The economy is a fickle thing, driven largely by the Fed’s policies, etc. but psychology plays and equal, if not larger part.Given all of this doom-and-gloom reporting, maybe the surprise is that Americans are nonetheless behaving with their typical optimism, buying goods and services, bidding up the stock market, and creating new businesses. They may repeat to pollsters what they hear on TV, but they are acting on what they see with their own eyes.The parallels between this article and Charlottesville’s condo market are direct and important.But now, families that can easily afford to buy a home are choosing to live in condos, and that says a lot about Americans’ changing lifestyles. Between 1970 and 2000, the percentage of nuclear families among U.S. households declined to 24% from 40%, according to the Census Bureau. Some studies show that the number of households without children will increase in the next 10 years, while those with children will fall slightly.Home builders say the rise of the condo also reflects a desire among buyers to live downtown, with easy access to restaurants and entertainment, and no tough daily commute or time-consuming domestic upkeep.
Date Archives August 2005
Are they kidding?
The words gall and audacity don’t seem to be appropriate.Referencing the Kelo case.From the Fairfield Weekly – With language seemingly lifted straight from The Goonies , NLDC’s lawyers wrote, “We know your clients did not expect to live in city-owned property for free, or rent out that property and pocket the profits, if they ultimately lost the case.” They warned that “this problem will only get worse with the passage of time,” and that the city was prepared to sue for the money if need be.VirginiaPropertyRights.org -If you haven’t already, I urge you to sign our petition now to make sure this can’t happen in Virginia. If you have already signed, please tell a friend about it. Freedom is slipping away fast from us, we can’t allow this kind of abuse of power to go unanswered.
Evening Links
I love this quote; it is particularly descriptive of much of the bubble talk we read every day.He uses statistics as a drunken man uses lampposts–for support rather than for illumination. – Andre LangIn this vein – From Business Week’s Hot Property blogThis is huge – RE/MAX is going to aggregate ALL the MLS’s.
C’Ville’s bubble
My short answer is “maybe.”There has been an awful lot of discussion here and elsewhere about the possibility of a real estate bubble locally and nationwide…. What happens in California (they have 17 of the top 20 “extremely overvalued” markets) does not have a direct, nor a necessarily indirect effect on the Charlottesville/Central VA market. What their data can do is give us guidance of sorts.When California Association of Realtors starts issuing an Amendment titled “Market Conditions Advisory,” which states, “In light of the real estate market’s cyclical nature it is important that buyers understand the potential for little or no appreciation in value, or the actual loss in value, of the property they purchase.”… One would expect our market to be more valuable than many markets, especially in light of the recent news that we are the Number One Best Place to Live (again, ranked by USA Today).
Cooling.
When America’s housing boom finally ends, don’t expect a loud pop.”It’s not going to be a big dramatic event,” says William Apgar, senior scholar at Harvard University’s Joint Center for Housing Studies.From today’s WSJ.I wish I could do a poll like the snapshot I took from their site (see below) to gauge the Charlottesville area’s public perception. In this situation, I believe that perception is going to be as, if not more important than reality.
Expanding our horizons
If nothing else, hopefully this proposed road will broaden the typically myopic Charlottesville/Albemarle discussion of transportation. From today’s DP – Recently retired Del. Mitchell Van Yahres and two other prominent Charlottesville residents are promoting an environmentally friendly parkway to parallel U.S. 29 to the west.Ruckersville Parkway, a “very conceptual†idea according to proponent Gary Okerlund, would repurpose parts of Route 606, Earlysville Road and Hydraulic Road to become a 35- to 40-mph, two-lane alternative to hectic U.S. 29 in Albemarle and Greene counties….Step one (or even step 1a or 1b) really ought to be speaking to those who actually represent Greene. This could be a free road, and if it proposed by outsiders/neighboring legislators, the reaction will be negative.But one elected body has been left out of the process: the Greene County Board of Supervisors.