Cindy's Blog

With the holidays looming just around the corner, the time is here when it seems like the market would come to a screeching halt, but that is never totally true, even in this market. While things have certainly slowed down, homes are still selling, and buyers are still buying, just not as quickly.

In a study just completed for the Richmond Association of Realtors by Lisa Fowler and John McClain of the George Mason University School of Public Policy, they showed that the return on the average investment in housing in the Richmond market over the last 30 years has provided a better return than that from the stock market.

Their research shows that the average homeowner in the Richmond Metropolitan Area stays in their home for around nine years. During that thirty years mentioned earlier, there has been no 9 year period in which the average home price has declined. In fact, on average, the market has increased by 6 percent annually.

So, obviously, this sounds great, but we are here, now, right? What does this mean for you, if you're thinking of buying your first home, thinking of moving up, wanting to downsize, or just wanting a change? The most important thing to remember is that if you are buying a home that you are planning to live in (meaning that you're not going to flip it) the chance of you losing money is very slim.

We have been in a market for so long that has had people think that they could buy a home, own it for a year, with just a little bit of paint or simple, cheap cosmetic refreshers, and sell it for a hefty profit that now that things are not so hot, everyone seems to think that the natural "opposite" of that is that nothing will sell, and that they are sure to lose money if they try.

What is actually true is the same thing that holds true for antiques, art, or so many other things that are often where we invest large sums of money. Buying a home actually bears more resemblance to these purchases than it does investing in the stock market, in a "normal" market like that that we are in now. Buy what you love, do what you need to do, whether you are being transferred, downsizing, or just buying the terrific home that you've always had your eye on and is suddenly on the market. If you are planning to stay there for a while, it is very unlikely that you will lose money. You may not make a killing, but if that is the only goal in your move, you may want to stay put.

On the other end of the spectrum, now truly is a great time to get involved in the rental market if you are inclined to become a landlord. There really are some terrific deals out there to be had, and after a couple of years of renting, you are sure to come out ahead on your investment. (No need to listen to tapes or watch infomercials, I promise!)

If you are so inclined, give me a call- I work with quite alot of investors, and can help you determine whether or not you want to make that step, and walk you through the process of what needs to be done to get you to your goals.

On a greener note, just a reminder that Wednesday of next week (November 28) is  LivingGreen at the Science Museum- brought to you by the James River Green Building Council and HomeStyle. There will be all sorts of information regarding green building and greening your current home, plus vendors with all sorts of "green" goods. The trade show and exhibition is open to the public and runs from 2-8 pm on Thursday. Sure to be a fun and informative time!