In short, thanks to Carl – “It is possible that if a buyer was approved for a specific loan product say with a 95% loan to value and the after the investor looks at the appraisal report and determines the comps are old or the property is in a â€œdeclining marketâ€ they could turn around and only approve the loan up to a 90% loan to value.”We’re not (yet) in a “declining market,” but I’ve been given indications from several sources that we might be on that track.Â Start your education here.Advice for buyers – do your due diligence, be patient, save your money in the meantime.For Sellers – as I said last year – do not attempt to chase the market down.Â Beat it down.
In light of the national new-home sales numbers showing their largest drop in 12 years, here is some local context.Â These are for all inventory, re-sale and new homes; I don’t trust the MLS data sufficiently regarding new homes sales.December 2003 -215 residential properties sold.December 2004 – 249 residential properties sold….Â 1922 active units on the market = 10.01 months of inventoryDecember 2007 – 138 residential properties sold.Â 2169 active units on the market = 15.72 months of inventory*The MLS now only allows statistical analysis reports back only three years, so I am unable to pull inventory data for anything earlier than January 2005.** These numbers are for Albemarle, Charlottesville, Fluvanna, Greene & Nelson Counties.
For Albemarle, Charlottesville, Fluvanna, Greene, Louisa and Nelson, there are currently 2,012 active residential properties on the market – 36% of these are vacant.In the Waynesboro MLS, there are 1107 properties on the market – 46% of these are vacant.What does this mean?Â Buyers are in the drivers’ seat, and showing houses is much easier.
If you donâ€™t match, then you have two days to â€œscrambleâ€ into a program, ANY program that wishes to take you.UVA has a Guide to Match Day.I wrote about Match Day last year, and developed a page specifically for UVA medical residents, and a search specific to UVA residents’ general needs.What’s a Resident generally looking for?- At least three bedrooms- At least two bathrooms- Under $275k (some go higher, depending on their background, family support, etc)- No more than twenty minutes from the UVA Medical Center.What’s it like to be a buyer in the Charlottesville market?Get started on learning the market here…. Every year, new Residents match in Charlottesville; every year some rotate out to the next phase of the lives after completing their Residency. To get acclimated, look at this map; once you eliminate at least two of the areas, your search will be much more efficient. You may find yourself going outside the confines of Charlottesville and Albemarle.View Larger MapThere is significant uncertainty in the Charlottesville market now; but – for those who are ready, willing and able to buy, there are significant opportunities in the market.
CBS’ 60 Minutes did a fairly good high-level overview last night of the subprime mortgage situation we find ourselves in.Pay attention to the buyers’ segments:Buyers: Why pay a $3200 payment on a 1200 square foot home…. If the value was going up….Croft: You’re just going to let it go into foreclosureBuyers- That’s the only advice we’ve gotten so far.As Tony said yesterday in a comment:The comment threads about the business decision to foreclosure vs. the ethical obligation to continue to try and make payments are very interesting and entertaining. Imagine this scenario: You take the moral high ground and do everything you possible can to make the mortgage payments at all costs. First you forgo the luxury items (cable, eating out), then you cut back on things like insurance (hope you don’t get sick), then you cut back on gas and heating oil (buy a bike and space heater), then you skip meals, etc etc. All the money you send to a bank in North Carolina or California is money you don’t pump back into your local economy.
Huge thanks to CvillePodcast for persisting and posting the podcast of last week’s show.Realtor Jim Duncan and mortgage broker Matt Hodges of Compass Home Loans join Rick Moore on the January 20th edition of WNRNâ€™s Sunday Morning Wake-Up Call to talk about whatâ€™s new in the area real estate market.Â The pair answer questions and give explanations of how to buy real estate and how current trends have affected professionals and influenced buyers of property.This is the summary of the show from last week.