http://www.wina.com/Real-Estate-Matters/7050283  this is the podcast I mentioned in my last blog entry and then forgot to attach.

Here is the podcast from the show I did on 7/3/2010.  Hear me talk on what I wrote last week about the 1st 6 months of the real estate market and what it means to home buyers and sellers

This blog post will preview what you can expect to read when the reports start being published about how the 1st 6 months of 2010 compare to 2009.  Initially, one should feel encouraged because the report will show that YTD, 2010 has been a better year in homes sold than the time time period in 2009.  Unfortunately, what I have predicted over the last 18 months is becoming a reality.  It is correct that things on the surface look like things are headed in the right direction but when one looks at the last couple of months there is cause for concern.  Why?  Well, 1st, the number of homes on the market remain relatively unchanged (3973 in 6/09 vs 3964 in 6/10) and there is 11 months of inventory currently on the market.  You have to go back to June of 2006 to find a market with less than 6 months of inventory (5.18). Secondly, contract written in May and June are 50% and 40% off the April total of 418 buyers having contracts accepted during that month.  The number of pending contracts were significantly less (227 vs 286 in May and 256 vs 337 in June)than the same time period in 2009.  Should this trend continue, the positive gain in the 1st 6 months of 2010 will be eroded by the less than stellar sales month during the 2nd half. This would result in 2010 ending with numbers very similar to 2009. 

 Therefore, sellers need to be very aggressive with their pricing and have their homes in the best shape possible.  That seems to be happening as the sold data shows homes selling with a list/sold price ratio of 97.39%.  What this means for buyers is home prices are dropping but don't count on having an offer 10-20% off asking price being accepted by the seller.  

Listen to the radio show Real Estate Matters with Michael Guthrie to hear more on this subject.  You can do that by going to http://www.wina.com clicking on podcasts and then scrolling down to the Real Estate Matters podcast list.  You can also join the radio show's facebook page by clicking on the link below.

 http://www.facebook.com/?tid=10150200136285464&sk=messages#!/pages/Real-Estate-Matters-w-Michael-Guthrie/125141160833940?ref=ts

Click on this link http://www.youtube.com/watch?v=Zeduygr02Tk  to Watch Leroy Houser explain the four things sellers can do to make their home more saleable.  This presentation was held on 6/23 at Farmington in Charlottesville thanks to the sponsorship of New American Mortgage, Ednam and 1st Dominion Title, and Roy Wheeler Realty Company

Check out the podcast of Real Estate Matters with Michael Guthrie.  Attorney Chip Royer and I discussed Short Sales on this past Saturday's show.  Click to listen http://www.wina.com/pages/7050283.php? to what I thought was a very informative 1/2 hour.Listen to what was a very informative show for Realtors, Buyers, and Sellers considering short sales

Thanks to Frank Cava for posting this article.  Modern and Contemporary homes in the Charlottesville area are indeed making a come back especially as folks "think green" in the way they want to live. http://www2.timesdispatch.com/rtd/news/state_regional/article/CVIL17_20100616-222804/351664/

Click on the link http://www.wina.com/Real-Estate-Matters/7050283 to hear the podcast from the 6/12 radio show on WINA and WVAX in Charlottesville.  You might also check out the web site http://www.leap-va.org for more information on how to make your home more energy efficient.

According to the AP as written in this USA Today article, http://www.usatoday.com/money/economy/housing/2010-06-10-home-tax-credit_N.htm Congress is working on an extension of the June 30th deadline for the Home Buyer Tax Credit.  The date to buy a home ended on April 30, 2010 but a purchaser needs to settle on the home by June 30th.  Due to the lenghthy process of dealing with lenders on short sales, many are concerned they won't be able to complete the transaction by June 30th.  Without Capitol Hill's intervention, many people would miss out on the $8,000 or $6500 tax credit.

http://washington.bizjournals.com/washington/stories/2010/06/07/focus1.html?b=1275883200^3442711&ana=e_vert Click on this link to read the perspective of one Realtor in DC as reported by the Washington Business Journal http://washington.bizjournals.com/washington/

Personally, we feel the jury is still out on this assesment.  Let's take another look after June.  the market has not been as active since April 30th despite the interest rates remaining low so that gives credence that the tax credit deadline did create the sense of urgency the housing market needed.  These next 3 weeks are going to be pretty crazy as purchasers struggle to make sure the homes they bought settle prior to the June 30th deadline.  If you are settling on a home this month, you may very well want to settle early if at all possible as the attorneys and closing companies are going to be slammed in that last week of June.

Did you miss it? Near the bottom of today's press release about the NAR Pending Home Sales Index figures for April 2010 was this tasty little nugget:

“However, the recent housing cycle has brought long delays related to the short sales approval process by banks, and from ongoing appraisal issues. There could be a sizable number of homebuyers who responded to tax credit incentives, but may encounter problems meeting the settlement deadline by June 30.” Because of these market challenges, NAR has asked Congress to provide flexibility on the deadline for closing.