Wanda Fears, ABR GRI CRS

This is an update on your market in Richmond Va, and comments on the market in general.

Granted it has been a trying year, but Richmond has not fared badly. Average prices in the area are from 250-280 with many better than average deals out there. There is plenty of good inventory at premium prices as sellers are offering reasonable negotiations. Every month we list and every month we sell homes.

National Association of Realtors reports home sales in August were up 3.1 percent over July. We are selling 5 million plus homes a year. The median existing home price was 212,400. Down 7.1 % from last year. Even Florida and California are selling again. Builders are letting inventory drain off. That is good news for exiting home sales. This should help bring supply and demand back in to balance.

Interest rates remain in the 6's. My interest rate 15 years ago was 7.25. Yes, you need a down payment now. No more 100 % loans. But we have found that people need to invest in their homes. They will have a financial loss, if they don't pay the mortgage. And yes, people can no longer use their house as checking accounts. One buys a car with a car loan, one buys furniture by saving, and one pays off credit cards as soon as possible. Since when is it okay to use your home as a bank. It's like putting a lien on your home, each time you write an equity line check.

Investments mean just that. You put a down payment on a property. You upgrade where its needed, and you make repairs when it's needed. You live in it for 5-7 years, you sell it for a good price, and you make a profit. Then you reinvest with more money down the second time. Third time. Fourth time.

Let's all get back to the American dream of responsible home ownership. If you have friends or family who still rent and seek to improve their net worth; Encourage them to save and invest in America. Own a Home. Don't let politicians,wall street or nay-Sayers discourage them from doing what Americans have always done.

It is firmly believed that April 2008 marked the bottom of the US housing market. Many of these mortgage companies have been holding on to bad debt with their head in the sand, hoping it would go away. That is why you are hearing so much about it now. The bottoming is happening right now. The mortgage companies are now acting more responsible. The housing bust is now 3 years old. Housing prices peaked in July 2005.

The boom made housing un-affordable for many American families,especially first time home buyers. These first time home buyers are needed to keep the market viable. As a result it now takes 19% of income of the average home buyer, and 31% of the first time home buyers monthly income to purchase a home. These were the levels of income needed in the 1990s and early 2000s for a home purchase. With prices dropping 10-15 % in the last three years,homes are back to being affordable.

Most home owners will now see a a slow increase in value, as buyers come back into the market. More home sales and smaller price declines means fewer homeowners will be upside down. They will thus have less incentive to walk away and opt for foreclosure. When there is this stabilization of values, there will be a huge impact on economy. Perceptions will change.


Yours Wanda Fears, Realtor ABR GRI CRS

"one of 4% of CRS designated agents in the country"

Please email or call me if you have questions about our market.

"We can work it out together" 804-909-2777 Wanda@wandafears.com

www.804proeprty.com www.wandafears.com

In the coming weeks, the sign pictured above will be popping up all across Richmond. It's all part of Mayor L. Douglas Wilder's "City of the Future" plan, which is generating more than $300 million for community improvements for City neighborhoods, parks, libraries, streets and sidewalks -- without requiring a single increase in taxes.

"This is truly a new day for the City of Richmond, as rarely does any community have the opportunity that now is before us," said the Mayor.

Approximately $113 million of City of the Future funding is already in the pipeline, being directed towards areas that will have the broadest benefit for the majority of Richmond's citizens. From neighborhood to neighborhood, the City of the Future plan will provide numerous improvements across the City.

The funding mechanism for the City of the Future plan is a byproduct of the experience, energy and innovation brought to the City Department of Finance by Harry Black, the City's Chief Financial Officer.

Never before has Richmond created a funding source for its projects without first issuing bonds or taxing its residents. The Mayor's City of the Future plan has changed that.

"We are in a very enviable position, as I am not aware of any other municipality in the United States that has a $300 million reserve with no tax increase," said the Mayor.

We are not seeing the fluctuations and foreclosures other parts of county as experiencing

Prices in Richmond Va. real estate homes sold for 97.2% of asking price in Jan. 2008 and 97.3% in Feb. 2008.

Many sellers are preserving their equity and realizing that they can use their equity to actually trade up

right now.

Sellers are more reasonable and buyers have great interest rates and good inventory from which to choose.

There is no time like the present to buy a home, second home, or possibly a condo for that College attendee.

Ask me about crunching the numbers and how they work for buying a condo or townhouse in a city of

universities.

Can graduate your student with no room and board if get the right property. Cut the costs over a 3-6 year

course of study.

Many Universities only guarantee ! year in dorms and they still are expensive. So call me for more info.

804-909-2777 cell Wanda Fears ABR CRS GRI

Perhaps you are a Student or real-estate savvy Parent investor.

Consider buying one of the hip new condos for your Student instead or dorms or Apartments.

Much better than paying someone else's mortgage or high dorm fees. Students are not promised dorms after the first year here. It is possible to actually sell at a profit after graduating and reduce your students loan amounts. And by co- signing; Parents are helping you to establish a residency for grad school and a future credit worthiness for your own mortgage.

Prices vary from 175 -300 and with one or two roommates the avg. cost is 650 a person. This is about half of the cost of a dorm and board at school.

If this is something you would like to discuss further; Please feel free to email or call me. I will be glad to crunch some numbers for you, as well as forward some pix and info on the units.

Wanda@wandafears.com

www.804property.com

www.wandafears.com

804 909-2777 cell

Wanda Fears, ABR GRI CRS, Long and Foster, Richmond Va.