tag:blogger.com,1999:blog-31961926317901731442024-03-08T12:17:34.273-08:00Richmond, VA Real EstateGraham Johnsonhttp://www.blogger.com/profile/14963920348939786566noreply@blogger.comBlogger14125tag:blogger.com,1999:blog-3196192631790173144.post-17219937642011167012012-09-27T13:56:00.001-07:002012-09-27T13:56:38.836-07:00Had a "really?!?!" moment last week...Okay, so I had a closing last week on a really nice home near the James River. We were scheduled to close on Friday; we had our final walk through on Thursday evening to make sure everything was okay with the home and my clients were able to move in. Everything was perfect and my buyers closed Friday. They left to go to the house with their two kids to see their new home and found the previous owner and his contractor, wrench in hand, taking the built in, $3,000 water purifier system out of the wall in the garage. My poor buyer was caught in the middle of a tough situation but stepped up and said they could not take it. The previous owner wanted to clarify this with his wife and Realtor before he left the house, so he waited around for an hour before he received word that he could take apart the system since it was attached to the house. It was an awkward hour to say the least. I can't believe he thought he could take out a plumbing system like that! Graham Johnsonhttp://www.blogger.com/profile/14963920348939786566noreply@blogger.com0tag:blogger.com,1999:blog-3196192631790173144.post-10207815288887844962012-03-07T07:30:00.002-08:002012-03-07T07:46:40.930-08:00Big Media Buy for Coldwell BankerColdwell Banker Real Estate is about to launch a new advertising campaign that<br /><br />accentuates the emotional reasons to own a home. The<br /><br />$15 million effort begins on Monday, March 12th!<br /><br />Check out one of the commercials... <a href="http://www.youtube.com/watch?v=k-wlGGsp2Zo">VIDEO</a>Graham Johnsonhttp://www.blogger.com/profile/14963920348939786566noreply@blogger.com0tag:blogger.com,1999:blog-3196192631790173144.post-72395311399325929542012-01-18T13:18:00.000-08:002012-01-18T13:21:08.531-08:00Surge in Housing IndexHeard home builders' shares were up today after new data showed U.S. homebuilder sentiment unexpectedly jumped in January to its highest level in 4.5 YEARS! The PHLX Housing index climbed 3.2%! Bring on 2012! I like what I'm seeing already.Graham Johnsonhttp://www.blogger.com/profile/14963920348939786566noreply@blogger.com0tag:blogger.com,1999:blog-3196192631790173144.post-83180018911836750162012-01-03T11:50:00.000-08:002012-01-03T11:54:44.383-08:00Happy New Year! Cool Article on the Fan; thought I'd ShareFAN of THE FAN ARTICLE...<br /><br />Some great history and pics. Click <a href="http://fanofthefan.com/2012/01/the-fan-area-historic-district/">HERE</a> to viewGraham Johnsonhttp://www.blogger.com/profile/14963920348939786566noreply@blogger.com0tag:blogger.com,1999:blog-3196192631790173144.post-82867268089247044172011-12-01T08:01:00.000-08:002011-12-01T08:04:49.256-08:00Pending Home Sales Jump in October!Walter Molony 202-383-1177 wmolony@realtors.org<br /><br /><br />Pending Home Sales Jump in October<br />Washington, DC, November 30, 2011 <br /><br />Pending home sales rose strongly in October and remain above year-ago levels, according to the National Association of Realtors®.<br /><br />The Pending Home Sales Index,* a forward-looking indicator based on contract signings, surged 10.4 percent to 93.3 in October from 84.5 in September and is 9.2 percent above October 2010 when it stood at 85.5. The data reflects contracts but not closings.<br /><br />Lawrence Yun, NAR chief economist, said improved contract activity is a hopeful sign. “Home sales have been plodding along at a sub-par level while interest rates are hovering at record lows and there is a pent-up demand from buyers who normally would have entered the market in recent years. We hope this is indicates more buyers are taking advantage of the excellent affordability conditions,” he said.<br /><br />“Many consumers are recognizing that home buyers in the past two years have had one of the lowest default rates in history. Moreover, continued inventory declines are another healthy sign for the housing market,” Yun added.<br /><br />The PHSI in the Northeast surged 17.7 percent to 71.3 in October and is 3.4 percent above October 2010. In the Midwest the index jumped 24.1 percent to 88.7 in October and remains 13.2 percent above a year ago. Pending home sales in the South rose 8.6 percent in October to an index of 99.5 and are 9.7 percent higher than October 2010. In the West the index slipped 0.3 percent to 105.5 in October but is 8.1 percent above a year ago.<br /><br />For more on this go <a href="http://www.realtor.org/press_room/news_releases/2011/11/phs_oct?cid=WR12012011:35849&ed_rid=1513279">HERE</a>Graham Johnsonhttp://www.blogger.com/profile/14963920348939786566noreply@blogger.com0tag:blogger.com,1999:blog-3196192631790173144.post-17161441702666823532011-08-25T09:02:00.000-07:002011-08-25T09:02:06.383-07:00Beyond Square Footage<iframe width="480" height="295" src="http://www.youtube.com/embed/SDDFHL7Ux3I?fs=1" frameborder="0" allowFullScreen=""></iframe>Graham Johnsonhttp://www.blogger.com/profile/14963920348939786566noreply@blogger.com0tag:blogger.com,1999:blog-3196192631790173144.post-55009909202449957322011-08-15T13:58:00.000-07:002011-08-15T14:25:50.073-07:00Are Appraisals Holding Us Back?Here's an interesting WSJ article that talks about how appraisals are affecting the sales of homes across the country because the appraisals will come back at a lower price point than the agreed upon purchase price between a buyer and a seller.
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<br />Unfortunately, the appraisers have to stick to strict guidelines given to them by the banks for whom they are doing the appraisal for. They may not have many comparable sales to choose from to support the purchase price and have to make do. Some of these comparable sales may have been foreclosures or short sales; this has really been a big issue nationwide. A foreclosure price may be much less than market value and it brings down the neighborhood's values.
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<br />The bottom line is that we all have to deal with appraisals if a buyer is getting a loan from a bank so the best thing to do is have the listing agent meet the appraiser at the property, provide comparable sales and tell the appraiser everything that is positive about the home and property to make sure the home appraises at the purchase price or higher. Graham Johnsonhttp://www.blogger.com/profile/14963920348939786566noreply@blogger.com0tag:blogger.com,1999:blog-3196192631790173144.post-3029576257436719512011-07-07T10:24:00.001-07:002011-07-08T12:31:13.887-07:00Large Loan Limits on the Herizon; Take Advantage Now!Check out this Wall Street Journal article <a href="http://online.wsj.com/article/SB10001424052702303763404576420101788878440.html?mod=WSJ_RealEstate_LeftTopNews">"Sellers Brace for New Mortgage Caps"</a><br /><br />If you are a buyer looking to borrow between $417,000 and $535,900 to buy your next home, you better hurry. There are reports that anything borrowed over $417,000 will be considered a jumbo loan and the rates will be higher. You can currently borrow up to $536k at the lower rates.Graham Johnsonhttp://www.blogger.com/profile/14963920348939786566noreply@blogger.com0tag:blogger.com,1999:blog-3196192631790173144.post-24345283290152845282011-06-09T13:28:00.000-07:002011-06-09T13:44:05.639-07:00Richmond Association of Realtors Legislative Committee MeetingHey All!<br /><br />Big morning over at the Board of Realtors- We approved the Richmond Association of Realtors legislative package that will be sent to the Virginia Association of Realtors and pushed into the General Assembly next year. One of the items we are pushing for is that condo associations must disclose how many units are in default on their association dues within the first 14 days after a signed contract. The lenders need this information to provide the financing, so we would like to have it available early so buyers don't loose a lot of time if the lender won't except the association's bad blood. The way we want to deal with this is to make it required that the home owners' associations make this information available in the HOA package. Just looking out for the consumer! See all the fun stuff we get to deal with! <br /><br />Graham Johnson ABR,CNS<br />Coldwell Banker Johnson & Thomas<br />504 Libbie Avenue | Richmond | Virginia | 23226<br />O 804.288.4163 | M 804.873.3504 | F 804.285.9328 <br />www.richmondvahomesearch.comGraham Johnsonhttp://www.blogger.com/profile/14963920348939786566noreply@blogger.com0tag:blogger.com,1999:blog-3196192631790173144.post-22705140289046761032011-06-07T08:57:00.000-07:002011-06-07T12:08:12.495-07:00Some Lender Finance InsightHey Everyone!<br /><br />Very interesting stuff! Just had a meeting with one of our preferred lenders, Andy Mahoney at MetLife Home Loans and learned a lot about the underwriting of loans. Wanted to give you (the consumer) some insight on what lenders are dealing with these days. When a buyer or someone who is looking to refinance their home calls a lender to talk about their loan options, they are asked specific questions about their current financial situation and the answers are plugged into an automated system called Desktop Underwriter. This system is specific to Fannie Mae backed loans and will determine what financing options a borrower may have when purchasing a home or lowering their current monthly payment. <br /><br />The Desktop Underwriter will assess the borrower in 6 different categories, like assets and liabilities, then software will help determine what loan products the borrower can qualify for and the basic underwriting is done. The crazy thing is, the system requires so much verification of paperwork and where money is coming from that it makes obtaining a loan take longer. One of the items I found intriguing was if a good faith deposit made on a purchase contract equals or exceeds 2% of the purchase price (if the purchase price of a home was $200,000 then a 2% deposit would be $4,000 and the underwriter program would see that as excessive). The Desktop Underwriter would require the borrower to provide verification of where the money came from, ie. printing out bank statements and faxing/scanning to the lender. If the deposit is 1.99% of purchase price, then the borrower won't have to deal with providing extra paper work and will save time. <br /><br />Another aspect of the meeting that I found interesting was some banks have more restrictive underwriting requirements than stated by Fannie Mae and can reject a loan that may normally be approved through the Desktop Underwriter process. An example of this is the number of credit sources a borrower may have- only one credit source is required by Desktop Underwriter like a car payment, while some banks require at least three sources, like two credit cards and a car payment. This seems odd to me because you would think that the banks would prefer you to not have debt. They want to verify you have debt so that you are proven to make payments on time-crazy! <br /><br />Here's another tidbit that could hurt you or help you depending on the number of debt sources you keep on your balance sheet. If you have 10 months or less left on a car payment, then the bank will not count this debt against you which mean you would be able to borrow more for your mortgage. It's also possible that child support would fall under this category as well. <br /><br />Many folks find this information hard to listen to, but the ins and outs of the underwriting system will either enable you to borrow more money or as Chris Farley from SNL said, "be living in a van, down by the river." If you have any questions or need guidance to make sure you're not hearing the rapids of the James River when you wake up in the morning, give me a call.<br /><br />Graham Johnson ABR,CNS<br />Coldwell Banker Johnson & Thomas<br />504 Libbie Avenue | Richmond | Virginia | 23226<br />O 804.288.4163 | M 804.873.3504 | F 804.285.9328<br />www.RichmondVaHomeSearch.comGraham Johnsonhttp://www.blogger.com/profile/14963920348939786566noreply@blogger.com0tag:blogger.com,1999:blog-3196192631790173144.post-83258284827934433372011-01-25T08:24:00.000-08:002011-01-25T11:07:49.864-08:00Housing Industry Looking Much Brighter in 2011By Julie Schmit, USA TODAY<br /><br /><br />The housing industry is poised to gain strength this year after coming off one of its worst years ever in 2010, economic forecasts and new data released Wednesday show.<br />One cause for optimism: Building permits for new single-family homes rose 5.5% last month, the third consecutive monthly increase and the strongest showing since March, the Commerce Department said.<br /><br />That sets the stage for more home construction later this year as the economy improves, says Celia Chen, economist at Moody's Analytics.<br /><br />"The trend is up," Chen says.<br /><br />But it'll be a slow slog. The previous two years have been the worst on record for home builders in at least 50 years. Nationwide, home prices are down almost 30% from their 2006 peak. A new USA TODAY survey of 44 top economists finds that 48% say average home prices won't hit bottom until sometime this year, and 27% say it'll take longer.<br /><br />The housing market recovery "will be two baby steps forward and one backward," says Joel Naroff, chief economist at Naroff Economic Advisors.<br /><br />The theme of slow improvement is likely to be repeated in December's existing home sales data, to be reported today. A small gain is expected over November, says IHS Global Insight economist Patrick Newport.<br /><br />He also says that December's permit numbers indicate that housing construction "may be set to grow again." But some of December's jump may have been driven by builders trying to get permits ahead of 2011 building code changes in California, New York and Pennsylvania, the Commerce Department said.<br /><br />Newport also cautions that home-building numbers "are still really awful." Housing starts, for example, fell 4.3% in December as cold weather and snow delayed construction. But Newport says other factors will continue to depress housing starts.<br /><br />Those include low prices on foreclosed homes, which makes it hard for builders to turn profits on new homes, and tight financing for home builders and buyers. What's more, the recession sharply reduced the rate of household formation, which means that more families are doubling up in homes vs. each getting their own, Newport says.<br /><br />Moody's doesn't see home construction getting back to more historically normal levels until at least 2012, Chen says. USA TODAY's economist survey indicates that 669,000 new home starts are likely this year, up 15% from 2010.<br /><br />The key is job creation, says Lawrence Yun, chief economist with the National Association of Realtors. When more people are working, and earning higher incomes, home buying increases. IHS expects the economy to add 2.5 million jobs this year and 2.7 million next year.<br /><br />"The (housing) market appears to have hit bottom, and now we're trying to get back to normal," Yun says.Graham Johnsonhttp://www.blogger.com/profile/14963920348939786566noreply@blogger.com0tag:blogger.com,1999:blog-3196192631790173144.post-64667111092291834352011-01-21T07:20:00.000-08:002011-01-21T07:36:37.989-08:00Back to the Blog!Hey Everyone!<br /><br />I have returned to my blog. Tell you the truth, I actually forgot I even had it; I couldn't even remember what blog site I used. Now that I've found it, I intend to use it and hopefully share information that will be helpful, interesting and fun to read. <br /><br />As you may have noticed, my last post was in 2007 (seems like a very long time ago, especially if you are counting in real estate years). The market has been through some changes since then (most people are trying to forget them) but it's important to stay ahead of the market and I feel like we were able to do that; I had my most productive years since 2007 and I'm happy to say I've helped many new clients as well as repeat clients with all their real estate needs. 2010 was a great year, but I am really looking forward to 2011. Our office has already seen a boost in activity since the first of the year, there's more people out looking to buy and sellers are feeling a little more confident. We're excited about the future! I'll be updating you on the Richmond, VA housing market over the next few weeks, so keep checking back in so you stay ahead of the game!<br /><br />Best,<br /><br />GrahamGraham Johnsonhttp://www.blogger.com/profile/14963920348939786566noreply@blogger.com0tag:blogger.com,1999:blog-3196192631790173144.post-60138722489625353852007-10-16T11:39:00.000-07:002007-10-16T11:42:35.882-07:00Health of Richmond Housing MarketBy CHRISTINE CHMURA<br />TIMES-DISPATCH COLUMNIST<br /><br /><br />The downturn in the housing industry is yielding some sobering numbers in most parts of the country.<br />Sales of existing homes are on a six-month slide, says the National Association of Realtors, with the purchase of new homes falling to the lowest level in seven years, reports the U.S. Commerce Department.<br />According to the Case Shiller home price index of 20 major metropolitan areas, home prices fell 3.9 percent over the year ending with July -- the largest drop since the index was created in 1987. New construction starts in August fell to their lowest level in 12 years, and foreclosures are way up, double what they were a year ago.<br />And yet, the real estate climate in Richmond has remained strong.<br />While the area has not been immune to the effects of the sub-prime mortgage implosion, the Richmond region has felt only a modest impact.<br />The Richmond Association of Realtors recently reported that the sale prices of homes in Richmond have increased year over year, despite a dip in sales volume. Also notable is Richmond's foreclosure rate for the first half of 2007, which was the lowest in the country's top 100 metro areas -- down 1 percent compared with the first six months of 2006, according to RealtyTrac.<br />With so many areas of the country feeling the full brunt of the market downturn, why has the real estate climate in Richmond remained relatively bright? At least three factors contribute to the health of our local housing market.<br />Affordability. Home prices in the Richmond region are generally affordable. The median home price in the area is just under $240,000, which means most homeowners in Richmond do not have to borrow heavily against their annual household income to afford their homes. In fact, the mortgage-to-income ratio in the metropolitan area is at a more-than-manageable 4-to-1, which most banks consider ideal.<br />Homeowners from other metropolitan areas have not fared as well.<br />Compare Richmond's housing prices to the likes of San Diego, New York, Boston and other major cities. Homeowners in these large markets have had to borrow heavily against their incomes, putting their mortgage-to-income ratios in a tenuous 7-to-1 range.<br />Affording these hefty mortgages led to some creative financing, including many of the subprime loans at the heart of the mortgage hardships. The first few years of the loan may start at an attractive 4 percent interest rate, but rising rates have meant increases in variable mortgages, which are now topping 7 percent. Suddenly, the homes that over-leveraged families have been living in have become unaffordable.<br />That has not happened on a significant scale in Richmond because of the broad affordability of homes in the local market.<br />Supply. The balance between supply and demand also contributes to the health of the local market. Again, unlike many other large urban centers -- most notably Washington and Miami, where condominium development, in particular, left a colossal glut of units -- the Richmond region has had a more moderate rate of new construction over the past five years.<br />On the condominium front, while there have been some high-profile developments, including Rocketts Landing, the Vistas on the James, and Riverside on the James, most of the building has focused on in-fill and restoration projects, which has kept the pace of development in line with consumer demand.<br />Stability of housing prices. Finally, the price of housing in the Richmond region will likely continue to be stable in the near term and remain on an upward trend.<br />According to the Office of Federal Housing and Enterprise Oversight, quality-adjusted home prices rose 6.9 percent in the Richmond region for the year ending with the second quarter of 2007.<br />That's a consequence of not only the supply-demand balance, but also the strength and diversity of our local economy. The unemployment rate in the region is much lower than that of the nation and employment is growing at a slightly faster pace than the nation.<br />The fact that Richmond is an attractive place to live and work will continue to create housing demand throughout the region.<br />Our highway network, expanded airport, historic character and other factors all will continue to make central Virginia a location where people will want to put down long-term roots.<br />And because Richmond will continue to be a great place to call home, it also will continue to be a wonderful place to buy one, irrespective of what is happening elsewhere.Graham Johnsonhttp://www.blogger.com/profile/14963920348939786566noreply@blogger.com1tag:blogger.com,1999:blog-3196192631790173144.post-65426089496854001242007-09-25T13:43:00.000-07:002007-09-25T13:46:19.885-07:00As national home values fall, the Richmond real estate market remains stready. Our firm, at Coldwell Banker Johnson & Thomas, has had the same number of closed transactions this year as we did at this time last year. There's more inventory available now, but pricing remains a constant. It continues to be a good time to buy and or sell in Richmond, VA.Graham Johnsonhttp://www.blogger.com/profile/14963920348939786566noreply@blogger.com0