Brick’s Blog

     Currently, I serve on the Education Committee with the Richmond Association of Realtors (i.e. RAR). I am sure many of the younger members of that committee roll their eyes whenever I begin to wax and wane on the "good old days" of real estate. While I am the first to appreciate and praise all our modern conveniences (ask me about pre cell phone days some time), I do miss how impersonal real estate has become.

     In the good old days, whenever we had an offer for a listing agent, it was necessary to coordinate the delivery of the offer. Most times this meant physically placing the offer in the listing agent’s hands. The same applied to counters; and due to the nature of real estate, many of these exchanges were nocturnal. For some of the oldtimers in the Richmond real estate game, I can remember the exact place I met many of these people for the first time. I might not remember exactly when or who the parties to the contract were, but usually I can remember where the property was located that we were negotiating. 

     Nowadays, an offer can be transmitted via facsimile or e-mailed as a .pdf. With current gas prices, this is not all bad, but it does take away some of the personal nature of the business. These days it is not uncommon for me to be in a committee meeting at the RAR and be seated next to someone I don’t recognize. After we introduce ourselves, I often find it is someone with whom I have done a prior transaction, but just had never met. 

     Real Estate Youngsters, think about occasionally delivering a contract and meeting the other agent. If you insist on conducting business electronically, how about doing so with .pdfs? Your facsimiles are just too blurred for my tired old eyes. 

     About a year ago, I got a complimentary copy to a new magazine called, Garden & Gun. Only in the South would someone think a magazine with such a title would succeed. When I got that complimentary copy, I took the loose subscription card out and carried it around for probably a week meaning to subscribe. I never did.

     Well, over the weekend I got another complimentary issue of Garden & Gun and I am definitely subscribing this time. Published by the Evening Post Publishing Company of Charleston, S.C., this is definitely a magazine for any self respecting Southerner. Some of the articles in May issue include an insider’s guide to Charleston, a guide for a proper pig roast, and an article on various barrier islands throughout the South. One of the watering holes for the insider’s guide to Charleston was S.N.O.B. (Slightly North of Broad), which for any lover of Charleston is clever play upon S.O.B. Don’t know what S.O.B. is? Than you need to visit Charleston and find out.

Here’s a link to Garden & Gun, if you like to learn more and hopefully subscribe.

     With the horrendous decline in the number of sales in the Richmond Area, I thought it might be interesting to see if the decline is uniform across the area or whether certain areas are performing better. Here’s a look at May ‘08 versus May ‘07 and Year to Date ‘08 versus Year to Date ‘07.

Sales by Real Estate Zones for May 2008 vs 2007
		2008		2007		% Change
Zone		# of sales		# of sales
10		48		81		-40.74%
20		43		45		-4.44%
22		75		132		-43.18%
24		18		28		-35.71%
30		22		38		-42.11%
32		30		47		-36.17%
34		75		103		-27.18%
36		30		57		-47.37%
40		27		42		-35.71%
42		26		57		-54.39%
44		47		57		-17.54%
50		22		36		-38.89%
52		59		114		-48.25%
54		98		149		-34.23%
60		59		65		-9.23%
62		89		140		-36.43%
64		43		60		-28.33%
66		20		34		-41.18%
		831		1285		-35.33%

Sales by Real Estate Zones YTD 2008 vs 2007
		2008		2007		% Change
Zone		# of sales		# of sales
10		203		325		-37.54%
20		108		166		-34.94%
22		308		489		-37.01%
24		78		110		-29.09%
30		104		165		-36.97%
32		143		178		-19.66%
34		317		438		-27.63%
36		142		215		-33.95%
40		120		198		-39.39%
42		121		236		-48.73%
44		175		275		-36.36%
50		93		168		-44.64%
52		314		483		-34.99%
54		427		627		-31.90%
60		177		260		-31.92%
62		375		567		-33.86%
64		141		202		-30.20%
66		109		156		-30.13%
		3455		5258		-34.29%

 

    With the exception of a few blips in the market, it appears the suburan areas of Richmond are experiencing a uniform decline. The exceptions would be the East End and the Southeast section of the City.

 

 

    And the malaise continues…. Year to date, the number of sales for 2008 in the Metro Richmond Area trails 2007’s number by 34 %. As I have said before, this huge decline in number of sales should not continue through the entire year. Beginning in September of 2007, the final 4 monthly sales figure for sold units in 2007 are comparable to the monthly activity currently occurring. I am projecting that the metro Richmond market will finish 2008 with a decline of approximately 25 % in total homes sold.

     Now that the Democratic Party has a presumptive presidential candidate, I hope we will begin to see a more favorable news cycle. During the Clinton years, 5 % unemployment was referred to by the media as full employment. Therefore, our current 5.5 unemployment should not be portrayed as the end of the world. Currently, mortgage rates are fantastic, selection incredible and with the new FHA loan limit at $528,750, the Richmond market only lacks consumer confidence in order to return to its prior glory. Here are the numbers year to date. Please remember these figures are based on Richmond’s suburban areas and compiled using the Real Estate Zones of 10, 20, 22, 24, 30, 32, 34, 36, 40, 42, 44, 50, 52, 54, 60, 62, 64, and 66.

May YTD		2008				2007
Price Range		# of Sales		% of Ttl Sales		# of Sales		% of Ttl Sales
0 - 99,999		153		4.43%		267		5.08%
100,000 - 199,999		1000		28.94%		1609		30.60%
200,000 - 299,999		1224		35.43%		1744		33.17%
300,000 - 399,999		516		14.93%		823		15.65%
400,000 - 499,999		248		7.18%		400		7.60%
500,000 - 599,999		133		3.85%		166		3.16%
600,000 - 699,999		65		1.88%		94		1.79%
700,000 - 799,999		42		1.22%		54		1.03%
800,000 - 899,999		27		0.78%		39		0.74%
900,000 - 999,999		6		0.17%		28		0.53%
1 Million plus		41		1.19%		34		0.65%
Total Sales/Pct.		3455		100.00%		5258		100.00%

 

     My preliminary "spin" for May 2008 is a flat market. It appears we picked up "no steam" in May; and once again we will not have a Spring Market. The number of sales closed was very comparable to April’s number. The "pending" sales dropped in May from April’s improved number. Inventories were up slightly and a number of submarkets had signficant increases in units sold. I’ll comment further on the market conditions later this week.

     Here’s the breakdown for various localities within Greater Richmond. If you would like an area not covered below to be covered each month, please let me know. If the area has enough sales activity, I’ll be delighted to include it in this reporting.

For the 22 single family homes sold in

Fan & Museum District of the City of Richmond

(Fox and John B. Cary School Districts)

Average Sales Price in May   $ 414,268

Median Sales Price ……………  $ 372,000

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

Days on Market …………………….. 55

Average Size 3 bedrooms 2.5 baths of 2,335 sq ft

Average $ per square foot ……….$ 177.42

 

For the 43 homes sold in West End of the City of Richmond

(Zips 23221, 23226 and 23230)

Average Sales Price in May   $ 540,952

Median Price ……………………. $ 352,000

Sales Price/List Price Ratio ……. 94.9 %

Days on Market ……………………. 44

Average Size 3 bedrooms, 2.5 baths of 2,545 sq ft

Average $ per square foot……..   $ 212.55

 

For the 70 single family homes sold in West End of Henrico County

(Zips 23226, 23229, 23233, 23238)

Average Sales Price in May    $ 380,322

Median Sales Price ……………  $ 288,000

Sales Price/List Price Ratio ……….  94.7 %

Days on Market …………………….    56

Average Size 4 bedrooms 2.5 baths of 2,414 sq ft

Average $ per square foot ………. $ 157.55

 

For the 98 single family homes sold in Chesterfield

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

Average Sales Price for May  $ 322,926

Median Sales Price ………….$ 271,000

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

Average Days on Market……………. 83

Average Size 4 bedroom, 2.5 baths of 2,530 square ft

Average $ per square foot ………..$ 118.34

 

For the 73 single family homes sold in Glen Allen

(Zips 23059 and 23060)

Average Sales Price for May    $ 380,312

Median Sales Price………………  $ 331,500

Sales Price/List Price Ratio ………  97.6 %

Average Days on Market ………….   54

Average Size 4 bedrooms, 2.5 baths of 2,578 sq ft

Average $ per square foot……… $ 147.52

 

For the 59 single family homes sold in Mechanicsville

(Zips 23111 and 23116)

Average Sales Price for May  $ 301,747

Median Price ……………………   $ 265,500

Sales Price/List Price Ratio ……… 98.1 %

Average Days on Market ………….. 61

Average Size 4 bedrooms, 2.5 baths 2,169 sq ft

Average $ per square foot ……….. $ 139.12

 

For 112 single family homes sold in Midlothian

(Zips 23112, 23113, and 23114)

Average Sales Price for May   $ 333,914

Median Price …………………….. $ 280,000

Sales Price List Price Ratio …….    97.5 %

Average Days on Market …………..  70

Average Size 4 bedrooms, 2.5 baths of 2,506 sq ft

Average $ per square foot……….. $ 140.98

     I feel a little bit like Shoeless Joe Jackson myself these days. There was a time when you couldn’t drive through a neighborhood and not find a father and son out "whipping the pill."  Growing up with my three brothers, we had a hall closet where all our athletic gear was stored. Basically, it contained 3 things - a baseball, a football and a basketball. Of course, there were gloves, bats, and maybe the odd tennis racket in the closet, too, but hours of enjoyment and entertainment could and were had with one of the balls, especially the baseball.

     For the majority of the year, baseball was the sport. Every recess at school, every afternoon, and every weekend day was spent playing baseball. I can remember Saturdays where a group of us would just gather at a vacant field in the town of Warsaw and play all day. The only break would be when one of our mothers would call us in to feed us all a quick sandwich. No need for carpools, we’d ride our bikes there. No need for uniforms, since we’d play as "shirts and skins." And no trophies needed, since we all knew and accepted who the better players were and we knew with practice we could improve.

     And our equipment? Many times we felt lucky to have one ball even if it was wrapped with electrical tape to keep it from unwinding. Our bats invariably were broken and had been mended and made playable with brads and the indispensable cure-all, electrical tape. Our gloves were soft and pliable due to our constant applications of saddle soap and our fist pounding to get the pocket just right.

     These days when I do see a father and son playing catch it evokes many fond memories, even the ones involving broken windows! 

     I bank with BB&T. If you don’t know what BB&T is short for - it is Branch Banking & Trust. BB&T’s origins are in Wilson, NC.  Wilson is a sleepy eastern Carolina town with deep agricultural roots. If you have ever known any true Tar Heels from eastern Carolina, then you know what their accent sounds like. Nite, lite, rite are good examples.

    So what’s with the BB&T’s ATM at the corner of Broad and Gaskins? This ATM services BB&T’s clients with a clipped English accent. This just ain’t rite, when I need sum cash I don’t need to here dat my transactun is bein’ "pro’cessed."  Just git me my money.    

     That’s my older brother, Ken. He was a little younger then, but like all of us Smiths he doesn’t like to have his picture taken too often. These days Brother Ken sells real estate in the Northern Neck. If you’re looking for waterfront or waterview real estate, than you need to contact Ken. Ken knows the water and especially the waters of the Northern Neck, because Brother Ken has been a marine contractor (seawalls, piers, etc.), a commercial fisherman, and plyer of every cove, creek or tributary found in the Northern Neck. You can visit his real estate website here. He’ll be glad to drive you to any property, but truthfully he’d prefer to throw you into one of his boats and show you it from the water first!

     Of late, Brother Ken has turned his attentions to the Chesapeake Bay and its tributaries. As acting president of the Virginia Waterman’s Association, he has been on a crusade to restore the Bay and its tributaries to what H.L. Mencken once called "the immense protein factory." As children, a dinner of blue crabs could usually be found around the pilings of anyone’s pier. We’d marvel at the catch of the huge haul seine nets dragged ashore at Ragged Point. Our fall oysters were fresh from local waters and not trucked in from the Gulf of Mexico.

     On Monday, June 2, Brother Ken will be on NPR between noon and 12:30 making his case. A live stream is available here.  For more information and to contribute to this great cause, visit the Virginia Waterman’s Association site.   

     Here’s a great opportunity for what I have tagged as "A Home for Many Generations." This 6 bedroom 4.5 bath Colonial was custom built for local home improvement guru, Mr. Fix-it, in 1986 by Allen Coleman. It is located in the The Colonies at Wilde Lake, which is located off Lauderdale Drive at Causeway Drive in western Henrico. The schools for this community are Nuckols Farm, Pocahontas and Godwin. 

     This property was built with an In-Law Suite which comprised of about 450 square feet. The In-Law Suite has a bedroom and bath plus a sitting area/kitchenette. If more space was needed, the In-Law Suite is accessed from the main part of the home via the living room, which could be easily incorporated into the In-Law Suite with no loss of liveability to the rest of the home. The 2nd floor was ahead of its time, since it was built with 5 bedrooms and 3 full baths.

     The Kitchen is a knockout and most buyers could not afford its replacement these days. The cabinets are cherry and feature end panels and cathedral style doors. The counter tops are New Venetian Gold granite that accent the cherry cabinets nicely. 12 inch ceramic tile is the flooring in the kitchen. This property is just loaded with extras and upgraded finishes due to the owner’s business.

     Here’s a Visual Tour of the property.

     Richmond Magazine is on the newsstands now and has the fairest reporting I have seen on the local real estate market. Their byline for the cover reads "Fastest-selling neighborhoods, Realtors’ tips for a buyers’ market, our market analysis (hint: it’s not dire) and more." You would think I wrote the "not dire" part. Another line I loved from the report "Maybe we can all stop talking about flipping houses and get back to buying homes."

    There are 4 pages of statistics on home values in neighborhoods with the most unit sales for the City, Hanover, Henrico and Chesterfield. You know I’d love those pages. There are also quick blurbs on the 480 (that’s not a misprint) "new" home subdivisions in the area broken out by our Real Estate Zones (i.e., 10, 20, 22, 24, etc.). If you have an interest in these things, it is well worth the $ 4 cost.