Wednesday, February 9, 2011

On Property Tax Assessments: Some Opinions for the C-VILLE, and Some Links

 C-VILLE, the news and arts weekly,  asked the bubble blog for a take on Charlottesville and Albemarle  2011 Property Tax Assessments as they pertain to the housing market.  

This blog also recently posted on the topic:  Charlottesville and Albemarle Property Tax Assessments Decline Again.  Even So, They Mean Little to Buyers.

While many will say "all real estate is local," others say "not any more," since it was real estate that dragged the entire US (ok, the globe) to the brink of Depression.  So below are some pertinent links referencing topics discussed w/ c-ville

Note: People need houses, and they'll continue to buy.  Prices soared here, however, and are now dropping; how much they're dropping varies by sector.  There's more pain to come in the wider housing market.  This area started its decline later, and will probably end its decline later, too.  Is 2013 the price bottom (a number mentioned to c-ville)?  

When prices drop, buyers have to keep in mind that even small decreases make big differences in mortgage debt.   

Reputable local Realtors now tell clients they should plan to stay in the home 7-10 years to absorb potential loss.  

Reputable Realtors don't focus on low mortgage rates or monthly payments when a client is taking on a 30 year debt.


-The Stock Market keeps rising and a (weak) economic recovery is underway.  But this is disconnected from the housing market. 

-The National Double Dip: home prices declined for the 5th straight month and YoY 5.46%.  Declines are noted in wider markets.

-US Home Prices Reverting to Long-Term Mean? Check out the Chart. 

-Mortgage rates are about to go above 5%.  That's not a bad thing.  Prices come down when rates go up, b/c buyers only have so much to spend. 

For Charlottesville Albemarle Area Real Estate sales:  
Population Increases Steadily, But Homebuying Does Not
CAAR 2010 Market Report
Forecast for the Charlottesville Albemarle Market

66% of last year's buyers in this area were at the "first timer" price point of $300K or less.  These people qualified for the Federal Homebuyer Tax Credit.  Sales from July-December plunged.  Who will buy this year?  

Note: a similar post appeared on Tuesday, Februay 8, but was removed due to technical issues.

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