HARDING REPORT – JULY 2005
*** News from Jefferson County WV Property Market ***
Each month the Harding Report includes 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
1. The Here and Now
2. Jefferson and Berkeley County Market News
3. Realtors view of Market for 2006
4. Developer’s Corner
5. 2005 Profile of Home Buyers and Sellers
6. Calendar of Events
HARDING REPORT – JANUARY 2006
1. The Here and Now
I was in England last week and while I was in the country I checked out the real estate market. Interestingly it is doing very well, ‘buoyant’ they call it. This is after a year or so of a sluggish market.
Perhaps, more interesting is the way real estate is bought and sold in England. When an offer is made there is and accepted, this ‘contract’ is not legally binding in any real sense. For some weeks another buyer can come in to the picture and make a higher offer which can be accepted. This is called ‘gazumping’. A great word for a lousy activity.
Imagine making an offer on a property that you love, and then being kicked out of the contract because of a greedy seller. We should feel fortunate that in the USA this type of craziness does not exist.
2. Jefferson County Real Estate News – 7 out of 10
Last year was one heck of a year for real estate. Here are the figures that show what a year it was. The numbers are astonishing.
The total dollar volume of residential homes sold in Jefferson County in 2003 was $169,922,733. In 2004 it was $230,777,922. In 2005 it was $291,467,039. An increase of 26% over the year.
Equally the average house price increased from $213,571 in 2003, to $248,415 in 2004 to $311,307 in 2005. That is a staggering 25% increase for the entire county.
Put another way. If you owned an average home in Jefferson County the value of your house would have increased by $60,000 over the course of 2005.
Now let’s look at what is going on now in the real estate market. December was a curious month for real estate in Jefferson County. At first sight it showed a very positive increase in average sales price in residential properties. This capped a year of rising house values.
Average Sale Price Residential Homes Jefferson County in 2005
Then, take a look at the number of residential homes on market in December, and for the fourth month in a row the number of homes being listed in Jefferson County is increasing and the number of houses being sold is decreasing.
Residential homes sold Jefferson County in 2005
Residential homes Listed Jefferson County in 2005
What does all this mean? When I speak to my colleagues they optimistically say that ‘things are picking up’ and ‘the market always slows down in the winter’. The realtors who have been around for a few seasons add that they have seen this all before and that things will turn with the Spring Market.
We will see soon enough.
[source data, MRIS]
3. Local Realtors views of real estate in 2006
Greg Didden, Broker, Greg Didden Associates “As long as interest rates are under control, which they are, and money readily available, we will have a sound market, not as good as 2005, but very credible. Always active market in Shepherdstown because so few listings. As long as interest be okay, we will be okay. Interest would need to be above 8% to see a real slow down. Traditionally 8% is cut off point between active market and cut off market.”
Daniel Anderson ERA, “In my opinion, prices will remain flat, not go down. Sellers will have to be aggressive, because of increase in inventory, the market has shifted to more of a buyer’s market, rather than sellers mkt, if sellers are serious about moving their homes, they will have to be more aggressive about quality and price of product especially over $400,000. from a buyer’s standpoint, interest are very good and inventory is high, no longer having to make instant decisions.”
Chip Hensell, Hensell Real Estate “Market going to hold steady, new construction price are going to drop, we have already seem some drop. Resell going to stay around same. Appreciation was large 2005. I think we have a balanced market. If you price it right should be sell a house within 90 to 120 days. This is till good, I remember ten years ago when it was eight months.”
John Orem, Century 21 “I think things are going to level off as to prices, market is going to stay strong, with a whole lot of buyers waiting to purchase.”
Jackie Lewis, Greentree Realty “Who knows what is really going to happen with the market! Things have slowed for sure. Things have become more of a buyer’s market. My prediction is that we will not see any more 20% or 25% increases in appreciation, but we will still see a 5% increase in property prices in the local market.”
4. Developer’s corner
v Progress on 114 unit community was delayed after questions arose whether planning commissioners could make a decision on a property owned by a former board member. The Berkeley County Planning Commission said they were uncertain whether they could vote on the project, since documention indicated that the property was owned by Green Meadows LLC. Former planning commissioner Bob Butler, who left the commission in 2005, is a stakeholder in the company. Lewis Brewer of the West Virginia Ethics Commission said that ethics violations generally occur if a former official comes before the planning board to represent themselves. “the general rule” Brewer explained “is that if you serve on a board that issues permits, you cannot appear before the board for one year.” [MJ 1/5/2006]
v An area homebuilder says a delay on his project just the construction season begins will hurt his bottom line. A group of citizens says the delay was needed to get important evidence considered in a court case aimed at forcing further review of the project. After the Berkeley County Planning Commission approved the 95 unit development on Lost Road, eight area homeowners banded together to challenge the proposal. [MJ 1/5/6]
v It was just one day into the state's 2006 legislative session and officials in both the house and the senate were already grappling with the issue of eminent domain. The topic took center stage for many states last year, after the Supreme Court ruled that governmental agencies could seize properties for private development. Members of the local state delegation spoke out on the matter before the session started, saying that they would like to tighten West Virginia's laws and help protect property rights in the state. Wednesday, officials in the house and senate moved forward on the matter, hearing two legislative proposals on the subject. [MJ 1/15/6]
5. 2005 Profile of Home Buyers and Sellers by National Association of Realtors
The Internet is an increasingly popular tool for home searches, according to the latest annual survey of home buyers and sellers conducted by the National Association of Realtors trade group.
About 77 percent of home buyers reported that they used the Internet to search for a home – a 3 percent increase since 2004, according to the 2005 Profile of Home Buyers and Sellers. In 1995, about 2 percent of home buyers said they used the Internet to search for a home.
About 24 percent of buyers said they first learned about the home they purchased on the Internet, a sharp jump from 15 percent in 2004 and 2 percent in 1997.
In finding a real estate professional, 44 percent of buyers were referred by a friend, neighbor or relative, 11 percent used an agent from a previous transaction, 7 percent found an agent on the Internet, 7 percent met at an open house and 6 percent saw contact information on a "for sale" sign.
The report is based on 7,813 responses to a survey mailed to about 145,000 home buyers and sellers who purchased homes from August 2004 to July 2005.
The 2005 Profile of Home Buyers and Sellers report found that 90 percent of home buyers use a real estate agent in the home-search process, and 71 percent of buyers said yard signs were also an important source of information in home searches.
Although most buyers use an agent to complete the transaction, 36 percent first learn about the home they buy from a real estate agent and 15 percent from yard signs, while five other categories were 7 percent or less.
The typical buyer walked through nine properties, searched eight weeks to buy a home and moved 12 miles from his/her previous residence. The typical seller placed his/her home on the market for four weeks, had lived in it for six years, moved 15 miles to a new residence and previously owned three homes, including the one just sold.
The association announced that FSBO sales accounted for 18 percent of transactions in 1997, and about 13 percent of sellers conducted transactions without the assistance of a real estate professional in 2005. Of those, about 39 percent of the transactions were "closely held" between parties who knew each other in advance, up from 32 percent in 2004, the association reported.
Realtor.com, used by 54 percent of buyers, was the most popular Internet resource, according to the survey, followed by MLS Web sites (50 percent), real estate company sites (38 percent), real estate agent Web sites (31 percent), and local newspaper sites (15 percent).
Married couples make up the largest share of the housing market, accounting for 61 percent of transactions. Single women purchase 21 percent of homes while single men account for 9 percent. Unmarried couples were 7 percent of the market, and 2 percent were listed as other, the Realtor group reported. In 2004, single women were 18 percent of buyers and single men were 8 percent.
The most important factor in choosing an agent was reputation, according to 41 percent of home buyers, followed by an agent's knowledge of the neighborhood (24 percent). In terms of desired qualities in an agent, about 90 percent of buyers rated three categories as very important: knowledge of the purchase process, responsiveness and knowledge of the market. Of buyers who use an agent, 63 percent choose a buyer representative, the Realtor group reported. Satisfaction with real estate agents is very high, with 85 percent of buyers saying they were likely to use the agent again.
Among sellers, 43 percent chose agents based on a referral by a friend, neighbor or relative, and 28 percent used their agent previously. Fifty-seven percent of sellers said reputation was the most important factor in selecting an agent, followed by their knowledge of the neighborhood (17 percent), and 82 percent said they were likely to use the same agent again or recommend to others.
The typical repeat buyer is 46 years old and had a household income of $83,200. They placed a down payment of 21 percent on a home costing $235,000, but 11 percent of repeat buyers paid cash for their home. In all, 94 percent of buyers and sellers believe their home purchase is a good financial investment, the survey found.
The most important factors in choosing a location to purchase a home are neighborhood quality, cited by 68 percent, close to a job or school (43 percent), close to family or friends (36 percent), and the quality of the school district (23 percent).
6. Calendar of Events
1/20/2006: Ride the High Country
Friday, January 20, 2006 7:00 p.m. The Shepherdstown Film Society will kick off its 2006 season by showing its first film of the year, "Ride the High Country" (American, 1962, 93 minutes), in Shepherd University's Reynolds Hall on King Street. Admission will be free. For further information go to www.shepherdstownfilmsociety.org or contact Lisa Welch (304-876-1837, lmwelch@frontiernet.net) or Mina Goodrich (304-876-2159, LarryMina@aol.com).1/21/2006: Music Marathon
NightLife Digest Music Marathon in honor of Randy Cross The NightLife Digest Music Marathon in honor of Randy Cross is set for Saturday, January 21st. The Music Marathon will take place at the Shepherdstown Train Station in Shepherdstown WV from 6pm to midnight and will feature 15 different artists or bands. For more info contact Cheryl Mansley at 304-702-0554 or river_house@earthlink.net or Terry Tucker at 304-876-3552.1/22/2006: Riverhouse Concert - Lester Hirsh
Gifted Guitarist, Lester Hirsh celebrates new CD release with RiverHouse Show at Beans in the Belfry Sunday, January 22, at 7:00PM, the first RiverHouse event of 2006 will take place at Beans in the Belfry coffeehouse in Brunswick, Maryland. RiverHouse Concerts and Beans in the Belfry present Lester Hirsh in concert to celebrate the release of his new CD "River of Strings." To learn more about the RiverHouse Concerts, which are always presented in a family friendly and smoke-free, listening room atmosphere, visit www.RiverHouseConcerts.com.1/25/2006: SHEPHERDSTOWN MEN'S CLUB DINNER
Local attorney Davitt McAteer will be the featured speaker at the Shepherdstown Men's Club's January 25 dinner meeting. McAteer will discuss the efforts of the Morgan's Grove Historic Preservation Association to preserve the Derr's Field property, which is located off Route 480 just north of Shepherdstown's Morgan's Grove Park. For further information contact Peter Smith at 304-876-1139 or pvsmith@frontiernet.net.1/27/2006: The Wild Bunch
Friday, January 27, 2006 7:00 p.m. The Shepherdstown Film Society will show "The Wild Bunch" (American, 1969, 145 minutes) in Shepherd University's Reynolds Hall on King Street. Admission will be free. For further information go to www.shepherdstownfilmsociety.org or contact Lisa Welch (304-876-1837, lmwelch@frontiernet.net) or Mina Goodrich (304-876-2159, LarryMina@aol.com).2/3/2006: Jazz Jubilation Event
JAZZ JUBILATION EVENTS February 3, 2006, "Carnivál - A Night in the Caribbean" Gourmet dinner and auction at the War Memorial Building2/10/2006: Unforgiven
Friday, February 10, 2006 7:00 p.m.: The Shepherdstown Film Society will show "Unforgiven" (American, 1992, 131 minutes) in Shepherd University's Reynolds Hall on King Street. Admission will be free. For further information go to www.shepherdstownfilmsociety.org or contact Lisa Welch (304-876-1837, lmwelch@frontiernet.net) or Mina Goodrich (304-876-2159, LarryMina@aol.com).[http://www.shepherdstownvisitorscenter.com/calendar.asp]
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