Charlottesville Virginia Real Estate

Jim Duncan does a bang up job overviewing the numbers released by CAAR. I like his realistic / positive outlook.

If you’re in the market for a small house in town in a not scary neighborhood, the hook has a hook up.

Here’s a presentation on the Charlottesville Real Estate market from a realtor’s perspective (via www.realcentralva.com)

3 multi-lot foreclosures in as many months is bad news. I just was talking to one carpenter who’s taken a 50% pay cut but feels fortunate compared to others. 

Why not make these standards so that people will invest in efficiency?  The “bar is so high” that people aren’t bothering to renovate… only previously built efficient homes are trying for it.

If there was any question as to whether Albemarle County is inimical to developers…

The county wants to be able to change the rules after approval is given. Start your project jump through our hoops, then we’re going to change the hoops and make you jump again.

This article is what’s scary about allowing users to comment unedited on your stories.  Hope persists for Va. housing markets

Check out this comment:

I continue to be confused as to whether Ms. Watson is a journalist who just steadfastly refuse to address reality or a Realtor hired by the News Leader on a freelance basis to shamelessly pump the housing market. Which ever she is, readers would be well advised to think twice before giving any credence to her statement that “it just might be the best of times for qualified buyers.” She’s been writing versions of the same argument from the peak of the market on down to where we are today.
May 7, 2006: “While there are clear indications that the housing market is starting to cool, many industry experts say there’s no reason to panic. That falling sky theory is bunk, they say. There are still plenty of blue-sky days ahead, just maybe a bit overcast.”
Aug. 20, 2006: “It’s a great time to buy a house. If you’ve been thinking about taking the plunge, now’s a great time to do it. In fact, you’ve picked a fabulous time to be a homebuyer. Shucks, I wish I could join you.”
Nov. 5, 2006: “Good prices aren’t the only reason to jump into the market now.”
March 18, 2007: “…the local market has nowhere to go but up.”
March 25, 2007: “…the local market has nowhere to go but up.:
It’s completely irresponsible for the News Leader editors to continue to encourage and provide a forum for this sort of sham journalism that’s designed to make a key advertiser base for the paper feel good, while providing shoddy financial advice to the bulk of its readers. Why not hire a used car salesman to write about how now is the best time to buy a Hummer while you’re at it?

I manage to avoid people unpleasantly pointing out dumb things I do and say by not having any readers.

I found it interesting that Charlottesville, Williamsburg and Roanoke were the only three parts of VA with real estate value increases in Q2.  I guess they are college towns and all, but it doesn’t feel like prices are increasing here.  Things feel a little less than flat from 2 years ago but I don’t have a very large sample size.

The saga over the Wayne Theater has got me thinking: How Much Should Taxpayers Pay For Urban Revival?  And how do you decide when to invest?  It seems reasonable that if the projected growth in tax revenue is sufficient (who sets the hurdle rate?) a project should move forward.  If an enterprise has a reasonable certainty of succeeding, why isn’t there private money to make things happen?  It seems to me that the reason public funds are needed are:

• the project is too risky for banks to undertake
• the project provides some benefit to the community that is non-monetary (intangible ROI) such as removing an eyesore, providing new entertainment options)

I question whether Waynesboro in this case should be pursuing this if the problem with private funding is risk.  If the project is going forward because of the intangibles, it sure seems like the citizens ought to be more involved than they’ve been.  People have griped about rising assessments for years (not so much this one and I’ve not talked to anyone who seems very excited about this.  At what point are sunk costs seen as such and the city decides to not throw good money after bad.

I do think, interestingly, that Waynesboro would be a better place to live with a Wayne Theater and the bustling few shops and restaurants that would pop up around it.  I’m not enough of a believer in the viability of the plan to put my money into it.  The city council though, has decided to do so on my behalf though, with my tax money.  That’s what I don’t like.

The analogy is kind of weird, but the sentiment is probably true in this DP article:

The In his most recent market report, Phillips likened the local real estate conditions to his recipe for pumpkin meatloaf — a dish defined by its disgusting clash of ingredients. “Like a good recipe, a good real-estate market is one that features a good balance of ingredients,” he wrote. “If you put in a little too much of one ingredient, the dish may not taste very good; however, if you put in way too much of that ingredient, the dish becomes unpalatable. The recipe for the Charlottesville area real-estate market has way too much of one ingredient — supply of homes for sale — and that has created an unbalanced recipe that is hard to swallow.”

A couple comments:

I’ve always found sellers are willing to come down a few grand - even in a tight market - except in the first week or so of the listing.

The best advice in the article was for sellers: “…be ready to walk away and go on to house No. 2.” That’s the key to getting the best deal, be it a primary dwelling or investment property.  Getting too invested emotionally before finalizing terms is usually expensive.  If your bluff gets called (and it is a bluff if you’re so invested that you can’t walk away) you either end up sad and discouraged or swallowing your pride and paying more that likely should.