Browsing Category Affordability

So much to blog …

So little time …I read so much every day and my “blog this!”…  in that vein, here are a few of the things that I have been reading lately that are applicable to the Central Virginia real estate market in at least some form or another.This really deserves its own post: Land use regulations cause housing prices to increase.  “The database and the housing report show that the regulatory obstacles are especially onerous for higher-density and smart growth projects.  We are losing environmentally and we are losing our competitive edge.  We need a drastically different approach if we want to maintain our quality of life.”YIMBY – avoiding the “NIMBY” attitude.We have so much of the “NIMBY” mindset in this region that oftentimes, good development is lost or chooses not to even attempt to come.  What we may have left are those entities that have the time, money, patience and attorneys to outlast public opposition and governmental inefficiencies.If more developers used these tactics, I’ll bet that there would be better developments.Wooing locals is nothing new to developers, though they often received a rubber stamp to build shopping centers and residential complexes as cities grew in the past 50 years.  Today, however, the best prospects are increasingly urban and suburban redevelopment projects, on land often surrounded by residents with the money, the know-how and the will to fight.  As a result, developers must run something akin to a political campaign to get their projects approved — and in the process, give residents much of what they demand.Loudoun County as a proving ground for how not to grow.How Loudoun deals with its growth can teach the rest of the country a great deal,” says James DeFrancia, a trustee of the Urban Land Institute.

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Rent -v- Buy

This past week I have advised one client and one consumer to rent rather than buy.  Buying just didn’t seem to be the right thing to do for either of these people, for a variety of reasons for each.  The consumer said that she works with a Realtor from time to time and each time she sees this person, she is told to “buy, buy, buy,” “you’re wasting your money renting!”  This may be true, but buying is not always “the” solution for everybody….  the reasons not to buy can be as long as the reasons to buy.  As professionals, we damage our credibility by giving stock answers without analyzing each individual situation.  Hopefully, these people will remember my sage advice and candor and recommend me to their friends and colleagues.  If not, I still feel I’ve done the right thing – that’s enough for me.

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Another way to provide affordable housing?

This is ludicrous.Caravati visited Richmond on Wednesday for the third time in two weeks.  He’s pushing an amendment to the City’s Charter that would make developers set aside parts of their projects as low- and moderate-income housing.  Caravati says the city has had some success partnering with developers but now, “they’re just not answering the call there and hopefully this will be another inducement to get them to build more affordable units for those families that can’t quite afford it in a very expensive city.”If the developers “aren’t answering the call” why doesn’t the City go after the employers for not paying their employees more?  Neil Williamson of the Free Enterprise Forum responds:”I consider the other ten buyers the ones that won the lottery and won the opportunity to have the below-market cost house and the other 90 are the ones that subsidized it,” Williamson said.The intent may be good, the method is not.  Penalizing developers may make some “feel good,” but it’s not right.  Nor is it right to penalize those who can legitimately afford homes in the are.  The solution to the affordable housing crisis is out there somewhere.  This is just not it.

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Charlottesville’s 2005 market statistics

Read the whole thing with the caveat that the MLS no longer comprises all transactions, but certainly enough to come to accurate conclusions.A few highlights:The median sales price for the entire market area in 2005 was $255,000 which is $30,000 more than the previous year’s figure.  …The inventory shortage that has plagued our area for the past few years saw great improvement during 2005.  As of Early January, 2006, our database has 1,588 homes actively listed for sale.  That is an increase of over 500 more homes on the market than this time last year.  We can expect around 300 homes to be purchased in January.  That means that there are roughly 5.3 homes available in the entire market area for each buyer.  While this higher inventory will cause a minor slow down the pace of price increases, we are still 20-30% down in inventory compared to the mid-1990’s.The last time we were in a buyer’s market (according to my mother, Betty) was 10 years ago. Might we be on track for another one?  The 30-year fixed rate mortgage rate in 1990 was 10.13; rate in 1995 was 7.93.

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