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!”

What is the wait in our Richmond Real Estate Market

The Richmond, Virginia metropolitan region of Long & Foster Real Estate met today for a Town-hall gathering. Several hundred local real estate agents, brokers and sponsors attended this special event which spent much of the morning commenting on the state of the company and the realities of real estate in our market sphere. The most important message I took away from all this is, of course, that with the amazingly low interest rates available to consumers today, and the apparent stabilization of real property in our area, it is perhaps the most affordable time in our history to purchase a home. So what is everyone waiting for?

Well, first, this premise presupposes that one has a relatively stable/secure job, ensuring enough confidence and providing proper financial wherewithal to make the next step into home ownership – or to make a move-up purchase. This is without a doubt a HUGE obstacle for anyone to see beyond, and if you’re risk adverse, it may not be manageable. But is the risk any greater today than four years ago when lenders were literally giving away mortgage loans while home prices continued to skyrocket through the heavens? Honestly, I just don’t get it!

Secondly, the media seems to have cornered all futures in real estate. I think it is too easy to pull the media card whenever our woes exceed rational justification, but you have to admit there are no headlines out there promoting the long-term benefits of the current interest rate. As a fellow realtor mentioned this morning, we should be shouting about the best kept secret in the real estate market – low interest rates are far better than any tax credit the government can offer. Just do the math! But hush; don’t tell anyone, it’s a secret. Maybe then the public, and possibly the media, will take note and make a step toward home ownership and a sound life’s-investment.

I can’t say what it will take to help people feel better about real estate, but my business tells me that the housing market continues to improve. Someone must be feeling better about things, because the difference between what is going on today over just a year ago is astounding, and our numbers/statistics reflect this notion. The caveat to this observation is that we need to continue looking forward and forget about what’s in the rearview mirror. The years of 2005-2007 are thankfully gone. There is a new reality out there now for all of us to observe, just ask your REALTOR®. The honest truth is always plain to see!

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

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

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

Plan A Vacation and Work, Work, Work!

I think I’ve got this all figured out now. There is an unspoken law of Real Estate that in order to stay busy, one must plan a vacation or schedule to take some time away from the job. No matter how slow things have been, as soon as you do, the phone rings and the property that has been sitting the longest must be shown precisely when you are not available. Oh, good grief!

This past weekend was no exception – a national holiday. In this economy, in a place where no one is in a hurry to make a decision, one would think the entire world would be on vacation, or at least could wait until Monday. This is obviously not the case. Only this time I threw a monkey-wrench at the god’s. I only pretended to make plans to be away from the office, and feigned my inaccessibility to show property. Guess what; it worked!

Thursday afternoon the phone started ringing. I had multiple calls every day through the weekend. Since this wasn’t a surprise, and I had planned around it, I got everything finished I needed to accomplish, and still had more time than usual to spend with my family. It was my best working non-vacation ever, and the results were in my financial favor too.

The way I see it, I am telling everyone I know I have vacation plans each week through the summer. They’ll never know the difference, and as a result, I’m certain to have my best year ever. Well at least until the god’s figure it out, or whenever I actually decide take a real vacation!


Source: 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 VanderSyde by visiting www.InSydeHomes.com

Is Now a Good Time to Buy Real Estate?

Real estate seems to have been a fickle friend to some of us recently. At one time it was something you could rely on to increase your bottom line and secure your future. Then, suddenly, it wasn’t! Well guess what – NOW is the time to reconsider how you feel about real property as an investment opportunity or as a new home.

You have already heard the advice of real estate professionals, the media and market prognosticators outlining all the signs of the “positive housing market”. Some will feel it is a desperate push to revitalize home sales and get you in before it really bottoms out. Others will realize we don’t know where the bottom is until it’s passed. The signs are here, and the market is moving again. Stand on the side line or get into the game, it’s your choice; but if you are considering a move, what are you waiting for?

You can take advantage of affordable prices resulting from a down market, or use unprecedented incentives being offered in new construction to get the deal of a lifetime. Creative ideas such as buyer-protection warranties provide additional confidence to act now. Besides, historically low interest rates, government programs and first time buyer tax credits will end before you know it. Just remember, as someone once said, “Opportunities are never lost; someone will always take the one you miss!” Ask your qualified real estate professional for more information.

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

First Impressions – Your House & Your Yard

In real estate, like most things in life, you never get a second chance to make a good first impression. Remember that first date in high school? Or perhaps like me you’d just as soon forget about it! Well, trust me; a lot of folks out there feel the same way about YOUR house the moment they drive up to it. Unlike that first date, however, they will simply turn around and get the heck out of there as quickly as possible. If that happens, there will be NO second date!

It may be true if you put lipstick on a pig, it’s still just a pig. But I believe a house is a little different – for the most part anyway. It seems to me (as my managing broker likes to say) that “for every doghouse there is a dog”, but some lipstick goes a long way toward getting them to sniff around it, especially if you want to sell quickly for the highest and best price.

I constantly tell sellers that, according to statistics, the greatest “bang for your buck” is in landscaping and the yard. Every year, house trends show the money you put into your yard has the greatest dollar for dollar return on your investment. The first thing you need to do is get the purchaser inside. If they see a manicured yard and a well maintained exterior, they have a tendency to be more forgiving with the interior space that may not meet all their needs.

So, start by getting someone involved in sprucing up the yard. There are a ton of eager landscapers and yard-upkeep companies that can come in and bang out some improvements in no time at all. Have a plan and commit to making it shine; really make a difference. Get a couple of bids, and you’ll be surprised how reasonable it is. Not to mention the fact that you don’t have to lift a finger.

I know men & women who like to putter in the yard, but this in not the time. Get professional assistance that will make a quick and immediate difference in your home’s curb appeal. You won’t regret coming home after a day at the office to find a finished product. Your house will look markedly different, and will appeal more to purchasers looking at other homes that haven’t been touched.

You’ve heard it a million times, but this is the first step to making a strong “first impression” about your property. Otherwise, forget about a second date!

For more insight, information and any questions on this and other important issues, please contact your most valued real estate professional, we are here to serve you!

Sources: John VanderSyde, Architect & Associate Broker, Virginia Properties, A Long & Foster Company