Market Insights Blog

The Charlottesville community needs to address important issues as it relates to services provided by the city and the county.  Schools, Water, and community amenities along with many others need to be placed on the table.  Del. Toscano has started a blog so interested parties can keep up with what is happening and post their own comments as well.  the blog is http://city-county.blogspot.com 

If you or anyone you know is in a home with negative equity, FHA has announced a new loan modification program for those who qualify using TARP funds.  Click on this link to hear FHA Commissioner explain how this program will work.http://www.cnbc.com/id/15840232?video=1451971342&play=1

A simple tip:  If you need to sell in a short sale or possible foreclosure situation, consult a real estate attorney at your earliest convenience and use a Realtor who is knowlegeable about who this sale needs to be handled

Check out these two links http://www.kcmblog.com/2010/03/24/5-good-reasons-to-sell-your-house-now and http://www.kcmblog.com/2010/03/22/5-reasons-to-buy-that-home-now

Steve Harney publishes informative and timely real estate info on "Keeping Current Matters".  His 5 reasons to consider selling are right on as it relates to the Charlottesville/Central Virginia Market.  I also like his points as to why to buy a home especially #5 that says buy a home first and consider the investment second.  Although the number of pending sales are increasing, the prices continue to decrease although at much smaller increments.  Our housing inventory remains too high which means a buyer has alot of choices and the opportunity to work with realistic sellers.  the market is right for some and not for others.  Reading Steve Harney's 5 reasons will help you know which side of that question you sit. 

If you are thinking about buying a 2nd/vacation/retirement home, you owe it to yourself to look at The Wintergreen Resort in Virginia.  Read what The Washington Times had to say about this wonderful community. 

Here's a nice piece about Wintergreen. http://www.washingtontimes.com/news/2010/mar/19/resort-living-wintergreen/

When you visit, you will be surprised to find that it is not just about skiing but offers a four season resort including golf, tennis, fishing, hiking, etc. 

55 and older?  Check out http://www.rosewoodvillage.com/wintergreen/wintergreen.html

luxury living with fabulous views?  Check out http://www.theseasonsatwintergreen.com/

Real Estate sales activity seems to have increased now that the snow has melted.  This weekend is supposed to be spectacular so we anticipate lots of realtor showings and consumer traffic through open houses.  The interesting aspect to all of this is that this positive bump in the market might be short lived.  The $8,000/$6,500 Tax Credit will end on April 30th and there is increased upward pressure on interest rates.  Recently, FHA announced tightening of their guidelines.  This link http://www.cnbc.com/id/15840232?video=1444384172&play=1 is a concise explanation by FHA Commissioner David Stevens.  Although the reasons for these changes make sense, it will certainly make it more difficult for 1st time buyers to find a mortgage that will allow them to purchase.  the inventory of homes remains high and with fewer buyers, home sellers will need to continue to be aggressive with their price meaning a continued but smaller reduction in median prices for the next few months.

Hopefully, this is another sign that the real estate market is improving in Virginia.  A Richmond Times Dispatch www.richmondtimesdispatch.com article says foreclosures decreased almost 16% from January-February and over 8% from February of 2009.  Click on the following link to read more.

http://tinyurl.com/yzw5zgp

The following excerpts are from a recent article for mortgage professionals in the Mortgage Market Guide by highly respected and ultra successful mortgage professional Harry Habib.

 “Any school kid knows the old saying… March comes in like a lamb and goes out like a lion.  But since this is the last month of the Fed’s Mortgaged Backed Securities purchase program, interest rates in March could very well come in like a lamb and go out like a lion.  There has been considerable jawboning about how there will be no negative reaction for interest rates when the Fed’s buying stops….we feel strongly that rates will move higher – albeit gradual.  We often hear, “Do you think rates will go higher once the Fed’s stop purchasing?”  The answer is… they already have.  In fact, rather than a buyer, the Fed said they will gradually become of seller of Mortgage Backed Securities.  The Fed...will have $1.25Trillion in Mortgage Bonds on their books… consider this enormous supply that will be unloaded over time, in conjunction with the new Treasury supply every two weeks – there is only one way to attract buyers…and that is to offer higher rates.  Bottom line – if you have been sitting on the fence waiting to purchase a home and holding out for a lower rate… now is an ideal time to understand what is happening in the bond market.” 

As someone in our office succinctly put it the other day, "home prices may have not hit bottom yet but they they are alot closer to the bottom than they were at the top of the market".

One of the biggest fallouts of Albemarle County's economic woes could be the school system.  Many albemarle residents showed up Wednesday night to express their concerns to the Board of Supervisors.  Although noone wants to see education be short changed, many are wondering if the county could make other cuts instead of going after the schools.  I ran across a radio show the other day that was interviewing members of Albemarle's Truth in Tax Alliance www.albemarletruthintaxation.org. I found the men very reasonable in their views and gave the county credit where credit was due while shining lights on areas where the county could cutback without having to raise taxes.  If you are interested in listening to the podcast, click on this link www.wina.com/The-Schilling-Show/3063561 and then look for the 3-2 podcast with Tom Strassburg and Peter Wurzer.  You will have to fast forward through the 1st couple of minutes of the podcast to get to the actual interview.