Future Posts
July 26, 2006 | Leave a Comment
I will out of the office from 7/27-8/4 (and not on vacation, unfortunately). I will try to post when I can, but I might not be able to get in the 2 per day average I like to shoot for. Keep checking out the blog, and leave some comments!
Congressional Real Estate Hearing Proves Interesting
July 26, 2006 | Leave a Comment
The House Subcommittee on Housing and Community Opportunity held a hearing yesterday at 2:00pm entitled, "The Changing Real Estate Market." Many government officials and industry experts gave testimony and answered questions. All in all, it was a very interesting hearing (if you take an interest in the real estate industry). You can find PDF versions of all the prepared statements here. I made a recording of the webcast of the hearing, and I may post it later, although it is a 3 hour clip, so it is a very large file.
In the future, look for my comments and insights about the testimony and the effect it could have in our area.
Technorati Tags: real estate; congress; realtor
Existing Home Sales Decline 1.3%
July 25, 2006 | Leave a Comment
The national numbers for existing home sales in June were recently released by the National Association of REALTORS. Existing home sales fell 1.3% in June to 6.62 million units.
According to NAR’s chief economist, David Lereah, this isn’t unexpected:
“Over the last three months home sales have held in a narrow range, easing to a level that is near our annual projection, which tells us the market is stabilizing,” he said. “At the same time, sellers have recognized that they need to be more competitive in their pricing given the rise in housing inventories. Home prices are only a little higher than a year ago.”
Appreciation is definitely lower across the country, as the national median home price was only up 0.9% when compared to June of last year.
For more articles on the subject, check out these links:
MSNBC; FOX News; TheStreet.com; Washington Post; USA Today
The Charlottesville Area real estate market has not escaped the high inventories, decreased transactions, and low appreciation. If you have been reading my statistical releases, you know that the Charlottesville MSA has been well behind its pace of last year. According to the Charlottesville Area Association of REALTORS MLS statistics, the Charlottesville MSA is currently experiencing a 4.9 month inventory as of June, compared to a 2.47 month inventory at the same time last year. Average Days on Market is at its lowest point all year, 52 days as of June. Although, that statistic is a bit skewed by many of the condos that were pre-sold in the month of June. Until June, the average DOM was as low as 61 days and as high as 74 days.
The moral of the story is that the market in 2006 is slower than the market in 2005, so make sure that you act accordingly, whether buying or selling.
Technorati Tags: real estate; housing; realtor; real estate bubble; existing home sales
Congress to Hold Real Estate Industry Hearing
July 25, 2006 | Leave a Comment
In what seems to be a continuing trend of government attention being paid to the real estate industry, the House Subcommittee on Housing and Community Opportunity is holding a hearing at 2:00pm today entitled, "The Changing Real Estate Market." I am sure there will be some interesting testimony from all those involved, and I will get you as much information as possible, as soon as it becomes available. Below is a complete list of all those scheduled to testify, courtesy of Glenn Roberts, Jr. of Inman News:
– J. Bruce McDonald, deputy assistant attorney general, Antitrust Division, Department of Justice
– Maureen K. Ohlhausen, director, Office of Policy Planning, Federal Trade Commission
– David G. Wood, director, Financial Markets and Community Investment, Government Accountability Office
– Stephen Brobeck, executive director, Consumer Federation of America
– Aaron Farmer, broker/Realtor, Texas Discount Realty, Austin, Texas
– Kimberly Gorsuch-Bradbury, senior vice president, Real Estate Networks, LendingTree, LLC, Charlotte, N.C.
– Glenn Kelman, President and CEO, Redfin Corp., Seattle, Wash.
– Geoffrey D. Lewis, senior vice president and chief legal officer, RE/MAX International, Inc., Greenwood Village, Colo.
– Pat Vredevoogd-Combs, 2006 president-elect, National Association of Realtors
The Subcommittee on Housing and Community Opportunity, chaired by Rep. Robert W. Ney, R-Ohio, is holding the hearing.
Technorati Tags: real estate; congress; congressional hearings
Consumer Group Criticizes Real Estate Commissioners
July 25, 2006 | Leave a Comment
The Consumer Federation of America recently released a report entitled, "State Real Estate Regulation Dominated by Industry." You may or may not remember that this is the same consumer advocacy group that charged the real estate industry with creating a comissions cartel.
This time, rather than going after real estate brokers specifically, the group is citing what they perceive to be conflicts of intrest among the pople who sit on the various state real estate regulatory commissions around the country. The report contends that for praticing real estate agents and brokers to sit on these commissions is a gross conflict of interest that hurts the consumer. The report is worth reading.
My main point of contention with the report is that if practing lawyers can sit on bar associations, and practicing doctors can sit on medical boards, then why can’t real estate praticioners do the same? In fact, the Virginia Real Estate Board is composed not only of real estate licencees, but members of general public as well (7 licensed members and 2 non-licensed members). The minutes of all their meetings are public, the results of all their rulings are public as well. In fact, it is all very accessible to the public. Perhaps their are problems in other states of which I am not aware, but the system in Virginia appears to be equitable to members of the public and real estate professionals alike.
Technorati Tags: real estate; consumer; consumer federation of america
Monday’s Big Answer– 7/24/2006
July 24, 2006 | Leave a Comment
On Friday, I asked what the impact will be of Charlottesville losing coverage in the popular media. Now I give you my opinion. . .
There is certainly some portion of the population that has moved here due to the heralding of the Charlottesville Area by popular media. I remember distinctly that when Charlottesville was named a top place to live by Fodor’s, our office received a tremendous spike in phone call and Internet inquiries. Of course, some of this interest is casual, but some people actually decide to move places based on these rankings.
There is no doubt in my mind that this area is a great place to live. We have many positives (low density, major public university, low crime, great health care). It was only a matter of time before the popular media picked up on these things. What this did was begin to create competition among localities. Every locality wants to attract people in order to improve their economy, and as a matter of pride. For every area that was mentioned, there were 4 or 5 others saying, "Hey! Look at us! Look what we have to offer!" Now that Charlottesville would appear to be on the outside looking in, what will happen?
I think that, believe it or not, we are already beginning to see the effects of this lack of attention from the media. In the past, the community did not need to do its own marketing, there were plenty of outlets willing to do it for us. That is no longer the case. Now, the community cannot rely on people finding Charlottesville because they read about it in Money Magazine, or saw a story on The Today Show. The community must learn to market itself, and seek out publicity, if it intends to continue to attract residents and businesses.
Many in the real estate industry have grown complacent. It has always sort of been assumed that, "if you built it, they will come." That used to be true, because people were hearing about it all over the place. Now, that is not so much the case. New subdivisions that have plenty to offer are finding out that it may be a bit harder to convince people to move here when they don’t have the popular media to rely upon for help. A developer or builder used to be able to say, "It’s great to move here. You don’t have to believe me, Money Magazine says so." Now, that can’t be said. The Charlottesville area is going to have to do a better job of publicizing the great features of our area.
Like it or not, we live in a media/ratings driven society. Information is everywhere, and readily accessible. Everything in our lives is ranked in terms of quality, size, affordability, etc. and those rankings are publicized on everything from cars to clothing stores, to schools, to places to live. If Charlottesville still wants to be desirable to the general public, it is going to have to find a way to continue to attract attention from the places that control the attention of the public.
Hopefully, losing some popular media coverage now will help the area in the future in that it will force people to go out and work to attract attention. It will cause people to look for things that make the Charlottesville Area attractive, and publicize those things. If this doesn’t happen, and people just sit back and say, "oh well, it was good while it lasted," then I am afraid that perhaps Charlottesville truly has jumped the shark.
Technorati Tags: best places to live; jump the shark
Shopping in Fluvanna
July 24, 2006 | Leave a Comment
There has been much talk in Fluvanna recently about shopping. Or more accurately, a perceived lack of shopping. The most recent Fluvanna Review has number of letters to the editor have been written on the subject, and it was the topic of choice for their most recent online poll.
I have lived in Fluvanna for 18 years. I have always found the amount of shopping in the area to be adequate. I’m not really sure what people are expecting to happen in the county. I think that many people forget that the county’s entire population is only around 35,000 people. This isn’t a tremendous attraction for a lot of major businesses. As crowded as the Food Lion can be at times, I don’t see how the county could support another one. Perhaps Zion X Roads will have something to offer in the future, but not until infrastructure is improved in that area and water is made available. In the meantime, I hardly view the occaisonal trips to Charlottesville as an inconvenience of any real significance. Not to mention the fact that as Charlottesville expands, it gets closer and closer to Fluvanna.
Destroy All Cubicles!
July 21, 2006 | Leave a Comment
I admit, this has nothing to do with real estate, but I liked it just the same.
Let me start by saying that I HATE CUBICLES. I prefer to call them "soul destroyers." I am convinced that humans are not meant to work in cubicles. I love that scene in the movie "Office Space" where the guy comes in and dismantles his cubicle. That is one of the things I like best about working as a REALTOR. . .no cubicle!
On that note, I found this video piece about redesigning office spaces interesting. It would appear that cubicles hurt not only the psyche of the worker, but also the bottom line of the company. Finally, someone has devised a better way to work.
Technorati tags: cubicle; office
Fed Chair “OK” With Housing Slowdown
July 21, 2006 | Leave a Comment
The USA Today reported on Federal Reserve Chairman Ben Bernake’s testimony before the House Financial Services Committee. Bernake is apparently okay with the housing market slowdown, which many feel is the result of the Fed raising interest rates:
"The downturn in the housing market so far appears orderly," Bernanke told members of the House Financial Services Committee. "The level of (housing) activity is still relatively high on a historical basis."
It would appear that the Fed is still going to keep a very close eye on inflation, and use interest rates to cool any possible inflation. Of course, the overall health of the economy is the main conern of the Fed, the housing market is just one factor in that equation. According the everything Bernake has said in the past, if the housing market were to continue to slow, and inflation were to continue rising, the Fed would keep raising the rates.
On a related note, read an article about how 30-year mortgage rates are at the highest level since 2002.
Technorati tags: federal reserve; bernake; interest rates; mortgage; inflation; economy
Friday’s Big Question– 7/21/2006
July 21, 2006 | Leave a Comment
Time for Friday’s Big Question . . .
Perhaps the most interesting post I made this week was about how Charlottesville is no longer listed in Money Magazine’s 100 Best Places to Live. About 2 months ago, the cover article in The Hook posed the question– Has Charlottesville Jumped the Shark? My question for you is this:
What is the impact of Charlottesville losing coverage in the popular media?
Just in case you were wondering, find out what it means to Jump the Shark.
Technorati tags: jump the shark; best places to live
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Disclaimer
My name is Daniel Rothamel. I am a licensed real estate agent in the Commonwealth of Virginia and a member of the National Association of REALTORS. As such, I adhere to a strict code of ethics and all laws with regard to equal housing, which is reflected in the content of this blog. My broker is Strong Team REALTORS, 86 Joshua Lane, Palmyra, VA 22963; (434) 589-5800. My VA Real Estate License number is 0225 077325. All of the opinions in this blog are mine, unless otherwise noted.
