Brick’s Blog

I think sometimes you think I’m just blowing smoke when I tell you that these Bank Owned Properties are just EVERYWHERE. So instead of giving you my normal ho hum 2 Best Buys, I thought I’d show you one to prove my point about no area no price range being immune from having a foreclosure.   

I don’t think for our Hollywood Contest should present much of the problem this week. Remember I need the actor’s name, role, and movie to win.

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

Sit around and wait. Boy, that’s how I feel about my 2 picks this week. Just nothing special and definitely need some ‘seasoning.’ I was talking with one of my REO listing agent contacts today and I was complaining about the INFLATED prices we’re seeing. Well, she just unloaded and said it’s a problem with too many “rookies” doing the BPO’s for the Banks. A BPO is a Broker Price Opinion. Seems these rookies are giving the Banks retail pricing. I knew it just wasn’t me who felt this way.

Well, it’s another gimme for our Hollywood Contest, so I’ll be stopping at Starbucks on the way to the office. Remember I need the actor’s name, role, and movie to win.

And just in case you don’t know Brickese yet here’s an explanation on “seasoning”. Actually, one of the “seasoning” rules for flippers got relaxed to 90 days. So here’s another Brick’s Buyer Tips for Bank Owned Properties.

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

     One of the things I love about being a real estate agent is stumbling upon those ”little” shrines that dot the landscape of Virginia. One of the closing gifts I have given my clients for years is A Guide to Virginia’s Historical Markers. This book is always given with the admonishment to keep it in your car.  Hey, you just never know when happenstance offers you a little history lesson.

     I think I know my way around eastern Hanover County fairly well, so you could imagine my surprise last fall when I saw the outline of what appeared to be a church on Rural Point Road just off Pole Green Road. I have been on Rural Point Road many many times, but I had never noticed this odd structure with its suspended windows before.  All I can say is that I must of had clients in the car on those past occasions, with me just jabbering away; as is my habit when with clients, not to have noticed Pole Green Church. Boy, was that a mistake.

     I don’t want to spoil this for you, but Pole Green Church, like so many little havens in and around Richmond, is one of those idyllic spots for a picnic lunch. I don’t care if you pick up fast food over on Mechanicsville Pike for your picnic fare, just make time to spend a few minutes at Pole Green. Here’s a little teaser of what you’ll find. The minister for the church was Samuel Davies, a subsequent president of Princeton. The Great Awakening in Virginia has its roots here. Patrick Henry worshipped with Davies and acknowledges Davies taught him “what an orator should be.”  And my personal favorite, the Walk of Religious Freedom. You can learn more about Pole Green Church here.

     With Spring still months away, I think I’ll start a new category for Brick’s Blog. I am going to call it “Perfect Picnic Places.” By Spring maybe I’ll have enough locations for a weekly sojourn for the entire summer. Of course, I’d welcome your submissions, too.

     As Democrats point fingers as to who is responsible for the loss of the Massachusetts senate seat to Republicans, my hat tip is to David Gergen. The arrogance and obvious bias in Gergen’s question in the last senatorial debate was the launching point for Brown’s surge down the backstretch and his runaway victory. Thanks, David. Here’s the moment if you’ve forgotten it.

Oh yeah, and it looks like my old pal, Webbie, is looking for some cover. Last night on CNN, Webbie said all healthcare debate/votes should be suspended until Brown is seated.

I had been hoping for a huge turnout today at Capitol Square for the Tea Party 10th Amendment Rally. I was disappointed that the crowd was a little over a thousand, but “insiders” said that this was the largest turnout they have ever seen for a cause on lobby day at the General Assembly. Anyway, it was warm sunny January day and listening to the words of Patrick Henry is never a bad way to spend part of any day.

     If you read my blog, my politics should be pretty clear that I am conservative on almost all issues.  Presently, I think this country is headed in the wrong direction so much so that I am advising my children they may want to pursue opportunities outside of the good ole USA.  That would have been heresy for me just a few years ago.

     Today, at Capitol Square, there is Tea Party rally. It’s a 10th Amendment Rally. The 10th Amendment reads “The powers not delegated to the United States by the Constitution, nor prohibited by it to the states, are reserved to the states respectively, or to the people.” Nowhere in the Constitution is it stated that Congress can mandate that all citizens must purchase a product/commodity or face a fine or imprisonment. This healthcare bill getting ready to be forced upon us is unconstitutional. Exercise your right of assembly and free speech and join me at Capitol Square this morning. There’s a shuttle service from Parker (Squirrel) Field starting at 8 a.m. The rally starts at 10 a.m. You can be home by lunch.

I don’t think in the 20 plus episodes I’ve done of Foreclosure Friday Flash that I have had 2 picks I’m more excited about. Both of these are “In the Kill Zone”. Both work both as an Owner Occupant opportunity or for an Investor as a rental. Both require some fix up, but the return under either scenario is great.

I’m stopping by Starbucks on the way to the office this morning to buy the gift card for our Hollywood contest. Remember I need the actor’s name, role, and movie to win. Want to take any bets? I bet I’ll have a winner before 9 a.m.

     Oh yeah, I did use a little Brickese when I said both of these properties were “in the kill zone”. I guess I better explain what I mean. Here’s another Brick’s Buyer Tips for Bank Owned Properties.

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

     So long 2009. You sure were game. A true fighter. Yeah, you were helped by the 1st Time Home Buyer Credit, but considering the economic times you did okay. 

     I cannot help but to continually reiterate how resilient a real estate market Richmond is.  I am in contact with real estate agents across the country. They’d love to have the situation we have here. Yeah, our prices are down, sales are down, and some are “underwater” on the mortgages, but we still have relatively low unemployment and “hope & change” is on the horizon with a new “jobs” governor starting Saturday. I am not predicting a breakout year in 2010, but Virginia will at least hold its own this year, which will be good compared to other parts of the country.

     Let’s take a quick glance at the year that was – 2009.  Overall, ‘09 unit sales where down only 3 % from ‘08. If you remember how dark it was back in the late Winter and early Spring of ‘09 than this 3 % decline is nothing. This 3 % decline is only about 250 less sales than in ‘08. Where these fewer sales fell on the price range is the important thing. In ‘09 there were about 400 less sales at a price point above $400,000 than in ‘08.  Wait a minute, Brick, didn’t this also occur in ‘08 when compared ‘07. Unit sales between ‘08 and ‘07 were down over 30 %. Funny you should ask.  Yeah, there were almost 700 less sales above the $400,000 point in ‘08 when compared to ‘07, but sales above $400,000 comprised 15.5 % of the total sales. In ‘07, sales above the $400,000 point were 16.6 % of the total sales. In ‘09, sales above $400,000 represented only 11.3 % of total sales. In 2009, over 88 % of the market activity occurred under $400,000. Hey, onto 2010 …. my motto in ‘10 is onward and upward. Tune in next month when I have my first installment of 2010.

    Is it the $8,000 Tax Credit or not? I’m afraid it is the credit, but time will tell. December ‘09 numbers exceeded December ‘08, but you’ve got to remember the environment a year ago. Financial crisis was rearing its ugly head and despite the era of “hope and change” being just around the corner, December ‘08 was some pretty low hanging fruit.

    December is always the month of bargains.  Those bargain days typically spill over into January and February as the land sharks come out to scoop up some bargains. The land sharks look for properties with long days on market that are vacant. Call me, 804.301.7598, because I can point you to some great opportunities.

     I am glad 2009 is on the books. Rough year. If anyone in Washington would listen, it’s the economy, stupid. If we would direct our attention to the economy, we’d be closer to putting this housing issue behind us; at least in Richmond.  Take a look at the ‘08 and ‘07 comparisons. December ‘09 might actually be what a “typically” year should look like. I feel like 9,600 unit sales is about right for the Richmond market. Tomorrow I’ll share the full year numbers with their ’08 and ’07 counterparts.

   I am sorry that I am late getting the “snapshot” out this month. I am still catching up from the “snowfall” we had in mid December. It’s awfully hard to preview property, etc. when there’s a foot of snow between you and the front door! This time of years always has a little skew in the statistical data. There are fewer sales so the “months of  inventory” or absorption rate is higher. Days on market typically increases due to fewer sales. And even, the Sales Price/List Price ratio can move either way.  The ratio can be higher due to properties being deeply discounted and receiving offers closer to the discount price or the ratio being much lower due to properties being on the market a lengthy time and receiving and accepting deeply discounted offers. This lower Sales Price/List Price ratio can really be impacted, like in Northside this month, when there are few sales to offset the one that is deeply discounted.  Despite the swings in my other tracking numbers, the consistency of the “Average $ per Square Foot” further substantiates how strong a market exists in the Richmond area. Anyway, here’s the snapshot for December:

For the 7 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 $ 290,478
Median Sales Price …………..   $ 290,000
Sales Price/List Price Ratio …….. 95 %
Days on Market …………………….. 65
Months of Inventory …………..  14.6
Average Size 3 bedrooms 2.5 baths of 1,703 sq ft
Average $ per square foot ……….$ 168.49

For the 14 homes sold in West End of the City of Richmond
(Zips 23221, 23226 and 23230)
Average Sales Price in December $ 674,507
Median Price ………………………  $ 297,000
Sales Price/List Price Ratio ……. 96 %
Days on Market ……………………. 77
Months of Inventory ………….. 5.8
Average Size 4 bedrooms, 2.5 baths of 2,863 sq ft
Average $ per square foot……..   $ 187.82
 
For the 4 homes sold on the Northside of the City of Richmond
(Zip 23227 Holton School District)
Average Sales Price in December $ 249,000
Median Price ………………………  $ 225,500
Sales Price/List Price Ratio ……. 88 %
Days on Market ……………………. 65
Months of Inventory ………….  11.1
Average Size 3 bedrooms, 3 baths of 2,114 sq ft
Average $ per square foot……..   $ 123.15
 
For the 22 homes sold on the Southside of the City of Richmond
(Zip 23225)
Average Sales Price in December $ 222,959
Median Price ………………………  $ 220,000
Sales Price/List Price Ratio ……. 91 %
Days on Market ……………………. 84
Months of Inventory ………….  7.5
Average Size 3 bedrooms, 2.5 baths of 1,948 sq ft
Average $ per square foot……..   $ 104.50
 
For the 53 single family homes sold in West End of Henrico County
(Zips 23226, 23229, 23230, 23233, 23238)
Average Sales Price in December $ 321,413
Median Sales Price ……………    $ 275,000
Sales Price/List Price Ratio ……….  96 %
Days on Market …………………….    73
Months of Inventory ………….     6.8
Average Size 4 bedrooms 2.5 baths of 2,464 sq ft
Average $ per square foot ………. $ 132.78

For the 84 single family homes sold in Chesterfield
(Zips 23831, 23832, 23834, 23836, and 23838)
Average Sales Price for December  $ 280,475
Median Sales Price …………… $ 228,745
Sales Price/List Price Ratio ……..  96 %
Average Days on Market……………. 78
Months of Inventory ……………..  11.2
Average Size 4 bedroom, 2.5 baths of 2,443 square ft
Average $ per square foot ………..$ 111.19

For the 44 single family homes sold in Glen Allen
(Zips 23059 and 23060)
Average Sales Price for December  $ 318,415
Median Sales Price………………   $ 286,750
Sales Price/List Price Ratio ………  98 %
Average Days on Market ………….  75
Months of Inventory ……………   8.4
Average Size 4 bedrooms, 2.5 baths of 2,596 sq ft
Average $ per square foot……… $ 124.18

For the 29 single family homes sold in Mechanicsville
(Zips 23111 and 23116)
Average Sales Price for December  $ 284,585
Median Price ……………………     $ 254,000
Sales Price/List Price Ratio ……… 98 %
Average Days on Market ………….. 69
Months of Inventory ……………  14.0
Average Size 4 bedrooms, 2.5 baths 2,357 sq ft
Average $ per square foot ……….. $ 122.19

For 80 single family homes sold in Midlothian
(Zips 23112, 23113, and 23114)
Average Sales Price for December  $ 340,149
Median Price ……………………..   $ 304,500
Sales Price List Price Ratio …….    97 %
Average Days on Market …………..  67
Months of Inventory …………….  7.2
Average Size 4 bedrooms, 2.5 baths of 2,797 sq ft
Average $ per square foot……….. $ 120.78