Nationally the market is also showing signs of recovery.  See recent AP article below….

U.S. home sales are gradually coming back. A mild winter and a stronger job market have helped boost sales ahead of the crucial spring buying season. The past two months made up the best winter for sales of previously occupied homes in five years, when the housing crisis began. And the sales pace in January was the highest since May 2010, the last month that buyers could qualify for a federal home-buying tax credit. February sales dipped only slightly to a seasonally adjusted 4.59 million, the National Association of Realtors said Wednesday. That’s 13 percent higher than the sales pace last July and just below the revised 4.63 million in January.

Ian Shepherdson, chief U.S. economist at High Frequency Economics, said the lower February’s numbers “should not detract from the key point, which is that sales are trending upward.”The sales pace remains far below the 6 million that economists equate with healthy markets. And the number of first-time buyers, who are critical to a housing recovery, continues to lag normal levels, while foreclosures remain high.The median sales prices of homes rose for the first time in four months in February, to $156,600. And the supply of homes on the market increased more than 4 percent in February to 2.43 million, which could signal that more homeowners became confident in the housing market.

Homebuilders have grown more confident in the past six months after seeing more people express interest in buying a home. In February, they requested the most permits to build homes since October 2008. Mortgage rates are near record lows. And the supply of homes fell in January to its lowest level in seven years.

Still, economists caution that the industry is years away from fully recovering. Sales among first-time buyers, who are critical to a housing recovery, fell slightly last month to 32 percent of all purchases. That’s down from 33 percent in January. In healthy markets, first-time buyers make up at least 40 percent.

Call on Skye Bruce Properties for questions about the Richmond area real estate market or if you are thinking of buying or selling! 

Homebuilders expect newly constructed single-family homes to average just 2,150 square feet by 2015. That’s 10 percent smaller than previously, according to the National Association of Home Builders (NAHB), which conducted the survey.

To maintain this compact size, luxuries will be out and practicality will be in. Formal living rooms are going by the wayside, NAHB says, making way for smarter, multi-function layouts. What we’ll see more of: eat-in kitchens that eliminate the need for a separate dining room; and great rooms that can accommodate entertainment as well as office space.

Homeowners looking to remodel existing homes – that they will someday put up for sale – would be wise to pay attention to these new home construction trends, which signal what the competition will look like down the road. Choose the right improvements today, and you may be better positioned to sell your home when the economy picks up.

Keep the following tips in mind if you’re thinking of investing in an addition or a significant remodel:

* Choose your remodeler with care: Select a professional contractor with experience, knowledge of local codes and a good reputation for quality work, says the National Association of the Remodeling Industry (NARI). NARI calls this the single most important step in your project.

* Focus on tried-and-true performance: Remodel to your needs, of course. But before you finalize your decisions, research the improvements that will likely bring you the highest return on your investment. A minor kitchen remodel should return more than 70 percent of its cost at resale, according to the 2010-2011 Remodeling Magazine Cost vs. Value Report. Adding a bathroom pays back more than 53 percent.

* Practicality makes perfect: During the latest housing boom, remodels were all about big and bold. Now there is less emphasis on luxury and appearances-for-appearances-sake. Take advantage of that trend with a focus on practicality in your remodeling project. You’ll make your home more competitive at resale, and your dollars will stretch a lot further.

* Multi-function = broader appeal: For today’s busy families, efficiency is essential. Can you repurpose an existing room to make life easier? Add a laundry room to save going downstairs? Increase the size of your kitchen, so you can convert the dining room to a guest suite? If you’re thinking of creating a family room in the basement, complete the project with a convenient bathroom addition.

Never enough baths

If you’ve ever waited in frustration for your turn in the bathroom, you know that just about every home could use a spare bath. A macerating toilet system is a great alternative to conventional (gravity) plumbing in situations where no below-floor drainage exists. Macerating, or up-flush, plumbing gives you unlimited flexibility, because there is no need to break through the floors to install drainage piping, which adds substantial cost to the project.

From the attic to the basement, up-flush plumbing lets you create a full bathroom anywhere you like. “It’s a pretty good concept,” says Otis Dardy, a general contractor and owner of Dardy Construction in Conyers, Ga.

Dardy recently used Saniflo up-flush plumbing for a residential customer’s remodel and is now incorporating Saniflo in bids for other jobs. “This saves a lot of time, and it’s nice and neat,” he says, noting that his bids for the up-flush plumbing are around $5,000 less than their conventional counterparts, thanks to the ease of installation.

In an up-flush system, waste and water are pumped from the toilet, sink, and tub or shower up, rather than flowing down, as with conventional plumbing. This technology is also different from sewage ejection systems, which temporarily store plumbing waste in a nearby tank, which can cause odor problems. With up-flush plumbing, the waste is removed to the sewer line or the septic tank with every flush.

What could be more practical or efficient than an extra bathroom? This is one remodel project guaranteed to improve comfort and convenience in the near-term, while delivering a strong return on investment when your home is sold.

Thinking about upgrades to get your Richmond area home ready to sell?  Contact Skye Bruce Properties for expert advice on preparing your to sell.

Lawrence Yun, NAR’s chief economist, said in a statement that “the trend in contract activity implies we are on track for a more meaningful sales gain this year.” “Movements in the index have been uneven, reflecting the headwinds of tight credit, but job gains, high affordability and rising rents are hopefully pushing the market into what appears to be a sustained housing recovery,” Yun added.

The index typically represents about 20 percent of all existing-home transactions nationally. An index score of 100 is equal to the average level of sales contract activity in 2001, which was the first year examined by the trade group and a robust year for existing-home sales. The national index has not been above 100 since April 2010.

The South experienced a similar yearly increase in January, 10.5 percent, and the largest monthly increase, 7.7 percent, to 109.1 — the highest index score among the regions.

In its latest economic outlook, also out today, NAR projects existing-home sales will rise 6.8 percent to 4.55 million units in 2012, from 4.26 million units in 2011. In 2013, sales are expected to rise 3.3 percent to 4.7 million.  The trade group expects the median price for existing homes to rise a slight 1.1 percent this year, to $168,000, with a subsequent 2.4 percent rise in 2013 to $172,000.  NAR predicts rents will rise 3.3 percent this year, followed by a 3.8 percent increase in 2013. The forecast also anticipates new-home sales will rise 21.3 percent in 2012 to 370,000, and jump 37.8 percent in 2013 to 510,000. New-home sales fell 5 percent in 2011 to 305,000.

NAR estimates this year’s median price for new-home sales will be $228,000, a 2.1 percent rise from 2011. NAR expects the median will rise 3.5 percent to $236,000 in 2013. The trade group expects this year’s real gross domestic product growth rate to be 2.4 percent, followed by a rate of 3.1 percent in 2013, up from 1.7 percent in 2011. NAR expects this year’s unemployment rate to average 8.3 percent, down from 9 percent in 2011, and projects a drop to 7.7 percent in 2013. The 30-year fixed mortgage rate averaged 4.5 percent in 2011 and will fall to 4.2 percent in 2012 before rising to 4.9 percent in 2013, according to NAR’s projections.

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Overall, the trend right now is replacement over remodeling–swapping out the old for the new rather than doing a total gut job, which can be much more costly.

This year’s Cost vs. Value report found that exterior replacement projects–such as new garage doors and a new entry door–offer some of the best returns at resale, allowing home owners to recoup close to 70 percent or more of the costs of the project at times of resale.

The following are the top, mid-range projects from this year’s report, based on what home owners stand to recoup at time of resale.  Contact Skye Bruce Properties for a complete copy of the latest Cost VS Value Report!

1. Replacing the entry door to steel

Estimated cost: $1,238

Cost recouped at resale: 73%

2. Attic bedroom (converting unfinished attic space into a bedroom with bathroom and shower)

Estimated cost: $50,148

Cost recouped at resale: 72.5%

3. Minor kitchen remodel (including new cabinets and drawers, countertops, hardware, and appliances)

Estimated cost: $19,588

Cost recouped at resale: 72.1%

4. Garage door replacement

Estimated cost: $1,512

Cost recouped at resale: 71.9%

5. Deck addition (wood)

Estimated cost: $10,350

Cost recouped at resale: 70.1%

6. Siding replacement (vinyl)

Estimated cost: $11,729

Cost recouped at resale: 69.5%

Content courtesy of  Melissa Dittmann Tracey, REALTOR® Magazine

There had been a steady increase in foreclosures each year dating back to 2006.

The market continues to improve as inventories of homes are down in many neighborhoods and pending sales are up!

 Questions about the Richmond area real estate market?  Contact Skye Bruce Properties, one of the Top 10 Volume Real Estate Teams in all of Central Virginia!

The most expensive was a stately 10000 square foot home located near the Country Club of Virginia in Richmond. The home sold for $2,514,500 and featured 7 bedrooms, 8 full baths and 2 half baths. Built around 1860 the home sits on over 3 acres and has a pool.

Here is a Top 10 summary of the most expensive homes sold in the Richmond area in 2011. (Richmond, Hanover, Henrico, Chesterfield, Goochland and Powhatan)

Not sure if analyzing the most expensive homes in Richmond is much of a way to gauge the market, but it sure is fun to know what the really big homes sell for. If you’re looking to buy or sell a home, understanding the market and neighborhood where you are buying or selling is critical. At Skye Bruce Properties we constantly analyze the market data and are experts in making sense of it.  Contact Skye Bruce Properties for valuable advice when buying or selling real estate in the Richmond area!

Great article below from WSJ.com posted in 10/15/11. Now is the time for sure to buy. Prices in the Richmond area are close to bottom and interest rates are below 4 percent. The moment we reach bottom and there is the slightest improvement,interest rates will jump quickly to 5 1/2 – 6 percent.  ~~Skye Bruce Properties

U.S. house prices have plunged by nearly a third since 2006, and homeownership rates are falling at the fastest pace since the Great Depression.

The good news? Two key measures now suggest it’s an excellent time to buy a house, either to live in for the long term or for investment income (but not for a quick flip). First, the nation’s ratio of house prices to yearly rents is nearly restored to its prebubble average. Second, when mortgage rates are taken into consideration, houses are the most affordable they have been in decades.

Two of the silliest mantras during the real-estate bubble were that a house is the best investment you will ever make and that a renter “throws money down the drain.” Whether buying is a better deal than renting isn’t a stagnant fact but a changing condition that depends on the relationship between prices and rents, the cost of financing and other factors.

But the math is turning in buyers’ favor. Stock-oriented folks can think of a house’s price/rent ratio as akin to a stock’s price/earnings ratio, in that it compares the cost of an asset with the money the asset is capable of generating. For investors, a lower ratio suggests more income for the price. For prospective homeowners, a lower ratio makes owning more attractive than renting, all else equal.

Nationwide, the ratio of home prices to yearly rents is 11.3, down from 18.5 at the peak of the bubble, according to Moody’s Analytics. The average from 1989 to 2003 was about 10, so valuations aren’t quite back to normal.

But for most home buyers, mortgage rates are a key determinant of their total costs. Rates are so low now that houses in many markets look like bargains, even if price/rent ratios aren’t hitting new lows. The 30-year mortgage rate rose to 4.12% this week from a record low of 3.94% last week, Freddie Mac said Thursday. (The rates assume 0.8% in prepaid interest, or “points.”) The latest rate is still less than half the average since 1971.

As a result, house payments are more affordable than they have been in decades. The National Association of Realtors Housing Affordability Index hit 183.7 in August, near its record high in data going back to 1970. The index’s historic average is roughly 120. A reading of 100 would mean that a median-income family with a 20% down payment can afford a mortgage on a median-price home. So today’s buyers can afford handsome houses—but prudent ones might opt for moderate houses with skimpy payments.

For example, the median home in the greater Phoenix market, including houses, condos and co-ops, costs $121,700, according to Zillow.com. With a 20% down payment and a 4.12% mortgage rate, a buyer’s monthly payment would be about $470. Rent for a comparable house would be more than $1,100 a month, according to data provided by Zillow.com.

Of course, all of this assumes mortgages are available—no given now that lending standards have tightened. But long-term data on down payments and credit scores suggest conditions are more normal than many buyers think, according to Stan Humphries, chief economist at Zillow. “If you have good credit, a job and a down payment, you can get a mortgage,” Mr. Humphries says. “There’s more paperwork and scrutiny than five years ago, but things are pretty much like they were in the ’80s and ’90s.”

Not all housing markets are bargains. Mr. Humphries says Zillow has developed a new price/rent ratio that uses estimates for each individual property rather than city medians, to better reflect the choices facing typical buyers. A fresh look at the numbers suggests Detroit and Miami are plenty cheap for buyers, with price/rent ratios of 5.6 and 7.7, respectively. New York and San Francisco are more expensive, with ratios of 17.6 and 17.2, respectively. The median ratio for 169 markets is 10.7.

For investors seeking income, one back-of-the-envelope way of seeing how these numbers stack up against yields for other assets is to divide 1 by the price/rent ratio, resulting in a rent “yield.” The median market’s rent yield is 9.3% and Detroit’s is 17.9%.

Investors would then subtract for taxes, insurance, upkeep and other expenses—costs that vary widely. But suppose total costs were 4% of the purchase price. That would still leave a 5.3% rent yield in the typical market. With the 10-year Treasury yield at 2.2% and the Standard & Poor’s 500-stock index carrying a dividend yield of 2.1%, rents for residential housing in many markets look attractive.

A few caveats are in order. First, not all transactions are average ones. Even in low-priced markets, buyers should shop carefully. Second, prices could fall further. Celia Chen, a senior director at Moody’s Analytics, expects prices to drop 3% before bottoming early next year and rising slowly thereafter. “If the economy slips back into recession, however, we could easily see a 10% drop,” Ms. Chen says.

And property “flipping” can be dangerous even when prices are rising. That is because, absent a real-estate boom, house price gains simply aren’t that exciting. Research by Yale economist Robert Shiller suggests houses more or less track the rate of inflation over long time periods.

Houses aren’t the magic wealth creators they were made out to be during the bubble. But when prices are low, loans are cheap and plump investment yields are scarce, buyers should jump.

Click here to read article at WSJ.com

Front  doors: Curb appeal is the first step in a successful home sale, and installing a beautiful, high-quality entry door is a simple home improvement that delivers a high impact for a small investment. A new entry door will also help lower home energy costs and stand up to weather extremes.

Attic Rooms: Converting an attic into useful living space is a smart way to add value and attract those shopping for extra living space and bedrooms.

Decks: Building a deck is one of the least-expensive ways to extend your living space. Composite decking is a great low-maintenance option, and even building a deck from pressure-treated wood can bring a return on investment of up to 80 percent at the time of sale.

Siding: A tight, tidy home contributes to curb appeal and takes major home improvement worries off a potential buyer’s list. Spruce up your home’s exterior by repairing or replacing siding for an eye-catching, protective finish. And for way less than the cost of siding replacement, consider adding easy-to-install decorative trim elements made of high-density polyurethane foam to spruce up an otherwise dull exterior.

Kitchen: The kitchen is a major selling point for a home, and its appearance and layout can often be a deal-breaker. Improving your kitchen doesn’t have to be a huge investment, however: just replacing countertops, key appliances or cabinet hardware can transform a kitchen’s look and impact.

Windows: Installing replacement windows is a pre-sale home improvement that pays for everyone, with the seller earning valuable energy tax credits and the buyer enjoying lower home energy bills.

Basement: Make the most of this bonus space by finishing it for use as an apartment, office or entertainment zone ─ more great ways to appeal to multi-generational households.

Bathroom: Along with kitchens, bathrooms tend to age easily, so neutralize potential design objections by replacing the vanity, installing efficient fixtures and choosing hardware that facilitates easy access for all.

Backup power generator: With the aging electrical grid becoming less reliable and our occasional hurricanes access to backup power is a plus for a home. Gone are the days of bulky, smelly, portable gas-powered generators: You can now have a neat, compact standby generator installed right next to your outdoor AC unit that can repower most of your home within seconds of losing electricity from the utility.

Additions: If done wisely and in a way that won’t price your home out of the local market, additions are valuable home improvements. Add a second story, expand into a master suite, enlarge the garage or create an extra bathroom.

Questions about getting your home ready to sell?  Contact Skye Bruce Properties!

When the money is cheap to borrow and the houses are cheap to buy, it’s absolutely the best time to invest! If you buy a property with hopes of renting it out, location is key in the Richmond area. Homes in high-rent or highly populated areas are ideal!  Check out these 5 great Richmond area homes with investment property potential!

• 2510 Winston Court in Glen Allen, $169,000
• 714 Maybeury Drive in off Patterson in the West End, $209,950
• 6926 Vanderbilt Ave near University of Richmond, $234,950
• 3709 Danewood Drive in Wellesley, $244,950
• 4516 Park Ave in Richmond’s Near West End, $269,000

Interested in touring these great properties?  Contact Skye Bruce at Skye Bruce Properties!

10817 Leabrook Drive in Wyndham

Despite the doom and gloom the media portrays in the current real estate market, unique opportunities exist for many home buyers, especially luxury home buyers.

While home prices throughout the Richmond area have dropped across the board, luxury home prices have been especially hard hit as the market for such high-end properties has dwindled in challenging economic times.  This presents a great opportunity, for those who have the financial resources, to purchase a luxury Richmond area home that might have been completely out of their range 6+ years ago.

Purchasing a Richmond area luxury property is unlike a traditional home purchase. Luxury homebuyers should consider the following in their search:

Consider your finances carefully! 
Even if you’re ready to pay cash for your luxury home, you still want to ensure you’re getting the best possible value and potential return on investment from your home purchase. Make sure you truly have the financial wherewithal to remain in the home as long as you’d like. Consider the stability and growth potential of your future income before moving forward.

Get your documentation in order!
Many luxury home buyers derive their net worth from a variety of sources and investments. Given the high-end purchase price of a luxury home, along with today’s unstable economic climate, prequalification is often necessary when it comes to luxury purchases.

Check it out in person!
Expansive square footage, sprawling property, and a bevy of incredible views often make luxury homes difficult to completely capture in photos, videos or virtual tours. A visit in person is an absolute must to make sure you’re not missing any potential details and, conversely, to make sure the property lives up to its image.

Consider the future of your investment!
Your luxury home investment needs to be carefully considered for the future, in particular your expectations in terms of your return on investment. Most luxury homebuyers are buying a lifestyle and don’t intend on flipping their home anytime soon. Given the volatility that still exists in today’s market, make sure you’re not headed into your luxury purchase with unrealistic thoughts of financial gain but rather to enjoy a spectacular home for many years to come.

Thinking of buying a luxury home in the Richmond area? Contact us at Skye Bruce Properties for detailed data about Richmond area luxury homes and strategies to make a purchase.

Skye Bruce Properties Featured Luxury Property!

Cherry Hill at Wyndham

10817 Leabrook Drive, Glen Allen, VA 23059

$899,950

Sq. Ft.: 5,935  5BR + Bonus Room, Study, 3 Full BA, 2 Half BA

Shady Grove E.S.  Short Pump M.S.  Deep Run H.S.

Unbelievable golf course home overlooking The Dominion Club’s 7th green. This four-sided brick home has almost 6000 sq. ft. situated on two floors. Features include front & rear staircases, huge Living Room with fireplace, 1st floor Study, Family Room with fireplace & built in bookcases, Kitchen with granite, Butler’s Pantry and Sun Room with vaulted ceiling. The Master Suite has a vaulted Sitting Area, dressing area with make up vanity & luxurious Master Bath. The other bedrooms are spacious with Jack & Jill bathrooms. Huge Bonus Room has a vaulted, beamed ceiling and private half bath.

Click here for more information and to view a Virtual Tour of the beautiful property!

Directions: Nuckols to Wyndham Park to Right onto Dominion Club to RIght onto Cherry Hill Right onto Leabrook

Contact Listing Agent: Skye BrucePhone: 804-539-8571  Email: skye@skyebruce.com