Brick’s Blog

     Zowser, zowser, zowser …. here’s another epsiode of Foreclosure Friday Flash. These 2 “radar” properties are in good locations and with a little bit of discounting could be great buys. Don’t forget my Hollywood contest – name the actor, role, and movie – and win a Starbucks gift card. Congrats to last week’s winner, Jason Livingston.

     If you’re interested in receiving Bank Owned Weekly, then click on the appropriate link – West End, Glen Allen, or Midlothian.

     One of my favorite movie quotes of all times is from Diner, when Boogie tells Carol. “It was Ripley’s.” Of course, this occurs after the infamous popcorn scene in the movie, when Boog offers the most implausible tale ever that only affirms Modell’s earlier comment that Carol isn’t a smart girl. Over the last week, I have had 2 instances where I might begin to believe Boog’s explanation after all. These are those Seinfeldian moments when you want to have a Kramer like shudder in disbelief.

     The first occurred out near Wyndham when I saw a darling green commercial pick up emblazoned with Doody Calls logos. If you’re not familiar with Doody Calls this is a service like lawn care that will purge your dog’s droppings from your yard. This just brings to mind a Seinfeld episode where I believe Jerry comments that if aliens were watching from outer space and saw humans picking up after their pets who would the aliens think was the superior creature? Personally, I can’t ever imagine using this service, since I am a firm believer in “shit happens” and nothing proves that quicker than stepping into a pile of it.  

     My 2nd moment was over the weekend. There is no place I detest more than Short Pump Town Center. The traffic is unbearable, the commercialism despicable, and driving civility/politeness is non existent. Fortunately, I was on one of my stealth marketing early morning outings and no one was out and about, so I was cutting through SPTC with no impediments. As I was motoring along the backside near Dick’s, I thought I saw a neon sign advertising a hotel. Nah, I thought that can’t be right, but just to satisfy my ever curious mind I did a u-turn. Sure enough, there is something called the Sierra Hotel adjacent to Dick’s. Now, I have been to the Galleria at Tyson’s Corner with its connecting Ritz Carlton, but SPTC as a destination location? Gimme a break.

     Well, I am back this week with an actual episode of Foreclosure Friday Flash. Two great north of the “rivah” picks. Don’t forget my Hollywood contest – name the actor, role, and movie – and win a Starbucks gift card. Congrats to last week’s winner, Ruth Body.

     If you’re interested in receiving Bank Owned Weekly, then click on the appropriate link – West End, Glen Allen, or Midlothian.

And if you’d be interested in attending my Home Buyer Seminar this Wednesday, October 28th, please register here. A ticket is required.

     No video this week other than my video apology, but you can still play our name the actor Starbucks contest. The reason for no video this week was the lack of anything exciting that I felt I needed to share with you.

     If I see anything exciting in the next few days, I will share them in my Sunday update. If you want to received the updates for Bank Owned Weekly; click here for the West End, click here for Glen Allen, and click here for Midlothian. Until next week.

Oh, yeah and if you forgot, I have a Home Buyer Seminar scheduled for Wednesday, October 28th at 7 p.m. Sign up here for this, and you will need a ticket.

     While the West End market remains bottom driven with over 70 % of the market activity occurring below $400,000, the desirability of the West End remains unchallenged since over 85 % of Richmond’s market activity occurs under the $400,000 barrier. Believe it or not – there has been some increased activity above the $400,000 point for several months now. Each month I am seeing a more sales in the 400’s, 500’s and 600’s, as our real estate market bumps along the bottom. Here’s the chart for September: 

September		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		0		0.00%		0		0.00%		1		1.75%
100,000 – 199,999		2		13.33%		20		30.30%		15		26.32%
200,000 – 299,999		7		46.67%		24		36.36%		13		22.81%
300,000 – 399,999		2		13.33%		8		12.12%		11		19.43%
400,000 – 499,999		1		6.67%		4		6.06%		10		17.54%
500,000 – 599,999		1		6.67%		3		4.55%		6		10.53%
600,000 – 699,999		1		0.00%		3		4.55%		1		1.75%
700,000 – 799,999		0		0.00%		2		3.03%		0		0.00%
800,000 – 899,999		0		0.00%		1		1.52%		0		0.00%
900,000 – 999,999		0		0.00%		0		0.00%		0		0.00%
1 Million plus		1		6.67%		1		1.52%		0		0.00%
Total Sales/Pct.		15		100.00%		66		100.00%		57		100.00%
YTD thru September		Zone 20				Zone 22				Zone 34
\		# of Sales		% of Ttl Sales		# of Sales		% of Ttl Sales		# of Sales		% of Ttl Sales
0 – 99,999		1		0.53%		3		0.52%		4		0.78%
100,000 – 199,999		13		6.84%		121		20.93%		100		19.38%
200,000 – 299,999		90		47.37%		246		42.56%		195		37.79%
300,000 – 399,999		32		16.84%		93		16.09%		100		19.38%
400,000 – 499,999		22		11.58%		45		7.79%		62		12.02%
500,000 – 599,999		16		8.42%		28		4.84%		39		7.56%
600,000 – 699,999		5		2.63%		21		3.63%		7		1.36%
700,000 – 799,999		2		1.05%		9		1.56%		5		0.97%
800,000 – 899,999		2		1.05%		8		1.38%		0		0.00%
900,000 – 999,999		2		1.05%		1		0.17%		2		0.39%
1 Million plus		5		2.63%		3		0.52%		2		0.39%
Total Sales/Pct.		190		100.00%		578		100.00%		515		100.00%

     What a difference a year makes! Last year, September marked the onslaught of the financial market meltdown. It sure looks like we bumping along the bottom. Month to month comparisons between September ‘09 and September ‘08 shows ‘09 with an increase in sales over ‘08. This is only the second time this year that a ‘09 month exceeded a ‘08 month. In addition, we’re seeing the unit sales year to date narrowing their deficits. ‘09 versus ‘08 is down to a 12 % deficit. ‘09 versus ‘07 is lagging by 38 %. Both of these deficits are substantially improved from earlier in the year. My latest rub of my crystal ball sees us finishing ‘09 with a 7 % deficit to ‘08 and a 35 % deficit to ‘07 in unit sales. Here’s the chart:

September		2009				2008				2007
Price Range		# of Sales		% of Ttl Sales		# of Sales		% of Ttl Sales		# of Sales		% of Ttl Sales
0 – 99,999		85		11.67%		31		4.77%		58		7.44%
100,000 – 199,999		275		37.73%		218		33.54%		226		29.01%
200,000 – 299,999		212		29.08%		220		33.85%		266		34.14%
300,000 – 399,999		83		11.39%		106		16.31%		119		15.27%
400,000 – 499,999		34		4.66%		36		5.54%		41		5.26%
500,000 – 599,999		23		3.16%		18		2.77%		25		3.20%
600,000 – 699,999		10		1.37%		10		1.54%		12		1.54%
700,000 – 799,999		3		0.41%		4		0.62%		14		1.79%
800,000 – 899,999		1		0.13%		3		0.46%		6		0.77%
900,000 – 999,999		1		0.13%		2		0.31%		2		0.25%
1 Million plus		2		0.27%		2		0.31%		10		1.28%
Total Sales/Pct.		729		100.00%		650		100.00%		779		100.00%
YTD thru September		2009				2008				2007
Price Range		# of Sales		% of Ttl Sales		# of Sales		% of Ttl Sales		# of Sales		% of Ttl Sales
0 – 99,999		590		9.71%		334		4.84%		421		4.29%
100,000 – 199,999		2061		33.90%		1965		28.50%		2793		28.43%
200,000 – 299,999		1938		31.89%		2396		34.75%		3330		33.90%
300,000 – 399,999		768		12.63%		1109		16.08%		1639		16.69%
400,000 – 499,999		332		5.46%		493		7.15%		743		7.56%
500,000 – 599,999		183		3.01%		234		3.39%		345		3.51%
600,000 – 699,999		89		1.46%		135		1.96%		212		2.16%
700,000 – 799,999		50		0.82%		81		1.17%		126		1.28%
800,000 – 899,999		23		0.37%		53		0.77%		77		0.78%
900,000 – 999,999		16		0.26%		20		0.29%		49		0.50%
1 Million plus		28		0.46%		75		1.09%		88		0.90%
Total Sales/Pct.		6078		100.00%		6895		100.00%		9823		100.00%

      I’ve got just one word …. “consistent” …. that’s the best description of Richmond’s market at present. September marked a few less sales than August. And August marked a few less sales than July, but I’m not yet running around like Chicken Little claiming the sky is falling. Now, I might revert to that stance come December and we find this “consistent” market is all a result of the $8,000 First Time Buyer Credit. 

Here’s the snapshot:

 

For the 10 single family homes sold in

Fan & Museum District of the City of Richmond

(Fox and John B. Cary School Districts)

Average Sales Price in September $ 307,893

Median Sales Price ……………   $ 300,012

Sales Price/List Price Ratio …….. 95 %

Days on Market …………………….. 51

Months of Inventory …………..  7.1

Average Size 3 bedrooms 1.5 baths of 1,920 sq ft

Average $ per square foot ……….$ 161.43

 

For the 15 homes sold in West End of the City of Richmond

(Zips 23221, 23226 and 23230)

Average Sales Price in September $ 442,900

Median Price ………………………  $ 262,000

Sales Price/List Price Ratio ……. 96 %

Days on Market ……………………. 52

Months of Inventory ………….. 7.4

Average Size 3 bedrooms, 2.5 baths of 2,077 sq ft

Average $ per square foot……..   $ 186.64

 

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

(Zip 23227 Holton School District)

Average Sales Price in September $ 207,166

Median Price ………………………  $ 211,000

Sales Price/List Price Ratio ……. 97 %

Days on Market ……………………. 58

Months of Inventory ………….  12.5

Average Size 3 bedrooms, 1.5 baths of 1,528 sq ft

Average $ per square foot……..   $ 139.66

 

For the 21 homes sold on the Southside of the City of Richmond

(Zip 23225)

Average Sales Price in September $ 203,075

Median Price ………………………  $ 196,500

Sales Price/List Price Ratio ……. 97 %

Days on Market ……………………. 64

Months of Inventory ………….  9.3

Average Size 3 bedrooms, 1.5 baths of 1,680 sq ft

Average $ per square foot……..   $ 121.69

 

For the 65 single family homes sold in West End of Henrico County

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

Average Sales Price in September $ 315,170

Median Sales Price ……………    $ 250,000

Sales Price/List Price Ratio ……….  97 %

Days on Market …………………….    72

Months of Inventory ………….     6.9

Average Size 4 bedrooms 2.5 baths of 2,370 sq ft

Average $ per square foot ………. $ 130.06

 

For the 107 single family homes sold in Chesterfield

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

Average Sales Price for September $ 237,224

Median Sales Price …………… $ 200,000

Sales Price/List Price Ratio ……..  97 %

Average Days on Market……………. 77

Months of Inventory ……………..  10.1

Average Size 4 bedroom, 2.5 baths of 2,197 square ft

Average $ per square foot ………..$ 109.61

 

For the 48 single family homes sold in Glen Allen

(Zips 23059 and 23060)

Average Sales Price for September $ 337,721

Median Sales Price………………   $ 327,500

Sales Price/List Price Ratio ………  96.1 %

Average Days on Market ………….  75

Months of Inventory ……………   8.2

Average Size 4 bedrooms, 2.5 baths of 2,677 sq ft

Average $ per square foot……… $ 125.62

 

For the 55 single family homes sold in Mechanicsville

(Zips 23111 and 23116)

Average Sales Price for September $ 248,505

Median Price ……………………     $ 227,345

Sales Price/List Price Ratio ……… 96 %

Average Days on Market ………….. 80

Months of Inventory ……………  8.7

Average Size 3 bedrooms, 2.5 baths 2,000 sq ft

Average $ per square foot ……….. $ 125.90

 

For 93 single family homes sold in Midlothian

(Zips 23112, 23113, and 23114)

Average Sales Price for September $ 281,439

Median Price ……………………..   $ 265,000

Sales Price List Price Ratio …….    97 %

Average Days on Market …………..  73

Months of Inventory …………….  7.0

Average Size 4 bedrooms, 2.5 baths of 2,461 sq ft

Average $ per square foot……….. $ 114.45

     Well, I’ve got 2 great family style homes this week. Click here for Foreclosure Friday Flash.

For you first time buyers I will be having a Home Buyers’ Seminar on Wednesday, October 28. 2009 at 7 p.m. The seminar is being given in conjunction with Wells Fargo Mortgage and will include renovation financing. If you like to register for the seminar, please do so here.

And finally, if you’re interested in receiving the weekly updates for Bank Owned Weekly, please click on the appropriate link. For the West End of Richmond, click here. If you’re interested in Glen Allen, then click here. And finally, if you’re one of those Southsiders and Midlothian is your wish, click here.

     Late last week, I ran into one of the local real estate consulting gurus while getting my morning coffee at Ukrop’s. Having known this individual for years, our conversation naturally turned to real estate. I was struck by some of his comments when I asked the age old question “how’s the market?”.

Here’s what my swami had to say:

1. We’re bouncing along the bottom. To which I replied, what about the commercial crisis that’s looming?

2. There were 3 R.E.I.T.s (Real Estate Investment Trust) initial public offerings last week that quickly raised billions. The commercial problem will be “self-vulturized” (I love that image – other commercial practitioners swooping in for the road kill). But what about rising mortgage delinquencies?

3.  Commercially, mortgagees had “skin” in the game, therefore the “self-vulturizing”. Residentially, banks are getting better with their procedures for short sales, reo’s, etc. Will the $8,000 Tax Credit get extended?

4. No, we’re bleeding red ink. (Personally, I think it will, but we’ll see.) So why are you so confident when all I hear is ”doom and gloom”?

5. 2010 corporate profits will be huge. Which just reminded me that this is America. Policy is shaped on Wall Street despite what D.C. thinks.

I’ll revisit these predictions in a few months and let you know if my oracle is still my oracle.

     Ho hum. Just another episode of Foreclosure Friday Flash. Click here for this week’s video.

Don’t forget our weekly contest. Be the first one to identify our mystery “Hollywood” guest – actor, role, and movie – and win a gift card to Starbucks.

More excitement. Sign up here for our Home Buyer Seminar on Wednesday, October 28th. Our seminar starts at 7 p.m. sharp and lasts about 2 hours.