This Month in Real Estate - January 2015

National Real Estate Data 

If you are looking to buy or sell a home in the greater Charlottesville area, I would like to help you. Call or email me for more information on how these numbers affect you.


Homes for Sale in Belmont in Charlottesville, VA

Condos and Townhomes for Sale in Charlottesville, VA

Quinton Beckham
The Beckham Team
Keller Williams Realty
3510 Remson Court, Suite 301
Charlottesville VA, 22901
quintonbeckham@me.com
434.242.6212
www.thebeckhamteam.com

The Most Important Client in the World

Who's the Most Important Client in the World? 

I find myself in lots of conversations with other agents lately about whether what our industry is composed of 'sales professionals' or 'service professionals.' This is a very telling conversation. Many agents across the country have built million dollar businesses by consistently applying proven sales models to their businesses. Their contact network grows and as a result of that their volumes grow and they hire additional help (which they do carefully to get talented people) to handle the increased number of clients successfully.

I have no issues with this whatsoever. You do have to plan your business and get help in order to grow and when managed correctly, the growth results in improved service for your clients. It's something I have frequent dreams of. I would love to spend the day working with clients on important things like choosing the home that truly meets their needs. A place that they can spend the next ten or twenty years in. I want to help people who are retiring get the best return on the home they are selling that is now bigger and costlier than they really need and spend time with them to really know what they are planning for their life so I can do my part even better. 

When I have these sales vs. service conversations, I think back on my favorite parts of this profession and wonder, what part of all this is actually sales? I mean, there are certainly portions that are sales. When you want to sell your house I have to get the word out there that its for sale. I need to have good timing with then it goes on the market and know the neighborhood and market as a whole to get you buyers who are ready to buy and wanting your house. Definitely sales. But not at all what I spend the majority of my time on. 

Good agents spend the majority of their time on predicting the "bumps in the road" for their clients and taking action to smooth those out before they are on the horizon. Good agents spend time with their clients to find out what they actually are wanting and helping them get there. When yo want to buy a house you are not just making an investment in your family's future; you have an image in your head of the life that you want. Room for the kids to play and not be so cramped that every morning isn't a jumble of backpacks and stepped-on-toes and dropped lunches. You want a dining room for holiday dinners. Do you want to spend your weekends walking the Downtown Mall or roller skating at Carver gym on a Friday night? Do you picture a yard where you play soccer with the kids or a place that you plant your own vegetables every spring? 

These are all important things when determining your overall satisfaction with a house. Sometimes its even telling a client that they can't have it all. These take time. These are not about the next sale or lead or client. These are about you, the client. 

I believe that this is what makes us a service industry. 

When you are in the sales industry, the most important client in the world is the next one.

When you are in the service industry, the most important client in the world is the one I am sitting across from right now. 

Homes for sale in the Belmont Neighborhood of Charlottesville 

Homes for Sale in the Cherry Hill Neighborhood of Charlottesville 

If you are looking to buy or sell a home in the Charlottesville Area, I would be very happy to help you. 

Quinton Beckham

Keller Williams Realty

3510 Remson Court, Suite 301

Charlottesville VA, 22901

quintonbeckham@me.com

Cell: 434.242.6212

www.thebeckhamteam.com 

2013 Real Estate Market so far, and what it may mean to you in Charlottesville, VA

We have been saying it for weeks now, months even - The Real Estate Market is Picking up, getting stronger and moving faster. So lets take a look at Charlottesville and see how it's doing compared to  last year...

So what does this mean? I am not a statistician, but I can tell you what I see in my own business and that of my office and associates. 

Properties Sold - 

The beginning of 2012 saw a lot more movement by investors snapping up properties that were short sales or foreclosed on. These were not first time home buyers, but investors or those whose financial status was such that they were "looking for a deal" on a house. January of this year also saw a lot of that leftover inventory being taken. This is the last movement of investors who are looking for properties to flip or rent out before they number of them on the market decreases. 

Days on Market

Yep , things are picking up speed. Although there are still a lot of people who are unemployed or under-employed, there is still an overall decrease in unemployment and an increasing confidence in the economy as a whole. Combine this with continued mortgage interest rates at record lows and the average family or first time home buyer has an opportunity to break out of being trapped in a rental market and get that very first home of their own. I have clients who make the average amount of money for the area (about $25,500 per year) and others who are making six figures and have been renting. No matter where they fall, they are recognizing the unique opportunity that exists right now: 

Homes that have not regained their prior price tag and interest rates that make buying with a monthly payment that is the same or lower than renting. 

Median Prices

Everywhere you look, the number of distressed properties is decreasing and Charlottesville is no different. For them to decrease, they must be sold. The low prices on these homes water down the overall median prices, which is why we see a little bit of a drop in January 2013. But hold on to your checkbook, because I would predict that as these properties continue to disappear and the pace of the market as a whole picks up, we will see that Median price continue to climb - and at a pace that we have not seen for years. 

So why should you care? 

All of this means that no matter who you are or what your circumstance is, you have an opportunity to move from renting to owning, from being packed into a smaller home to upgrading to a home that better suits your family. It means that the economy and the Real Estate Market is set to let you explore making some personal gains and gaining some tax advantages that you can not have renting. 

And one quick note about Short Sales

And if you are reading this and angry at the predictions because you are still in one of the homes that is upside down, there is some good news for you as well. There are still those families out there that are in homes that are deeply underwater - by $30,000 to $100,000. The Mortgage Forgiveness Debt Relief Act, originally scheduled to expire on December 31, 2012, was extended through the end of 2013. WIthout this important piece of legislation if you did manage to short sale your home and get out from under a crippling mortgage you then got hit with a tax on the amount of debt that was forgiven. Let's say you sold a home for $100,000 to avoid a foreclosure but had a mortgage note of $200,000. On your taxes at the end of the year you had to claim $100,000 as income, as a gift from your lender, and then be taxed on it. (This is an oversimplification, see your tax professional for details about your particular situation.) The point is, you have a chance to get out from under the mortgage, have the difference in debt forgiven AND not be taxed on it. Your best shot to do this is in the time between now and August. 

Points to Take Away

- Thinking you can not afford a home? 

You may be wrong. Make an appointment to see your lender or call your REALTOR to see who they would recommend you talk to. You might be surprised at the opportunities that exist for you. 

- Ready to upgrade your home? 

Talk to your REALTOR. The timing could not be better as there more families out there that could afford to buy the home you are in and better opportunity for you to upgrade the home you live in without a huge increase in your payments. 

- Stuck in a home that is upside down? 

Again, talk to your REALTOR and let them recommend some Attorneys or CPAs to talk you through your options - this may be your last best option for getting out of an upside down home, taking a break for a few years and then purchasing a home again in 2015. Three years sound like a long time? It may not be when you look at how long it would take the home you are in to regain the value it had when you bought it. If you bought at the peak of the housing market, this could be especially true for you. 

See City of Charlottesville, VA Homes for Sale

Homes for Sale in Belmont

Condos and Townhomes for Sale in Charlottesville

Quinton Beckham

Keller Williams Realty - Charlottesville

1885 Seminole Trail, Suite 100

Charlottesville, VA 22901

434.242.6212

www.select-homes-charlottesville.com

Mortgage Rates Decline - Home Buyers Rise

If you were paying attention this week you saw that mortgage rates declined once again. A 30-year fixed rate had risen to 3.56% but yesterday reached the low of 3.51 - just a few tenths of a point from the all time low of 3.31% (click here for the full article from USA TODAY.) New home sales jumped 16% in January over December and the number of people who signed contracts to purchase resale homes also rose, according to the National Association of Realtors (NAR). Following this increase in demand, home prices also rose. All based on purchasing power.

NAR tracks the Pending Home Sales Index which measures the number of homes that are placed under contract. Although this does not measure actual sales, it is a good indicator of consumer confidence. This has seen a relatively steady climb over the last 12 months with a good jump in January. NAR offers this data to the public and you can view it by clicking here. Additionally, overall financial forecasts remain on the upswing with unemployment dropping, mortgage rates making modest climbs to reach break into the 4% territory in the fourth quarter of the year. This data can be seen by clicking here.

Overall, this continues to be a good home buying season for everyone involved with rising home prices benefitting sellers, decreasing unemployment putting cash in the hands of more consumers and low mortgage rates keeping homes affordable for anyone who is seeking to upgrade their home or get out of renting and become a homeowner.

If you are interested in becoming one of those homeowners, click this link to see all properties for sale in the City of Charlottesville, Virginia.

If you have questions on buying or selling a home, you can check out my website or contact me directly at 434.242.6212

Quinton Beckham
Keller Williams Realty
434.242.6212
www.select-homes-charlottesville.com

Five Reasons to Buy a Home Right Now

Wondering if you should wait longer for a "better" market to purchase your new home? Think again, your best bet for a good buy, good rates and a home you can keep for a while could be right now. Based on prices, mortgage rates and soaring rents, there may have never been a better time in real estate history to purchase a home than right now. Here are five major reasons purchasers should consider buying:

Supply Is Shrinking

With inventory declining in many regions, finding a home of your dreams may become more difficult going forward. There are buyers in more and more markets surprised that there is no longer a large assortment of houses to choose from. The best homes in the best locations sell first. Don’t miss the opportunity to get that ‘once-in-a-lifetime’ buy.

Click here to see Condominiums for Sale in the City of Charlottesville

Price Increases Are on the Horizon

Prices were expected to bounce along the bottom this winter. However, many pricing indices (examples: CoreLogic, FHFA, LPS, Case Shiller) are reporting that prices are continuing to rise.

Rents Are Skyrocketing

Rents historically increase by 3.2% on an annual basis. A study issued earlier this year projects rent increases of 4% for the next two years. Trulia recently reported that rents this year have actually shot up by 5.4%.

Interest Rates Are Projected to Rise

The Mortgage Bankers Association has projected that the 30-year mortgage interest rate will be 4.4% by the end of 2013. That is an increase of approximately one full point over current rates.

Click here to see Homes for Sale in the Redfields Neighborhood of Charlottesville

Buy Low, Sell High

We would all agree that, when investing, we want to buy at the lowest price possible and hope to sell at the highest price. Housing can create family wealth as long as we follow this simple principle. Today, real estate is selling ‘low’. It’s time to buy.

And of course, if you are looking to buy a home, sell a home, or invest in real estate in the greater Charlottesville / Albemarle area - call me - I can help!

Quinton Beckham

Keller Williams Realty

434.242.6212

www.select-homes-charlottesville.com 

For the original article, click here

This Month in Real Estate

The Latest News in Real Estate -

Click the Links below for:

Belmont Homes for Sale

All Homes for Sale in the City of Charlottesville, Virginia

Quinton Beckham

Keller Williams Realty

434.242.6212

www.select-homes-charlottesville.com

Will 20% Soon be the New Minimum Down Payment?

Several government agencies are reviewing data to determine what will be the minimum down payment required under the new Qualified Residential Mortgage (QRM) guidelines scheduled to be revealed in the next few months. In the original Mortgage Market Note issued by the FHFA, it was suggested that loan-to-value (the percentage of the overall purchase price that was being borrowed) was a major factor in determining if a loan would default:

"For most origination years, requirements for borrower credit score and loan-to-value ratio are the factors that most reduce the ever-90-day delinquency rate of mortgages acquired by the Enterprises that would have met the proposed QRM standards"

The note then went on to make the following proposal:

"An LTV ratio qualified residential mortgage must meet a minimum LTV ratio that varies according to the purpose for which the mortgage was originated. For home purchase mortgages, rate and term refinances, and cash-out refinances, the LTV ratios are 80, 75 and 70 percent"



For the complete article, click here: http://www.kcmblog.com/2013/01/23/will-20-soon-be-the-minimum-down-payment-on-a-home/



Basically, the note suggested that a 20% down payment should be the new guideline for Qualified Residential Mortgages. Now, no one can know for sure what the final requirements will be. Bloomberg reported last week:

"The six regulators drafting the separate QRM rule, including the Department of Housing and Urban Development, The Office of the Comptroller of the Currency and Securities and Exchange Commission, must decide whether to include such a requirement - and whether to make it less than the 20% they originally proposed."

What could these new regulations mean for the average home buyer? Certainly there is a growing portion of the Charlottesville Area Home Buying population for whom a requirement of 20% down payment could, unintentionally, lock them out of homeownership as a whole. More and more of those who are approaching Real Estate Agents to buy a home are those who are renting. As rents have climbed dramatically over the last few years, this has seriously impacted the average Charlottesvillian's ability to set aside money month after month in pursuit of that often elusive down payment. Their first and best method to take advantage of the currently reasonable home prices and excellent mortgage rates is to seek out a Mortgage program that allows them to own a home for only 3-5% down.

Should the new QRM guidelines require a 20% down payment on what would be a very large percentage of mortgages, we could see a slowing of the Real Estate market as a large portion of potential buyers are trapped in rentals that are costing a larger portion of their monthly incomes.
For now, this has not happened and we can hope that the regulators will keep in mind that much of America can not put away a 20% down without the tax advantages of homeownership.

What does this mean to someone seeking to Buy a Charlottesville Home? Don't wait until the market changes, home prices go up or mortgage rates rise. Meet with a qualified Real Estate agent and get a check on your finances, credit scores, housing needs and determine if you can get out of the rent trap.

What could this mean to someone seeking to Sell their Charlottesville Home were it to go through? Certainly, nearly every offer has some request for the seller to cover a portion of the closing costs, generally 1-3%. Expect to see those become necessary in order to get cash strapped buyers through the mortgage process and qualified for a loan. For those wanting to upgrade their homes or needing to sell property at all, the market continues to have many opportunities to attract buyers and a mortgage structure that is attractive to a larger percentage of home seekers than ever before - waiting too long to put your home on the market could see those buyers dry up and create a market that has fewers buyers, who are more sought after.

If you are wanting to:

Find out if you can Own a Home in Charlottesville
Buy a Home in Charlottesville
Sell your Charlottesville Home

Please contact me, I want to help!

Quinton Beckham
Keller Williams Realty
434.242.6212
www.buyorsellhomescharlottesville.com
www.select-homes-charlottesville.com