CAAR Blog

The Office of the Comptroller of the Currency (OCC, the federal regulator of national banks) and the Office of Thrift Supervision (OTS, the federal regulator of savings associations) have both issued flyers warning consumers about foreclosure rescue scams. Both flyers provide concrete, practical advice on avoding the kinds of high pressure tactics and abusive practices engaged in by the scammers. Families with equity in their homes are particularly at risk, but anyone paying for these services is likely to be sorry. Free counseling is available from HUD-approved counseling agencies.
OCC: Consumer Tips for Avoiding Mortgage Modification Scams and Mortgage Rescue Scams
OTS: Foreclosure Rescue Scams/How to Avoid Becoming a Victim
HUD-Approved Counseling Agencies

It was announced today that Martha Jefferson Hospital had selected a developer to re-develop the current hospital location.  The announcement reminded us that we had not posted the podcast form the April 2 CAAR membership meeting featuring Elliot Kuida, COO of Martha Jefferson Hospital.  MJH is a great corporate citizen and we appreciate all they are doing to help this community.  The sound quality is a bit cheeky, but still worth the listen.

Podcast of the  presentation

PowerPoint of the presentation

As people around the world think globally and act locally to celebrate Earth Day, it’s a great opportunity for us to share what CAAR and CAAR members are doing to go green. Below are just a few examples of steps we’ve taken to reduce, reuse, and recycle. Take a moment to share your efforts as well – we can all learn from them!

1. GREEN Designation – Today and tomorrow, CAAR members are taking their first classes towards earning their GREEN designations from the National Association of REALTORS®. These REALTORS® will be well-versed in green building terminology and methodology, how to properly advertise green properties, how to best serve clients interested in green products, and even how to green their own businesses. Knowledge is power! 
2. Green Change Agents – A group of CAAR members meets regularly at the CAAR offices to discuss and evaluate ways that REALTORS® can be involved in sustainable living activities. Any member is welcome to join them to share and learn. Their next meeting is Friday, April 24^th (Arbor Day!) at 9 am.
3. Recycled Paper Content – CAAR staff started working last year towards using more recycled-content paper in the office. Now all of their standard envelopes contain at least 30% post-consumer recycled content and are FSC-certified, and all CAAR stationary is printed on 100% recycled paper – as was this year’s Membership Directory.
4. Reducing Consumption – CAAR staff has been brainstorming ways to reduce their everyday resource consumption and has had particular success in two areas. First, through concentrated efforts – sometimes as simple as turning off printers and monitors when in a meeting – CAAR has significantly reduced its monthly electric bill. Staff has also taken to using washable silverware in their kitchen instead of disposable plastic and has an endless supply of mugs to use instead of Styrofoam cups.

By Greg Slater, CAAR President-elect

There is a general positive feeling among many Charlottesville REALTORS®. There is plenty of antidotal evidence to point to such as comments from fellow agents about how good it feels to be busy again. But what about real numbers to prove (or disprove) my perception of the mood of the market? Is this feeling for real, or is it just some sort of pent up euphoria that has been tamped down by a dreadful 4^th quarter in 2008?

Let’s look at some numbers that are not included in the CAAR Market Reports.

First Quarter Sales by CONTRACT DATE (note: these are accepted contracts, but not necessarily closed. Some will take months to close and some will never close)

Albemarle  2008   261           (119 or 33% under $300k)

Albemarle  2009   249 (off only 5%!)  (185 or 74% under 300k)

What I get from this is that with sales dramatically up under $300k, the first time homebuyer must be back.  Some of it is probably prices coming down too. I imagine the 2nd quarter will see the median price move down further.

Charlottesville   2008     145     (89 or 61% under $300k)

Charlottesville   2009     87  (off 40% and the worst market in the general area)  (78 under $300k or 90%)

If you look at the 4 largest local markets, (Albemarle, Charlottesville, Fluvanna, and Greene), here are the numbers

1st QTR  2008       554      (54% under $300k)

1st QTR  2009       452      (71%  under $300k)

This area is off only 18% compared to last year. It appears to me we are closing the gap on last year going forward but not reflected in “closed” sales yet. We still have a ways to go before we reach 2008 sales levels, but the data is pointing in the right direction.

The main point I take away from this is the first time home buyer is definitely back. I would argue the first time home buyer is more “market savvy” than ever and they are finding value in this market place. The tax incentive and interest rates are greasing the wheels. I would also point out that regardless of where you think this market is headed, any recovery is dependant on the first time home buyers.

Pending home sales have edged up, hinting at a possible pickup of sales activity in coming months, according to the National Association of Realtors®. The Pending Home Sales Index, a forward-looking indicator based on contracts signed in February, rose 2.1 percent to 82.1 from a reading of 80.4 in January, but is 1.4 percent below February 2008 when it was 83.3. Lawrence Yun, NAR chief economist, said the market is continuing to underperform. “Pending home sales have a way to go for there to be a meaningful increase, but recent increases in shopping activity are hopeful indicators that we’ll see additional sales gains,” he said. “More buyers are getting into the market to take advantage of stimulus incentives and much improved housing affordability conditions, but it will take a few months before we could see this turn up in measurable sales contract activity.”
Read the release >
View the video >
View Pending Home Sales Index >

2009 First Quarter

Where Are We Now?

The Charlottesville area real estate market improved in the first quarter compared to the 4^th quarter of 2008, but still remains slow in terms of sales. The previous quarter will go down as one of the weakest real estate markets in history, so the improvement in the first quarter of 2009 is easy to understand, especially considering the seasonal upswing the market generally experiences this time of year.

Even if the market activity is somewhat seasonal and relative to a dismal 4^th quarter in 2008, it feels great to see market activity again. Open houses are seeing a lot of traffic and the number of buyers “looking” right now is strong. We should see this activity transform the market numbers into something we can enjoy reading by the second quarter. The market will not rebound to 2008 levels for a few more quarters, but the activity and the number of pending sales are encouraging.

For the past several months, CAAR has explained that “the market is the market,” meaning that buyers and sellers have to understand the current conditions and not live in the past. This means that sellers have to accept that their home has probably decreased in market value and if they want to sell, they need to agree to a listing price that will attract buyers.

For buyers, the market has a few short-term opportunities to think about. First, interest rates, thanks to actions by the feds to shore up the financial markets, are very low right now. We do not know how long rates will stay this low. Second, first-time buyers can get an $8,000 tax break if they close on a home by the end of November. If a buyer is interested in taking advantage of this incentive, they should not wait until the fall to start the process.

Buyers now have another market condition to be informed about – short sales and bank owned properties. A short sale is when the seller has to bring money to the closing table because the proceeds of the sale did not cover the outstanding mortgage(s). In some cases, the seller may not have the assets to cover the “short” and this would cause a distressed short sale situation. In such a case, the bank or mortgage company (and sometimes an investor) would have to approve the short sale. This third party approval can take weeks and even months to secure. Buyers need to understand this market condition and discuss options and opportunities with their buyer’s agent.

The Ups and Downs of Home Sales

There were 403 homes sold in the Charlottesville area during the first three months of 2009, which was down 33.9% (-207 sales) from 2008. All local areas were down from last year: Albemarle -18.7%, Charlottesville -40%, Fluvanna -32.4%, Greene -50%, Louisa -59.6%, Nelson -51.2%, and Orange – 36.7%. Monthly sales for the region have improved slightly each month since November 2008, but much of that can be attributed to seasonal swings.

Sales in the Central Valley region were generated from the Greater Augusta MLS, which has more complete data on the Valley market than the CAAR MLS. Sales were down in the Valley by 28.4% compared to last year.

To see the full market report, click the link below…

PDF Version of 1st Quarter Market Report

On March 30, 2009, Fannie Mae issued Announcement 09-08, implementing the 2009 conforming loan limits for high cost areas (”high-balance” loans above $417,000). The American Recovery and Reinvestment Act (ARRA) raised loan limits for high cost areas for 2009 to the higher of the permanent limits in effect for 2009 or the temporary limits in effect for 2008. In most cases the 2008 limits are higher. The guidelines apply to loans delivered to Fannie Mae starting May 1, 2009.

The Fannie Mae announcement specifies eligibility requirements for high-balance loans, including:
—Loan must be conventional, first-lien mortgages only.
—One to four unit properties are eligible.
—Loans must be fixed-rate or adjustable rate loans (no balloons).
—Loans must meet loan-to-value (LTV) and minimum credit score requirements. For one unit properties with a fixed rate mortgage, the maximum LTV is 90% and the minimum credit score is 700 for LTVs above 75% and 660 for LTVs at or below 75%. For one unit properties with an adjustable rate mortgage, the maximum LTV is 75% and the minimum credit score is 680. For second homes and investment properties, the maximum LTV is 65% and the minimum credit score is 740. Other rules apply to other categories.

Fannie Mae Announcement 09-08, Temporary High-Cost Area Loan Limits and Revised Eligibility Requirements for High-Balance Mortgage Loans >

From the Real Estate Weekly

Each April at the peak of Virginia’s springtime color, Historic Garden Week lures 30,000 visitors from throughout the United States and abroad who tour more than 250 of the Commonwealth’s most beautiful gardens, homes, and historic landmarks. Sponsored by The Garden Club of Virginia, Historic Garden Week—being held April 18-25—is now entering its 76^th year, making it the oldest and largest statewide house and garden event in the country. Three-dozen tours are planned and run by an all-volunteer workforce.

Historic Garden Week is as much about historic architecture, art, antiques, and interior decorating as it is about gardens. Many of the homes are on the historic registry and some are only open during Garden Week.

Read the full article

We have been hearing antidotal evidence that the real estate market is seeing a surge in activity.  Now, NAR is reporting that there is statistical evidence to back of the positive market vibes we have been feeling both locally and nationally.

From the article:

“Pending home sales have a way to go for there to be a meaningful increase, but recent increases in shopping activity are hopeful indicators that we’ll see additional sales gains,” he says. “More buyers are getting into the market to take advantage of stimulus incentives and much improved housing affordability conditions, but it will take a few months before we could see this turn up in measurable sales contract activity.”

Read the article at Big Gains in Pending Home Sales.