NRVLiving - Real Estate. Simplified.

Investors Can Now Own More Properties

In a stroke of genius - well, a reaction to what was a poor decision in the first place - Fannie Mae has now increased the investor loan limits from 4 properties to 10.

Limiting serious investors to 4 properties just didn't make sense - these folks don't deal with numbers like that.  We're not talking loans for weekend warriors who want to flip a house or two, or invest in a condo.  These new limits are designed for the serious investor, the ones who have excellent credit, money to put down (20% or more), and they're set up with tighter guidelines than before.  And that, in my opinion, is a good thing.

This opens up a number of opportunities here in the New River Valley, specifically in Blacksburg and Radford.  I've said it before and I'll say it again ... and again ... and again - investing in college communities makes sense.  For the past couple of years at least, Virginia Tech has announced an on-campus shortfall for residents, which means students are having to find off-campus housing.  Investors are smart to snap these up, because not only do the universities get larger, but so do the periphery of businesses that follow universities.  Where there's a university, so also there are research facilities, medical schools, design and engineering firms, and more.  Housing becomes a premium.

Before you say I'm a cheerleader for housing - which I am, but I want to be an honest cheerleader - I'm not suggesting everyone jump in the housing pool.  However, in the past two weeks I've worked with an investor, two sets of parents with kids at Virginia Tech, and one first-time buyer who have specifically targeted our market because of the university-focus.

That's proof enough.  Thanks, Fannie Mae.

It's All About Your Neighborhood, and It's SPAM Free!

Ever wondered how to find out what that creepy neighbor sold their house for?  I remember the neighborhood Christmas parties - seems someone always wants to talk about real estate, and inevitably someone will ask "what do you think I can get for my house?"

I'm glad to talk real estate - it's one of my passions - but what if you could stay on top of the market and be the  envy of all your friends?  Now YOU can be the neighborhood expert at cocktail parties, just email me with your New River Valley neighborhood and I'll set up an automatic search that will notify you when a new listing hits the market in your neighborhood, and if it sells.  Easy enough, and no, I will not contact you otherwise - these emails as SPAM-FREE!

If you're interested, email me at jeremy at nrvliving dot com and I'll set it up for you.  I've already had several past clients sign up for updates on their own neighborhoods, and it was so well-received I thought it might be helpful for everyone.  All of this information is online and available for public consumption, let me make it a little easier and send it directly to you, in real time! 

Thanks, cobalt123, for the image.

Blacksburg's Odd Fellows Hall

You've probably seen the building before - a dilapidated, run-down structure tucked away at the intersection of Prices Fork and Main Street here in Blacksburg.  It's a forgotten little building - WAS, a forgotten little building - until yesterday.

Odd Fellows Hall, the forgotten little place with the huge history, is being remembered. 

Free Money's Not Cheap Money - A Look at the American Recovery and Reinvestment Act of 2009

Home buyers - how does a $15000 Tax Credit sound?  $15000, free money - sounds pretty good, right?

Who knows if it'll actually be there, though. 

Let's catch up to speed ... The House has passed a version of the stimulus bill, while the Senate is currently working on their own version.  They're supposed to vote on it tomorrow, February 10th, but as of this post I don't know if that'll happen.  There's some political wrangling that has to go back and forth, and once that's finished then it's voted on by both the House and the Senate ... again.

But why a stimulus in the first place, and will it even help?  Remember - I'm not a lawyer or a CPA, so if you have questions about whether this makes sense for you I'd suggest starting with them FIRST.  Then mail me.

The idea is that a tax credit of 10% of a home's purchase price, or a value no greater than $15000, could be written off on your taxes as a credit, thus stimulating buyers to invest in the housing market by purchasing either new homes or homes that are being resold.  The original stimulus bill, called the American Recovery and Reinvestment Act of 2009, said that only $7500 could be applied for as a credit, but this most recent amendment upped that to $15000.

15 grand is a lot of money.

I received some emails from first-time buyers late last week that thought it was just a first-time buyer credit, but according to the AP that's not the case.  The AP reports "The Senate has voted to award anybody buying a home this year a tax credit worth up to $15000 in hopes of jump-starting the sagging housing market.  The homebuyer tax credit offered by GOP Sen. Johnny Isakson would apply to any home purchased as a main residence and would cost taxpayers $19 billion."  So it looks as if it's a homebuyer credit and not a first-time buyer credit. 

I don't know if this makes a difference overall in the housing market across the country.  I know that the New River Valley market is not facing many of the same problems, and I hope to have my 2008 Annual Report out in the next several days.  Nevertheless, $15000 is a lot of money to just leave on the table and I think by the response I've gotten from buyers so far, and from what I'm hearing across the country, it's going to make SOME kind of a difference.  Make sure to read this report from Calculated Risk on the situation.  Jay Thompson also has a good recap.

EverythingNRV.com and Housing Shortages

Tim Jackson quoted me in a piece he did at EverythingNRV.com entitled "Two Sides of the Coin".

I love seeing people pick up on what the market's doing here, and I thank Tim for including me in his piece.  I did find much different data than he reported with regards to sales figures for both November and December of 2008 and 2007, which I addressed in the comments.  Nevertheless, thanks to Tim for writing and asking me to participate, be sure to check out EverythingNRV.com and add it to your daily read!

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Seems like we covered this last year, as well, but Virginia Tech has announced another shortage of housing for on-campus rooms.  Let's see ... buyers' market, great loan rates, students having to move off-campus ... who might be interested in an opportunity like this? 

Investors.  Parents.  Students with documented sources of income.  Email me ... we need to talk. 

Coldwell Banker Townside Gets All Web-Freaky

Woke up this morning to discover that www.CBTownside.com had a new look!  It had been in the works for a while, but I didn't know when it was going to be rolled out.  Lots of new stuff, including:

• a rotating agent showcase that highlights everyone in the company,
• a Live Chat feature to connect you instantly to one of our award-winning agents (implemented soon),
• a link to our blog, Keepin' It Real Estate,
• and rotating property ads

Kudos to everyone who's worked on the site, including Margaret, Kelsey and Sam.  A lot of time and effort has gone into it already, with more to come, with the goal of making it even easier to immerse yourself in the business of real estate here in the New River Valley!    

Wyatt Farm's On The Web

A lot of neighborhoods in Blacksburg and Christiansburg have either formal or informal LISTSERVs and things set up for neighbors to send out information, notices, etc., but today I learned that Blacksburg's Wyatt Farm has gone a step further.  They've set up a blog. 

Well, a website that acts like a blog, with pictures, and notices, and more. 

Well done, Wyatt Farm.  This is a great way to introduce folks to your beautiful neighborhood, and just another value of living there. 

Handshake 2.0 - No Hands Necessary

Anne Giles Clelland, of Handshake 2.0, recently drove the Bywire XGV (an unmanned Ford Escape Hybrid converted by Blacksburg firm Torc Technologies).  She captured a video of the experience, you can see it here.

Kudos to Anne for sharing the experience, and to Torc for allowing us all to check it out.  Torc Technologies is just one of the many companies here in the New River Valley that are doing some absolutely amazing things; it's really cool to see technologies like this in action.

Thanks for sharing, Anne.

Working Nine To Five

Real estate talk's around the corner, I promise - lots of stuff happening here at NRVLiving these past couple of weeks and I'm just starting to get back on my feet, so I know it's been an oft repeated phrase lately but bear with me!

January 21st 2009 was the first full day of a new administration, and everything I keep hearing is that they've got 100 day grace period before the public starts to keep a tally.  Now, I think the public's starting to keep a Pro and Con checklist sooner than that, but nevertheless one of the items on the administration's agenda has to be the economy and jobs.  According to the Bureau of Labor Statistics, the unemployment rate has risen to 7.2%.  Job losses are on a lot of people's minds, even here in the New River Valley where the unemployment rate rose to 5.6%.

But there is good news, as well, particularly here in the New River Valley.  Have you seen the latest Fortune  Magazine?  Check it out - Blacksburg's Mailtrust, and it's parent company Rackspace, was named one of the 100 Best Companies To Work For (#43, to be exact).  Congratulations to Pat and all the rest of the crowd over at Mailtrust - they are certainly a trendsetter in our area.

They're not the only ones making a difference, though.  And you can be a part of the action, as well.  Opportunities to improve are available now through the Roanoke Higher Education Center open house on February 5th.  Check out this video for more information ...

Top 10 Things To Expect In The Housing Market

It's not a Letterman Top 10 list, but could I get a drumroll please?

Thank you.

From FrontDoor.com comes their "Top 10 Things To Expect in the Housing Market in 2009" list.  #5 might be the most important, in my opinion.

1. Continued market adjustments - With home prices in some markets having reached astronomical levels, it was inevitable a reset button be pushed. Sellers will continue to be challenged in 2009 as the inflated pricing of years past adjusts to normal levels. With banks and builders willing to slash prices to sell a backlog of foreclosures and new homes, individual sellers will have to price their homes competitively.
2. Action from the Obama administration - President-elect Barack Obama's plan to help the housing sector includes a 10 percent mortgage tax credit for homeowners who don't itemize their taxes and a crackdown on abusive lending practices.
3. More assistance programs for homeowners in danger of foreclosure - While the federal government is attempting to reduce foreclosures, a report released by the Joint Economic Committee predicts 2 million foreclosures in 2009. Homeowners who are at risk should take steps to avoid foreclosure.
4. Some calm to the chaos of the banks' restructuring - This should cause loan modifications and short sales to get easier, and it will also (eventually) decrease the number of bank-owned properties on the market.
5. Thorough reviews of mortgage applications - Before the subprime mortgage debacle, you didn't have to prove you could afford to borrow $200,000 for a home and you didn't need a down payment. Those days of sketchy lending practices are gone. Lenders now require potential borrowers to provide extensive income and expense documentation. Homebuyers with the best credit will get the lowest interest rates. Take steps now to get your finances in order and boost your credit score.
6. Low prices and low interest rates - 2009 could be the time for reluctant homebuyers to act, as this is perhaps the last year of the best buying opportunity in recorded economic history.
7. Cool tech tricks and tools for the real estate obsessed - As homebuyers turn to the Web more and more for their real estate needs, video, webcasts and mobile search tools are becoming more prevalent. Sellers should consider using these cutting-edge tools to make their homes stand out.
8. Wiser consumers - After facing this foreclosure crisis, buyers, sellers, real estate agents and even tenants will have a deeper understanding of real estate, mortgage and credit, which they can use to make better decisions and be more self-protective in the future.
9. Leaner, greener homebuying - Across the board, homebuying is becoming more eco-friendly, from transactions being conducted digitally to buyers opting for smaller homes within walking distance of school and work.
10. An increase in consumer confidence - As the year goes on and we near the projected end of the recession, sellers can breathe a sigh of relief as buyers regain confidence in the market.

Well ... we've got a year to see what comes true. 

You Busy January 15th?

If you don't have anything to do, you might want to catch this ...

Let's Play Armchair Economist & Determine When the Market Improves

Greenspan's been around a long time - what do you think about his comments?  Is he a cheerleader, or a crazy economist?

No right or wrong answer here, what is your crystal ball telling you the economy will do in the New River Valley in 2009? 

Think YOUR Robot's Cool? Look At What This One Can Do.

Dr. Dennis Hong is a friend of the blog, and we are a friend of his, so anytime his RoMeLa group does something noteworthy (which seems to be a LOT) we try to give him some pub. So check this one out ...

Earlier in December, Dr. Hong's RoMeLa humanoid robot DARwin conducted the Roanoke Symphony Orchestra in Leroy Anderson's "Sleigh Ride" ... that's right, DARwin, a robot, conducted a symphony.  He's told me before how it's done, but I don't understand a word.  It should be noted this isn't a preprogrammed response to the song - this thing is actually conducting and responding.  Freaky.  So enjoy, and congratulations to Dr. Hong and his amazing group of students.  (It takes a couple of minutes to get into the song, but well worth the wait).

Updated 12/19 8:21am And it looks like Hong and his group have won another international award. Underachievers - just imagine what they could do if they actually applied themselves. :)

So Easy, A Caveman Could Do It

I've been meaning to put this post out there for quite some time, then a month or two ago another agent did  something similar and so I figured it was probably time to move it up the To-Do list.

A lot of people ask me "when's that house down the street going to sell?", or "how much did that two-story on Main Street sell for?"  While I'm glad to tell you, there's a way you can find out even faster.  If you'll email me your name, email address and the neighborhood you live in, I'll set up a search in the MLS that'll email you every time a property in your neighborhood comes on and off the market.  You'll be the first to know when it this the market, the first to know if the price changes ... be the envy of all your friends!  Don't worry - by providing your email address I won't be spamming you, or sending you cutesy recipe cards in the hope that you'll remember my name.  If it helps, I won't even save your address.

I've just found that if you're interested in following the values in your area, this is a good, real-time way to do that.  I've set it up for myself to track my own neighborhood, and those of some of my former clients, and can do the same for you.  Just email me and I'll set it up; I hope you find it useful.

The State of the Market - November 2009

Ever been in a candy shop?  You know, the type where there are candies of all sizes, shapes and colors lining the walls?  The shops where you shove a big metal shovel the size of Delaware into a barrel of assorted candies, and you come up with all different types of sweets?

Yea - that's what the real estate market is like right now.

It's not that it's a huge surprise ... the winter is always slower than normal, so we were prepared for that.  I can't say anyone saw bailouts of the banks, the construction folks, the auto makers, the pizza bakers and the professional matchmakers, but needless to say here we are.

See how I did that, the whole rhyming thing and all?  I know - Eminem I'm not.  Nor am I fan of bailouts of irresponsible mismanagement, but that's a story for another day.

Buyers, if you:  (1) have a job, (2) have money to put down and (3) have good - notice I didn't say excellent - credit, our current real estate market will be like walking into that candy shop and taking your pick of everything that's available.  I don't mean that you'll get it for pennies on the dollar, but the opportunities are there to pick up excellent values right now.  Think about it - if a property is listed now, between the Thanksgiving and Christmas time frame, don't you think that Seller is serious about selling his or her home NOW?  I do, and my Sellers are.  And it's important to note that when I say you need money to put down I don't mean ten's of thousands of dollars.  There are lenders here locally, right now, offering great rates on FHA and other buyer programs that are requiring as little as 3% down, not to mention the free money - yes, free money, not additional loans - that localities like Blacksburg are offering qualified buyers.

Let me post the latest absorption rate numbers for the New River Valley market now, and then check in with folks that might need to sell their home in the next few months.  When it comes to absorption rates, we're looking at how long it would take to sell the existing residential inventory in a particular area, if nothing else came on the market until supply was exhausted.  Anything over 5 months is typically a buyers' market, and anything less than 5 months is typically a seller's market.

Area	# of Active Properties	# of Sold Properties	Absorption Rate	Buyer/Seller Market
Blacksburg	211	12	17.58 Months	Buyer
Christiansburg	258	13	19.85 Months	Buyer
Montgomery County	64	0	64.00 Months	Buyer
Floyd County	115	4	28.75 Months	Buyer
Giles County	54	1	54.00 Months	Buyer
Pulaski	101	5	20.20 Months	Buyer
Dublin	107	4	26.75 Months	Buyer
Radford	70	3	23.33 Months	Buyer

Sellers, the market's not in your favor now when you look at the numbers above.  28, 54, 64 months worth of inventory?  An average of more than two years worth of inventory is a scary thing when you're putting your home on the market, but remember it's not taking EVERYTHING that long.  The average for the NRVLiving Team in 2008 is 101 days, or just over 3 months.  Some have taken less, some will take more, but we're doing our best to expose our listings in every effective way possible.  That being said ... selling right now isn't for everyone.  If you bought a townhouse in Christiansburg last year for no money down and expect a 10% return, it might be a good idea to rent for the home for a while.  Those are products that are having difficulty selling in today's market, and will need some time to settle out.  Nevertheless, there ARE ways to get it sold ... not the least of which includes patience.  There is a lot of uncertainty right now, and it's going to take patience and carefully executed marketing to reach buyers who are ready to execute. 

At the halfway point of the year, I wrote a post looking at what the market was doing up to that point, and compared it to the year prior.  The results were striking, and I'm working on a follow-up for the entire 2008 year that I hope will be helpful.  There will be some in the real estate market who will be happy they held off selling, and others that will regret not buying, but the time is not right for everyone.  Be patient, find an agent who is studying and demonstrating they know the market they're serving, and grab that shovel - there's candy to be had.

If you enjoyed this post, why not leave a comment and subscribe via RSS or email here to be sure you don't miss the next post?

News Ain't Just Broken On TV Any More

A few weeks ago, I was contacted by WDBJ7's news anchor Natasha Ryan about a story she was writing on the online social media site called Twitter.

Now, I've admitted my addictions here on the blog before, and it was interesting to see a local news outlet not only recognizing the power of the service but taking the time to investigate it further.  Below is the final result, in two parts done on last night's broadcast:





Certainly I feel the service is an invaluable tool - it helps me connect with friends, it's enabled me the opportunity to meet current and future customers, and it's even influenced the creation of a new small business startup in the New River Valley.  It's nice to see local news outlets exploring new ways of breaking news and staying in touch with their viewers.  If you're on Twitter, make sure to check out these local news and civic organizations:

• Natasha Ryan
• WDBJ7
• WSLS
• ABC13 WSET
• Roanoke Times
• Town of Blacksburg

There are many more, I'm sure, but these were some I could recall off the top of my head.  Thanks to Natasha and WDBJ7 for the story, as well as to Patsy Stewart, Ira Kaufman and Stuart Mease for their participation as well, and to Kevin Cupp for recording the video!

Hey - are we connected?

What In The World Is Virginia Doing?

From the Virginia Resources Authority comes this announcement on Friday:

The Virginia Resources Authority has just sold $215 million in infrastructure revenue bonds – a real triumph and nothing short of miraculous given the economic situation. This represents the largest transaction in the pooled financing program in VRA history.

The bonds will finance a number of projects in localities across Virginia. The projects are varied in scope, reflecting VRA’s broad support in 14 areas for community investment including public safety and local government buildings. Participating localities will construct a variety of projects including: upgrades to bridges and wastewater treatment plants, replacement of water and sewer lines, and construction of a new firehouse, a new library, and a public safety academy.

“Bricks and mortar projects mean jobs and income in Virginia communities,” said Sheryl Bailey, Executive Director of the Virginia Resources Authority. “We can’t over-emphasize the importance of such projects in stimulating the local and state economy. Infrastructure is a key to America’s economic recovery.”

Important?  You bet!  With funding comes improvements, with improvements comes jobs, and with jobs comes tax revenue, quality of living and any other number of benefits.  Virginia has had a strong bond rating for many years, meaning low loan rates for localities, and $215 million will go a long way to localities being able to move forward with planned improvements.  No word in the press release on whether any of those projects are planned for the Blacksburg/Christiansburg/Radford area, but we'll see moving forward.

Updated 11/25 10:02am - This is the largest ever transaction in the history of VRA's pooled financing program, and represents 25% of VRA's financing in that program to date ($862 million total).  You can read the entire November 21 press release at http://www.virginiaresources.org/news.shtml.

Do You Trulia?

A few days ago, I wrote a post talking about loan modifications and the problems I thought they perpetuated.  It was a post that was admittedly written with a bit of anger and cynicism at what our elected officials were doing, but also with some disappointment I can't think of a better solution. 

Imagine my surprise when I received an email from Fran at Trulia, telling me the post had been selected to be featured on their Top Housing Market Stories page!  Thanks, Trulia, that's pretty cool!

Speaking of Trulia, are you familiar with their site?  Whether you're a buyer, a seller, or interested bystander, you might want to check them out.  They have great tools for everyone to follow what's happening in their neighborhood, and Steve and I are both on the site and updating our profiles now! 

Virginia Tech At the Forefront of Sustainability Issues

I've written before about Virginia Tech's focus on energy research and sustainability, even going so far as to say that the university's focus on these issues is a nice example of putting their money where their mouth is, with no outside pressure.  And I believe that.

And appointments such as these lead me to believe it even more.  Sure, Dr. Leo's appointment is one that is made to further the university's research advancement goals and bring in more money, but you can bet they'll be putting much of these initiatives in place right here on campus. 

Kudos to Dr. Leo and Virginia Tech.  Once again, Inventing the Future.

New Farm Downtown Will Use A Familiar Product

Local Blacksburg residents Jim and Heather Cowan will be building an equestrian facility in the middle of downtown Blacksburg.

That's right - almost smack dab in the middle of downtown Blacksburg.  They're doing it by utilizing a provision of sorts in the property's conservation easement.

What I find interesting is that the farm will be sustainable, and is using a product familiar to anyone who's read this blog in the past year.  The product is Auz-Bloc, also known as Builderscrete.  I say well done to Jim and Heather for choosing this really unique product, and congratulations to Bill and everyone at Auz-Bloc on the new project!

More on Auz-Bloc here, and in the video below: