Virginia City Highlands Real Estate BLOG

Area Home Market Called Fairly Valued

Check out this article from the RGJ: 

http://news.rgj.com/apps/pbcs.dll/article?AID=2008806050347

Rainbow on Sunday Afternoon

8 Great Reasons Why You Should Buy NOW!

FACT #1: SOME SIX MILLION AMERICANS ARE EXPECTED TO BUY A HOME THIS YEAR. Six million people in the game make up a pretty big game. That’s a level of sales equal to the one we experienced in 1998—by all accounts, a pretty good year.

FACT #2: THERE IS STILL OVER $23 TRILLION OF VALUE IN U.S. HOUSING STOCK. Home ownership continues to be the basis of our wealth in this country.

FACT #3: THE HOUSING MARKET CANNOT HELP BUT GROW. Our country’s tremendous wealth, liquidity, and entrepreneurship will continue to drive our economy. 70-100 million people will be added to our market in the next 40 years.

FACT #4: REAL ESTATE IS CYCLICAL. The biggest fear in good times is that the fair weather won’t last forever—because it doesn’t. But the reality of a cyclical real estate market also provides its brightest hope in bad times—foul weather won’t last forever either. What’s happening today is a market correction, severe in some places, but it’s not the end of the world. As shown by Fact #1, people are still buying and selling homes. The markets will stabilize.

FACT #5: 2008 IS THE BEST YEAR TO BUY A HOME IN 35 YEARS. 1973 was the last time mortgage rates were this low in a buyer’s market. We had rates this low in 2001 and 2002, but those were strong seller’s markets with little inventory. The last two big buyer’s markets, in the early ‘80s and early ‘90s had much higher rates. Low rates and good inventory make 2008 the best year to buy in decades!

FACT #6: FIRST-TIME BUYERS HAVE A REAL ADVANTAGE IN TODAY’S MARKET. First-time buyers can buy at a reduced price without having to sell at one too. Higher limits on lower cost conforming loans also help first-time buyers purchase more home for their money. Today’s ‘starter’ homes can be pretty impressive.

FACT #7: FIRST-TIME BUYERS LOSE MONEY WHILE THEY WAIT ON THE SIDELINES. First, renters typically pay more state and federal income taxes than homeowners with a mortgage deduction. Renters are also losing the wealth they could be accumulating as they pay down their mortgage and as their home increases in value over time (as it surely will). Lastly, renters who wait to buy will lose money if interest rates increase by the time they finally act. Higher payments from higher interest rates represent money buyers could have kept if they had bought earlier. Conversely, if they were willing to spend that amount of money earlier, they could have bought more home.

FACT #8: HOMES SELL WHEN THEY’RE PRICED RIGHT AND SHOW WELL. Buyers are looking for value in today’s market. When sellers make their home’s value obvious, they make a sale—it’s as simple as that.

ANOTHER great statistical report

I created this for a few clients looking for long-term market trends for the Virginia City Highlands - this encompasses all VCH/Ranches Homes, 1 acre lots, and 10 acre lots sold since 2001 to date:

Sold Virginia City Highlands Homes
Year	Number of Homes Sold	Average Sales Price	Median Sales Price	Average Days on Market
2001	27	$213,002	$190,000	104
2002	32	$234,503	$217,850	186
2003	46	$259,923	$254,000	141
2004	43	$343,041	$340,000	101
2005	26	$454,169	$435,000	118
2006	17	$439,808	$399,900	161
2007	20	$479,535	$447,250	159
Sold 1 acre lots in Virginia City Highlands
Year	Number of Lots Sold	Average Sales Price	Median Sales Price	Average Days on Market
2001	25	$  14,224	$  11,500	273
2002	30	$  16,675	$  12,500	383
2003	40	$  20,485	$  15,000	252
2004	89	$  32,335	$  27,000	206
2005	65	$  75,281	$  70,000	113
2006	19	$  81,974	$  66,000	173
2007	7	$  68,129	$  70,000	250
Sold 10 acre lots in Virginia Highland Ranches
Year	Number of Lots Sold	Average Sales Price	Median Sales Price	Average Days on Market
2001	16	$  57,375	$  48,000	448
2002	21	$  56,990	$  51,000	299
2003	26	$  46,527	$  42,000	417
2004	77	$  68,568	$  65,000	297
2005	37	$116,481	$115,000	150
2006	15	$137,600	$140,000	225
2007	10	$155,050	$125,000	243

Isn't it nice to know that historically the Virginia City Highlands has proven to be a SOUND INVESTMENT?

Have a wonderful day!

Leslie

Statistical Market Report 2005-2007

Happy New Year!

I have some great market statistics for the Virginia City Highlands home sales over 2005, 2006, and 2007. These are a MUST READ if you are thinking of buying or selling a home here, or contemplating a land purchase. Keep in mind that 2005 is thought of as the "big boom year" for real estate everywhere.

VIRGINIA CITY HIGHLANDS (AREA 176) HOME SALES

Year	# of Homes Sold	Average Price	Median Price	Days on Market
2005	26	$     454,169	$     435,000	118
2006	17	$     439,808	$     399,900	161
2007	20	$     479,535	$     447,250	159
		*per NNRMLS Data

Some interesting facts:

• Units sold were down 35% from 2005 to 2006, and UP by 15% from 2006 to 2007.
• Average sales price is UP 5% SINCE 2005 (!!!)
• Median sales price is UP 3% SINCE 2005
• Average Days on Market was only 41 days longer in 2007 (159 days) than in 2005 (118 days)
• From 2006 to 2007, Average sales price was UP 8%, and Median sales price UP 11%
• There are only 32 homes available for sale today in VCH as of 1/14/08
• Of those 32 available homes, Average asking price is $545,806; Median asking price $524,000

I have also received an increase in buyer interest for both homes & land over the past month. One home has closed so far this year with another home scheduled to close this week. Savvy buyers are looking at the tremendous values available in the Highlands. All of these numbers tell me that we may be looking at a stronger 2008 despite a looming recession and the subprime mortgage mess. Did you know that mortgage applications rose 32% in the first week of the year?

There are a few REALLY good deals available in the Highlands right now - let me know how I can help you. Feel free to call me at 775-847-4440 or email me at lesliebiederman@yahoo.com 

Have a fantastic week!

Leslie 

Happy Holidays!!!!

Stay tuned for my 2007 real estate market report!

Is Real Estate a Bad Investment?

Good Afternoon -

I wanted to share the following exerpt from another blog I read frequently (Alexis' Blog at Foreclosures.com) - I have seen these stats before but not quite presented like this:

Since World War II, home prices have frequently jumped by 10 or 20 percent in one year. Over some periods prices have been flat for as long as three to five years. There have also been times when certain cities have experienced severe downturns in their local economies causing prices to fall temporarily. During the early 1970s, for example, large layoffs at Boeing drove Seattlehome prices down by 20 to 30 percent. Yet Seattlerecovered and home prices there are eight times higher than they were in 1971.

So before you listen to so-called experts, let's look back from years gone by when their predictions where very wrong (from Gary Eldred, Phd):

·         "The prices of houses seem to have reached a plateau, and there is reasonable expectancy that prices will decline." (Time, December 1, 1947)

·         "The days when you couldn't lose on a house purchase are no longer with us." (House Beautiful, November 1948)

·         "The goal of owning a home seems to be getting beyond the reach of more and more Americans. The typical new house today costs about $28,000." (Business Week, September 4, 1969)

·         "The median price of a home today is approaching $50,000 . . . Housing experts predict that in the future price rises won't be that great." (Nations Business, June 1977)

·         "The era of easy profits in real estate may be drawing to a close." (Money, January 1981)

·         "In California. . . for example, it is not unusual to find families of average means buying $100,000 houses . . . I'm confident prices have passed their peak." (John Wesley English and Gray Emerson Cardiff, The Coming Real Estate Crash, 1980)

·         "If you're looking to buy, be careful. Rising home values are not a sure thing anymore." (Miami Herald, October 25, 1985)

·         "Most economists agree . . . [a home] will become little more than a roof and a tax deduction, certainly not the lucrative investment it was through much of the 1980s." (Money, April 1986)

·         "The baby boomers are all housed now. They are being followed by the baby bust. By 2005, real housing prices will sit 40 percent below where they are today." (Harvard Economist, Gregory Mankiw, "The Baby Boom, the Baby Bust, and the Coming Collapse of Housing Prices," Journal of Regional Economics, Fall, 1989)

·          "Financial planners agree that houses will continue to be a poor in­vestment." (Kiplinger's Personal Financial Magazine, November 1993)

·         "A home is where the bad investment is." (San Francisco Exam­iner, November 17, 1996)

·         "Your house is a roof over your head. It is not an investment." Ev­erything You Know About Money Is Wrong, 2000)

·         "But the real question is, how will [housing prices] look longer term? As I've said in the past, I do not think that housing values will be higher five to ten years from now." (Yale Economist Rob­ert Shiller, quoted in Newsweek, January 27, 2005)

The actual history of home prices and real estate invest­ment returns has differed greatly from those recurring claims of "the end of real estate" as an investment. During the past 60 years, average home prices have multiplied 5, 10, and, in some areas, 20 times or more.

Are you going to listen to the opinions of the media & so-call "experts" about the real estate market? Or are you going to choose to buy real estate during the best buyer's market we've seen in at least 5 years? What are you waiting for?

Leslie

An explanation for my long absence

Good Afternoon,

I apologize for my long hiatus from keeping up with my blog; my husband and I were in the Mayan Riveria in Mexico for 9 days for a wedding, and immediately upon our return I've had the amazing opportunity to participate in a German documentary film over the last 3 1/2 days.

We visit Mexico often, usually Cabo San Lucas where we own vacant land. On this last trip, however, I spoke with a Mexican local about owning property. Did you know that most Mexicans pay cash for land, houses, and construction? For them, credit has been nearly non-existant. This trend is changing and financing is now avaible for some Mexicans, but most continue to pay cash, as that is how it has always been done.

Can you imagine paying CASH for the home you are living in now? It's nice to appreciate the United States of America and how our property ownership has evolved. I think many of us would not be homeowners if the only purchase option were cash; those of us who could pay cash for a home would probably be living in a much more modest home.

The documentary film I participated in was extremely interesting. I was contacted by a filmmaker out of LA who is shooting "100 days across America" - a documentary film of regular American people & their jobs, lifestyles, and families. They chose me for my real estate experience, and enjoyed working with my husband and I as our current lifestyle is different than many Americans. You may or may not know that Andy (my husband) and I build 1 house every 2 years, live in it, then sell it.

The film is being produced for a German audiance to show that all Americans are not necessarily the same as what Hollywood portrays. It is due out next fall in Germany - I'll be anxious to see what the final product looks like!

Thanks for reading - please contact me with any questions or comments! lesliebiederman@yahoo.com

Warmly, Leslie

100% Financing is Still a Reality

What do you REALLY know about financing in today's market?

What if someone asked you RIGHT NOW, "What do you think rates are like right now, and are there still loans with little to no money down out there?" What would you say?

Think about it.

The reality is that yes, for some people it can be more difficult to obtain financing now than it was 2-3 years ago. And, yes, lenders are scrutinizing borrow qualifications more carefully. BUT - DID YOU KNOW FOR A CONVENTIONAL LOAN THERE IS STILL 100% FINANCING OUT THERE TODAY FOR BORROWERS WITH A 620 FICO?

Did you also know that as of Friday, Oct. 12th, a 30 year fixed conforming loan rate was 6.375%? (assumptions - 720 FICO, primary/secondary residence, full doc.). JUMBO Loans were at 6.625% for a 30 year fixed (same assumptions). WOW!  Thanks to Katie Rice at OMG Mortgage for providing this fabulous information - send me an email if you would like Katie's contact info: lesliebiederman@yahoo.com 

I know you know it's a buyer's market - with such great inventory, realistic home prices, and amazing loan rates & programs, who wouldn't want to buy now?

Maybe you're waiting for the "bottom" of the market.

Well, the fact is no one knows where the "bottom" of the market is until it has already passed. What are you waiting for?

Talk with you lender about financing options for you. If you don't know where to start, please contact me and I can connect you with one of the several great lenders I work with.

Make it a great day -
Leslie

Hey, I'm a "Seller" too!

Happy Monday Morning!

Last week was a busy week; I’ve taken some really great listings recently and have a few “preparing” to be ready to be put on the market.

As many of you who know me are probably aware, we finally put our home on the market on October 1^st. I say finally because we had countless “punch-list” items to complete on our owner-builder 2005 home before I considered it “market-ready”.

This is the second primary residence of ours I have listed. The the first primary home I sold was in July of 2005 in

Truckee

,

CA

. It was the absolute height of the market, and at that time we also had “punch-list” items to complete as we had done a substantial remodel on our 1972 ski chalet on 1.5 acres. Despite the fact we had a full price offer in less than 30 days (with a 30 day escrow, no less) I was astounded at the stress I felt about selling our home!

I quickly realized that selling your home can bring out the absolute worst in anyone, no matter what the market conditions.

I also quickly learned what it was like to, well, be a “seller”.

So here we go again! A very different market from July 2005; I certainly have different expectations and things to stress about. But most importantly, I am again a “seller”, and I feel many of the same things all of today's sellers are concerned with.

But what I’ve learned is that this gives me an edge as an agent. “Walking the walk” every step of the way through my own sale, from listing to close, allows me to assess my strategies with my listing clients and truly see through EXPERIENCE what is working and what is not. More importantly, it breaks down the layers of indifference regarding how sellers are feeling in today’s market. What a great professional development opportunity!

I’d love to hear your thoughts. Email me at lesliebiederman@yahoo.com

Have a fabulous day!

Leslie