About Montgomery County, VA

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.

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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?

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

From the Virginia Resources Authority comes this announcement on Friday:

The Virginia Resources Authority has just sold $215 million in infrastructure revenue bonds – a real triumph and nothing short of miraculous given the economic situation. This represents the largest transaction in the pooled financing program in VRA history.

The bonds will finance a number of projects in localities across Virginia. The projects are varied in scope, reflecting VRA’s broad support in 14 areas for community investment including public safety and local government buildings. Participating localities will construct a variety of projects including: upgrades to bridges and wastewater treatment plants, replacement of water and sewer lines, and construction of a new firehouse, a new library, and a public safety academy.

“Bricks and mortar projects mean jobs and income in Virginia communities,” said Sheryl Bailey, Executive Director of the Virginia Resources Authority. “We can’t over-emphasize the importance of such projects in stimulating the local and state economy. Infrastructure is a key to America’s economic recovery.”

Important? You bet! With funding comes improvements, with improvements comes jobs, and with jobs comes tax revenue, quality of living and any other number of benefits. Virginia has had a strong bond rating for many years, meaning low loan rates for localities, and $215 million will go a long way to localities being able to move forward with planned improvements. No word in the press release on whether any of those projects are planned for the Blacksburg/Christiansburg/Radford area, but we'll see moving forward.

Updated 11/25 10:02am - This is the largest ever transaction in the history of VRA's pooled financing program, and represents 25% of VRA's financing in that program to date ($862 million total). You can read the entire November 21 press release at http://www.virginiaresources.org/news.shtml.

I've written before about Virginia Tech's focus on energy research and sustainability, even going so far as to say that the university's focus on these issues is a nice example of putting their money where their mouth is, with no outside pressure. And I believe that.

And appointments such as these lead me to believe it even more. Sure, Dr. Leo's appointment is one that is made to further the university's research advancement goals and bring in more money, but you can bet they'll be putting much of these initiatives in place right here on campus.

Kudos to Dr. Leo and Virginia Tech. Once again, Inventing the Future.