Market Insights Blog

Rick DeLuca wrote this article describing cost vs value of particular remodeling projects.  He uses an analysis from the National Association of Realtors and his own experience from selling homes and listening to Top Realtors Nationwide.  whether you are buying a home that you plan on renovating, getting ready to sell your home, or just want to improve your home in a way that will increase the value, this list is one to keep on hand.

Rick DeLuca's Marketing Tip for Week of February 15, 2010

pricing a home today.  A report is available at the National Association of Realtors

web site will give you valuable information.  Here is a portion of that report.  For

 more information:

http://www.realtor.org/rmohome_and_design/articles/2008/0812_costvsvalue_2008

" NATIONAL ASSOCIATION OF REALTORS® statistics show that home

prices have fallen by an average of 7 percent nationally in the past year. But the value

of home owners' investment in remodeling projects has declined only 3.86 percent

on average between 2007 and 2008, according to Remodeling's 2008-2009 Cost vs.

Value Report. 

Remodeling produces the Cost vs. Value Report each year in cooperation with

REALTOR® magazine. REALTORS® responding to a survey in midsummer said

home owners could expect to recoup a national average of 67.3 percent of their

investment in 30 different home improvement projects. At the height of the housing

boom in 2005, home owners could expect to recoup a national average of 86.7

percent on projects.

Top 10 Project Paybacks 

Once again, exterior remodeling projects lead the way for recovery on dollars spent

in this year's Cost vs. Value survey. When you compare the national averages,

replacement projects that boost curb appeal-siding, windows, and decks

-give you the greatest chance of recouping your money. Inside, only kitchen

remodels can compare, at least on a national level.

1. Upscale fiber cement siding (86.7%)

2. Midrange wood deck (81.8%)

3. Midrange vinyl siding (80.7%)

4. Upscale foam-backed vinyl (80.4%)

5. Midrange minor kitchen remodel (79.5%) 

6. Upscale vinyl window replacement (79.2%)

7. Midrange wood window replacement (77.7%)

8. Midrange vinyl window replacement (77.2%)

9. Upscale wood window replacement (76.5%

10. Midrange major kitchen remodel (76.0%)

Thanks to Deborah DeChambeau of the Insurance Information Network of California for this concise but very helpful reminder to home owners.

http://www.loremagazine.com/should-you-buy-a-flip-camera

Click on this link and hear Steven Sweickert give a concise but very helpful synopsis on the pluses and minues of Flip Videos

Click on this link to see what he has to share about jobs, foreclosures, and housing inventory as it relates to bringing our country out of this elongated Recesssion.

http://share.caar.com/Market%20Reports/Barry%20Merchant%2004Feb10%20Presentation.ppt

If you would like to listen to his presentation, click on this CAAR Podcast entry

http://share.caar.com/podcast/GMM_02_04_10.mp3

Here are some highlight of his hour long presentation at the Charlottesville Association of Realtors' Membership Meeting:

Unemployment will become the main reason for foreclosure over toxic loans which has been the main culprit for the last 3 years.  Charlottesville is fortunate however that our joblessness is less than in other parts of the state which should mean that distressed properties will not negatively impact the housing market as much as other parts of the state.  Economic recovery will take longer than the 2001 recession due to the length of this current downturn.

Although Mr. Merchant thinks we are near the bottom of this housing crisis, he does not see an improvement in home prices any time soon.  This is due to tightened credit, the housing inflation that incurred from the last uptick, the before mentioned distressed properties coming on the market, and the $8,000/$6,500 tax credit stimulus ending at the end of April.

He went on to say that the government has to find a balance in these four areas: 1) continued market stimulus while curtailing credit risk, 2) modifying loans so that foreclosures won't occur while dealing with how to do this due to the decrease in the home value, 3)containing strategic defaults (folks who can make their payments but just choose to walk away), 4) enabling private capital markets to buy government back securities without interest rates going up which would allow the feds to get out of subsidizing them.

Check out C-Ville's new website when wanting to know where to go in charlottesville? check out http://www.eatsleepvisitcharlottesville.com/

Thanks to Charlottesville Tomorrow www.cvilletomorrow.org for this update on the Yancey development plan being discussed. Crozet residents expressed opposition to the proposed Yancey Mills industrial park on Thursday - the story with podcast http://bit.ly/c3N2i5 gives an overview of what is proposed and why folks feel that if approved, the downtown part of Crozet would be negatively impacted.  Crozet, located in the western part of Albemarle County and within 20-30 minutes of Charlottesville, is in one of the counties growth areas.  Downtown Crozet has a quaint feel to it and many believe the proposed development would not only hurt downtown financially, but change what Crozet residents really love about it.  The facelift of downtown along with Old Trail Village www.oldtrailvillage.com  and the opening of Harris Teeter, has brought more amenities allowing Crozet residents to not have to travel into town or across the mountain to Waynesboro to do their shopping

Farmington Country Club announces new special Nonresident membership package for U.Va. Alumni Association Life Members
University of Virginia Alumni Association Life Members http://www.alumni.virginia.edu/ are now eligible for a special Nonresident membership entrance fee for Farmington Country Club.
Farmington, located in Charlottesville, Va., features 40 guest rooms, an exceptional 27-hole golf course, a thriving tennis program with indoor and outdoor courts, fitness center and heated outdoor pool. Members enjoy casual dining in the Farmington Grill, fine dining in the Terrace Room, banquet services, a childcare facility and many social events throughout the year.
Please contact Membership Director Tom Zimmermann at 434-245-0684 for more information on Nonresident membership eligibility criteria as well as the process to become a member.
Let Tom Know you heard about this opportunity on the Roy Wheeler Real Estate Blog.  Click here to find out more about Farmington Country Club. 

Will Goldsmith from Cville wrote an excellent article about the NGIC/DIA move to Northern Albemarle County just south of the Green County line.  Please follow the link to read the entire article.  http://tinyurl.com/yd6n8vf

A number of people have asked me in the last few days whether the Charlottesville real estate market will see recovery during 2010.  There are certainly positive signs like more properties going under contract over the last quarter of 2009 than the previous year and increased showings on listings over these first weeks of the year.  There are even Realtors out there using the words rebound and on the mend as it pertains to home sales.  All that is well and good but my answer is the jury is still out.  I liken the market to what is happening with UVa basketball this year.  Everyone was expecting a lackluster year but they have started 3-0 in the ACC, are 12-4 overall, received enough votes to be ranked 30th in the country and lo and behold have even been added to mid-season picks to make the NCAA tournament.  It is way too early to go there in my opinion and I think it is still way to early to say the local real estate market is recovering just yet as well.  Because the last quarter of 2009 was much improved from the same period in 2008, I imagine the sold data after the 1st quarter of this year will give reason for optimism.  If that optimism motivates people to get off the sidelines and purchase homes then 2010 could mark the end of what has been a four year downturn.  The key number to watch is not pending sales or how many homes actually sold in a given period of time.  Instead, watch the number of how many homes are on the market for sale otherwise known as housing inventory.  We currently have 2877 vs 3086 last year.  About the same number of homes sold in 2009 which means we still have a year's worth of inventory to sell.  The spring market always brings more homes on the market and I think this year will bring more for several reasons. 

1) There are a number of sellers who took their homes off the market in the fall to wait for the spring market when "things will be better"

2)Banks will start releasing Foreclosures into the market

3) Sellers will think that things are better and decide "now is the time to sell".

All this being said, we are certainly much closer to the bottom than we are to what was the Top of the market in 2005 and interest rates still have a 4 in front of the % sign.  The $8,000 or $6,500 Tax Credit depending on which you qualify gives one a sense of urgency since that expires on 4/30 with no real signs that it will be extended.  Sellers seems to be getting more realistic with their pricing.  If enough buyers make the decision that they have waited long enough, 2010 could indeed be the dawn of the housing recovery.  If the inventory does not shrink, then my guess is 2010 will end up looking very much like 2009 with the difference being strong in the 1st half (because the end of 2008 was so bad) and not as strong as the second half of 2009.

I posted an article here the other day saying FHA would be announcing changes.  Here is a blog post outlining those changes. FHA has announced changes to their lending policies.  Thanks to Jose Humaran for the post outlining these changes. http://tinyurl.com/ye7k2rn

Supposedly 1 out of every 5 FHA borrowers are either behind on their payment or facing short sale or foreclosure.  With more and more home buyers looking to finance their purchase with FHA loans, the process and the requirements needed to be tightened to help ensure that FHA will continue to have money to lend to these borrowers.