Brick’s Blog

     What is the old saying attributed to P.T. Barnum ….. “There’s a sucker born every minute”? If you listen to WRVA 1140, then you have probably heard the Consumer Resource Network’s come-on talking about $10,000 new home foreclosures, which when purchased would only have a monthly payment of $75. If you call their 800 number, then they’ll send you a “Free List” and you’ll be on your way to securing one of these fantastic incredible bargains.

     Having heard this commercial several times during this week, I found myself yesterday at a point and place where I had a pen handy and the time to make the call. Whipping out my ever present cell phone, I dialed the 800 number. Once connected with “Philip”, he asked for my first name. I complied. He then asked for the Zip Code where I currently lived. I complied. Next, “Philip” asked the area in which I wanted “to buy” my next home. I replied the Richmond, Virginia area. “Let me just put that into the system”, cooed  “Philip”.  ”Philip” then informed me I had over 1,800 choices within a 50 mile radius. My heart began to race like Ralphie in “A Christmas Story” thinking that this Holy Grail of “Free Lists” would soon be in my possession. 

      ”Philip” staying on script then asked “May I have your billing address?” Beep beep beep whoa back up the truck. “Billing address” I countered stunned “I thought this was a “Free List?” “Oh, sorry” replied “Philip” and back on modified script he continued to extract all my vital information which I can now be assured will have me being bombarded at my e-mail address and cell number with more bogus offers and scams. See, “Philip” had been leading up to asking for a credit card to handle $1.99 (or was it really $199) charge for the processing and handling in order for me to receive my “Free List”.  Despite my protest that I was not about to give out a credit card number over the phone, especially a cell phone, where the transmission may be intercepted by whatever Big Brother sinister ears that may be operating out there, “Philip” remained steadfast and continued to push for my credit card. I countered “Just give me access to the website and I’ll enter my card info then.” “Philip” searched through his list of replies for objections and continued doggedly pursuing his Holy Grail which was my credit card info. When an impasse was finally reached, I told “Philip” that just as I had been notified that my call was being recorded, I wanted him to know I had been recording the call, too. “Excuse me” said “Philip”. “Oh, yeah” I said “I just wanted you to know that I am with the Attorney General’s office here in Virginia and you will be hearing from us.” Ah, my smile of the day.

     Anyway, later I did log on to the Consumer Resource Network and found for about $40 a month you can receive their “Free Lists.” Since the copyright for the site is 2009, I’ll bet you dollars to doughnuts that this is just one more “aggravator” sites like RealtyTrac extracting potential buyer info that they can then repackage and sell to helpless desperate Real Estate agents in need of some buyers. You have been forewarned, now go enjoy your day. Oh, BTW, I’ll let you know if I get some mystery charge on my cell phone for some supposed service, which can be tied to the Consumer Resource Network! More BTW…that 1,800 number “Philip” used is actually closer to 400. All of these foreclosure sites count every public notice publication in their numbers, which is then picked up my the MSM and reported as fact.

   Someone asked me yesterday, if I was ready for the Super Bowl. Frankly, no. Since I have been around for the 42 other Super Bowls, this one, like most Super Bowls, won’t matter much to me. I am not sure who is even playing. Maybe I’ll watch it, maybe I won’t, but I certainly am not building a day around it. 

     Besides, I have already seen the greatest Super Bowl ever. Well, I didn’t really see it, I listened to on the radio.  It was Super Bowl III played on January 12, 1969 at the Orange Bowl in Miami. I was a junior at Woodberry Forest. A few days before the game, the press found Joe Willie Namath, a.k.a. “Broadway Joe”, poolside surrounded by babes. When asked who was going to win, this brash young man guaranteed the Jets.

    In 1969, you cannot imagine the hoopah caused by this statement. Imagine the lowly Jets of the AFL daring to challenge the great NFL Colt team coached by Don Shula. The Johnny U Colts (Unitas was out most of that season, but made a late game appearance to get the Colts their only points that day) had lost only 1 game all year. Yeah, there was Joe in swim trunks, reclining on a chaise lounge, and guaranteeing the Jet win. Best of all he did it and then left the field with his finger raised high in “we’re # 1″ sign pictured above. (I didn’t see this picture until weeks after the game – remember I listened to the game on the radio.) And the next day, no one even remembered or discussed one television commercial.

     Earlier this week, based on a tip from my Real Estate Guru, Joe Stumpf, I purchased a Flip video camera. I bought it at Wal-Mart. Considering how much I hate shopping at Wal-Mart, no, I don’t think Wal-Mart is evil; I find the stores just too big, which makes finding things too difficult. Funny, when I do shop at Wal-Mart, I usually walk out with something I didn’t plan on purchasing. Maybe that was Sam Walton’s vision. Have the consumer walk around long enough; and surely, they’ll find something they’ll buy. BTW, my closest Wal-Mart is the one on Parham Road. I went in the store at 8:30 a.m the other day and it was empty. I could become a Wal-Martian!

     Anyway, for $79 I now have a video camera that will record for up to 1/2 hour. The camera runs off 2 double AA batteries and is the size of fat cell phone. The Flip has a “flip” USB adapter which allows me to transfer my video directly to my laptop for storage, editing, and even movie making. Maybe I’ll finally make that movie, Zoom in on Zoo Men. (Jim and Wade – let’s finally do it. Wally K would be so proudly of us. Sorry, a digression and a topic for another time.)

     It wasn’t that long ago (only 15 years) that documenting my children’s and family’s events and milestones required a camera the size of a small suitcase. The battery alone to power the camera was probably 10 times larger than my Flip. I have one friend who referred to anyone with these cameras rolling as CNN Newshounds. Of course, the recording medium was tape, which means I now need to have all those memories digitalized and transferred to disc. Just one more thing I need to add to that lengthy list of “I’ll get to it someday.”  

     Stay tune! Now that I have a web cam and a Flip maybe I’ll post some videos in this blog.

     I need to take a lesson from whoever negotiates on behalf of insurance companies. I bet it’s William Shatner, but whoever it is they delivered a “Crane Kick” to Bon Secours Hospital that would make Ralph Macchio envious. Earlier this week, I got an explanation of benefits from my insurance carrier, Anthem. My son, Stuart, had a wisdom tooth removed over the Christmas recess. Since he was born with a congential heart defect, he needs to take certain precautions whenever he has any dental work.

     Under the Provider Charges, the total shown on benefits explanation ran to $ 12,066.50. Oh, that looks reasonable, after all, Stuart was there for almost 4 hours and that’s only $3,016.64 @ hour, $50.28 @ minute, or .84 @ second. And since we had already gotten the oral surgeon’s bill which ka’chinged up another 4 grand (Bill Shatner hasn’t seen this one yet), my quick mental math based on my 20 % co-pay made me think Stuart’s one tooth might cost me $2,400. Talk about a tooth fairy!

     Fortunately, good old Capt. Kirk or whoever negotiates for Anthem did their Priceline best for me and delivered a Karate chop of monumental proportion, since under the Network Savings the number was ……. $ 10,255.99. Say what? That’s an 85 % discount. That’s some “Savings.” And does the person who has NO insurance have to pay the FULL 12 grand?

    Ever since the financial meltdown in September, we are bombarded daily with astronomical numbers to which we have become inured. It reminds me of a scene in Austin Powers II where Dr. Evil after having been cyrogenically frozen for 30 years wants to hold the world ransom for 100 million dollars. It’s Number 2 who reminds Austin that million dollars just ain’t what it use to be and maybe the ransom should be 100 billion dollars. AP II was made in 1999 and if updated for today, then I am not sure whether Number 2 saying 100 trillion dollars would even elicit a laugh. 

     We are so upside down in this country. We use words like savings, when in fact it’s a discount. The government says savings when, in fact, it’s the government not spending more. That’s exactly like someone telling me they bought something on sale, which they didn’t need, but since they saved so much they couldn’t pass it up. Tax breaks are now given to those who don’t even taxes. When we all get presented with “the check” for our current situation, let’s only hope Bill Shatner is there to negotiate it for us.

     Well, 2008 is over. I’ll let the numbers speak for themselves, but we ended the year with a 29 % decline in units sold. Considering the economic uncertainty across the globe and the bombardment of negative news we received all year, you have to admire the resiliency of the Richmond market. I sincerely believe we are beginning to eat into some of our excess inventory that has plagued the market since late 2007. The Richmond real estate market is closer to equilibrium when our inventory levels are closer to 9,000 units. Currently, we are at upper 11,000 range. This is down from almost 14,000 units offered in May 2008.

     I now have 3 years of my statistical data covering the years 2006, 2007 and 2008. As time permits, I hope to draw some comparisons of the years. Since 2005 was the heights of Richmond’s real estate market, these comparisons should prove interesting! Here are the ’07 and ’08 numbers:

December		2008				2007
Price Range		# of Sales		% of Ttl Sales		# of Sales		% of Ttl Sales
0 – 99,999		49		9.07%		28		3.94%
100,000 – 199,999		162		30.00%		214		30.10%
200,000 – 299,999		164		30.37%		217		30.52%
300,000 – 399,999		84		15.56%		120		16.88%
400,000 – 499,999		36		6.67%		62		8.72%
500,000 – 599,999		24		4.44%		28		3.94%
600,000 – 699,999		7		1.30%		12		1.69%
700,000 – 799,999		3		0.56%		9		1.27%
800,000 – 899,999		5		0.93%		6		0.84%
900,000 – 999,999		1		0.19%		4		0.56%
1 Million plus		5		0.93%		11		1.55%
Total Sales/Pct.		540		100.00%		711		100.00%
Year to Year		2008				2007
Price Range		# of Sales		% of Ttl Sales		# of Sales		% of Ttl Sales		% Change
0 – 99,999		480		5.67%		513		4.32%		6.43%
100,000 – 199,999		2,470		29.18%		3,419		28.52%		27.76%
200,000 – 299,999		2,860		33.78%		4,046		34.07%		29.31%
300,000 – 399,999		1,340		15.83%		1,979		16.55%		32.29%
400,000 – 499,999		587		6.93%		909		7.54%		0.83%
500,000 – 599,999		295		3.48%		420		3.49%		29.76%
600,000 – 699,999		163		1.93%		248		2.10%		34.27%
700,000 – 799,999		95		1.12%		147		1.23%		0.95%
800,000 – 899,999		61		0.72%		99		0.83%		38.38%
900,000 – 999,999		27		0.32%		56		0.46%		51.79%
1 Million plus		88		1.04%		111		0.89%		20.72%
Total Sales/Pct.		8,466		100.00%		11,947		100.00%		29.14%

    So what do December sales figures show? Many things; and I can only hope it’s the start of some positive trends. Inventory levels for November to December are down 10 %. Inventory levels are presently at their lowest level since June ’07. There was a big jump in units sold in December over November. Up 22 % over November’s number, and nice reversal of the downward trend we’ve been seeing since September. I’m not doing a jig yet, but I am seeing many more buyers in the market. Now the trick is to convert these lookers to owners. Again, I am now covering 2 new areas – South of the Rivah in the City (i.e., Zip Code 23225) and the Bellevue area in the Northside of the City (i.e., Zip Code 23227 in Holton School district.) If you’d like to see a specific area covered, please let me know. I’ll update year to date sales later this week. Here’s the snapshot:

 

For the 13 single family homes sold in

Fan & Museum District of the City of Richmond

(Fox and John B. Cary School Districts)

Average Sales Price in December $ 377,873

Median Sales Price ……………   $ 369,000

Sales Price/List Price Ratio …….. 92.2 %

Days on Market …………………….. 85

Average Size 3 bedrooms 2.5 baths of 2,347 sq ft

Average $ per square foot ……….$ 161.00

 

For the 9 homes sold in West End of the City of Richmond

(Zips 23221, 23226 and 23230)

Average Sales Price in December $ 345,888

Median Price ………………………  $ 265,000

Sales Price/List Price Ratio ……. 95.1 %

Days on Market ……………………. 50

Average Size 3 bedrooms, 2.5 baths of 1,916 sq ft

Average $ per square foot……..   $ 180.53

 

For the 6 homes sold on the Northside of the City of Richmond

(Zips 23227 Holton School District)

Average Sales Price in December $ 244,416

Median Price ………………………  $ 244,500

Sales Price/List Price Ratio ……. 95.3 %

Days on Market ……………………. 37

Average Size 3 bedrooms, 1.5 baths of 1,667 sq ft

Average $ per square foot……..   $ 146.62

 

For the 16 homes sold on the Southside of the City of Richmond

(Zip 23225)

Average Sales Price in December $ 82,495

Median Price ………………………  $ 164,000

Sales Price/List Price Ratio ……. 96.8 %

Days on Market ……………………. 78

Average Size 3 bedrooms, 2.5 baths of 1,673 sq ft

Average $ per square foot……..   $ 105.81

 

For the 57 single family homes sold in West End of Henrico County

(Zips 23226, 23229, 23230, 23233, 23238)

Average Sales Price in December $ 323,184

Median Sales Price ……………    $ 262,500

Sales Price/List Price Ratio ……….  96.3 %

Days on Market …………………….    66

Average Size 4 bedrooms 2.5 baths of 2,410 sq ft

Average $ per square foot ………. $ 134.10

 

For the 77 single family homes sold in Chesterfield

(Zips 23831, 23832, 23834, 23836, and 23838)

Average Sales Price for December $ 279,752

Median Sales Price …………… $ 237,500

Sales Price/List Price Ratio ……..  94.9 %

Average Days on Market……………. 70

Average Size 4 bedroom, 2.5 baths of 2,410 square ft

Average $ per square foot ………..$ 116.56

 

For the 44 single family homes sold in Glen Allen

(Zips 23059 and 23060)

Average Sales Price for December $ 370,202

Median Sales Price………………  $ 325,000

Sales Price/List Price Ratio ………  96.1 %

Average Days on Market ………….  71

Average Size 4 bedrooms, 2.5 baths of 2,718 sq ft

Average $ per square foot……… $ 136.20

 

For the 33 single family homes sold in Mechanicsville

(Zips 23111 and 23116)

Average Sales Price for December $ 309,316

Median Price ……………………     $ 262,500

Sales Price/List Price Ratio ……… 95.0 %

Average Days on Market ………….. 92

Average Size 4 bedrooms, 2.5 baths 2,386 sq ft

Average $ per square foot ……….. $ 129.64

 

For 60 single family homes sold in Midlothian

(Zips 23112, 23113, and 23114)

Average Sales Price for December $ 345,663

Median Price ……………………..   $ 262,500

Sales Price List Price Ratio …….    95.9 %

Average Days on Market …………..  86

Average Size 4 bedrooms, 3.5 baths of 2,859 sq ft

Average $ per square foot……….. $ 120.90

    Since my undergraduate days, I have known about the curriculm of St. John’s College in Annapolis. Their curriculm is based upon the 100 greatest books of Western Civilization, as seen by St. John’s. Over the years, I have promised myself many times that I would attempt their challenge. A few years ago, I tried to engage son, Stuart, in joining me in this personal “Odyssey.”  In order to pique his interest, I needed to jump ahead to the mid nineteenth century with Huck Finn.  What I had hoped would be a lively exchange between us over one summer vacation turned into my daily badgering of him to see if he had read any of Twain’s masterpiece.  I can’t remember if I finished my re-read. I know Stuart didn’t.

     Well, one of ’09 promises to myself was to begin this great voyage. Today, although it took trips to 2 different Henrico libraries, I was able to secure a copy of Homer’s Iliad. If you’re interested in the curriculm, here is a link to it. Now, don’t expect to finish my ‘freshman” year in 9 months, I do have a day job, but I’ll let you know how it’s going throughout the year.

     Several weeks before Christmas, I found that Imus in the Morning was being carried locally by WLEE 990. Unfortunately, about the time I rediscovered the I-Man, he became sick with pneumonia was out through the New Year. I like Bernard McGuirk, but he is NO Imus.

    I love Imus. Besides being a crumudgeon after my own heart, he is one of the great provacateur of all times. This morning, Imus was interviewing his wife, Deidre, about her new book, The Esential Green You. If you know anything about their relationship you know the I-Man is very proud of Deidre’s green work, especially with hospitals like Hackensack. You would have never known it this morning, as Imus portrayed himself a miserable captive in Deidre’s green world.

     Anyway, Imus is backed and can be enjoyed weekdays between 6-9 a.m. on WLEE 990. Since WLEE 990 is a dawn to dusk AM station with limited broadcasting capacity, Imus is also streamed live here.