David Bruce

Real Estate News and Statistics Category

October 4th, 2010

Economy: More Jobs Needed to Spur Home Sales

Good article by Lawrence Yun, Chief Economist for the National Association of REALTORS.  While the Richmond area continues to out perform the nation, our local real estate recovery will also hinge on jobs.

Businesses must ramp up hiring before the lag in home sales will subside!

By Lawrence Yun | October 2010

We’re in the midst of a post–tax credit pause in home sales, but the length and depth of the pause don’t depend heavily on consumer spending. This time, businesses are in the driver’s seat.

Consumers are largely tapped out. For the past 18 months or so, low interest rates and the home buyer tax credit drew consumers into the housing market, giving enough of a boost to the economy to help pull it out of the recent recession. Read the rest of this entry »

October 1st, 2010

What Will Become of Fannie, Freddie?

Housing industry experts from the business and academic worlds joined U.S. Treasury Secretary Timothy Geithner and Housing Secretary Shaun Donovan in August for the Conference on the Future of Housing Finance in Washington, D.C. The discussion focused on what role, if any, the secondary mortgage market companies Fannie Mae and Freddie Mac should have in the future. Most participants said the realistic course of action is to keep some type of government-backed entity behind the conventional mortgage market for 30-year fixed-rate and other plain vanilla loans. But the predominant view was that the backing should look more like catastrophic insurance, with the federal government acting as a backstop only after private insurers took the first hit. The FHA would be maintained in its role as lender of last resort for creditworthy moderate-income households who are having trouble getting conventional financing at an affordable rate. The federal government is under a congressional mandate to release initial recommendations for reforming Fannie and Freddie, which are under federal conservatorship, by January 2011.

Source: Realtor.com

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September 7th, 2010

Jumbo Loans More Available!

A year ago, even the most creditworthy borrowers struggled to secure home loans of more than $729,750—the cutoff for conventional conforming loans backed by Fannie Mae and Freddie Mac. But since this spring, the interest-rate spread between conforming and jumbo loans has narrowed and the number of lenders offering the loans has jumped.

As of late July, lenders were offering jumbo loans at a typical rate of about 5.5 percent, down from almost 7 percent a year earlier and not too different from what’s available for conforming loans, according to data available on Bankrate.com. NAR Chief Economist Lawrence Yun said in a late-July press conference that sales of existing homes priced at $750,000 and above jumped 30 percent from mid-2009. “Credit was extremely tight a year ago, but now it is beginning to loosen up,” he said. Read the rest of this entry »

August 10th, 2010

Richmond Area Foreclosures…

Area home sales have picked up, however prices continue to fall, although prices region-wide are down by less in the second quarter of 2010 than they were in the first quarter. The average sales price in the Central Virginia region was $229,545 in the second quarter of 2010, down four percent from the second quarter 2009 average. The median sales price was $196,383, also down four percent from a year earlier. Foreclosures are certailnly playing a role in this drop. Read the rest of this entry »

August 9th, 2010

Richmond Metro Area Experiences Accelerated Home Sales in 2nd Qtr!

More positive news for the Richmond area real estate market!  The Richmond Association of REALTORS and Central Virginia MLS are reporting accelerated home sales in the Months of April, May and June 2010.  Below is the report:

National and Local Economic Overview
The national economy slowed in the second quarter of 2010 as many indicators decelerated from their growth rates in the last half of 2009 and the first quarter of this year.  One of the reasons for the slowdown in the economic recovery was a growing concern about the financial stability of Western Europe.  This concern caused some negative volatility in the financial markets in the U.S., but those concerns seem to be subsiding as the EU central banks have acted and as many have realized how small the troubled countries’ economies are relative to all of Western Europe.

Another reason for the slowing is a following of historical trends—after a recession the economy bounces sharply and then grows more slowly.  It is likely that economic measures over the past few months are indicating a slow patch and continued adjustment will be seen before a steadier and sustainable climb will be realized.

The Richmond economy is clearly in a better position in 2010 than in 2009, and is almost back to realizing job growth again, which will be a very positive sign for the housing market. Read the rest of this entry »

July 27th, 2010

Choosing The Right Richmond Area Neighborhood For You

Where do you want to live in the Richmond area? The answer depends on your wants and needs, and you should choose a Richmond area neighborhood accordingly.

If you’re just starting out, you may want a home for investment purposes, where you can live in one part of the home and rent out the other to defray costs. If you don’t have a car, the proximity of shopping, public transportation, and recreation will be important. And if you have a family, your central concerns may be schools, libraries, playgrounds and recreation centers. Read the rest of this entry »

June 7th, 2010

Richmond Housing Shortage?

Lawrence Yun, the Chief economist for the National Association of REALTORS wrote this interesting article about a possible housing shortage in the future.  The lesson to keep in mind is that the real estate market is very cyclical with regards to inventory, pricing etc. Believe it or not there is actually a shortage of homes on the market in some Richmond neighborhoods and while it will still take some time for the market to completely rebound as a whole, we are experiencing a real estate recovery.

In the current market, the idea of a housing shortage may be hard to accept. There are simply too many For Sale signs and delinquent mortgages threatening to turn into foreclosures to make a housing shortage seem like a serious possibility. Read the rest of this entry »

June 2nd, 2010

Pending home sales rise 6.7 percent

Biggest monthly jump in more than seven years may signal slump is ending!

WASHINGTON – The number of U.S. homebuyers who agreed to purchase a previously occupied home in April posted the largest monthly jump in more than seven years, a sign that sales are finally coming to life after a long and painful slump.

The National Association of Realtors said Tuesday its seasonally adjusted index of sales contracts signed in April surged 6.7 percent to 90.3, far exceeding analysts’ forecasts. It was the biggest monthly jump since October 2001, when pending sales rose 9.2 percent. Read the rest of this entry »

May 12th, 2010

The “Keys” to Homeownership

(ARA) – “It’s a buyer’s market” is a popular headline right now. It’s one that’s hard to ignore, especially if you’re a young adult or even a long-time renter who has been waiting for the right time to pursue the American dream of owning your own home in Central Virginia.

Buying your first home can be scary, but as with anything else in life, the right preparation should bring you good results – a great Richmond area home you want and one you can afford.

Whether you are ready to buy a Richmond area home in the next few months or next few years, preparation is critical. The following are important “keys” to homeownership. Read the rest of this entry »

April 28th, 2010

Richmond Real Estate Results Jan-Mar

George Mason University has just released the first quarter real estate report for Central Virginia.  Positive News! At Skye Bruce Properties we are also seeing marked improvements in the market. We are seeing homes sell faster, limited inventory in some areas and more and more buyers moving up.  Signs are pointing towards a recovery in the Richmond area. See report below!

Central Virginia Area Housing Market, First Quarter 2010

National and Local Economic Overview

Nationally, a number of indicators suggest that the economy is recovering. For example, the U.S. Leading Economic Index has increased for eight consecutive months, Gross Domestic Product (GDP) was up 5.6% in the Fourth Quarter of 2009, and retail sales have improved since the first quarter of 2009. In Central Virginia, despite significant job loss in 2008 and 2009, the unemployment rate in the Richmond Metropolitan Area was 8.6 percent as of February–1.8 percentage points below the national rate. While the national and local economies appear to be improving, the question that remains is how strong is the recovery and how long before the local housing market sees sustained recovery. Read the rest of this entry »