Rapport@Altamont Lofts

Thursday May 21st

1620 Altamont SA
Come see the frontier of urban renewal and sustainable development. This project by French Consulting utilizes environmentally sensitive construction techniques, adaptive design, and reused materials and is a cutting-edge example of Richmond’s Re-Development movement.

5-8pm
1620 Altamont Street | Scotts Addition
Open Bar + Tasty Appetizers
DJ St. Anthony + Art Showcase
Outdoor Patio + Great Networking

Catering by Savor
Development by French Consulting Co.
Represented by Snipes Properties

Sponsored By
City & Guilds
ADO
ReStore
First Market Bank

RSVP to Carter@SnipesProperties.com

Recovery through Home Sales

This article from the Los Angeles Times shows further signs that a lift in the real estate market could point to signs that we are well on the way to a recovery.

Pending home sales climb, lifting recovery hopes
The National Assn. of Realtors’ index shows purchases rose 3% in March from February and 1% from a year earlier.By Peter Y. Hong
9:12 PM PDT, May 4, 2009

A reported bounce in U.S. home sales Monday boosted hopes that the housing downturn was nearing its end and that the broader economy was moving toward recovery.

The National Assn. of Realtors said its pending home sales index, which tracks signed contracts for home purchases nationwide, rose 3% in March over February’s level, and was up 1% from the same month a year earlier.

The news helped to push stocks up: The Dow Jones industrial average rose 214.33 points, or 2.6%, to 8,426.74, while the Standard & Poor’s 500 index rose 29.72 points, or 3.4%, to 907.24.

The pending sales index is a leading indicator of home sales totals, which are calculated after the lengthy home purchase process is completed.

“It’s consistent with the other recent evidence of stabilization at the low end of the housing market,” said UCLA finance professor Stuart Gabriel, who directs the university’s Ziman Center for Real Estate.

The Realtor group attributed the gain to low home prices and a federal tax credit for home purchases.

“This increase could be the leading edge of first-time buyers responding to very favorable affordability conditions and an $8,000 tax credit,” said Lawrence Yun, the group’s chief economist. Yun said, however, that “we need several months of sustained growth to demonstrate a recovery in housing.”

The rise in the index may indicate a return to normal seasonal housing market patterns. Home sales typically rise in March from February, but last year the pending sales index dropped 1% from February, and the index of contracts in March 2008 was down 20% from March 2007.

In Southern California, the median home sale price has held steady at $250,000 from January through March — less than half the peak median price set in 2007, according to San Diego research firm MDA DataQuick.

The sharp plunge in Southern California home prices prompted Jeffrey Mezger, chief executive of builder KB Home, to call a market bottom Monday, an assertion he also made in late March.

“If you go to Southern Cal, for example, we’re seeing a floor in pricing,” Mezger said in an analysts’ conference call Monday. “We don’t see prices going down right now, which is a good thing, because then you can set a baseline.”

KB Home constructs lower-priced homes in California and has found itself competing with previously owned homes that are in foreclosure. Various studies show higher-priced homes have not fallen as much in price in Southern California but are selling at a slower pace.

“We don’t yet really see a significant rebound in sales in those marketplaces,” UCLA’s Gabriel said of higher-priced areas. He said financing for large mortgages remains difficult to obtain, and sellers often have the means to hang on to homes rather than sell them for less than they would like.

Also boosting the stock market was news that construction spending rose slightly in March from February. Construction spending in March totaled $969.7 billion, 0.3% above the February level, according to the Census Bureau. The March total was down 11.1% from the same month a year earlier.

The rise in construction spending was not, however, due to home building. Private residential construction was down 4.2% in March from February and was 34% lower compared with March 2008.

Public construction spending in March, which was up 1.1% from February and 2.6% from March 2008, drove the total up.

peter.hong@latimes.com

When it Comes to Contracts Time is of the Essence

When you are ready to purchase your home, remember that time is of the essence. You could lose your dream home if you do not carefully respond to certain dates within your contract. If you are selling the same could be true, making sure that all dates are met within a contract of sale could be the key in selling your home. Your real estate agent is there to help, make sure that you open the lines of communication so that nothing will be lost during the process. Which is why, whether you are buying or selling a home, selecting the right agent is of utmost importance. Read more in this article below:

Real Estate: ‘Time is of the essence’ of contract
By BOB & DONNA McWILLIAMS, For The Capital

Published 05/10/09

In the Maryland Association of Realtors Residential Contract of Sale, there is a paragraph at the very top that says:

“TIME IS OF THE ESSENCE. Time is of the essence of the Contract. The failure of Seller or Buyer to perform any act as provided in this Contract by a prescribed date or within a prescribed time period shall be a default under this Contract and the non defaulting party, upon written notice to the defaulting party, may declare this Contract null and void and of no further legal force and effect. In such event, all Deposit(s) shall be disbursed in accordance with Paragraph 19 of the Contract”

In short, this important paragraph says that “done by” dates have real meaning. To further reinforce this concept, paragraph 53 of the contract goes on to define the “Computation of Days.” That part of the contract is there to eliminate any misunderstanding of when the “clock starts ticking” or when you must complete the tasks agreed to by both buyer and seller.

A Residential Contract of Sale is chock full of dates and times by which “things” must be completed. The timeline is all directed toward getting to the settlement table, while allowing the buyer to complete “contractual contingencies” outlined in the contract. As a result, most of these “due dates” are defined by the buyer. For the buyer, the deadlines include things like, completing a home inspection (that can include the whole gamut of issues, from a general inspection to looking at specific issues such as a well, septic system or environmental conditions that might concern the buyer). All of these inspections are to be ratified in the original contract. If the buyer wants to go “fishing” for something more, the seller has no obligation to allow for additional inspections. The seller has the right to “disallow” any inspections that aren’t set forth in the original contract.

Beyond home inspection contingencies, the buyer usually has a set date by which they must make loan application as well as get loan approval. In today’s world, loan approval is an important part of getting a house to settlement. Back in 2005, loan approval didn’t mean much more than the ability to sign your name and make some vague representation of your income. Today, you actually need to verify how much you make and show that you are qualified.

Consequently, a seller should take a hard look at the “loan approval” part of a buyer’s contingency in a contract. Also, what constitutes “loan approval” is up for grabs. As a seller, you might get a letter that says your buyer is “pre-approved.” But, that lender letter often goes on to say that such approval is “conditional” on verification of income and a whole host of other issues. So, as a seller, make sure you know the difference between “pre-qualification,” “pre-approval” and the stamp of approval that says, “the bank is committed to make the loan.”

In our discussion of “time,” there’s another consideration regarding a real estate transaction. That involves the relationship between you and your Real Estate Agent. In today’s 24/7 world, there has become an expectation for an immediate response. The average time to sell a house is about five months, but we’ve recently seen a timeline in which buyers and sellers measure that in hours, sometimes even in minutes. With the sour economy and people being shoved up against a “do or die” scenario, we understand the “immediate” concern many have for the sale of their home. The same applies for those seeking a place to live. Nevertheless, we wouldn’t expect a response from our Lawyer, unless we were in handcuffs, or an immediate call back from the doctor, unless there was blood on the floor. Maybe it’s because lawyers and doctors get paid by the hour; whereas, real estate agents get paid by the job.

Especially these days, you can be absolutely sure that your agent is doing everything they can to get your place sold, or find you a place to live. They won’t make a nickel unless you buy or sell something. In the end, try to recognize that your agent is on your side and know that they aren’t sitting around waiting for the phone to ring. Just like you, they’re looking for a buyer or seller. Their payday won’t come unless a house gets sold.

E-mail and your Blackberry, are both sin and savior. On one hand, an agent could sit at the beach and do a deal. On the other hand, they’re never disconnected from the demands of a client. In the end, the most valuable commodity any of us have is time.

Days above dirt often define success. We realize that selling the single biggest investment in your life is obviously important, but also recognize that getting your house sold probably doesn’t hinge on calling your agent at 8 p.m. Sunday night. As we said, would you expect to reach your lawyer, doctor or stock broker at such an hour, unless it was an absolute emergency? Why bring your real estate agent to a higher level of inconvenience, over something that can obviously wait until normal business hours on Monday. Days back, Maryland had the Blue Laws that prohibited business on Sunday. Previously, we thought this was an unwarranted intrusion on free enterprise. Today, we’re having second thoughts. Everyone needs a day of rest, especially those who work on 100 percent commission.

Tip of the Week
When you establish a relationship with a real estate agent, determine, up front, the best way to communicate. Beyond anything else, we’ve found that clients are most concerned when they feel they’re out of the loop. That doesn’t mean you need to be hooked at the hip with a daily comforting call, but agents need to let their clients know what’s going on. As a result, a regular form of communication can go a long way in keeping everyone happy.

For sellers, we have an automated method of providing e-mail feedback on any showings. For buyers, we deliver an update on any new listings that might be of interest. At times, we give all of them a call just to say “Hi.”

Unlike our previous market, much time can go by when nothing takes place. Touching base is important during such periods.

We’ve found that e-mail is frequently the preferred means of correspondence. It provides a large amount of information while allowing clients to respond at their own convenience. Regardless, it’s important to talk with your agent about how the communication flow will work. Let them know your expectations. A good agent will always accommodate the communication that’s comfortable for you.

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Bob and Donna McWilliams are practicing real estate agents with more than 20 years of combined experience in the Annapolis area.

Buy Now or Wait? Five Reasons to do Both

In today’s housing market decision-making can be tricky. Should you use the benefit of a down market and buy now or should you wait it out and see what happens? The case for both is made in the Chicago Tribune article, why both buying now and waiting are good. If you buy now you may be able to take advantage of all time housing price lows and new housing availability. However, if you need to wait it out, now is the perfect time to rent.

Buying a house: 5 reasons to do it now, and 5 reasons to wait
Prices are down, inventory is up. If you’re still unsure, these arguments may help you decide
By Mary Umberger | Special to the Tribune
May 10, 2009

Housing students, which of the following is correct?

Buy a home now — you’ll get a great deal.

Don’t buy now — house prices are dropping like a rock, and you’ll do better later.

Umm, both? Neither?

Lower interest rates may not save you money For consumers, this is a push-pull moment: Bombarded with contradictory opinions and data about the housing market, it’s difficult to gauge if we’re “there” yet — whether real estate’s free-fall is ending or whether it has a lot further to slide.

In any case, prices and mortgage interest rates look very attractive, indeed.

“People who missed the train now are starting to see that the train has backed up and they may be looking at a golden opportunity,” said Lynette Briggs, a housing counselor for the DuPage Homeownership Center in Wheaton, who said she was surprised by the high turnout, despite the recession, for her organization’s annual homebuyers fair in February.

But she cloaked that optimism in “ifs” — the opportunity to buy a house now could, indeed, be golden if the buyer has a job, has good credit, has good savings and plans to stay in the house for a while.

The decision to purchase a home is always fraught with pros and cons. For two sides of that tricky coin, turn to Page 3.

5 reasons to buy now 1. There’s a vast selection.

One of the big drags on housing throughout the downturn has been the sheer number of homes for sale — but that’s the very thing that makes this a buyer’s market. Although the inventory of homes for sale here has dropped since 2008, Midwest Real Estate Data, the principal home-listings service in the Chicago area, showed nearly 85,000 houses, condos and townhouses listed in early May. And that still-high number doesn’t include many for-sale-by-owner properties and builders offerings, according to Mark Reitman, market manager for Redfin, a Chicago brokerage.

And that’s not the whole story on inventory: Many builders don’t list their completed “spec” homes in the multiple-listings service. Then, of course, there’s the increasingly large stockpile of foreclosed homes that have been taken back by lenders and also haven’t found their way into the MLS.

“It’s undoubtedly the best selection I’ve seen in at least a decade,” said Jim Merrion, regional director at Re/Max Northern Illinois, based in Elgin.

2. Homes are on sale.

In March, Illinois climbed to 10th place among states with the greatest home-price declines, on a list compiled by First American CoreLogic, a housing analyst that found that prices in the state had dropped about 10 percent from the year before.

The Illinois Association of Realtors said the median price for a single-family home in the Chicago area was $194,000 in March, down nearly 22 percent from the year before. And that’s quite a price cut since September 2005, the month generally agreed to be the peak of the housing boom, when the median was $270,000.

3. We may be near the bottom of the market decline.

This may be the most contentious — and most important — consideration in housing. Every economist, every trade group and seemingly every blogger out there has an opinion about whether housing is done tanking and is poised to return to some degree of normalcy.

Few are shouting “It’s over!” but some areas of the country and some parts of the Chicago area report sales are up.

For example, the number of homes under contract in west and south suburban areas was up 27 percent in March, the fourth consecutive month showing a year-over-year contract increase, according to the Main Street Organization of Realtors, which pronounced it an “upward trend.”

2 3 next

Down Housing Market could Equal Buyer Benefits

Could the bad housing market make this the perfect time to buy? With falling housing prices and an increase in available homes for sale, first time buyers may actually benefit from a down real estate market. Many housing prices rose far above what an entry-level homebuyer could afford, but one year later and prices might now be within reach. With housing prices dropping, first time home affordability is up.

First-time buyers benefit from housing slump
In many markets, homes that were once prohibitive now are affordable
By Jane Hodges
msnbc.com contributor
updated 11:59 a.m. ET, Fri., May 8, 2009

Kostas Kalaitzidis wanted to buy a home when he moved to Phoenix in 2008, but between his modest salary and the expensive market, he couldn’t swing it.

What a difference a year makes.

Kalaitzidis recently made an offer on a home priced at $82,000, far less than the $220,000 it might have fetched last year.

“I’m very glad I waited,” Kalaitzidis said. “People like me are the ones buying in now.”

First-time buyers like Kalaitzidis are dominating the real estate market right now. They snapped up 53 percent of all properties sold during March 2009, up from the usual 40 percent or less, according to data from the National Association of Realtors.

While America’s declining home values have wrought havoc on home sellers, owners and lenders, first-time buyers can celebrate the housing market bust, and may even help fix it. The Realtors’ group expects first-timers to account for the majority of home sales through the remainder of 2009.

Kalaitzidis was fortunate enough to get a new job recently and now earns about $60,000 as a local government public information officer, up from his previous income of $40,000. But salary was a small factor in his decision to purchase, he said. The bigger factor was the nosedive in prices. If his transaction closes as planned, this month he’ll become the owner of a 2,200-square-foot, contemporary home with four bedrooms and two-and-a-half bathrooms.

In addition to price drops in most markets, federal tax credits for first-time homebuyers are motivating many to get off the sidelines, Realtors spokesman Walt Molony said. He estimates that tax credits could motivate as many as 300,000 fence-sitters to buy this year. The Internal Revenue Service extended $7,500 tax credits to first-time buyers last year and has raised that to $8,000 or 10 percent of the purchase price for 2009.

First-time buyers are picking up the carnage in many hard-hit markets.

“The metro areas with the highest levels of foreclosure activity in the first quarter of 2009 paint a picture of concentrated problems in a relatively small number of hard-hit areas,” said James Saccaccio, chief executive officer of RealtyTrac, a distressed property research firm in Irvine, Calif. “Sales activity appears to be increasing in some of these markets as home prices have fallen to levels that are attractive to first-time homebuyers and investors.”

Buyers like Kalaitzidis are taking advantage of foreclosures, short sales and bank-owned homes listed in some of the hardest-hit areas of the country along with traditional listings. Kalaitzidis is buying a bank-owned home, meaning the prior owner lost it to foreclosure. He said he’s not afraid of the fact that other homes in the community are in foreclosure because prices have dropped sufficiently to where he thinks only primary owners — not speculators and investors — will want to buy there. That, he said, reassures him that his neighborhood will remain viable.

Albert Ko, a 24-year old entrepreneur who runs a discount shopping Web site, is currently shopping for a home in Orange County, Calif. He moved there in 2007, at a time when homes cost about $800,000 — far more than he could afford. He recently got pre-approved for a $400,000 mortgage and is happy to see that prices have dropped to that level both in parts of Irvine and cities further inland. Because of his youth, he’s looking for a primary home that can double as an investment — a place he can live in now but rent out later.

“I’m looking now,” Ko said. “Two years ago, this would have been out of the question.”

While existing homeowners shudder to watch home values tumble around them, for new buyers the repriced real estate market promises something they haven’t seen in a long time: affordability.

Affordability is measured not just by sticker price but by how much of their monthly income homeowners must dedicate to their mortgage and related housing costs, said John Burns, president of John Burns Real Estate Consulting in Irvine, Calif.

The market peaked at different times in different markets, but according to Burns’ research, buying a median-priced home in cities like Oakland, Calif., or Miami would have consumed more than 75 percent of the median income at the market peak. Now a typical home would consume 28 percent of average income in Oakland and 34 percent in Miami.

Burns’ consulting group estimates that, nationally, the median-priced home now costs 25 percent of a household’s median pre-tax income, down from a peak of 44 percent during the summer of 2006. This means that, assuming a 20 percent down payment and fixed-rate mortgage at current rates, a household with $60,000 in pre-tax income would pay $15,000 per year for a mortgage versus $26,400 — a substantial difference.

In Phoenix, housing peaked in June 2006 when the median home cost 46 percent of median pre-tax income, according to Burns’ research. Nowadays, that home costs 19 percent.

Kalaitzidis’ chosen home will help him fit the pattern. He said he’ll spend less than a quarter of his post-tax income on housing, a conservative figure he can handle.

“There is a good chance that prices will go down further,” said Burns. “But this is probably the best opportunity to buy in years. We’ve got the best affordability since 1972.”

Four Tips for Monitoring the Real Estate Market

There are four key indicators of the real estate market that don’t take a Master’s Degree in Economics to figure out. While news abounds citing different percentage rates, indices, and market analysis, you can watch the real estate market in your area just by looking at these four points:

1) Watch the number of “for sale” signs shrink in your area.

I am certain that over the last couple of years you have noticed the large number of real estate signs in your travels. Whether it was on your path to work or in your neighborhood. Nonetheless, they have been abundant. As you travel in the next few days, count the number of “for sale” signs that you see. At some point you will notice fewer signs, and then you can begin to suspect that things are changing. You will also be able to measure this electronically by visiting real estate Web sites that allow you to view homes for sale and pricing.

2) Watch the cost of financing or refinancing.

Right now the amount of money that it costs to loan money to a borrower is very steep. These are known as “loan fees.” These fees are higher than I have ever seen them. First quarter numbers are showing some signs of strength with the refinancing market. Competition comes into play again, as the residential real estate market bounces out of its deep hole. When it costs 1 percent in loan fees to finance or refinance a property, you will know the credit markets are gaining a stronger position. So, watch not only the rate at which money is lent but the cost to borrow that money as well.

3) The number of foreclosures filed and bank repossessions decrease.

One sign of an improving real estate market is the reduction in the amount of foreclosed homes on the market. While foreclosure numbers may still be increasing at a steady pace nationwide, in our market the numbers are actually down from the same time last year. There are a couple of ways for this to happen. First, homeowners have to make their mortgage payments on time and do whatever is necessary to modify their mortgage to an affordable amount. Second, lenders need to get their inventory through the process to sold, thereby decreasing the inventory level. When the rate of foreclosures decreases, we will be able to see a light at the end of the tunnel, looking towards strength in the housing market.

4) “What goes up must come down” — watch for housing prices to stop falling.

It only makes sense; in order for real estate values to go up they must first stop coming down. In some markets, home values have been hit pretty hard yet in others not hard at all. Nonetheless, everyone is affected by falling housing values. When this occurs, the number of buyers increases thus creating a more balanced real estate market.

Submitted by Suzanne Damon, REALTOR Member of GMNBR.

Rental Market up in Uncertain Times

Market analysts have seen a rising trend in the housing market, renting.  Due to the current uncertainty in the housing market, many people are turning to rentals in the short-term.  This new rental demand could drive up rental prices in the near future so, if you’re looking to rent, now is the perfect time to find your new apartment before the market causes a rental shortage.

PERSONAL FINANCE DAILY
Thursday’s Personal Finance stories

Warren Buffett sees Improvement in Housing Market

 Visionary investor, Warren Buffett stated Saturday, at the latest Berkshire Hathaway shareholders meeting, that their real estate brokerage business had seen an increase in business over the past several months.  Could this mean we are close to turning a corner in the real estate market?  Find out more from the article below.

Buffett sees some housing market stabilization
By Alistair Barr, MarketWatch

OMAHA , Neb. (MarketWatch) — Berkshire Hathaway Chairman Warren Buffett said Saturday that he sees some signs of stabilization in housing markets.

Scotts Addition – Richmond’s Next Great Address!

Have you heard about Scott’s Addition lately? You’re not the only one. Richmond, Virginia’s next up and coming neighborhood is undergoing quite the change. Starting next month, The Lofts at Altamont will be the newest addition to this fantastic part of town. Thirty, new, ultra-modern loft style apartments, designed by ADO, will be located at 1620 Altamont. These gallery style apartment homes, managed exclusively by Snipes Properties, boast a sleek modern design and renewable building materials offering Richmonders the latest design trends in the hottest new location. The construction, by City and Guilds, will maintain the traditional warehouse style of the area while incorporating eco-friendly modern convenience.

In addition, drawing new crowds to the area are two new restaurants that offer fine cuisine and live music. Stronghill Dining Company offers continental dining with a hometown twist. Try for example, the jalapeño deviled eggs with tomato pepper relish followed by pan seared venison medallions, all while listening to live music, offered every Monday. Next to come, Savor, one of Richmond Magazines’ 2009 best new restaurants. Currently located in the corrugated box company building in the Manchester area, they will soon call Scott’s Addition home. Offering happy hour specials and a diverse and eclectic menu, this new restaurant will be a wonderful addition to the area. Of course, don’t forget a Richmond favorite, and a great BBQ joint, Buzz and Ned’s is located at 1119 Boulevard directly under the Billboard advertising their name.

Also located on Boulevard, with 17 movie screens, luxury seating, enhanced viewing opportunities, and extensive food and beverage choices is the new Bow-tie Movieland cinema. On weekends, why not walk over to Bow-tie cinema host to Movies and Mimosas a showing of a classic film along with a serving of mimosas that takes place on both Saturday and Sunday.

The new construction of these apartments along with a host of other new attractions is sure to bring an influx of people to the area, known as Scott’s Addition and it is well on its way to becoming the next hot address in Richmond. The Lofts at Altamont will start at $800 for a one-bedroom design up to $1800 for a three bedroom. For more information, please contact Carter Snipes at (804) 358-3888.

Rent Today to More Wisely Invest Tomorrow

Good news, bad news, it seems no matter where we turn in real estate today no one is quite certain what the future holds. While the experts seem to think the economy will bottom out at the end of this year, as was stated Tuesday by Federal Chairman Ben Bernanke, can we ever be certain of what is to come next?

In the new economy, many of us will be forced to move, for job opportunities, to be closer to family, or to gain new education. The question is how to invest, in the most important of investments, property. Buying seems appealing and with the latest $8,000 new home tax credit now may seem like the perfect opportunity to buy but, if this is not your first home and with tighter lending restrictions, your best investment may be time. How can you invest in time? Rent.

In the past several decades there has been much emphasis on home ownership, rentals were less desirable and often passed over. However, those were the days of easy mortgage lending and few restrictions. Home ownership was a simple and easy investment choice. However, today, with rising down payments up to 20% of the total cost of the home, tighter mortgage lending, a fluid and often changing job market, renting is the smart decision.

If you need to move or are forced to move due to job change, often the first thought is to look at real estate for sale. We run to Zillow, Craigslist, and well-known real estate sites looking for a house in which to invest our money. But how are you sure that the new neighborhood you move into is one that you will enjoy? Why risk moving to a part of town that seems nice the first month you live in a new city but, six months or even a year down the road, you realize all of your new friends and all of the places you enjoy visiting are in a different part of town. Especially in this housing market, making a rash decision concerning the purchase of your new home could burden you with a hefty mortgage and an undesirable location.

The simple solution? Renting! There are many rentals on the market and indeed, for those interested in the Richmond, Virginia housing market, renting is an easy solution to a complex and confusing investment quandary. There are also many up and coming neighborhoods in Richmond, and other cities, which are on the rise despite the economy. Waiting a year could mean the difference between settling for what is available now and the opportunity to make an investment down the road in the newest, most lively neighborhood in town. There are so many reasons to rent, in the new economy, and certainly if you are moving to Richmond, Virginia, there is no better solution.

Why not take time out, wait and see what happens to the market and then invest your hard-earned savings into a house you love, in a neighborhood you know you will enjoy. Renting is the golden opportunity to save money, learn more about the city in which you live, and give the economy time to show you how to invest. Time is your most valuable resource, why not use it to your advantage? Rent now while considering how to make your most important investment, buying your home.

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