Overstreet & Company, REALTORS® Comprehensive real estate services for Blacksburg, Virginia & the surrounding area
"The significant  increase in home sales this quarter was experienced throughout the state. Every
region saw significant increases in sales. Notably, the Roanoke/Lynchburg/Blacksburg area, the Central Valley and Southside experienced very high sales after a slower first quarter. In addition, the year-over-year increases in these areas are among the highest in the state..."
"Time on market decreased 16% from the second quarter of 2012 to an average of 71 days in the
second quarter of 2013 (10% fewer days on the market than the second quarter of 2010). In June, homes stayed on the market an average of 64 days. The market is moving homes extremely fast, faster than it has since August of 2006..."
  See the entire report below!
As an extremely conservative, nationally renowned financial adviser, Dave Ramsey has faced a wide variety of scathing criticism for his unwavering simplistic stance on the path to financial success: eliminate debt; establish sound savings; purchase a home ONLY when buyers are fully prepared and the home of their choice is fully affordable (by his somewhat strict definition).

Ramsey, from Tennessee, is a former real estate broker. He who was forced to file bankruptcy when lenders called in his short-term debt after he accumulated more than $4 million in real estate investments by the age of 26. In a manner of speaking, it was shortly after this that Dave was reborn with a simple message: don't borrow and don't spend more than you make.

So when Dave Ramsey says it's a great time to purchase a home - it's quite a strong statement.

In a January 2011 article on www.DaveRamsey.com, he wrote:
    "What an exciting time to be a homebuyer! There's a huge selection, prices are down, and mortgage interest rates have never been lower. Oddly enough, though, house hunters haven't been buying—mostly because they're afraid the market hasn't hit bottom.
    But most analysts agree that home values will only drop a few more percentage points in most areas—if that. So there's no need to wait for the "official" bottom. If you find a home you're in love with, however, don't get lured into a bidding war. There will be plenty more homes coming on the market at a good price."

In the New River Valley, the volume of listed property for sale (inventory) is still high, but has begun to fall, ever so slightly. (See the graph to the right) From Jan. 1, 2010 - March 6, 2010, 174 new residential listings went active in the Blacksburg alone. During the same time frame, this year, 121 new residential listings have went active - 53 fewer than last year.

The average sold price of listed Blacksburg homes sold is remarkably low. From Jan. 1, 2010 - March 6, 2010, the average selling price of residential listings was $304,727. During the same time frame, this year, the average sold price is $224,775.

Onto the next factor in housing market crystal ball readings, interest rates are continuing their upward creep. (See the graph to the right). While they have fallen in recent weeks due to volatility in the Middle East (among other factors), the Mortgage Bankers Association still predicts rates will rise throughout this year and next. Specifically that while the average national rate for a 30-year mortgage is currently about 5 percent, by the end of this year, the rate will climb to 5.8 percent and then above 6 percent in 2012.

Mr. Ramsey's right: it IS a great time to buy a house, a golden time for home buyers. Inventory is high; prices are low; mortgage interest rates are VERY low. But as the poet Robert Frost once wrote, "Nothing gold can stay.' Vicki and I are here to help  - contact us for help in locating the Blacksburg property that meets your real estate goals.

The real estate market in Blacksburg is kicking off 2011 with a bang, comparatively speaking. The end of 2010 was perhaps a hint of sales to come as existing home sales jumped an astounding 12.3% in December – historically one of the slowest home-buying months of the year. The leap put existing home sales at their highest level since the homebuyer tax credit expired in June, according to Stuart Hoffman, an economist with PNC Financial Services Group.

And the upward ascension hasn’t stalled. During December 2010 in Montgomery County, twenty-two properties listed for sale went under contract. In the first month of this year, that number soared to fifty-four.

Perhaps the two largest driving forces behind the increase in sales are:
1.)  Pent-up demand from the 2010 market when many buyers waited to see if the federal government would re-institute homebuyer tax credits and
2.)  Historically low interest rates that have begun to slowly rise.

We think the trend will continue through 2011, producing a modest - perhaps five or six percent - increase in home sales over the course of the year.

But while sales are on the upswing, prices will likely not be - especially for moderately-priced homes.

The foreclosure blight has finally settled into southwestern Virginia, quite a bit behind much of the state. The inventory of lender-owned homes continued to increase over the last year in the Roanoke area, though foreclosures in the state's northern tier have begun to decrease.

With foreclosures adding to supply, demand is not likely to increase enough in 2011 to create much of a rise in Blacksburg-area home prices. As of the third quarter of 2010, the inner tier of the northern Virginia area is the only part of the state to have posted an increase in home prices.

But increasing sales is good news for all contemplating throwing their hat into the Blacksburg area real estate ring. As faith in the market grows, more houses will go on the market and more potential homebuyers will begin their search in order to beat rising interest rates.

Contact the team of Overstreet & Powell to assist you in navigating the search to fulfill your Blacksburg area real estate needs, whether you're on the buying or selling side of the table.

    Real Estate section.

    Trends in listed property inventory according to the NRV MLS.

    From www.forecasts.org


    Total sales in the Roanoke-Lynchburg-Blacksburg area in 2010, according to the Virginia Association of REALTORS

    Mortgage rate trends from HSH.com

    Inventory of lender-owned homes as a percentages of all mortgages
    From the Virginia Housing Authority
    Annual Metropolitan Area Home Price Change 3rd Qtr 2009 to 3rd Qtr 2010