HARDING REPORT – DECEMBER 2004
*** News from Jefferson County WV Property Market ***
Each month The Harding Report will include the latest news and information from the Jefferson County, West Virginia property market. This is a free service compiled by Thomas Harding, a licensed real estate agent with Greg Didden Associates in Shepherdstown, West Virginia.
For additional local information or any other property enquiry contact:
Thomas Harding
www.tharding.com
304 671 7292 (cell-phone)
304 876 6400 (office)
CONTENTS
HARDING REPORT – DECEMBER 2004
1. Jefferson County Market News
There is much talk of the property market slowing down in Jefferson County. The best way to explore these theories is to take a look at the recent figures (see below). Two things become clear from the data. First, not only is the average days on market increasing October over September 2004, but October 2004 is higher than October 2003. Put another way, houses are taking longer to sell than before. Second, the average sell price is still increasing ’04 over ’03. This therefore is a mixed picture. But it may be the first sign that the market is indeed slowing down.
|
October
|
2004 |
2003 |
% Change |
|
Total Sold Dollar Volume: |
$ 22,610,661 |
$ 16,953,251 |
33.37 % |
|
Average Sold Price: |
$ 266,008 |
$ 214,598 |
23.96 % |
|
Median Sold Price: |
$ 244,900 |
$ 193,500 |
26.56 % |
|
Total Units Sold: |
85 |
79 |
7.59 % |
|
Average Days on Market: |
77 |
59 |
30.51 % |
|
Average List Price for Solds: |
$ 274,959 |
$ 223,064 |
23.26 % |
|
Avg Sale Price as a percentage of Avg List Price: |
96.74 % |
96.20 % |
|
September
|
|
2004 |
2003 |
% Change |
|
Total Sold Dollar Volume: |
$ 23,460,274 |
$ 18,762,982 |
25.03 % |
|
Average Sold Price: |
$ 260,670 |
$ 220,741 |
18.09 % |
|
Median Sold Price: |
$ 238,900 |
$ 195,000 |
22.51 % |
|
Total Units Sold: |
90 |
85 |
5.88 % |
|
Average Days on Market: |
50 |
73 |
-31.51 % |
|
Average List Price for Solds: |
$ 264,096 |
$ 224,297 |
17.74 % |
|
Avg Sale Price as a percentage of Avg List Price: |
98.70 % |
98.41 % |
|
(mris.com)
2. The Annual Percentage Rate is the Key
When shopping for a home mortgage, make sure you ask your lender for the annual percentage rate (APR) as well as the note interest rate, so you compare it accurately to other available mortgage rates. While the interest rate is a determining factor in your monthly payment, the APR is the total finance charge to the amount of your loan, spread over the term of the loan, expressed as a percentage.
After you apply for your mortgage, you will receive a Truth-in-Lending Statement. Homebuyers typically find this document confusing because it states the APR only, and not the note interest rate. The APR reflects the true cost of a mortgage loan as a yearly rate because, in addition to the rate of interest charged on the loan, it includes certain other prepaid finance charges. These charges may include, but are not limited to, origination fees, loan discount points, private mortgage insurance premiums and the estimated interest, prorated from closing date to month end.
By Brian Foss, Branch Sales Manager, Wells Fargo Home Mortgage, 304-261-9240, Equal Housing Lender
3. Signs Of Stronger Economic Growth Push Long-Term Rates Higher
McLEAN, VA --
Freddie Mac (NYSE:FRE) released the results of its Primary Mortgage
Market Survey in which the 30-year fixed-rate mortgage (FRM) averaged 5.81
percent, with an average 0.6 points, for the week ending December 2, 2004,
up from last week when it averaged 5.72 percent. Last year at this time, the
30-year FRM averaged 5.89 percent.
The average for the 15-year FRM this week is 5.23 percent, with an average 0.6 points, up from last week when it averaged 5.15 percent. A year ago, the 15-year FRM averaged 5.22 percent.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.19 percent this week, with an average 0.6 point, unchanged from last week when it averaged 4.19 percent. At this time last year, the one-year ARM averaged 3.77 percent.
"Recent economic indicators came out better than had been anticipated, buoying financial markets this week, and reinvigorating confidence in financial markets that the last three months of the year will post a very positive rate of economic growth," said Frank Nothaft, Freddie Mac vice president and chief economist. "Of course, with the signs of strong growth come fears of inflation and that tends to push up long-term mortgage rates.
"Freddie Mac's survey on house price appreciation released earlier today continues to reflect a robust housing industry. Currently, our forecast is for sales of new and existing homes to top 7.88 million this year, which is an increase of nearly 10 percent over 2003's record sales."
(REaltytimes.com Published: December 3, 2004)
4. Business Park in Jefferson County
Jefferson County Department of Zoning and Engineering is considering a proposal for a 45 lot business park in Bardane. According to the developer’s community impact statement, business on the park would employ more than 1,500 people. The statement also projects that the business would pay more than $1.3 million in property taxes to Jefferson County government each year.
The Jefferson County Development Authority is seeking to develop the 161 acres lying between Bardane Industrial Park and the first phase of the Burr Business Park. All lots in the existing park are either sold or under contract. The new park would be Phase II of the Burr Business Park. One potential problem for the Authority is that the Impact Statement does not specify a sewage treatment system.
The lots would have commercial uses and light and heavy industrial uses. The lots would range from 1.1 to 6.5 acres with an average of three acres. When and if proposal is accepted, it would take 12-15 months for authority to complete work on the park. Full build tout would take 9-10 years.
(Martinsburg Journal 12/2/4)
5. Recognizing Hazardous Defects in Trees
Inspect trees under your responsibility every year. Tree inspections can be done at any time of year, leaf-on or leaf-off. To be thorough, inspect trees after leaf drop in fall, after leaf-out in spring, and routinely after severe storms. Inspect trees carefully and systematically. Examine all parts of the tree, including the roots, root or trunk flare, main stem, branches, and branch unions. Be sure to examine all sides of the tree. Use a pair of binoculars to see branches high off the ground.
Dead wood : Dead wood is “not negotiable”-- dead trees and large dead branches must be removed immediately! Dead trees and branches are unpredictable and can break and fall at any time. Dead wood is often dry and brittle and cannot bend in the wind like a living tree or branch. Dead branches and tree tops that are already broken off (“hangers” or “widow makers”) are especially dangerous!
Cracks : A crack is a deep split through the bark, extending into the wood of the tree. Cracks are extremely dangerous because they indicate that the tree is already failing).
Weak Branch Unions: Weak branch unions are places where branches are not strongly attached to the tree. A weak union occurs when two or more similarly-sized, usually upright branches grow so closely together that bark grows between the branches, inside the union. Weak branch unions also form after a tree or branch is tipped or topped, i.e., when the main stem or a large branch is cut at a right angle to the direction of growth leaving a large branch stub.
Decay: Decaying trees can be prone to failure, but the presence of decay, by itself, does not indicate that the tree is hazardous. Advanced decay, i.e., wood that is soft or crumbly, or a cavity where the wood is missing can create a serious hazard. Evidence of fungal activity including mushrooms, conks, and brackets growing on root flares, stems, or branches are indicators of advanced decay.
Cankers: A canker is a localized area on the stem or branch of a tree, where the bark is sunken or missing. Cankers are caused by wounding or disease. The presence of a canker increases the chance of the stem breaking near the canker. A tree with a canker that encompasses more than half of the tree's circumference may be hazardous even if exposed wood appears sound.
Root Problems: Trees with root problems may blow over in wind storms. They may even fall without warning in summer when burdened with the weight of the tree’s leaves. There are many kinds of root problems to consider, e.g., severing or paving-over roots; raising or lowering the soil grade near the tree; parking or driving vehicles over the roots; or extensive root decay.)
Poor Tree Architecture: Poor architecture is a growth pattern that indicates weakness or structural imbalance. Trees with strange shapes are interesting to look at, but may be structurally defective. Poor architecture often arises after many years of damage from storms, unusual growing conditions, improper pruning, topping, and other damage. A leaning tree may be a hazard. Because not all leaning trees are dangerous, any leaning tree of concern should be examined by a professional arborist.
(United States Dept Agriculture http://www.pueblo.gsa.gov/cic_text/housing/treedefect/hazards.htm)
6. Upcoming Events
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