Rising Trends, Improving Conditions in Real Estate

If you don’t think things are changing in the real estate housing market, well think again! It’s easy to get caught up in media reports the most recent real estate market statistics that point to improving sales conditions in the Richmond Metropolitan area and believe home sales are getting better. After all, it’s just more of the cautious optimism that’s been keeping us going for the last three or four years, right? On the other hand, recent activity indicates genuine change has arrived. Of course some areas will lag behind others as the market picks up, but Realtors can sense the new mood wafting across the plains.

Market activity has been on the increase since at least November 2011. Our individual numbers as well as every stat tracking real property transfers confirms it. Nevertheless, real estate professionals have been cautiously monitoring trends to see if conditions were actually improving, or if perhaps this was simply another market teaser. It is one thing to watch the numbers reportedly go up, but quite another to see actual behavioral change.

Just last weekend we called to schedule an appointment to visit a home in the west end of Richmond. There were so many appointments we could not be accommodated. It didn’t matter that we were willing to wait another day to see it because the seller received so many contracts on the first day they discontinued showings and agreed to work with one of the offers submitted the first day. WOW! You might say this is just one story, but it’s not. We are hearing about other interactions similar to this where multiple offers have been generated. But of course the good ones will always sell fast!

This may not be the norm, but it most assuredly points to distinctive change in the attitudes of people ready, willing and able to buy a home. With dwindling inventory, improved market conditions, historically affordable interest rates, I would not be surprised to see more interesting stories like this one that point to a changing real estate market for 2012.


Ann & John VanderSyde, Associate Brokers – Virginia Properties, A long & Foster Company “2009, 2010 & 2011 Sales Team of the Year” (804) 287-4660 www.InSydeHomes.com “HOME is a Lifestyle Choice!”

Who are the Real Estate Experts?

These days with the unique nature of our housing market it sometimes feels presumptuous to proclaim to be an expert in anything related to real estate. Our business of buying and selling homes is so kinetic, with a fluidity that is constantly changing and evolving, that it requires vigilant, almost daily monitoring in order to truly be called REALTOR®.

Many people don’t realize that every licensed real estate agent cannot legally use the term “realtor” in order to identify themselves. Over the years that term has often been universally used to refer to any person selling real property. And while all licensees are required to take continuing education classes mandated by their state licensing board, Realtors are generally required to have additional training that extends to conduct, ethics and consumer protection, and who are members of the National Association of Realtors (NAR).

But the idea of being a real estate professional implies so much more than being educated and trained to transact property. There are certain traditions that are universal to people in sales, but in real estate, perhaps more than in most other sales positions, it is also the ability to communicate and maintain relationships that determines who the real experts are. Probably because of the very personal nature of our homes, real estate agents often become entrenched with the people they are entrusted to help find their next place to live, and grow, and love.

The true real estate experts are the ones you as the consumer trusts; the one who will listen to you, will put your needs first, is experienced and knowledgeable in your market, and who conducts themselves in an ethical manner. Don’t stop searching until you find the expert meeting your strict criteria.

Ann & John VanderSyde – Virginia Properties 2009 Sales Team of the Year. (804) 282-7300

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.

Is there Sustainable Growth in Real Estate?

According to investment experts like Warren Buffett and Bruce Norris, as well as many real estate educators and market economists, and even the assistant secretary of the U.S. Department of Housing and Urban Development, David Stevens, there is perceived sustainable growth in the housing market. The key to all if this of course is security in the job market leading to greater consumer confidence, as well as consistently stable, and remaining relatively low, interest rates.

I can’t honestly imagine it’s all that simple, but after observing first quarter sales increases in Richmond, one begins to wonder if the tide in real estate isn’t again shifting, however subtle it may be at the moment. We must also ask how much of a role the “buyer tax credit” plays in this, but it’s safe to say it has certainly helped to get things moving again. It is too early to tell. Nevertheless, it is refreshing to see mid and upper price point homes moving again too, contributing to a stabilization of median sales prices.

What does this mean for us as home owners, buyers and sellers? First, we know it currently remains a buyer’s market, with higher than normal listing inventories and competitive pricing strategies. It also means that there are excellent opportunities for buyers and sellers. Purchasers may enjoy more time to selectively shop their next home, and to purchase at a great value. Sellers are realizing that price and condition determine the length of time and the amount of money they will get on their sale; competitive pricing and move-in ready condition will return a quick sale at a higher price than other homes nearby.

As always, consult your most trusted real estate advisor for complete and up to the minute details about your property and the current housing market. It remains a great time to buy and sell homes!


Ann & John VanderSyde are 2009 Sales Team of the Year with Virginia Properties, A Long & Foster Company. You can learn more about Ann & John 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

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