HARDING REPOT – NOVEMBER 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
1. Here and now
2. Jefferson County Property News
3. Refuting Housing Bubble Alarmists
4. Lending News
5. Realtor of the Year
6. Do Not Call
7. Upcoming Events
_____________________________________________________________________
HARDING REPORT – NOVEMBER 2004
1. The Here and Now
Things are slowing down in the real estate market. This seems to be the consensus of local real estate agents. Why is this? Maybe it was anticipation around the election. Maybe it is the normal seasonal slow down which typically comes at the end of the year. Maybe it is the threat of increasing interest rates, rising oil prices, growing budget deficit. Who knows. But the long expected slow down is here. Property sales are strong, but the numbers of listings that are appearing on the market particularly in Jefferson County seems to be on the decline. Will this last? I don’t thing so. The underlying forces that build pressure in the local market remain: a) baby-boomers looking for a quieter pace of life near DC, b) young families looking to buy bigger houses of less money from DC area and c) local property owners using the increase in their property values to buy up in the market place. My prediction, a slow down, but the market will pick up in the new year and the market will remain healthy and strong.
2. Jefferson County Property News - September 2004
September saw continued strong sales in local market, the average days on market sharply declined, a good indicator of demand outstripping supply.
|
|
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 % |
|
(Source MRIS)
3. Refuting Housing Bubble Alarmists, Fed Chairman Greenspan Sees Home Owners in Good Financial Shape
Weighing in on the housing bubble debate that has started percolating in the news media again now that interest rates are on the rise, Federal Reserve Chairman Alan Greenspan told America’s Community Bankers last week that reports of speculators bidding up housing prices to the bursting point are wrong.
Appearing at the association’s annual convention on Oct. 19, Greenspan said that the most likely participants in speculative trading in the housing market are investors in single-family rentals and second homes, but in 2003 they accounted for less than 11% of total home mortgage originations.
In his most detailed public comments on housing in some time, the chairman indicated that he was not that worried about a collapse in housing prices, noting that he did expect the appreciation in home values to begin slowing down from the rapid pace of the past few years.
“Overall, while local economies may experience significant speculative price imbalances, a national severe price distortion seems unlikely in the United States, given its size and diversity,” Greenspan said.
The chairman also shared his view that home owners are in a good position to weather any price adjustments that should occur, pointing out that in three-fourths of all outstanding first mortgages home buyers made downpayments of 20% or more and that home owners on average owe on their homes only 45% of what these properties are worth.
“Even though some downpayments are borrowed, it would take a large, and historically most unusual, fall in home prices to wipe out a significant part of home equity,” Greenspan said. “Many of those who purchased their residence more than a year ago have equity buffers in their homes adequate to withstand any price decline other than a very deep one.”
(Source: www.nbnnews.com)
4. Mortgage Rates Rise
Slightly In Reaction To Bond Market
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 5.70 percent, with an average 0.6 points, for the week ending November 4, 2004, up from last week when it averaged 5.64 percent. Last year at this time, the 30-year FRM averaged 5.94 percent.
The average for the 15-year FRM this week is 5.08 percent, with an average 0.6 points, also up from last week when it averaged 5.01 percent. A year ago, the 15-year FRM averaged 5.26 percent.
One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.00 percent this week, with an average 0.6 point, up from last week when it averaged 3.96 percent. At this time last year, the one-year ARM averaged 3.74 percent.
"The slight increase in mortgage rates this week was due in large part to volatility in long-term bond yields," said Frank Nothaft, Freddie Mac chief economist. "The uncertainty in bond yields reflected weakness in the manufacturing industry that was offset by economic reports of strength in the service sector.
"When taken as a whole, this week's economic data point towards both low mortgage rates and a growing economy, both of which are good news for current homeowners looking to refinance and for families hoping to become homeowners."
(Source: Realty Times November 5, 2004)
5. Shepherdstown Realtor made “Realtor of the Year”
Congratulations to Paula Miller of Coldwell Banker in Shepherdstown. Paul, President of local Board of Realtors, was awarded the prestigious West Virginian Realtor of the Year Award last month for her impressive volunteer efforts in the state.
6. Do Not Call List
Are you bugged by tele-marketers. If so you can subscribe to the do not call list. The National Do Not Call Registry gives you a choice about whether to receive telemarketing calls at home. Most telemarketers should not call your number once it has been on the registry for three months. If they do, you can file a complaint at this Website. You can register your home or mobile phone for free. Your registration will be effective for five years. If you wish to add your name to the list go to this web site: www.donotcall.gov/default.aspx
7 Upcoming Events
To
subscribe to the mailing list, simply send a message with the word
'subscribe' in the Subject: field
To: HardingReport-request@tharding.com
Subject: subscribe
To unsubscribe from the mailing list, simply send a message with the word
'unsubscribe' in the Subject: field
To: HardingReport-request@tharding.com
Subject: unsubscribe
If you have news that you want to see passed around, please send by email
to thomas@tharding.com