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about the real estate
06/06/2006 10:26 PM by John M
A reader asks in comment on this old post: I’ve managed to save up roughly $xx,xxx in my bank account, but I’m not sure if I should buy a house or not. Do you think the market is stable or do you think that home prices will decrease by a lot? So — what do you think is going on around here?
TAGGED: real estate
Our little area (Fairmount) still has a lot going on, as what is driving the value isn’t all speculation but having a neighborhood rebuilt. There are 7 good new houses being built and at least one more planned, with a few decent renovations underway as well. There is still a great deal of positive change that will happen here that will add value to the neighborhood. And what s good for this side of Venable has to be good for Unuin Hill…
Yeah, the market does seem to have slowed a bit. I attribute it to rising interest rates and the market being a little flooded, but I’m in computers not real estate. There is just so much available over here(east side of Church Hill) right now, much that has just finished getting renovated, that it’s taking a while to sell. But it does seem that the nicer houses on the nicer blocks are still selling pretty fast. I don’t expect the prices to drop much, if at all, unless something changes. The local sellers seem content to wait out the lull.
The apparent trend is that the average renovated (and new) properties are sitting on the market for 2 to 3 months, then coming down in asking price about 10 grand and then finally selling shortly after the price reduction. I agree that the really great places still seem to turn over quick, though.
Looks like a buyer’s market in the neighborhood to me. Hope that doesn’t discourage the rate of (good) renovations.
It used to be conventional wisdom that, if you could afford a mortgage and planned on staying around a while, then buying a house was at least a break-even proposition within five years. I think that with the DHR’s plan for restoration tax credits you could cut that down quite a bit… if you wanted to jump through those hoops. It’s quite worth it.
As for the “buyer’s market,” I think that might just now be the case, but I have seen many, many downright shoddy “restorations” get sold at premium prices in the past few years. I sincerely hope that those in the market for a “restored” house will recognize quality and drive the market in that direction… for everyone’s sake.
A 900 sq. ft. semi-detached house in the north east part of Church Hill sold last week – as a shell – for $94,500. It was on the market about 2 weeks at $95,000.
To every rule there is an exception. I agree with Josh… whatever happens, I hope the amateurish “restorations” phase out.
*snip* Do you think the market is stable or do you think that home prices will decrease by a lot?*/snip*
Well, speaking as a Realtor, home prices are not expected to drop in the Richmond area, although they are expected to soften. We have a place in the west end that saw over 11% gains last year. This year we expect something like 5-6%. Which is actually good news. That’s a maintainable rate of increase. So (and this isn’t because I’m a real estate guy) I would say that housing is still a good investment. Sure, you could drop that cash in a mutual fund and get better gains, but with the tax incentives of home ownership (or using renters as leverage in an investment property), housing remains a very viable investment option.
And personally speaking, we just bought a property at 26th and Broad. A place we consider both an investment and a second home. And as much as we love the area, we wouldn’t have dumped cash into an area that we thought was going to lose money. 🙂
not that this isn’t a valid question, but this comment is actually some sort of spam.
Check it.
http://www.google.com/search?hs=6KM&hl=en&lr=&client=firefox-a&rls=org.mozilla%3Aen-US%3Aofficial&q=%22my+bank+account%2C+but+I%27m+not+sure+if+I+should+buy+a+house+or+not.+Do+you+think+the+market+is+stable+or+do+you+think+that+home+prices+will+decrease+by+a+lot%3F%22&btnG=Search
That is hilarious. I feel so dirty.
more about this particular spam.