Tag Archives: real estate market

How Many Homes Are For Sale in Blacksburg and Christiansburg?

As Realtors, we get asked a lot “what’s the market like right now?”. I was in Richmond last week, meeting with Virginia Senators and Delegates from our district, and every single one of them asked “how’s the market?”. It can seem disingenuous to always be saying that the real estate market is moving quickly, but as you can see from the graph below of single-family homes in Blacksburg and Christiansburg, as of this post the market is moving quickly. We’re not making this up.

(The graph is interactive, and therefore should update automatically over time; what it’s detailing is how many months worth of supply there is at any given point. If you hover your mouse over a particular point on the graph, you’ll see the exact data representation for that point of the graph.)

Find your own single-family home here.

As you look at this, what you’re seeing is that – since July 2016 – inventory levels in the NRVMLS (New River Valley Multiple Listing Service) have been falling. It took Blacksburg and Christiansburg a few more months to catch up, but beginning in September 2016 they also saw inventory levels starting to fall. In January 2017, inventory in the NRVMLS was at 6.3 months of inventory, in Blacksubrg it was 2.6 months, and in Christiansburg, 3.4 months. We call this the Absorption Rate – how long it would take the market to absorb the available inventory in the market. I’ve written about it before, and it’s something that we at Nest Realty watch pretty closely.

Why does Absorption Rate matter? Well, it gives us a sense of both where the market has been, and where it is now. The general line of thinking is that 6 months of inventory is a relatively balanced market, favoring neither buyers nor sellers – much like the New River Valley real estate market right now. Click Here to see more info. Anything greater than six months typically favors buyers because supply is exceeding demand, and anything less than six months favors sellers because demand is exceeding supply. That’s what we’re seeing in Blacksburg and Christiansburg.

So what’s that mean for buyers and sellers in Blacksburg and Christiansburg right now? It’s a familiar refrain, I’m afraid – sellers who are priced well and show well are going to be in the drivers’ seat for the foreseeable future, and buyers need to be ready and prepared (preapproved) to buy … there isn’t going to be much opportunity to wait and think about it.

Find your nest. It’s free. Truly.

The Nest Report Is Out for 1Q 2012

Literally minutes ago, the 1Q 2012 Nest Report just fell into my grubby little hands.  I haven’t had the chance to dissect it yet, but will do that starting tonight.

A couple of takeaways:

  • Total sales (227) and total volume sold ($38.5 mil) both saw increases of 6.1%, and 7.1%, respectively, in the Blacksburg/Christiansburg/Radford MSA
  • Months of inventory in the whole New River Valley fell 31%
In the meantime, download the whole report here.  More to come on this – thanks to the bean counters back at Nest HQ for putting this together.

The State of the New River Valley Real Estate Market – November 2009

The turkey’s done, it’s time to put up the tree.

But how about a little light reading first?

The State of the New River Valley Real Estate Market – November 2009

You can download the report here.

The State of the New River Valley Real Estate Market – October 2009

The market update for October 2009 in the New River Valley is now available.  You can also read and download the report here.

The State of the New River Valley Real Estate Market – October 2009

Real Estate is Local, ‘Cause Dan Green Says So

Well, I say so as well, but I’ve written about Dan Green before and he’s got a great visual on his blog about how real estate is local.  Every market is a small snapshot of the total picture.  Without each individual market, the picture is incomplete, and I like the visual here.

Home Mosaic

I’m dealing with this situation now – I’m working with clients from Nevada, and we spent the last three weeks negotiating on a great home here in Blacksburg.  This one’s going to be a great home for them, I think, but it took a while for them to work through the fact that their market in Nevada is much, much different than our market here.  When we made the initial offer, they made it as if they were in Nevada and the seller immediately rejected it.  After working through the data, and having subsequent offers consistently rebuffed, they finally got it at a price that we anticipated we’d get it for all along.

It’s a good price, on a great home, in a fantastic neighborhood … and a part of the whole picture, but not reflective of the whole picture.

There’s Blood In The Streets – What Are You Going To Do?

From Time.com comes this report …

Q1
As John D. Rockefeller famously said, "The way to make money is to buy when blood is running in the streets."

And the streets are stained crimson.

Start with stocks. They have been pummeled this year. GDP braked sharply last quarter, and there has been plenty of panic about a recession. The Federal Reserve is slashing short-term interest rates at the fastest clip in decades. But if you stick to your steady, diversified plan while everyone else is retreating, you will be happy years from now. For one thing, Fed rate cuts always lift the economy eventually, and the stock market typically starts responding just as headlines get gloomiest. Sure, the market could fall again before recovering. But the recession may be half over already–or we may avoid one altogether. You just never know.

As for housing, certainly some skepticism is in order. Formerly sizzling markets in Florida, Nevada, Arizona and California probably haven’t seen the worst headlines just yet, though they may well be close. And "jumbo" mortgages, those more than $417,000, are likely to remain artificially high for a few more months while banks work through their credit issues.

But let’s say you are emotionally ready to be a homeowner. You have good credit, plan to stay put for five years and have been waiting for the perfect entry point. It’s time to get serious–before an inevitable rise in interest rates wipes out your advantage. "The thing that will make home prices stop falling is the very same thing that will push mortgage rates higher," says Jim Svinth, chief economist at mortgage firm Lending Tree. So anything you gain by a further drop in prices might be offset by rising financing costs.

Consider a typical home that sells for $218,900. You put down 20% and get a 30-year fixed-rate mortgage at today’s rate of 5.5%. Monthly principal and interest come to $994.31. Let’s say that 12 months from now the same house goes for 10% less, or $197,010. But by then the recession is history and the Fed is jacking up rates to stem inflation. If mortgage costs rise a point, to 6.5%, your monthly payment would be $994.94 and you’d have saved nothing. Meanwhile, home prices might steady and sellers might become less willing to negotiate. And you have spent a year living someplace you’d rather not be.

It’s more complicated if you must sell before you can buy. But that logjam won’t persist forever–and if it appears you’ll be trapped for a few years, try to refinance at today’s lower rates. Risks always seem most acute when the headlines give you ulcers. But that’s exactly when you should think long term–and get off your thumbs.

Buying a home might not be for everyone right now.  Just as some can’t tolerate the ups and downs of the stock market, there are others that can’t stomach the volatility of certain housing markets.  Thanks to VAR President Pat Jensen for the article.

Updated:  NAR President Dick Gaylord gets into the mix.

There’s Blood In The Streets – What Are You Going To Do?

From Time.com comes this report …

Q1
As John D. Rockefeller famously said, "The way to make money is to buy when blood is running in the streets."

And the streets are stained crimson.

Start with stocks. They have been pummeled this year. GDP braked sharply last quarter, and there has been plenty of panic about a recession. The Federal Reserve is slashing short-term interest rates at the fastest clip in decades. But if you stick to your steady, diversified plan while everyone else is retreating, you will be happy years from now. For one thing, Fed rate cuts always lift the economy eventually, and the stock market typically starts responding just as headlines get gloomiest. Sure, the market could fall again before recovering. But the recession may be half over already–or we may avoid one altogether. You just never know.

As for housing, certainly some skepticism is in order. Formerly sizzling markets in Florida, Nevada, Arizona and California probably haven’t seen the worst headlines just yet, though they may well be close. And "jumbo" mortgages, those more than $417,000, are likely to remain artificially high for a few more months while banks work through their credit issues.

But let’s say you are emotionally ready to be a homeowner. You have good credit, plan to stay put for five years and have been waiting for the perfect entry point. It’s time to get serious–before an inevitable rise in interest rates wipes out your advantage. "The thing that will make home prices stop falling is the very same thing that will push mortgage rates higher," says Jim Svinth, chief economist at mortgage firm Lending Tree. So anything you gain by a further drop in prices might be offset by rising financing costs.

Consider a typical home that sells for $218,900. You put down 20% and get a 30-year fixed-rate mortgage at today’s rate of 5.5%. Monthly principal and interest come to $994.31. Let’s say that 12 months from now the same house goes for 10% less, or $197,010. But by then the recession is history and the Fed is jacking up rates to stem inflation. If mortgage costs rise a point, to 6.5%, your monthly payment would be $994.94 and you’d have saved nothing. Meanwhile, home prices might steady and sellers might become less willing to negotiate. And you have spent a year living someplace you’d rather not be.

It’s more complicated if you must sell before you can buy. But that logjam won’t persist forever–and if it appears you’ll be trapped for a few years, try to refinance at today’s lower rates. Risks always seem most acute when the headlines give you ulcers. But that’s exactly when you should think long term–and get off your thumbs.

Buying a home might not be for everyone right now.  Just as some can’t tolerate the ups and downs of the stock market, there are others that can’t stomach the volatility of certain housing markets.  Thanks to VAR President Pat Jensen for the article.

Updated:  NAR President Dick Gaylord gets into the mix.

The Roanoke Times Is Reporting New River Valley Sales Figures!

Home sales fell nationwide ~ 20%.

Home sales fell statewide 14%.

Home sales in the New River Valley INCREASED 10%.

That’s the recap from today’s article in The Roanoke Times.  So nice to see them reporting this.

The 10% figure is higher than what I found in talking with Sarah Cox for last Sunday’s article (I’ve attached the grid for sales figures from 2005-2007 below), but nevertheless it’s positive news.  We are certainly blessed, that’s for sure.   If you’d like to talk further about today’s market, email me, Twitter me, IM me or call me at 540-998-4731.  Yep!  We give you options.

20052007_market_comparison_2