Brick’s Blog

      As I mentioned earlier this week, my main objective for this week is to get back up to speed on the bank owned inventory. After meeting a client at 9 a.m. yesterday to look at a couple of Midlothian bank owned properties, I spent the remainder of the day looking at the Midlothian inventory I hadn’t seen. 29 houses later, I got back to the office around 5:30 p.m.

     What I looked at ranged in price from $119,000 to $615,000. There were about 6 of those properties that at this moment are excellent values. With some strong negotiation, those 6 could be true steals. Some real junk out there, too; but as I learned long ago ”everything will sell for a price.”

     If you’d be interested in receiving a Weekly List of Midlothian Bank Owned Inventory, click here.  This will send you an automated email with the current inventory, after you opt-in. And don’t forget about the Saturday Morning Tour of Bank Owned Properties. For information about the Tour, click here.

     I have a confession; and yes, confession is good for the soul. For the last two weeks, I have been a little slack in looking at new Bank Owned Properties that have come on the market. So today and for the rest of the week, I have decided to block off some time and get current again on what’s out there. I am just back from looking at 13 things in the “West End”. The price range for these homes was from $189,900 to $459,000. 10 were in Zone 22, 2 were in Zone 34 – one in Twin Hickory; the other in Hampshire, and the last one was in Goochland (close-in) near Sycamore Golf Course.

     So did I see any GREAT bargains during today’s trek? No, but I saw several that are now on my radar. See that’s the thing about these Bank Owned properties. The asset managers for the banks will typically start them with an inflated price. As the market rejects them at various price points, the asset managers begin a systematic series of price reductions. When the PRICE IS RIGHT, they will sell. 

     Oh, there’s lots more I could tell you, but then what would we talk about when we’re on my Saturday Morning Tour of Bank Owned Properties. Here’s a link for you to sign up now for the tour. Looking forward to seeing you soon. Tomorrow I’ll give you an update from Southside.

     My wife, Mary Stuart, has a new listing in Dorset Woods South. Dorset Woods South is off River Road west of Mooreland and east of Gaskins. 404 Walsing Drive is a Colonial over 3 levels with 5,300 + square feet. The home has 5 bedrooms, 4 full baths, and 2 half baths. The Master Suite and Kitchen are simply outstanding on this property. The asking price is $859,900.

     For you real estate agents, there is a Broker Open House tomorrow July 24th from 10 a.m. to noon. There will be a general Open House on Sunday, July 26th from 2 p.m. to 4 p.m. Stop in and see this incredible home.

And just to whet your appetite, here’s a Visual Tour of the 404 Walsing Drive.

      Well, I have to admit that our senior senator is starting to catch on to this e-mail stuff. I got another correspondence_reply from Jim yesterday. It was in response to my  recent complaint against “cap and trade.” It appears Webbie will be bucking his party, if I can believe his response. Yeah, right, when hasn’t a politician said one thing and done another, but we will see. This is the second “personalize” e-mail I’ve gotten from Clown Boy. Sure glad to see his staff knows how to use mail merge. I am still waiting to hear from Mark. He’s plummeting in my polls; and he may soon be Clown Boy.

     You know I have an infinity to e-mail our Senators with my thoughts. Recently, I have corresponded twice about “cap and trade”. Here’s what I THINK is going on. I have gotten no response from Senator Warner. This is unusual. From Day 1, his office has been well managed. Usually within a few days of my terse epistles, I’d receive a response. While this response might not directly address my concerns, it would generally spell out his position. Well, does his non response this time indicate he’s opposed to cap and trade? I sure hope so.

     Now, let’s turn our attention to our wonderful SENIOR senator. In mid June, I got an “out of blue” e-mail from Senator Webb addressing my concerns about limits on charitable and interest deductions. I had written Clown Boy sometime in March on this issue. While this response was “very personalize” to this specific issue, the from line in e-mail was correspondence_reply@webb.senate.gov. When I get responses from Senator Warner, the from line reads “Office of Senator Mark Warner”. See, Mark and I are tight; and he knows how much I relish official looking correspondence.

    Now I don’t want to be too tough on old Webbie. In my inbox this morning was a correspondence_reply@webb.senate.gov. It looks like to me that Webb’s staff has now learned about autoresponders, since the gist of the response was to let me know that over 100,000 Virginians will avail themselves of corresponding with the Senator via the internet this year. Woohoo! Way to go, Jim. You da’ man. But here’s a suggestion. Get your staff to change the from line on your autoresponder. Yes, this can be done. Personally, you know what I’d like – “Clown Boy – US Senate”.

      Sales skyrocketed in June from the improved May numbers. June sales for Zones 20, 22, and 34 showed an aggregate 37 % increase over May levels with Zone 22 being up 44 %. While the number of sales monthly continues to rise, the market remains very bottom driven. As shown below, 70 % of the market activity is occurring at price ranges under $400,000 with well over 40 % of the sales having a price range between $200,000 and $299,999.

June		Zone 20				Zone 22				Zone 34
Price Range		# of Sales		% of Ttl Sales		# of Sales		% of Ttl Sales		# of Sales		% of Ttl Sales
0 – 99,999		1		2.56%		1		0.88%		0		0.00%
100,000 – 199,999		1		2.56%		22		19.47%		10		10.99%
200,000 – 299,999		18		46.15%		51		45.13%		39		42.86%
300,000 – 399,999		8		20.51%		18		15.93%		22		24.18%
400,000 – 499,999		6		15.38%		12		10.62%		11		12.09%
500,000 – 599,999		2		5.13%		4		3.54%		5		5.49%
600,000 – 699,999		0		0.00%		2		1.77%		2		2.20%
700,000 – 799,999		0		0.00%		1		0.88%		1		1.10%
800,000 – 899,999		0		0.00%		2		1.77%		0		0.00%
900,000 – 999,999		2		5.13%		0		0.00%		0		0.00%
1 Million plus		1		2.56%		0		0.00%		1		1.10%
Total Sales/Pct.		39		100.00%		113		100.00%		91		100.00%
YTD thru June		Zone 20				Zone 22				Zone 34
Price Range		# of Sales		% of Ttl Sales		# of Sales		% of Ttl Sales		# of Sales		% of Ttl Sales
0 – 99,999		1		0.83%		3		0.84%		3		1.00%
100,000 – 199,999		5		4.13%		73		20.51%		45		15.00%
200,000 – 299,999		57		47.11%		163		45.79%		125		41.67%
300,000 – 399,999		24		19.83%		52		14.61%		59		19.67%
400,000 – 499,999		15		12.40%		26		7.30%		38		12.67%
500,000 – 599,999		8		6.61%		17		4.78%		22		7.33%
600,000 – 699,999		3		2.48%		13		3.65%		3		1.00%
700,000 – 799,999		2		1.65%		3		0.84%		3		1.00%
800,000 – 899,999		1		0.83%		6		1.69%		0		0.00%
900,000 – 999,999		2		1.65%		0		0.00%		1		0.33%
1 Million plus		3		2.48%		0		0.00%		1		0.33%
Total Sales/Pct.		121		100.00%		356		100.00%		300		100.00%

     No, you’re not seeing things. June ‘09 sales DID exceed June ‘08 sales. Since monthly unit sales have been dropping versus the prior year’s month since 2006, this is a welcome change. Are we out of the woods? No, but just maybe we can tread water versus the prior year for awhile.

     Year to date, ‘09 sales are now lagging ‘08 sales by only 17 %. We had been in  23 % range. Comparing ‘09 to ‘07 now shows ’09 trailing ‘07 by 45.6 %, which is down from a high of 53 %. Before we start dancing a jig, let’s see what the rest of the summer holds. Here’s the monthly and year to date info.

June		2009				2008				2007
Price Range		# of Sales		% of Ttl Sales		# of Sales		% of Ttl Sales		# of Sales		% of Ttl Sales
0 – 99,999		79		7.94%		42		4.47%		36		2.49%
100,000 – 199,999		319		42.11%		219		23.32%		361		25.05%
200,000 – 299,999		329		33.70%		330		35.14%		506		35.11%
300,000 – 399,999		142		14.27%		174		18.53%		247		17.14%
400,000 – 499,999		67		6.70%		86		9.16%		121		8.40%
500,000 – 599,999		27		2.70%		25		2.66%		60		4.16%
600,000 – 699,999		9		0.90%		24		2.56%		48		3.33%
700,000 – 799,999		10		1.00%		14		1.49%		25		1.73%
800,000 – 899,999		3		0.30%		10		1.06%		11		0.76%
900,000 – 999,999		4		0.40%		5		0.53%		6		0.42%
1 Million plus		6		0.60%		10		1.06%		20		1.39%
Total Sales/Pct.		995		100.00%		939		100.00%		1441		100.00%
YTD thru June		2009				2008				2007
Price Range		# of Sales		% of Ttl Sales		# of Sales		% of Ttl Sales		# of Sales		% of Ttl Sales
0 – 99,999		357		9.80%		195		4.44%		303		4.52%
100,000 – 199,999		1215		33.33%		1219		27.74%		1970		29.41%
200,000 – 299,999		1182		32.40%		1554		35.37%		2250		33.59%
300,000 – 399,999		462		12.67%		690		15.70%		1070		15.97%
400,000 – 499,999		195		5.30%		334		7.60%		521		7.78%
500,000 – 599,999		101		2.70%		158		3.60%		226		3.37%
600,000 – 699,999		54		1.40%		89		2.03%		142		2.11%
700,000 – 799,999		34		0.91%		56		1.27%		79		1.18%
800,000 – 899,999		17		0.45%		37		0.84%		50		0.75%
900,000 – 999,999		9		0.22%		11		0.25%		34		0.51%
1 Million plus		18		0.45%		51		1.16%		54		0.81%
Total Sales/Pct.		3644		100.00%		4394		100.00%		6699		100.00%

     Last month, I wondered if the Richmond Real Estate Market had turned the corner. Looking at June’s numbers, I am certainly more encouraged. While 2 months are not sufficient to start crooning “Happy Days are Here Again”, it only confirms my everlasting respect for how resilient Richmond’s Real Estate Market remains. Let me just tease you with a few observations, which I will expound upon in the coming days. June ‘09 sales were up over 37 % over May ‘09 sales. June ‘09 sales were almost flat ( .5 % less – that’s POINT 5) when compared with June ‘08. Considering ‘09 has been lagging ‘08 year to date by about 23 %, June numbers are “De Lovely”. Sorry for the song references, maybe I am ready to start crooning. Anyway, here’s the snapshot:

For the 24 single family homes sold in

Fan & Museum District of the City of Richmond

(Fox and John B. Cary School Districts)

Average Sales Price in June $ 411,956

Median Sales Price ……………   $ 376,500

Sales Price/List Price Ratio …….. 94.3 %

Days on Market …………………….. 60

Average Size 4 bedrooms 2.5 baths of 2,424 sq ft

Average $ per square foot ……….$ 169.95

 

For the 39 homes sold in West End of the City of Richmond

(Zips 23221, 23226 and 23230)

Average Sales Price in June $ 368,073

Median Price ………………………  $ 295,500

Sales Price/List Price Ratio ……. 96.8 %

Days on Market ……………………. 39

Average Size 3 bedrooms, 2.5 baths of 2,006 sq ft

Average $ per square foot……..   $ 183.49

 

For the 13 homes sold on the Northside of the City of Richmond

(Zip 23227 Holton School District)

Average Sales Price in June $ 275,673

Median Price ………………………  $ 224,600

Sales Price/List Price Ratio ……. 96.1 %

Days on Market ……………………. 47

Average Size 4 bedrooms, 2.5 baths of 1,979 sq ft

Average $ per square foot……..   $ 139.30

 

For the 30 homes sold on the Southside of the City of Richmond

(Zip 23225)

Average Sales Price in June $ 202,264

Median Price ………………………  $ 191,700

Sales Price/List Price Ratio ……. 97.3 %

Days on Market ……………………. 80

Average Size 3 bedrooms, 2.5 baths of 1,685 sq ft

Average $ per square foot……..   $ 120.04

 

For the 108 single family homes sold in West End of Henrico County

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

Average Sales Price in June $ 302,319

Median Sales Price ……………    $ 274,950

Sales Price/List Price Ratio ……….  96.7 %

Days on Market …………………….    53

Average Size 4 bedrooms 2.5 baths of 2,181 sq ft

Average $ per square foot ………. $ 138.61

 

For the 105 single family homes sold in Chesterfield

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

Average Sales Price for June $ 254,277

Median Sales Price …………… $ 218,000

Sales Price/List Price Ratio ……..  96.8 %

Average Days on Market……………. 78

Average Size 4 bedroom, 2.5 baths of 2,258 square ft

Average $ per square foot ………..$ 112.59

 

For the 87 single family homes sold in Glen Allen

(Zips 23059 and 23060)

Average Sales Price for June $ 341,053

Median Sales Price………………  $ 312,000

Sales Price/List Price Ratio ………  96.7 %

Average Days on Market ………….  64

Average Size 4 bedrooms, 2.5 baths of 2,618 sq ft

Average $ per square foot……… $ 130.27

 

For the 45 single family homes sold in Mechanicsville

(Zips 23111 and 23116)

Average Sales Price for June $ 256,799

Median Price ……………………     $ 237,000

Sales Price/List Price Ratio ……… 96.7 %

Average Days on Market ………….. 75

Average Size 4 bedrooms, 2.5 baths 2,059 sq ft

Average $ per square foot ……….. $ 124.72

 

For 150 single family homes sold in Midlothian

(Zips 23112, 23113, and 23114)

Average Sales Price for June $ 311,933

Median Price ……………………..   $ 264,000

Sales Price List Price Ratio …….    96.5 %

Average Days on Market …………..  86

Average Size 4 bedrooms, 2.5 baths of 2,567 sq ft

Average $ per square foot……….. $ 121.52

    I’ve been thinking lately about what NASCAR will be like now that the government owns GM. Since they are racing at Daytona tonight, I was wondering what next year’s 500 might be like. Maybe we’ll have a new “3″ car, even though to any self respectin’ good old boy that would be pure sacrilege. But why would our
government care, it isn’t listening to us anyway; and those who would be most offended by a new “3″ car are just considered cretins to them anyway.

     Now let’s just suppose the government did decide to sponsor a NASCAR ride next year. It would have to be a Chevrolet so that it would appeal to the masses. It would have to meet CAFE standards. And since I am hoping for a new “3″ car, its sponsor would have to be Nancy Pelosi. After all, Speaker Pelosi is third in line in our federal system. Anyway, the picture above is my mock up of what the new “3″ car might look like. Gentlepersons, start your engines!