What real estate bubble?
One of the many things I’ve watched with fascination lately has been the clamoring in the national and local media about the housing market bubble and bust. As an active real estate agent in Roanoke, I haven’t noticed this trend. I’ve heard other agents complain about slowing sales since the end of last summer and the like but it isn’t something I’ve personally noticed. In my opinion, most of the homes still lingering on the market are there because they are priced wrong, have something wrong with them or another nearby home is unattractive to potential buyers.
Rather than just say I think it’s hype in the Roanoke market though, I’d like to present some figures to back it up. Take a look at this chart. The data on this chart was obtained from reputable sources, namely the Virginia Association of REALTORS and the Roanoke Valley Association of REALTORS who in turn collected this data directly from the MLS for the Roanoke Valley. Although not entirely representative of every sale, it is in my opinion the best sample of home sales around.
Disclaimer: I am not a statistician. :)
A few items to point out. The first thing you will note right away is the trend lines do not significantly deviate from each other. The reason? Because the data from year to year in total home sales is so close.
Now, on to a more detailed look. The orange line is data from 2004, the green line from 2005, the yellow line from 2006 and the blue line is data for 2007 through February. Let’s pull a couple of items out to compare and contrast. In December of 2005, there were 412 homes sold in the Roanoke Valley. In December of 2006 there were 381. That’s a difference of 31 homes sold or down about 7 percent. That’s hardly the bust we’ve been hearing about in Roanoke.
But maybe you say sales are always slow in December? Then let’s take a look at the prime selling season. The total home sales in July 2005 was 568. The total a year later in 2006 was 505. That’s a difference of 63 homes. A little more significant but still only down 11 percent.
Well you say…what about currently. Certainly after December home sales must be down. Actually they’re not. Sales are right in line in 2007 where they were in 2006 and higher than they were in all the previous years here.
Where is the dramatic bubble bust in the Roanoke Valley? It doesn’t exist I say. Roanoke hasn’t experienced the dramatic ups or downs the national and local media have been decreeing lately. We’ve remained pretty steady in our home sales from year to year.
So rock on, I’m looking forward to this year’s real estate season. The season? January through December.
3620 Bunker Hill Drive, Roanoke County (Southwest)
UNDER CONTRACT IN 1 DAY!
This great home isn’t going to last. I bring you another foreclosed home for sale at the unbelievable price of $129,900. I completed a market analysis on this property for the seller well above this opening price. They want it to move!
This home is in great condition with beautiful hardwood floors, replacement windows, nicely painted rooms, screened in porch, FOUR bedrooms and two and a half baths! A spacious fenced-in backyard is great for the kids, pets or anyone who just loves a fenced-in yard! This home also features garage space for two cars and a work area with storage as well as attic storage in the garage! A beautiful brick wall trims the driveway.
This foreclosed home is in a southwest Roanoke County neighborhood that is convenient to Electric Road, Grandin Court and Brambleton Avenue. This house isn’t going to be available long at this price so check it out now!
Priced to sell at $129,900. More pictures of this great Southwest Roanoke County home available by clicking link below. Read more
Sold in 7 days!
SOLD
This Roanoke Virginia foreclosed home was listed and sold by me in 7 days! I list and sell many foreclosures in the Roanoke area as well as regular homes for sale. Give me a call (540-397-0014) for my current foreclosure inventory and a sneak preview of foreclosed houses that will be coming to market soon in the Roanoke Valley.
2007 Real Estate Market Predictions from NAR
Unusual weather patterns and problems in the subprime lending marketplace are creating challenges in assessing housing market conditions, but a recovery is likely this year, according to the latest forecast by the NATIONAL ASSOCIATION OF REALTORS®.
The National Association of REALTORS (NAR) today released revised housing projections for the 2007 real estate market. Below are a few highlights. You can view the entire report here.
- Existing median home prices are expected to rise 1.2 percent this year. “Although existing-home sales will be marginally reduced due to subprime lending restrictions, they should be gradually rising this year and next. However, total sales this year will be fairly close to 2006 because last year started high and ended low.”
- NAR predicts the problems with the sub-prime mortgage-lending marketplace will dampen the market but not spill over into prime market lending. (Sub-prime is for borrowers who have less than perfect credit.)
Google moves to Lenoir, NC
The New York Times has published an article highlighting Google’s announcement it will be opening a server farm in the much embattled area of Lenoir, North Carolina. Lenoir much like our own Southside (Danville, Martinsville) has seen a great slide in furniture manufacturing with companies closing their plants the past few years.
Google says it hopes laid-off furniture workers, most of whom never graduated from high school, will be among the 250 employees at two facilities on the 215-acre site, much of which was once a lumberyard.
The real estate market in Lenoir has already received a boost with properties long on the market now under contract as Google continues to build.
