NRVLiving - Real Estate. Simplified.

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.

The State of The Market - October 2009

Ah, the leaves in the New RIver Valley are changing.  It's one of my favorite times of the year here - until the winter winds decide to blow.

Just as the leaves will change every year, it's election day today and with a lame duck President in place we'll see change in DC, as well - you DID vote, didn't you?  The leaves change, our leadership changes, and the real estate market ... well, it's changed a bit, as well.

I'll repeat it one more time:

"a slow, steady and calculated approach to the market is going to be important as we move forward towards 2009."

There are opportunities for buyers and sellers, right now, and a slow and steady approach will serve you well.  That being said, I don't think we'll see significant market rebounds in the short-term so Sellers, if you don't have to sell, don't.  As you can see from the following numbers, anything over 5 months is a buyers market and right now, there aren't any buyers markets.  I'm currently working on an end-of-year market report, I'm interested to see how that works out ... stay tuned for that.  Again, 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	216	11	19.64 Months	Buyer
Christiansburg	278	14	19.86 Months	Buyer
Montgomery County	67	8	8.38 Months	Buyer
Floyd County	124	6	20.67 Months	Buyer
Giles County	60	9	6.67 Months	Buyer
Pulaski	105	9	11.67 Months	Buyer
Dublin	113	6	18.83Months	Buyer
Radford	72	10	7.20 Months	Buyer

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The State of the Market - September 2008 (Renamed: A Slow And Steady Approach)

August has come and gone, and September has as well.  The leaves are changing ... it's one of my favoritest (can I say that?  Sure I can) times of the year here in the New River Valley.  September has NOT been nice to the stock market, however - there's no secret there, we've passed a bill with economic implications that are really beyond comprehension to try and stabilize it, and oh yea, there's a presidential election going on as well.  Wondering how it all effects housing?  My best guesses here, here, here and here.  As I said last month however:

"a slow, steady and calculated approach to the market is going to be important as we move forward towards 2009."

I believe that, more than ever.  If you look at the first half of the year you'll see prices being soft during a time of year that's typically a much stronger market, and then as we've gotten further into the fall that trend has continued.  According to figures pulled from the New River Valley MLS, volume across the entire New River Valley (which my absorption rate statistics does not cover in its' entirety) is down about 14% from this time last year, the average sold price is down about 11% from this time last year, but the list to sale ratio is 96.3% (compared to 96.2% last year).  That tells me that while prices are down from this time last year, sellers are pushing for lower list prices as well - this is a good strategy.  In a market that's soft, don't rely on the price your neighbor got six months ago.  Stay ahead of the knife and price it right the first time.  One more cautionary tale, and I mentioned it last month ... if you are in an Adjustable Rate Mortgage, and your rate adjusts or expires at anytime in 2009, please contact me immediately.  There are serious implications for many homeowners who will find their payments jumping by hundreds of dollars a month, let's find a local lender who can act quickly to help you refinance and keep your payments low.

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	206	19	10.84 Months	Buyer
Christiansburg	272	17	16.00 Months	Buyer
Montgomery County	68	8	8.50 Months	Buyer
Floyd County	127	2	63.50 Months	Buyer
Giles County	60	8	7.50 Months	Buyer
Pulaski	101	5	20.20 Months	Buyer
Dublin	116	7	16.57 Months	Buyer
Radford	79	7	11.29 Months	Buyer

A full and complete shift into a buyers' market through September, which again is no surprise, it's part of the cycle.  Certainly, news from Wall Street and an election are playing into this, as well as just the typical slow down that happens every year about this time.  I was asked on Monday if I was worried about my job.  Let me be clear ... NO.  People are going to buy and sell during turbulent times.  The market will be different, it will be rocky at times, but if I know how to navigate it and put the pieces in place, it all works out in the end.  Let me repeat - a slow, steady and calculated approach to the market is going to be important as we move forward towards 2009.

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The New River Trail

A couple of weekends ago, my wife and I took the bikes down to the New River Trail, where we picked it up in the Draper area.

The New River Trail is an abandoned railroad right-of-way, part of the Rails to Trails Program, and parallels the New River and Claytor Lake for 39 miles.  The entire park is actually 57 continuous miles long, and heads through Grayson, Carroll, Wythe and Pulaski counties.  Here's a map.

If you're looking for a new bike ride that's just gorgeous, I'd encourage you to check this one out.

Here are some pictures we took ...

The State of the Market - August 2008

It's the home stretch for 2008, and what a year it's been so far - the first half of the year showed that the time to sell a home was actually FALLING a bit, but prices were unchanged for the most part save for a few select areas.  As we head further into fall and winter, I expect we'll see shifts across all area markets to what we'd consider a buyers' market.  There are also many Adjustable Rate Mortgages expected to reset in early 2009 and so I'm wondering if we may see more homes coming on the markets in the next couple of months, as homeowners try to avoid rising mortgage payments.  If you're one of those homeowners and aren't intending to move, please contact me immediately - let's find a local lender who can act quickly to help you refinance and keep your payments low.

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	208	35	5.94 Months	Buyer and Seller
Christiansburg	276	41	6.73 Months	Buyer
Montgomery County	69	11	6.27 Months	Buyer
Floyd County	123	6	20.50 Months	Buyer
Giles County	60	4	15.00 Months	Buyer
Pulaski	108	13	8.31 Months	Buyer
Dublin	123	14	8.79 Months	Buyer
Radford	92	12	7.67 Months	Buyer

This shift into a buyers' market is certainly nothing new, it usually happens every year.  Interesting days ahead though, a slow, steady and calculated approach to the market is going to be important as we move forward towards 2009.

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The State of the Market - July 2008

The first half of the year is behind us, and we're officially on the backside of 2008.� There were some surprising conclusions that came out of the market in the first half of the year, namely that the time it took to sell a home was less, yet prices were stable or falling in most areas except for Blacksburg.� Despite that, June's absorption rate showed balanced markets in Dublin and Christiansburg, with a SELLER'S market in Blacksburg.

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	Active	�� Sold ���	Absorption Rate	Buyer/Seller Market
Blacksburg	219	52	4.21 Months	Seller
Christiansburg	257	41	6.27 Months	Buyer
Montgomery County	73	6	12.71 Months	Buyer
Floyd County	117	5	23.40 Months	Buyer
Giles County	59	7	8.43 Months	Buyer
Pulaski	103	8	12.88 Months	Buyer
Dublin	117	13	9.00 Months	Buyer
Radford	95	18	5.28 Months	Balanced - Buyer

Sort of standard fare for July, the same thing we've seen for much of the year.� While there have been major fluctuations within various areas (Floyd County was 12 months of inventory in June, 23 in July), the overall average has been pretty consistent.� That's a good sign.� Why?� The market's not overreacting, one way or another to news.� It'll be interesting in the remainder of the year to see how HR 3221 moves the markets, but for now the trend has been slow and steady.� And in Blacksburg, even included a little appreciation, which is a good thing!

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Real Estate Taxes In The New River Valley

Taxes.  Everyone's got to pay them, and they never go down.  That's the bad news.

The good news is that by paying taxes, we're contributing to the infrastructure that makes the New River Valley such a great place to live.  But how the heck do they come up with the amount you need to pay?  Well, it's based on the rate that's voting on by the various municipalities, and they're detailed below.  You'll note that some have TWO rates - one is the Town or City rate, added to the County rate.  And should you need more information about a particular location, feel free to use the phone numbers below to contact the taxing authority.

To calculate current yearly tax, take the current assessed value of the home, divide by 100 and multiply by the current tax rate.

The assessed value of the home is $250000 and the home is in Blacksburg:
$250000/100 = 2500 x .93 = 2325  Yearly tax $2325

The following rates are current as of July 1, 2008

Locale	Tax Rate	Phone Number
Blacksburg	$.22 + $.71 = $.93	540-961-1105
Bland County	$.69	540-688-3741
Christiansburg	$.144 + $.71 = $.854	540-382-9519
Craig County	$.52	540-864-6241
Floyd County	$.60	540-745-9345
Giles County	$.63	540-626-7067
Montgomery County	$.71	540-382-5717
Pulaski County	$.62	540-980-7785
Radford City	$.73	540-731-3661
Rich Creek	$.22 + $.63 = $.85	540-726-3260
Town of Floyd	$.60	540-745-9435
Town of Pulaski	$.32 + $.62 = $.94	540-994-8640
Town of Narrows	$.34 + $.63 = $.97	540-726-2423
Town of Pearisburg	$.29 + $.63 = $.92	540-921-0340
Town of Pembroke	$.30 + $.63 = $.93	540-626-7191

New River Valley Renters - This Post Could Save You Thousands of Dollars!

Scams abound, and one I just read about really hit home to me - wanted to share it here.

We have a lot of renters here in the New River Valley, particularly centered around Blacksburg (Virginia Tech) and Radford (Radford University), but in many other areas of the Valley as well.  The summer is a hot season for renters, as people move in and out around the various school systems and universities.  That hot rental market is also a great place for scam artists to move and "work", as evidenced by this story by Maggie Dokic in Miami FL.

I plan on sending this post to some local law enforcement to see if they have any updates they can provide on how renters can protect themselves, but Maggie makes a couple of good points.

• Check property records online to verify the person signing the lease is truly the owner, or is authorized to sign leases on behalf of the owner.  Each County has its own record system, here are a few:
  
  - Montgomery County (including Blacksburg & Christiansburg records)
  - City of Radford
  - Giles County
  
  
• Be sure to know exactly where the checks will be mailed, so there's a physical address to track.
• If they don't verify your credit, be very WARY!  If they want first and last months rent in cash, RUN!

I'd add that working with a property manager is a must for making sure a property is above board, and I'm happy to hook you up with some of the best - just email me for a list.  Most landlords in the New River Valley are above board and honest, but that's not to say there aren't unscrupulous folks out there as well.  Hopefully some of these tips will help renters in the New River Valley protect themselves a little more, and not experience what this poor family in Miami is up against.

Updated July 1 11:00am - received an email from State Farm agent Eric Johnsen this morning as a follow-up to this post, wanted to share it in its entirety.  He wrote:  "with two large universities we do have a number of student renters.  That's one of the nice things about being a landlord here, we have a large pool to advertise rental properties to.  However, many students are either forced or conned into buying renters insurance.  I am an insurance agent, obviously, and I have something to say about this.  Some property managers require renters insurance, and if that's the case it's hard for the renter to overcome.  Some insurance agents sell it, and this is where we can run into a problem with unscrupulous business practices.

If the student lives with their parents when they are NOT attending school, and the parents are homeowners, it is very unlikely that the stdent needs additional coverage.  Their personal property is covered under their parents' policy, subject to the policy deductible.  The liability coverage would extend from the parents' policy as well.  If the student had to evacuate and live elsewhere (such as when Katrina hit New Orleans and students were scattered), the policy wouldn't extend for THAT additional living expense. 

Insurance agents who are selling this policy to those students who already have coverage is a bit questionable.  If that person is no longer a student, out of their own living the big life now, THEN it's time ofr renters insurance.  Otherwise, as long as they fit under mom and dad's umbrella as a permanent resident of the household than they should be covered under their parents' homeowners policy."

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Short Shorts

There's a lot that's been happening recently, and I've gotten to virtually none of it here on the blog.  So ... allow me to introduce Short Shorts, the category established for when things just get a little bit crazy.

• Can the Roanoke Valley and NRV Valley coexist?  This guy tells you what he thinks.
• Portions of Lee Street in Blacksburg closed through June 16.
• Car enthusiasts unite this weekend.
• NOT the home of falling prices in Roanoke.  I'm sure BURG is all over this.

That's it for now.  A couple of new posts coming out shortly, specifically my take on whether now is a good time to buy and sell or not, as well as some thoughts on why it just got tougher to buy a home if you're self-employed.

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No Hanging Chads Here

The ballots are closed, the results are in, the after parties are over - here's a link to election results throughout the Valley.  Now, will the Council's get to work?  What do you want to see from your new Council? 

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Do You Have Cooties?

Regardless of where you stand on the BURG vs. First & Main debate going on in Blacksburg, I thought a post on a local blog, "Think, Christiansburg!", did a good job of looking at a broader picture - what are we doing to our region when we consider "development". 

Do I agree with every point in the article?  No, but  the point made in the third paragraph hits the nail on the head - empty storefronts add no quality or value to an area.  Regardless, our elected leaders seem to be negligent at helping to find creative ways to combat this blight.  What will it take?  Maybe the name of the blog should be "Think, New River Valley!"

Here's the text in its entirety:

Dialog published in local newspapers in May 2007 about the proposed development on South Main should be reframed beyond SCATs or Cooties because it affects a larger area than just one community in Montgomery County.

This is more than shifting the local portion of state sales tax within this or that town, or business taxes collected in one town instead of another.  If something is diminished within the NRV, there’s no cause for celebration.

This is more than businesses changing addresses from existing buildings and moving into new buildings. Having empty buildings in our community doesn’t add quality or value.

Do you believe any major chain will maintain two stores a few miles apart, whether Wal-Mart or Books-A-Million?  Look where our area’s original “mart” was located, where Goody’s was located before its last move.  A grocer on South Main recently impacted adjacent tenants due to an anticipated expansion.  Those plans were on hold for months, so once could expect yet another address change was considered. 

How many partially occupied shopping centers do we need within Montgomery County?  How many acres of barren, paved parking lots do we want?   How many miles of sidewalks or bike trails do these unused acres of pavement represent? 

How badly do we want any traffic congestion to be a routine part of getting somewhere, or creating new bottlenecks within our community?   Do we really want town governments and county supervisors fighting over the few dollars available for upgrades to local roads and major traffic arteries?  Or would we rather they work together to get many long-talked about yet unfunded improvements completed?

Is this about Smart Growth, or repackaging sprawl while laying the ground-work for future blight?

No matter how many “anchor” (translation:  big box retailers) stores arrive in Blacksburg or depart from Christiansburg, employees working at these businesses will earn service-sector wages.  It may even cost some employees more to get to work, since the locality with public transportation has the highest housing costs.  This may translate into more cars and congestion in Blacksburg, but where’s the value in that?

The South Main concept was introduced as being “pedestrian friendly” yet that element is now absent, so living where you can walk to work or shop is no longer a factor in the discussion.  No higher paying or new jobs, just a shift on where you may earn or spend wages.

No matter which “anchor” stores arrive, individuals won’t automatically have more money to spend. The presence of nationally recognized chain stores doesn’t equate to a rise in personal income, a decrease in real estate taxes or enhanced government services -- they change  shopping destinations or whether a shopping trip is 5 or 15 minutes away (when people can’t or don’t use public transportation).    Folks, we are not talking about South Dakota here with a 50-mile one-way commute for a loaf of bread.

Why not discuss how proposed developments affect county and both towns’ revenues? Where is economic development in this dialog on creating new businesses, or expanding and sustaining existing ones?  Why recruit fickle chain-stores that leave communities littered with vacant buildings?  These points should be worthy of action and passion, too.

Where is the dialog about identifying how sales, meals or other use-taxes allowed by Dillon rule could be increased, rather than shifted from one locality to another?   Why should a public entity’s business operations receive an advantage over private business owners?  As one example, why must private restaurateurs collect taxes from customers when a public institution is selling “more than 5 million meals each year”?  What would the meals tax revenues be for Blacksburg if ALL diners were taxed?

A redevelopment of one town’s southern gateway creating new sales or tax collection points should stimulate residents to reflect on impacts “anchors” and “chains” represent.  The rising tide theory (if you build it here, they will come from there) isn’t an assurance of real, sustainable community growth (but it’s a pretty sure bet developers passing through and remote big-box corporations will profit).  Let’s bring these points into the dialog instead of creating disharmony about shared values and common wants.

If another acronym is needed as part of this dialog, how about “Corporate Opportunists Overwhelming Towns, Instead of Economic Sustainment”?   Community members should be looking at development from a panoramic perspective, not through a straw.

Could this specific project bring much needed revenue to Blacksburg?  Yes.  Would existing businesses vacate a current location for a new one? Possibly.  Are living wage jobs being added to the local economy? No.

Remember:  convenience isn’t priceless, many people try to get a tentacle attached to your taxes or wallet, and neighbors watch out for each other.

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Claytor Lake Defined ...

When it comes to Claytor Lake, I know very little.  Well, I know which property owner near the dam lets me and a buddy launch from his boat launch, and I know which cove the bass seem to bite best in ('cause I've watched said buddy pull fish after fish out of there, while I've sat idly by trying to tie another knot). 

Thankfully, I've got Garrett Weddle doing the teaching regarding the Lake, and he just posted some information you might find helpful.

Pulaski Area Transit Wins National Award

Congratulations to the folks at the Pulaski Area Transit!  They just received an award from the Federal Transit Agency, recognizing them for their campaigns to reach public transit riders, and subsequently increased their ridership by 25%.

Pulaski was one of two communities nationwide, with populations less than 50,000, to receive the award.

New River Valley Home Expo

Don't forget, the 2008 Home Expo will be held this weekend at the Christiansburg Rec Center on North Franklin Street.  Admission is $4, and will offer more than 140 booths, a silent auction and more!  I know Auz-Bloc will be there, you can meet Bill and check out this amazing product while you're there!

Download home_expo.pdf

Here's a video I did earlier this winter about the thermal mass of the house at 153 Gracie Lane:

Austin Powers says $1 Billion Baby, YEA!

Austin says it's $1 Billion baby, YEA!

It was funny when Austin Powers said it, but not as funny now that Virginia lawmakers have to debate exactly HOW to make up the anticipated $1 billion budget shortfall Virginia will be seeing this year.   The Governor had suggested a withdrawal of nearly $425 million from the rainy day fund, while the Republican-controlled House suggested $225 million be withdrawn.  As with everything politics, I'm sure there's a lot of "you scratch my back, I'll scratch yours" going on, but it'll be interesting to see how this shakes out.  In all likelihood, the Session will run longer than normal until they get it worked out - you can follow it all and more on Richmond Sunlight.

What's it mean for the New River Valley, and specifically how do communities like Blacksburg and Radford that rely heavily on the universities that lie within their boundaries?  Really, the entire New River Valley relies on Virginia Tech and Radford University in a lot of ways, but how does talk of a budget shortfall affect us here?  I've been critical of The Roanoke Times in the past, but I have to give them credit for writing a very timely article on the subject, by one of my favorite reporters there, Tonia Moxley. 

The gist of the article is that towns like Blacksburg and Radford are not immune to a recession, but the universities they support help to soften the blow.  When we were on Capital Hill last week, that was one of the comments our delegation made to Dave Nutter - our university communities seem to be doing quite well, at least when it comes to real estate, because of the periphery of businesses that surround the universities, as well as the schools themselves.  Just like you would diversify your financial portfolio, the diversification of the economic portfolio (wow, I sound smart) helps keeps things on a fairly even keel.  According to Ernest Wade, an economics instructor at Radford University quoted in Tonia Moxley's article, the universities provide high-quality jobs (although not always high-paying) that don't rely on what he calls "smoke stack industries".  I can imagine that one example of an area here that does rely on such an industry would be Pulaski and its loss of the Pulaski Furniture Company.   

It takes careful planning, though - we're not likely to see major changes here in the Valley, but there's a good chance we'll see small ones, and that, according to Blacksburg Town Manager Marc Verniel, requires careful planning and supplementation of alternative revenue streams.  Something we ought to be doing anyhow. 

What's to come?  I certainly don't know.  I feel confident, however, that the Valley will continue to grow and thrive despite what the short-term holds.  What do you expect to see? 

The Fat Lady Will Sing Again ...

At the Pulaski Theatre.  Nice to see another building similar to The Lyric be revitalized.

More can be found here, here, or at the main site.