Who Is Saying It is Time To Buy a Home? EVERYONE!

"Enough with the doom and gloom about homeownership." - WSJ 9/16/2010

WOW! If that quote was attributed to the National Association of Realtors or the National Association of Home Builders, it would have been quickly dismissed. However, it was the Wall Street Journal that was calling for the end of the ‘doom and gloom' talk surrounding real estate.

We are finally seeing a powerful backlash to all the recent claims that homeownership should never have been part of the American Dream. It is about time!
The WSJ has been posting on the financial advantages and the other non-financial benefits of homeownership for over a year. "We must admit that, at times, we felt very lonely. It now seems that we are part of an ever growing army of believers preaching the advantages and opportunities available in today's real estate market. Who have joined this cause? Let's name a few."

The Nation's Real Estate Pricing Expert

Karl E. Case is a professor emeritus of economics at Wellesley. Professor Case is also co-creator of Standard & Poor's Case-Shiller House Price Index and is recognized as the one of the foremost authorities on real estate today. In a New York Times op-ed piece earlier this month titled, A Dream House After All, he said:

"I have never quite understood what the American dream really means when it comes to housing. For some people, it means having a solid and fairly safe long-term investment that is coupled with the satisfaction of owning the house they live in. That dream is still alive."

"Others, however, think the American dream is owning property that appreciates by 30 percent a year, making a house into a vehicle for paying bills. But those kinds of dreams have become nightmares for the millions of foreclosed property owners who have found themselves sliding toward bankruptcy."

But for people with a more realistic version of the American dream, buying a house now can make a lot of sense.

The Wealthy

The only segments of the housing market that are showing sales growth are the price points over $1 million. That market is up 6.1 % in the second quarter of this year vs. the second quarter last year. A recent survey showed that over 30% affluent buyers are planning to either build/buy a new primary residence or a second/vacation home in the next twelve months. It appears the wealthy believe now is the time to buy!

Everybody Else

Fannie Mae just released their National Housing Survey. The survey reported:
• 82% of respondents consider homeownership important to the economy, up two points from January.
• 70% of respondents think it is a good time to buy a house (of which 36% think it is a very good time to buy), up six points from January. This is also four points higher than the 2003 survey - well before home prices peaked - when 66 % said it was a good time.

Bottom Line

Our iconic financial newspaper, our nation's real estate pricing expert, the wealthiest people in the country and 70% of everyone else think now is the time to buy a home. It probably makes sense to listen to them.

The Fall Harvest Applies to Housing too

Mark your Calendars! According to the U.S. Naval Observatory, autumn begins on September 22 at 11:09 PM EDT; it’s just about official, summer 2010 is over. The Autumnal equinox is coming, and you can feel it in the onset of that brisk autumn air, as well as with the number of home sales hitting the streets!

September marks the official kick-off of the fall real estate market, and in Richmond, Virginia we are beginning to see the signs of the new housing inventory offering purchasers and sellers a second chance to reap the benefits of the second gathering. Like the change of seasons influencing harvest time, these annual cycles also influence home sales. September, October and into November is the second hottest time of year to buy and sell following the robust and often frenzied spring housing market.

Historically, the Autumnal Equinox becomes synonymous with not only the completion of the harvest, but also the end of summer. The full moon associated with the fall equinox is known as the Harvest Moon and sometimes as the "Wine Moon" because this is also the time of year when grapes are harvested and the process of making wine begins. In past times, many farmers would harvest their crops by the full moon, using the light from the moon to extend their gathering time. This final gathering of the crops and the beginning of preparations for the long winter that lay ahead marked a time of thanksgiving for all that Nature has given her children and for the completion of another turn of the Great Wheel of life. Although the Autumnal Equinox falls in September and not November, the connection to the harvest and the fall highlight similarities to our modern Thanksgiving.

If is interesting to see how these seasonal cycles are often mirrored in our modern lives. The change of seasons that influence our life styles and purchasing trends today are somewhat similar to the way we all used to live when the change of seasons actually dictated how we live. It makes one wonder if the two are somehow linked?

For more info about the Autumnal Equinox: The time of year when night and day are of equal length in all parts of the Earth is known as the “equinox”. The word equinox comes from a Latin words meaning "equal night." Autumnal equinox is the beginning of autumn. It occurs on September 22nd or 23rd.

If you are interested in exploring more, here are some sites with more detailed explanations of the equinox:

http://scienceworld.wolfram.com/astronomy/AutumnalEquinox.html

http://earthsky.org/astronomy-essentials/everything-you-need-to-know-about-the-autumnal-equinox-of-2010

http://www.infoplease.com/spot/equinox1.html

Richmond’s Small Town Charm Offers Hope & Optimism

Ann and I just went over to the Libbie Market to grab a quick bite to take back to the office. The wonderful thing about Richmond is the fact that almost anywhere you go you are all but certain to run into someone you know. Well today is no exception. We ran into a friend of mine from college. She owns and manages a small placement firm that specializes in finding work for mostly mothers that have so much to contribute to the work force, but also wish to manage their families in addition to generating an income.

The almost unexpected thing came out of our conversation when I asked how her business has been. She, by the way, has adorable twin boys that you can imagine demand much of her attention. Regardless, she said business has been amazingly good. She continued to say that the number of people she places has been great, and, here is the really wonderful news, that the number of companies contacting her for help has also increased this summer.

After all the negativity and hesitance I get when asking “how’s business”, I was momentarily shocked by her response. Then delight and confidence seem to fill up inside me as if to say, “see, there are good things happening in the work force today; I wonder why we don’t hear more stories like this one from our media outlets?”

I like getting the good news and spreading the word about good fortune and hope. It makes me feel good, and I like feeling good. Hopefully this will inspire you have a great day and pass on your good news to others, increase your productivity, and improve your business. Who knows, this small town might just start a trend that proves a positive approach to living can jump-start our economy. I’m firmly committed to it, how about you?

Are Americans Overstuffed? - [REPOST]

Are Americans Overstuffed? Check In Your Closets and Garages To Find the Answer (edit/delete)

Great advice for those of us that have trouble with the excess in our lives!
Via Pat Fenn (Marketing Specialist for Cindy Jones RE/MAX Allegiance):


No this isn't a commentary on waist lines but instead on the amount of stuff we seem to accumulate. Over the last few years I have become acutely aware of the clean up and throw out process. It started when I began downsizing myself. Along the way I became friends with the folks at the Fairfax County Dump, Salvation Army, 1-800-Junk, PODS and more My new routine is if I haven't used it in a year then I can live without it forever.

Within shouting distance of my home are at least three self storage facilities. Every time I drive down another industrial road I see at least another two. So where has the need come for all of us to hoard so much stuff?

In today's "throw away" society it seems a bit odd that there should be so much of a need for storage facilities. What is lurking behind all of those locked containers? Is it stuff we really need or is it easier just to tuck it away instead of dealing with it? How much money is being spent every year to store things that really should be headed to the dump or donated to a favorite charity? Could you have a vacation with the money instead?

Need some help getting started on the de-cluttering? It is over-whelming I can admit it! So here are a few ideas that helped get me started on the stuff purging:


•Pick a room-doesn't matter where you start
•Set a timeframe-only work on the room a couple of hours at a time
•Sort through it-look at it once and decide if it is a keep, toss or donate
•Don't reminisce-high school is long over, the faded corsages have got to go
•Keep the space organized-have trash bags and plastic bins handy so that you aren't surrounded by piles
•Repeat the process on the next room-move on the next day or next weekend to another space.
•Reward yourself-trust me after you have made a run to the dump you want a reward
So take a look around and decide what you really need and what is ready to go. You might be surprised how good it feels to not have all of the stuff cluttering up your life. And don't try to pass it off on your kids. It will only come back to you when they decide to move!

How Do Teams in Real Estate Work?

I love my wife Ann, who is also my business partner; she does all the honest-to-goodness work while I write articles about real estate or the housing market and purport to be an “expert” at something. She is decently civil about the whole thing too, and complements me by saying how we each contribute different things to the job, which is after all why we work so well together. I have decided to politely agree with her on this point.

I am blessed because I know that, while there are a number of successful husband/wife teams in real estate, there are a lot of folks out there that cannot understand this relationship – working and otherwise. I know this because people tell each of us in all seriousness that they could no more work with their spouse than fly like a bird! Or they will project their experience by saying, “You’ll be divorced in less than a year”. Well, thankfully, I am pleased to report we are still together, making it work after nearly three years in business and over twenty years of marriage. Fortunately, I suppose, most partnerships don’t involve marriage.

I’ve been in housing in one form or another since 1986, and a Realtor/Broker for more than seven years. I’ve seen lots of partnership business models. Some work seamlessly well, while others fall through gaps in the seams. The ones that seem to survive appear to succeed as Ann said, because each member of the team contributes to the effort equally. Each person is either pulling in the same amount of business, or provides another talent that is indispensible to the business. Either way, partners feel their efforts are valued, and that their counterpart is doing their share of the work too.

I suppose teams in real estate work just like any other relationship – hard work, dedication, appreciation, mutual respect, sharing and caring to name a few. It kind of makes me feel like I’m back in kindergarten or something, but isn’t that where we started to first learn our most basic and important lessons for life anyway? If you’re interested in a partnership, find someone you like and trust and give it a few test runs together to see if it works. Unlike marriage, if it doesn’t work out simply find someone else with whom to try it. A good partnership may take some time to find the best fit. I had the advantage of a long relationship to fall back on, but then I’ve always been a slow learner.

John VanderSyde is an Associate Broker with Virginia Properties, A Long & Foster Company, and is also a Licensed Architect. You can learn more about Ann & John VanderSyde By visiting their website www.InSydeHomes.com or by calling (804) 282-7300

What Do Statistics Tell us About the Housing Market?

I love the National Association of Realtors; they have stats for everything. If you want to see the latest market stats, trends and projections, I feel this is one of the first websites to visit. For instance they tell you that the number of first-time home buyers rose to 47%, up six percent over this time last year, the highest on record dating back to 1981. They tell you the median price of homes, where down payments come from, what the age is of buyers and sellers, and that 80% of consumers still choose full service agent representation when buying or selling property and why.

It’s important to realize home sales are up over last year, in part driven by the extended tax credit, an increase in housing affordability, but also due to pent up demand and personal change of circumstance. According to some economist, we can expect a surge in the housing market this spring, signs for which are already present as we see a greater number of homes coming into the market. It is even more exciting to note the increase in activity above the first-time home buyer level. The prediction is that home sales are on track to increase in the coming year. All of this information is supported by statistics.

These stats do not necessarily mean that home prices are going to be on the rise. If we are fortunate they will stabilize as we realize that housing affordability is on the increase. The NAR Housing Affordability Index measures whether or not a “typical family” can qualify for a mortgage loan on a “typical home”. Typically, this is defined at length on the aforementioned NAR web site. What it tells us is that more people today have more than enough income to qualify for a home loan.

Nevertheless, all of this is dependent on the job market and consumer confidence. The continued creation of jobs will be instrumental to the success of a recovery in housing, no matter what statistics you reference. I remain patently optimistic as the real estate market improves – statistically speaking.

John VanderSyde is an Associate Broker with Virginia Properties, A Long & Foster Company, and is also a Licensed Architect. You can learn more about Ann & John VanderSyde By visiting their website www.InSydeHomes.com or by calling (804) 282-7300

Activity in Richmond Real Estate – Forecast “More Snow”

It’s snowing! Again!!!

What a week for real estate. Tell people they are snowed in an unable to see homes and the phone starts ringing. They say, “If you ever want to get busy, plan a vacation”; I suppose the forecast for more snow is similar to this concept. But in all honesty, it is probably just that people are ready to get moving again after an extended period of inactivity. The notion that we “can’t get out” fuels the need to do something sooner rather than later. I hope this is the precursor to a vibrant spring market this year!

On the other hand, with my optimistic view of the housing market, I sometimes feel like I’m singing to the wind; my words float aimlessly away with out ever being heard. People are still skeptical and concerned and hesitant to make decisions about their next move. Understandably so, I know, but with mortgage rates and prices where they are it’s difficult not to look on the bright side of things.

We are getting mixed signals about the economy, jobs and consumer confidence. Nevertheless, it is apparent that people are ready to start looking at homes again. Activity is present, and, as I’ve recently said, properties in the upper price brackets are starting to sell again. I don’t think any of us can truly predict the future, but one thing is certain, we won’t sit on the fence forever.

Well, it’s back to work as I watch the snow start to cover the walks around the office. It’s going to be another interesting couple of days in Richmond real estate. I hope you enjoy yours!

John VanderSyde is an Associate Broker with Virginia Properties, A Long & Foster Company, and is also a Licensed Architect. You can learn more about John and Ann by visiting www.InSydeHomes.com or by calling (804) 282-7300

Activity in Richmond Real Estate – Week Three of 2010

It’s been another busy week in Richmond real estate. I love the way this year seems to be moving toward a renewed interest in homes. In spite of some still rather unpleasant housing news, there is activity in the market that supports the fact that people will not sit on the fence forever. This is perhaps the most affordable time in which many of us have lived to by a house, which is being reflected in the growing sales totals in all price ranges.

I also think it’s refreshing that folks seem to be looking at real estate as a “home” rather than just as an investment. I’ve always felt there is more to the places we choose to live other does not. than simply the “stick & bricks” that support them – which is evident in our Mission Statement “ . . . celebrating the notion of HOME as a distinctive lifestyle choice”. I’ve seen very few people, other than developers and investors, look at their future domicile with out any emotional investment. Even if they do, their spouse or significant

What all of this may mean for Richmond real estate is that 2010 will get off to a strong start. I anticipate it generating into a healthy spring market. I wish I could predict the coming cycle of sales, but this could very well be the first year in several where the rhythm of home sales reflects a normal market – if such a thing actually exists.

John VanderSyde is an Associate Broker with Virginia Properties, A Long & Foster Company, and is also a Licensed Architect. You can learn more about John and Ann by visiting www.InSydeHomes.com or by calling (804) 282-7300

The New Year in Richmond Real Estate

I have made it through the first week of the New Year. After last year it feels like some congratulations are in order? Well, not really, I suppose, because there is a lot of ground to cover in order to determine if the real estate business-plan we have developed for 2010 will be successful. In fact another fifty-one weeks to be exact. However, after the past year I am eternally optimistic about the up-swing in housing. In spite of all the predictions, prognostications, advice and guess-work out there in the market-place, I feel that good things are on the horizon in our business.

I hear reports about good and bad markets, the pick up in sales and the total decline of our society as we know it. I wonder if there is enough confidence out there for people to start purchasing homes again. I don’t think I’m smart enough to figure out what it will take to make this happen, but I can tell you that I’m beginning to see movement in and around the Richmond region. It has started with an increase in activity, the notion that people are out there looking at homes again. What has really changed is that product has started to move again. Home sales above the first-time home buyer level are being sold. It’s happening now, and the proof is in our most recent office stats.

So I’ve decided to look at the New Year like a new semester at school; I will keep past failures in the past, highlight our successes, focus on and learn from all of it, and begin a-new! I’ve been told “good judgment comes from experience, and a lotta that comes from bad judgment”. Perhaps it’s better to keep looking forward than it is to be worried about water under the dam. Good things are on the horizon in our business – just keep working for it, and I’ll plan to see you here in 51 weeks!

John VanderSyde is an Associate Broker with Virginia Properties, A Long & Foster Company, and is also a Licensed Architect. You can learn more about John and Ann by visiting www.InSydeHomes.com or by calling (804) 282-7300

What Should I do to Find My Next Home

Did you know that approximately 85% of people looking for homes use a REALTOR®? In spite of the fact that the majority of home buyers start their search on the internet, they still choose to work with a real estate professional once they are committed to a serious home search.

Realtors don’t control housing information the way they did twenty years ago, before MLS and computer based systems began sharing information freely across cyber space. What they do provide is an in-depth knowledge of homes and property values that only comes from daily interaction with other professionals, buyers and sellers. This constant commodity awareness is the same reason we chose to work with professionals in other parts of our lives. Why should buying a home be any different?

On average, it takes ten weeks for someone to find the home they intend to purchase. During this period it is no surprise that purchasers want the guidance that knowledgeable sales agents bring to the table. Not to mention, attention to detail and individual representation during unusual times where nothing in a housing transaction can be taken for granted. In order to be successful, someone must be on your side, looking out for your interests, and representing your needs, wants and desires.

So, start looking for your next home the same way 87% of buyers do, on the internet. But don’t hesitate to get your most trusted real estate professional involved in the process early; they provide information not accessible online, along with the advice and guidance you will need to begin a serious search, and to find the home that best suits you.


John VanderSyde is an Associate Broker with Virginia Properties, A Long & Foster Company, and is also a Licensed Architect. You can learn more about John and Ann by visiting www.InSydeHomes.com or by calling (804) 282-7300

When is the best time to buy or sell real estate in Richmond?

Statistics show that the spring months tend to be the best time to buy or sell a home in Richmond. After being cooped up all winter we are ready for change with the arrival of warm weather and fresh foliage. We are fortunate in Richmond to have a robust fall market as well. Once again, due in part to our mild temperatures, the fall offers opportunities to collect ourselves as we prepare to settle down for the winter, and this attitude is reflected in property sales.

In contrast, August is the slowest month for home sales just ahead of December. One can actually feel the pulse of activity around town dip during these months. As summer comes to a close, people are focused on getting in that last vacation or making preparations for the new school year. December is the height of holiday celebration and travel. Most of us are not looking for a big lifestyle change at these times. One thing is for sure, the people out looking for homes during these months are usually very serious about buying.

Any good realtor will tell you that a home can’t be sold unless it’s on the market. Honestly, any time of the year can be great for moving property, and the off-season can sometimes work in your favor. The rules are the same. You simply need to know your market and determine what you can do to be the best product available or position yourself to get one. Consult your most trusted real estate advisor and make a move today!

John VanderSyde is an Associate Broker with Virginia Properties, A Long & Foster Company, and is also a Licensed Architect. You can learn more about John and Ann by visiting www.InSydeHomes.com or by calling (804) 282-7300

Should I buy at the top of my price range?

I knew a man who would advise buying as much home as you can possibly afford. His philosophy being, I believe, that you will grow into your investment. In other words, it will never be more affordable than it is today. Furthermore, as you succeed in life its affordability will continue to improve.

The recent economy and seemingly uncertain housing market may have some people questioning this advice. But this suggestion was given at a time when most buyers were looking to stay in their home for at least five to seven years. With this stipulation in mind I believe it is still sound advice today, but I will ad you shouldn’t expect this home to be perfect; leave room in the price for improvements!

I have found many buyers are searching for homes at the upper limits of their comfort zone. When they get inside they are expecting everything to be as if they already owned it. This is mainly because there is little or no money left over after purchasing to create the improvements they desire in order to make the home theirs. As a result they end up feeling disappointed with the selection process, or with a seller’s lack of willingness to compromise on price.

One suggestion is to reframe our thought process when considering which homes to purchase. It may be a good idea to lower our price point, and perhaps our expectations, when choosing what homes to visit. It is important to have a little vision. I’ve never met a buyer who didn’t want to change something in the home of their dreams.

Improvements don’t need to be a bust. Most mortgage lenders today can provide construction loan packages that become part of a mortgage upon completion of desired improvements. This allows one to get the home they want without compromising on those items that are a must have in the next home they wish to purchase.

So consider your price-point-comfort-level in determining how much home you can afford. Have a little imagination, or consult with someone who does; this will allow you to find the basic home you are searching for while leaving room in the budget to make the improvements you need to live happily, for at least the next five to seven years!

John VanderSyde is an Associate Broker with Virginia Properties, A Long & Foster Company, and is also a Licensed Architect. You can learn more about John and Ann by visiting www.InSydeHomes.com or by calling (804) 282-7300