working to improve.
However, the question does persist, as to what we need to improve. Personally, I believe that a well trained, seasoned real estate agent can add value with negotiation skills, finance, construction & market knowledge, as well as marketing skills, area expertise and be a counselor, consultant and sounding board so that the consumer can make good real estate decisions.
On the other hand, I believe that as real estate agents, we operate in the middle of a semi-adversarial process where opposing parties have very different goals. This often leads to situations where one or both agents in a transaction may be perceived as a villain for not obtaining all the goals. In other words, if a party to the transaction believes they gave up more than they thought they were going to, they may like their agent and despise all others.
I believe that we must always strive to be better or raise the bar, and I will continue to take courses, read, attend meetings, study the market, talk to economists, talk to builders and developers, and study mortgage markets, real estate law and pass it on when I can. I would also really like to hear, from REALTORS® and CONSUMERS as to what services, what knowledge, what expertise, what educational standards, in other words, what bar should be raised.
Be great,
John
There has been concern that agents will look bad, for the public nature of the discussion, something I obviously disagree with given where I have placed this particular post. It’s not that I’m not sensitive to the idea that we shouldn’t air our dirty laundry in front of everybody, It’s more a belief that it is out there and everyone needs to see that we are interested in cleaning it up. It is the public that has said their perception of us is low; it can’t hurt to have the public know that they have been heard and we are working to improve.
However, the question does persist, as to what we need to improve. Personally, I believe that a well trained, seasoned real estate agent can add value with negotiation skills, finance, construction & market knowledge, as well as marketing skills, area expertise and be a counselor, consultant and sounding board so that the consumer can make good real estate decisions.
On the other hand, I believe that as real estate agents, we operate in the middle of a semi-adversarial process where opposing parties have very different goals. This often leads to situations where one or both agents in a transaction may be perceived as a villain for not obtaining all the goals. In other words, if a party to the transaction believes they gave up more than they thought they were going to, they may like their agent and despise all others.
I believe that we must always strive to be better or raise the bar, and I will continue to take courses, read, attend meetings, study the market, talk to economists, talk to builders and developers, and study mortgage markets, real estate law and pass it on when I can. I would also really like to hear, from REALTORS® and CONSUMERS as to what services, what knowledge, what expertise, what educational standards, in other words, what bar should be raised.
Be great,
John
Saturday, November 7, 2009
TIMING HOME PURCHASES
Much has been said today of the first time homebuyer tax credit extension and expansion to current home owners. For details, I suggest this as the most complete. NAR
Zip Realty TV
Aside from the money, what does the tax credit mean to you and why worry about it now? The expectation is to keep the housing market moving in the right direction. After all, doesn’t it make sense that if you might buy a home in the next 18 months or so, that you do it while you can get the gift of a tax credit? Why would you leave that money on the table?
However, keep in mind that that “right direction” is more of what we are seeing in the lower price ranges, with competing offers, and fewer concessions on homes that may be gone before you see them.
Here are some additional reasons to think about the tax credit now:
New construction
For anyone that wants to build a home, it is important to understand that the process from contract to closing often takes in excess of six months. The actual construction is only a part of the time that goes into the process, with permitting and county inspections absorbing up to two months while customized plans, selections and title work easily can absorb another.
Contracts for a home to be built in time to take advantage of the tax credit need to be in place before the end of the year. That means there are about 45 days to choose a community, builder, lot and plan.
Buyers that must sell a home
No one can say how much time it will take to sell your home. Each situation is a little different. It’s hard to say how long sold homes have been on the market. Through a quirk in our MLS system those numbers are hard to come by, because “days on market” refers to the current listing period only.
We do know that there was approximately an 8 1/2 month supply of homes on the market at the end of last month, assuming last months rate of sales would continue. Even in the faster moving under $200,000 market, there is approximately a 6 month supply.
Even if you don’t want to be on the market during the holidays, now is the time to sit down with your REALTOR® and put together a plan. Waiting may cost the $6,500 tax credit.
Homes that will be financed
Interest rates are near historic lows. How long that will last is anybody’s guess. If we are indeed in a recovery, as it appears, some inflation is to be expected and that means higher interest rates.
Higher interest rates translate into decreased buying power for purchasers. For sellers higher rates mean fewer people can actually afford the home.
Only you can decide what is best for you and your situation, but now would be an excellent time for you to sit down with a REALTOR® so that you have all of the information to make a good real estate decision.
Zip Realty TV
Aside from the money, what does the tax credit mean to you and why worry about it now? The expectation is to keep the housing market moving in the right direction. After all, doesn’t it make sense that if you might buy a home in the next 18 months or so, that you do it while you can get the gift of a tax credit? Why would you leave that money on the table?
However, keep in mind that that “right direction” is more of what we are seeing in the lower price ranges, with competing offers, and fewer concessions on homes that may be gone before you see them.
Here are some additional reasons to think about the tax credit now:
New construction
For anyone that wants to build a home, it is important to understand that the process from contract to closing often takes in excess of six months. The actual construction is only a part of the time that goes into the process, with permitting and county inspections absorbing up to two months while customized plans, selections and title work easily can absorb another.
Contracts for a home to be built in time to take advantage of the tax credit need to be in place before the end of the year. That means there are about 45 days to choose a community, builder, lot and plan.
Buyers that must sell a home
No one can say how much time it will take to sell your home. Each situation is a little different. It’s hard to say how long sold homes have been on the market. Through a quirk in our MLS system those numbers are hard to come by, because “days on market” refers to the current listing period only.
We do know that there was approximately an 8 1/2 month supply of homes on the market at the end of last month, assuming last months rate of sales would continue. Even in the faster moving under $200,000 market, there is approximately a 6 month supply.
Even if you don’t want to be on the market during the holidays, now is the time to sit down with your REALTOR® and put together a plan. Waiting may cost the $6,500 tax credit.
Homes that will be financed
Interest rates are near historic lows. How long that will last is anybody’s guess. If we are indeed in a recovery, as it appears, some inflation is to be expected and that means higher interest rates.
Higher interest rates translate into decreased buying power for purchasers. For sellers higher rates mean fewer people can actually afford the home.
Only you can decide what is best for you and your situation, but now would be an excellent time for you to sit down with a REALTOR® so that you have all of the information to make a good real estate decision.
Thursday, November 5, 2009
Market Stability?
Much has been made of some recent reports that show increased housing sales for 8 straight months. There will be another report in about a month that shows 9 straight months. After the October numbers, I'm not sure what we will see, but more than likely an increase over last year, and a seasonal (and end of initial tax credit rush) decline from the previous month.
Let's not forget that the market has two parts, with everyone focused on the demand side of the equation, the supply side is often forgotten. The pundits are saying that there are more foreclosures to come on the market and we can be confident that there are, even if we don't have a good picture of the numbers. I would balance this with the sort of pent up demand waiting for good economic news or a feeling that the housing market has bottomed.
In other words, supply and demand work together to give the market stability. So what is happening on the supply side? The inventory of available homes is shrinking, in some markets very significantly. So while we are not totally there, we seem to be headed towards some stability.
Comparison of the major markets covered by Zip Realty. Chart
Let's not forget that the market has two parts, with everyone focused on the demand side of the equation, the supply side is often forgotten. The pundits are saying that there are more foreclosures to come on the market and we can be confident that there are, even if we don't have a good picture of the numbers. I would balance this with the sort of pent up demand waiting for good economic news or a feeling that the housing market has bottomed.
In other words, supply and demand work together to give the market stability. So what is happening on the supply side? The inventory of available homes is shrinking, in some markets very significantly. So while we are not totally there, we seem to be headed towards some stability.
Comparison of the major markets covered by Zip Realty. Chart
Monday, November 2, 2009
A recipe for your new home
A question came up the other day concerning the practice of real estate agents sending out recipe post cards. I know the theory is to stay in touch and build a brand, but what is the brand? Why would you want to be in touch with someone who sends you recipes for things that you may never want to eat much less make. If you did decide to make something and had a problem, can that real estate agent help?
The real question should be how can this agent help you buy or sell a home? Have they shown that they are familiar with the market (real estate not food)? Are they in dozens of homes each month? Is there an indication that they are a professional? Can they negotiate? Can they discern your needs? Are they willing to work for you?
I’m sure you get all the unsolicited and irrelevant recipes you need from attorneys, bankers, accountants, doctors and dentists, so I’ll try to stick to information that impacts real estate.
The real question should be how can this agent help you buy or sell a home? Have they shown that they are familiar with the market (real estate not food)? Are they in dozens of homes each month? Is there an indication that they are a professional? Can they negotiate? Can they discern your needs? Are they willing to work for you?
I’m sure you get all the unsolicited and irrelevant recipes you need from attorneys, bankers, accountants, doctors and dentists, so I’ll try to stick to information that impacts real estate.
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