The Liz Moore Market Watch

How Much Have Prices Fallen in Hampton Roads?

That’s a great question.  I would argue that this particular statistic is far more complex than the Daily Press would have you believe.  MLS data for February home sales in Williamsburg, for instance, suggests that prices in the Williamsburg-James City County real estate market have fallen 10.5%, from a median of $285,000 in February of 2009 to $255,000 last month (February, 2010).  That’s a pretty steep decline for 12 months.

However, there are some additional factors that influence that number that are critical to consider.  The $8,000 tax credit stimulus has incented many first time buyers into the local market.  That means that there is an unusually high number of transactions in the “under $300,000” price range, which is an anomaly for Williamsburg real estate.  So, if there is more activity in the lower price quadrant, then logically, the median sales price is going to decline.  That doesn’t necessarily mean that a $450,000 home has lost $45,000 in value since last year.

At Liz Moore & Associates, our agents are students of the local real estate market.  They carefully monitor pricing, inventory, and absorption trends at the micro-level…neighborhood by neighborhood, which is where it counts.  Only by getting an up-to-date market analysis of what your home is worth, relative to active inventory in your sub-market, is going to tell you if your value has truly decreased.  Want a complimentary update?  Drop me a note at liz@lizmoore.com, and I’ll hook you up with an agent who specializes in your neighborhood!

Technorati Tags: home values dropping,what is my home worth,values in williamsburg and hampton roads virginia,the real estate market

Stonehouse Dream Home Tour Coming Soon!

On Sunday afternoon, March 21st, local REALTORs led by Susan Krancer of Williamsburg Golf Properties and Liz Moore & Associates will host a “Dream Home” tour of listings in Stonehouse, conveniently located just minutes from Williamsburg.  22 resale homes will be open to the public, presented by 6 different local leading real estate brokerages, along with new homes in Ryan’s community Stonehouse Glen, from 1 – 5 in the afternoon.  All funds raised by advertising in the Dream Home Tour book will be donated to DreamCatchers, which is a therapeutic riding center for adults and children with special needs.  You can learn more about DreamCatchers by visiting www.dreamcatcherswilliamsburg.org.

There is a special website set up for the event at www.MyStonehouseHome.com.  If you haven’t visited Stonehouse recently, this would be an ideal opportunity to check it out.  In addition to a nationally acclaimed golf course, Stonehouse boasts a Resident Center with swimming, tennis, a playground, fitness center, gourmet kitchen, and built-in barbecue; Richardson’s Mill Pond Park with canoe storage, a boat dock, picnic facilities; miles of walking trails; RV/boat storage; common garden and soccer field.  It is truly a community within a community, and the residents love it!  Neighbors Del and Patty Humphreys said, “We chose Stonehouse because of the overall setting. Far enough away for peace and quiet yet close to everything...not only Williamsburg but just a short distance to the beach and Richmond and beyond. The landscape is beautiful and we take pride in our total community. Our neighbors are the best!”

You can also learn more about the big picture plans for Stonehouse at www.preservationstonehouse.com.

For more info, visit the event website, or call Susan Krancer at 757.784-0363.

February Numbers Show Marked Improvement!

The February numbers are in, and they look GREAT!  At Liz Moore & Associates, the company overall posted a 57% increase over February a year ago in new business written, and a 74% increase over February a year ago in closed volume.  Although some of that can be attributed to growth in our offices (we have welcomed 19 terrific agents in the past 12 months), and a significant corresponding increase in market share, more importantly the overall activity is showing signs of improvement.

According to Broker Metrics, which garners its data from the local MLS’s, the Peninsula market showed a 7% increase in new business in February over last year, and the Williamsburg market was up slightly (1%).

I expect that activity in the coming 2 months will be especially brisk, as the April 30 deadline for the tax credit looms.  Interest rates are low, inventory is still plentiful, and it’s a great time to buy!

Calling All Investors!

Are you interested in learning more about investing in real estate?  Join the Savvy Real Estate Investor Group!   This group was launched by Liz Moore & Associates’ first “virtual office” made up of a team of sales specialists who are dedicated to helping investors build wealth through their real estate portfolios.  This group consists of experienced and “wannabe” investors alike, from Williamsburg, to Hampton and Newport News, VA who will gather (physically) on a monthly basis to learn, collaborate, share ideas and generally network with a theme of investing in real estate.  Our first meeting will be on Thursday, March 18th at 6pm in the Liz Moore & Associates Oyster Point office.  Come learn from our panel of experts on our first topic, “How to Buy a Foreclosure”.  Check us out and RSVP at http://www.meetup.com/TheSavvyRealEstateInvestor.

Master Craftsman Charles Ross Wins Best Kitchen!

At its 22^nd annual awards banquet, the Peninsula Housing & Builders Association’s Sales and Marketing Council presented the award for “Best Kitchen in a Home over 3,500 Square Feet” to Williamsburg designer/builder Charles Ross Homes. The award-winning kitchen which features custom cabinetry, two islands, granite counters and Wolf and SubZero appliances is in the company’s newest model home located at 1808 John Hancock in the Governor’s Land at Two Rivers.

“Kitchens are the hub of a modern home.” said staff architect, Keith Sobczak. “We invest a lot of thought in the design of our kitchens. We are especially pleased to have taken top honors in the category in three of the past four years.”

The SMC awards competition covers the PHBA’s entire membership area including the Peninsula from Hampton to the New Kent County/James City County line, Gloucester County, and Isle of Wight County.

For 27 years Charles Ross Homes has been designing, building and remodeling homes in the Williamsburg area. They have designed and built homes in a variety of architectural styles and in sizes from 1,200 square feet to more than 11,500 square feet and completed a broad range of remodeling projects.

We are thrilled to have been selected by Charles Ross Homes as their marketing firm.  Listing Agent Linda Molvar will be hosting a “Meet the Builder” open house at 204 Blackheath in Ford’s Colony, for both agents and the public.  In addition to enjoying champagne and chocolate covered strawberries, take a tour of this fabulous 5500+ square foot home, and chat with the Charles Ross team about their master craftsmanship in this exceptional residence!  Thursday, March 18th from 4-6 pm.

Hello – Goodbye!

My mom always said, “when one door closes, another one opens” and I have (fortunately!) always found that to be true!  We experienced a changing of the guard at the Harbor Cafe yesterday.

Sheila Humphreys, long time proprietor of the Cafe inside our Newport News office building, has finally retired.  Thanks to our networking queen Commercial Services broker, Karen Reinthaler, the baton was passed seamlessly to Anthony Pica, the new owner and Manager.

Anthony will carry on Sheila’s traditions of great coffee creations (hot and frozen) as well as comfort foods, and a friendly, family like environment.  Sheila spoiled us for years with her broccoli salad (my personal favorite), her homemade Brunswick stew and “what do you feel like having today?” attitude.  The cafe has always been a little bit of home in the middle of our busy, hectic days.

Welcome to the family, Anthony!

Positioning

I’m often asked by Sellers and prospective Sellers, “what can I do that will have the biggest impact when I put my home on the market?”  Great question.  In this market, every listing is competing with dozens and dozens of comparable properties, and differentiating your property from the rest is literally the difference between a SOLD sign and languishing on the market unsold for months.

Quite simply, you must become the best value in your category.  Look through a buyer’s eyes, and consider the competition.  They are going to select the house that offers the most value for the price.  And, it will either be a “deal” (priced substantially below the market), or if it’s priced at the market, then it will be in move-in condition with superior features to others in the same price band.  Otherwise, it will fall into the “everything else” category that eventually expires or is withdrawn from the market.  The last thing you want is to fall into the “everything else” category!

So, begin with price.  You should position your listing lower than other comparable homes that are currently available.  That is really the ONLY factor you should consider when pricing your home; not what you have in it, what you paid for it, or what you need to get out of it.  Unfortunately, none of those things mean anything to buyers.

Next, work on condition.  “Move in” ready means different things to different people, but at a minimum, your home should have fresh paint in neutral colors.  Carpets should be clean or replaced.  Kitchens and baths should sparkle.  De-clutter and de-personalize as much as possible, so that the new buyer can imagine themselves living in your home.  You’re moving anyway, so go ahead and thin out closets, pack up unnecessary things on kitchen counters, take down knick knacks, and store extra or large pieces of furniture that may make your home feel smaller than it is.

We work with several professional stagers who are truly artists at putting a home’s best foot forward.  An investment of several hundred dollars is well worth it, and can pay off in thousands of dollars of return to help a home sell faster and for top dollar.  I look at many houses every week, and I continue to be amazed at what 6 or 7 hours of staging can accomplish.

First impressions are also important – flower beds should be freshly mulched and free of weeds.  A touch of color, especially in the winter, goes a long way.  Fresh paint (and sometimes a brass kickplate) on the front door says “welcome” and porches should be clean and tidy.  During showings, open all drapes and blinds, and leave lamps on – even during the day.  Pets should be invisible (including food bowls and litter boxes), in case prospective buyers aren’t fans or are allergic.

Our agents are happy to give you some pointers (or refer you to their favorite stager) if you’re thinking about putting your home on the market this Sprint.  Just give me a call or send me an e-mail, and I’ll hook you up!

Tax Breaks

Are you gathering your receipts in preparation for your annual trek to your Accountant’s office in anticipation of tax time?  If you bought a home this year, you may have a few new deductions!

Obviously, mortgage interest is a major deduction.  Additionally, if there were “points” paid in connection with getting your loan (even if they were paid by the seller), then you may be able to claim a deduction in the year they were paid.  This affects your cost basis, and you should discuss it with your CPA.

If you paid “PMI” (private mortgage insurance, which is required by lenders when a borrower makes a down payment less than 20%), you may be able to deduct the payments along with your mortgage interest.  There are several restrictions to this – it must be in the acquisition year, and there are income caps when your adjusted gross income exceeds six figures.  Check with your CPA for details.

Your settlement agent or REALTOR can get you a copy of your HUD settlement statement, which is handy for a detailed report of the transaction, and a copy should be made for your CPA when he or she prepares your taxes, to make sure no potential deduction is overlooked!

How to Turn a Tiny House into a Child’s Biggest Dream!

So, what do you do with a playhouse that was the highlight of a parade float, after the parade? Good question!  You raffle it off for a good cause, of course!

We’re raffling off our playhouse (or garden shed, or storage center…whatever good use you may put it to!), with all of the proceeds to benefit the Children’s Hospital of the Kings Daughters.

Raffle Tickets are $10 each, or 5 for $40.  The play house is valued at over $500.  Just see your favorite Liz Moore agent for tickets or details!

Technorati Tags: chkd,playhouse,holiday parade float

HUD TAKES ACTION TO SPEED RESALE OF FORECLOSED PROPERTIES TO NEW OWNERS

The following press release was issued by HUD late last week, and is great news for FHA qualified borrowers (and the real estate market in general!)
Measure to help bring stability to home values and accelerate sale of vacant properties

WASHINGTON - In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan today announced a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties. The announcement is part of the Obama administration commitment to addressing foreclosure. Just yesterday, Secretary Donovan announced $2 billion in Neighborhood Stabilization Program grants to local communities and nonprofit housing developers to combat the effects of vacant and abandoned homes.

"As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers," said Donovan. "FHA has an unprecedented opportunity to fulfill its mission by helping many homebuyers find affordable housing while contributing to neighborhood stabilization."

With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.

"This change in policy is temporary and will have very strict conditions and guidelines to assure that predatory practices are not allowed," Donovan said.

In today's market, FHA research finds that acquiring, rehabilitating and the reselling these properties to prospective homeowners often takes less than 90 days. Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time.

The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.

"FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties," said FHA Commissioner David H. Stevens. "This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity."

The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of "flipping" where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:

• All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
• In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the waiver will only apply if the lender meets specific conditions.
• The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

Specific conditions and other details of this new temporary policy are in the text of the waiver, available on HUD's website.