It's not a Letterman Top 10 list, but could I get a drumroll please?

Thank you.

From FrontDoor.com comes their "Top 10 Things To Expect in the Housing Market in 2009" list.  #5 might be the most important, in my opinion.

1. Continued market adjustments - With home prices in some markets having reached astronomical levels, it was inevitable a reset button be pushed. Sellers will continue to be challenged in 2009 as the inflated pricing of years past adjusts to normal levels. With banks and builders willing to slash prices to sell a backlog of foreclosures and new homes, individual sellers will have to price their homes competitively.
2. Action from the Obama administration - President-elect Barack Obama's plan to help the housing sector includes a 10 percent mortgage tax credit for homeowners who don't itemize their taxes and a crackdown on abusive lending practices.
3. More assistance programs for homeowners in danger of foreclosure - While the federal government is attempting to reduce foreclosures, a report released by the Joint Economic Committee predicts 2 million foreclosures in 2009. Homeowners who are at risk should take steps to avoid foreclosure.
4. Some calm to the chaos of the banks' restructuring - This should cause loan modifications and short sales to get easier, and it will also (eventually) decrease the number of bank-owned properties on the market.
5. Thorough reviews of mortgage applications - Before the subprime mortgage debacle, you didn't have to prove you could afford to borrow $200,000 for a home and you didn't need a down payment. Those days of sketchy lending practices are gone. Lenders now require potential borrowers to provide extensive income and expense documentation. Homebuyers with the best credit will get the lowest interest rates. Take steps now to get your finances in order and boost your credit score.
6. Low prices and low interest rates - 2009 could be the time for reluctant homebuyers to act, as this is perhaps the last year of the best buying opportunity in recorded economic history.
7. Cool tech tricks and tools for the real estate obsessed - As homebuyers turn to the Web more and more for their real estate needs, video, webcasts and mobile search tools are becoming more prevalent. Sellers should consider using these cutting-edge tools to make their homes stand out.
8. Wiser consumers - After facing this foreclosure crisis, buyers, sellers, real estate agents and even tenants will have a deeper understanding of real estate, mortgage and credit, which they can use to make better decisions and be more self-protective in the future.
9. Leaner, greener homebuying - Across the board, homebuying is becoming more eco-friendly, from transactions being conducted digitally to buyers opting for smaller homes within walking distance of school and work.
10. An increase in consumer confidence - As the year goes on and we near the projected end of the recession, sellers can breathe a sigh of relief as buyers regain confidence in the market.

Well ... we've got a year to see what comes true. 

Looking to buy a house in Southwest Virginia?  Perhaps you've been looking at homes in Christiansburg, or in Radford, and you just don't think you can afford it.  I'd remind you that the opportunities are there for buyers right now for two reasons - (1) the inventory available, and (2) the rates that local lenders are willing to lend at.  Let's look at the numbers ...

Assuming a house is priced at $150000, and the interest rate is 5.00% (the current USDA rate), here's how your monthly payments would break down on a home in Christiansburg purchased for $150000 with NO MONEY
DOWN:

Principal & interest:       $805.24
Prop Taxes (estimate):     114.83
PMI (None with USDA):             0

Total Payment:             $920.07

Imagine - a $150000 mortgage for less than $1000 a month.  And it's important to note that this is a USDA loan, with a secure 30-year fixed rate and NO prepayment penalty.  STILL think you can't get a loan?  I promise you that it's still easier than you think.  Contact me, I'll help you search for your best option with local lenders who have money to lend.

This can work well for many buyer profiles, but what one buyer often has a job, credit and no money?  Recent college graduates.  Virginia Tech and Radford alum, let's see how we can make this work for you!

I've been meaning to put this post out there for quite some time, then a month or two ago another agent did  something similar and so I figured it was probably time to move it up the To-Do list.

A lot of people ask me "when's that house down the street going to sell?", or "how much did that two-story on Main Street sell for?"  While I'm glad to tell you, there's a way you can find out even faster.  If you'll email me your name, email address and the neighborhood you live in, I'll set up a search in the MLS that'll email you every time a property in your neighborhood comes on and off the market.  You'll be the first to know when it this the market, the first to know if the price changes ... be the envy of all your friends!  Don't worry - by providing your email address I won't be spamming you, or sending you cutesy recipe cards in the hope that you'll remember my name.  If it helps, I won't even save your address.

I've just found that if you're interested in following the values in your area, this is a good, real-time way to do that.  I've set it up for myself to track my own neighborhood, and those of some of my former clients, and can do the same for you.  Just email me and I'll set it up; I hope you find it useful.

Out of the Absolutely-Positively-100%-Without-A-Doubt-Shameless-Promotion-And-I-Don't-Care Department comes this post ...

Last week Jay Thompson in Phoenix talked about how he was paying models across the country to show off his "Phoenix Real Estate Guy" t-shirts.  Jay is known far and wide as THE Phoenix real estate dude in, well, Phoenix, and now he has the models to prove it.

Which got me thinking ...

I haven't mentioned in a very long time that NRVLiving Real Estate has things for sale.  We have for a long time, actually.  Shirts ... and mugs ... and stuff for kids ... and it's Christmas, don't you need to pick up some last-minute gifts for the special pet in your life?

It's true, the NRVLiving Real Estate Group has it's own store, and you can buy all kinds of things there that are emblazoned with our very own NRVLiving logo.  I mean, look at that smile on WDBJ7's very own Natasha Ryan as she shows off her new t-shirt (and ignore the doofus behind the bubble)!  Don't you want that same sense of excitement?!

Seriously though, we do have a store.  And it's not to put money in our pockets, either - we're an entrepreneurial bunch here, but not quite like that.  See, we don't talk about the ways we're involved in the community very much, but one of the things I AM proud to talk about is our involvement with a local child care center, the Valley Interfaith Child Care Center.  The folks involved with this center are very dedicated to their mission ... taking care of children from low-income, working families throughout the New River Valley, so that Mom and Dad can get back into the workforce.  One of the many ways we support this group is through the NRVLiving Store - 100% of all profits we make go directly back to the center.  It's not much, I promise you, but every little bit counts. 

All kidding aside, if you'd consider supporting the Valley Interfaith Child Care Center through our store we'd greatly appreciate it.  And if you'd like to discuss other ways you might be able to support, either through volunteering your time and talents, dedicated giving, etc., let me know - I'd be glad to tell you more about what we're doing.  The needs are great, for sure - thanks for considering how you might give back.

NOW GO GET YOUR SHIRTS! :)

 It's the winter time - duh, it's cold outside - and many folks are looking for inexpensive ways to save dollars AND energy in their homes.  I came across this list from GreenCville.com and thought I'd repost it (italics are mine):

1. Seal duct work - this is the number one way to conserve energy during the winter.  Duct work can leak heated air into the attic or crawl space if all the joints and intersections are not sealed with foil-backed tape or silicone caulking. (which is another reason Mt. Tabor Meadows is so unique)
2. Seal air leaks to attic - seal all holes from pipes and wires that run in and out of the living space.  This includes light fixtures, pipes, wires, attic stair openings.
3. Seal fireplaces - never use a fireplace as a heat source for your home.  Even as a supplemental heat source, the cold air introduced to a warm home through an open flue isn't as efficient as sealing off a fireplace and using the primary heat source.  For natural gas fireplaces, turn off the pilot light when not in use.
4. Lower thermostat - in the winter, set the thermostat between 65 and 70 degrees during the day and to 58 degrees at night or when away from home for several hours.  Keeping the temperature at 70 degrees is recommended for homes where there are elderly or infants. (this can be hard to maintain in homes that take a long time to heat - a programmable thermostat might help as it allows the home to begin heating at a prespecified time of day)
5. Lower water heater to 120-125 degrees - many water heaters are automatically set at 140 degrees.  Lowering the temperature on your water heater will reduce the amount of fuel needed to heat the water.
6. Change furnace filters every month - This is the number one reason for furnace breakdowns.  Inspect heating and cooling equipment annually.  Have a professional check and clean furnaces once a year.
7. Weatherstrip doors and windows - inspect doors and windows for air leaks.  If you can see daylight around a door or window frame, then it needs sealing.  Air leaks can be sealed with caulking or weather stripping.
8. Insulate water pipes coming from the water heater - insulate the first three to six feet of cold and hot water pipes near the water heater.  Insulating all hot water pipes is not necessary if pipes are lo cated in an attic or crawlspace.
9. Add an insulation blanket to your water heater - wrapping the water heater with an insulation blanket can save heating money by slowing the drop in temperature from the hot water tank as it sits unused.  Inexpensive insulation kits are available at most home improvement stores.
10. Add insulation to attic - when adding insulation, start at the top and word down only after eliminating air infiltration. (I've had clients do this and it drastically reduced their heating and cooling bills)

What are YOU doing to save money on energy costs this winter?

Saw this today from Handshake 2.0 and it just made me chuckle.  I don't have anything from LimbGear so I can't speak to their quality, but if they'd like to send me some stuff to test out on the slopes I'd be glad to review! :)

Seriously ... enjoy.  This made me laugh; I was working on a couple of Price Opinions for new listings and it was just the thing I needed.  Thanks LimbGear.

Ever been in a candy shop?  You know, the type where there are candies of all sizes, shapes and colors lining the walls?  The shops where you shove a big metal shovel the size of Delaware into a barrel of assorted candies, and you come up with all different types of sweets?

Yea - that's what the real estate market is like right now.

It's not that it's a huge surprise ... the winter is always slower than normal, so we were prepared for that.  I can't say anyone saw bailouts of the banks, the construction folks, the auto makers, the pizza bakers and the professional matchmakers, but needless to say here we are.

See how I did that, the whole rhyming thing and all?  I know - Eminem I'm not.  Nor am I fan of bailouts of irresponsible mismanagement, but that's a story for another day.

Buyers, if you:  (1) have a job, (2) have money to put down and (3) have good - notice I didn't say excellent - credit, our current real estate market will be like walking into that candy shop and taking your pick of everything that's available.  I don't mean that you'll get it for pennies on the dollar, but the opportunities are there to pick up excellent values right now.  Think about it - if a property is listed now, between the Thanksgiving and Christmas time frame, don't you think that Seller is serious about selling his or her home NOW?  I do, and my Sellers are.  And it's important to note that when I say you need money to put down I don't mean ten's of thousands of dollars.  There are lenders here locally, right now, offering great rates on FHA and other buyer programs that are requiring as little as 3% down, not to mention the free money - yes, free money, not additional loans - that localities like Blacksburg are offering qualified buyers.

Let me post the latest absorption rate numbers for the New River Valley market now, and then check in with folks that might need to sell their home in the next few months.  When it comes to absorption rates, we're looking at how long it would take to sell the existing residential inventory in a particular area, if nothing else came on the market until supply was exhausted.  Anything over 5 months is typically a buyers' market, and anything less than 5 months is typically a seller's market.

Sellers, the market's not in your favor now when you look at the numbers above.  28, 54, 64 months worth of inventory?  An average of more than two years worth of inventory is a scary thing when you're putting your home on the market, but remember it's not taking EVERYTHING that long.  The average for the NRVLiving Team in 2008 is 101 days, or just over 3 months.  Some have taken less, some will take more, but we're doing our best to expose our listings in every effective way possible.  That being said ... selling right now isn't for everyone.  If you bought a townhouse in Christiansburg last year for no money down and expect a 10% return, it might be a good idea to rent for the home for a while.  Those are products that are having difficulty selling in today's market, and will need some time to settle out. Nevertheless, there ARE ways to get it sold ... not the least of which includes patience.  There is a lot of uncertainty right now, and it's going to take patience and carefully executed marketing to reach buyers who are ready to execute. 

At the halfway point of the year, I wrote a post looking at what the market was doing up to that point, and compared it to the year prior.  The results were striking, and I'm working on a follow-up for the entire 2008 year that I hope will be helpful.  There will be some in the real estate market who will be happy they held off selling, and others that will regret not buying, but the time is not right for everyone.  Be patient, find an agent who is studying and demonstrating they know the market they're serving, and grab that shovel - there's candy to be had.

If you enjoyed this post, why not leave a comment and subscribe via RSS or email here to be sure you don't miss the next post?

A few weeks ago, I was contacted by WDBJ7's news anchor Natasha Ryan about a story she was writing on the online social media site called Twitter.

Now, I've admitted my addictions here on the blog before, and it was interesting to see a local news outlet not only recognizing the power of the service but taking the time to investigate it further.  Below is the final result, in two parts done on last night's broadcast:





Certainly I feel the service is an invaluable tool - it helps me connect with friends, it's enabled me the opportunity to meet current and future customers, and it's even influenced the creation of a new small business startup in the New River Valley.  It's nice to see local news outlets exploring new ways of breaking news and staying in touch with their viewers.  If you're on Twitter, make sure to check out these local news and civic organizations:

• Natasha Ryan
• WDBJ7
• WSLS
• ABC13 WSET
• Roanoke Times
• Town of Blacksburg

There are many more, I'm sure, but these were some I could recall off the top of my head.  Thanks to Natasha and WDBJ7 for the story, as well as to Patsy Stewart, Ira Kaufman and Stuart Mease for their participation as well!  

Hey - are we connected?

Last week I mentioned that I'd been knocked out of the second annual VAR Blog Brawl.  In the words of Lee Corso, "not so fast, my friends."

I can't say for sure exactly what happened because truth be told, I've no clue.  But I've just learned that I'm in the semi-finals of the contest and I need your help!  Take 30 seconds, visit VARBuzz.com Take 2 and  please vote for NRVLiving Real Estate.  Your reward?  Absolutely nothing but the warmth in your heart from knowing you took the time to vote.

Yea, we're keeping it simple like that; no hanging chads here.  I'd greatly appreciate your vote.

Happy Thanksgiving to all, and thank you for your patronage and friendship in 2008.