This year has been a hard year for all of us.  Theses are uncertain times.  The real estate market is down, the stock market is volatile, foreclosures are on the rise, unemployment is on the rise, and many people can barely afford to make ends meet.  And, for all of these reasons, I am giving even more to charity this year.  Have I had a blockbuster year that allows me to be so giving?  No.  Like many real estate agents, I have felt the recession.  So, why am I giving even more to charity this holiday season?  It’s because I know how much it means to have others give during the holidays. 

Many people are surprised to learn that I grew up very poor.  My mother raised me and my brothers and sister on $16,000 a year.  My first holiday memory is the winter of 1983.  My father had just left our family to pursue, well, to pursue not being in our family anymore.  Even though I was only 4 years old, I knew my mom was barely holding it together.  It was a very cold winter and we couldn’t afford oil for the furnace.  We went to every church service that was offered that year.  Even at churches we didn’t belong to, just to keep warm.  We went “shopping” alot because the stores were warm.  We never bought anything.  We all slept in the same bed to keep warm.  A few days before Christmas my mom sat us down and let us know that there was no money for Christmas.  She said that we shouldn’t be sad because their were other families much worse off than us and that Santa needed to visit those families this year; he would not be visiting us.  I remember crying that night, but not because I wouldn’t be getting anything from Santa, but because my mom wouldn’t be getting anything, and maybe a little because Santa was letting our family down.

On Christmas Eve my mom bundled us up to go to yet another Christmas service.  On our way home from the midnight service we stopped by a Christmas tree lot and picked out a free tree that had been tossed by the side of the road.  It had not found it’s Christmas tree destiny and would have been picked up by the garbage trucks in 2 days.  We decorated the tree at 1a.m. Christmas morning.  And then, we went to bed.  My mom woke up a few hours later and went outside.  What she found makes her cry to this day.  She found presents for her children.  Someone had dropped off presents for all of us on our side porch.  Santa had visited us after all. 

My mom let me know years later that the church we had visited on Christmas Eve found out what our family was going through.  They scrambled to collect presents for us.  I got a used Barbie’s Dream House that year.  It was pink and it was dirty, but it is the best present I have ever received.  Later Christmas morning a woman came by our house and told us to pack our bags, we would be staying at her house for the winter.  She was a member of the church that had given us the gifts.  She didn’t have the money to buy us presents, but she had a home that had heat, and she was more than willing to open it up to us.  My mom and her, Ann, are best friends to this day.  I owe who I am today to Ann, and my mom for taking the help. 

So, why am I giving even more to charity during a recession?  I am giving because there is a child out there that needs to believe there is a Santa and that things are going to get better.  It’s the season for giving and I will always give.  It’s not too late.  Many families are in need this year.  Please contact your local homeless shelter, Salvation Army, or other charitable organization and find out what you can do to keep the holiday spirit alive.  You have 3 more days to influence someone’s life.

Well, there’s good news and there’s bad news.  I’ll give you the good news first, it’s a buyer’s market… well, sort of.  What?  That wasn’t good news to everyone?  Okay, then, you’re gonna love the bad news.  It’s gonna be a buyer’s market for a while longer.  I say that it is ”sort of” a buyer’s market because banks are in control, not buyers.  Foreclosures are monopolizing the housing inventory, and will monopolize the inventory for a few more years.  This means that the banks that have had to repossess these homes are deciding who gets to purchase the houses.  Banks have gotten smarter over the last year when it comes to selling a foreclosure.  They will now price them very low, in hopes of getting multiple offers, and then start bidding wars between prospective purchasers.  I’ve actually seen foreclosure homes bid up $75,000 over list price!  So, although prices are low, interest rates are low, and more buyers can afford home ownership right now, it’s not quite a buyer’s market.  But don’t get me wrong, banks are not profitting off of these foreclosures!  They are still loosing money hand over fist.  Here’s the market breakdown: 

Fredericksburg City:

• 168 days on market – this is 63 days more than in November 2007
• Sellers received, on average, 84.74% of their list price when the home sold
• There is 15.56 months of inventory on the market
• 11 homes sold in November 2008 – this is 1 less than in November 2007
• The most popular price range was under $100,000 (6 homes sold for under $100,000) 
• The average sold price was $191,618, compared to $327,694 in November of 2007

Orange County

• 141 days on market – this is 28 days less than in November 2007
• Sellers received, on average, 88.02% of their list price when the home sold
• There is 21.3 months of inventory on the market
• 21 homes sold in November 2008 – this is 6 less than in November 2007
• The most popular price range was $200,000-$249,999
• The average sold price was $231,493, compared to $307,441 in November 2007

Spotsylvania County

• 120 days on market – this is 28 less than November 2007
• Sellers received, on average, 87.96% of their list price when the home sold
• There is 11.36 months inventory on the market
• 104 homes sold in November 2008 – this is 19 more than in November 2007
• The most popular price range was $200,000-$249,999
• The average sold price was $239,348, compared to $322,877 in November 2007

Stafford County

• 115 days on market – this is 23 less than November 2007
• Sellers received, on average, 88.13% of their list price when the home sold
• There is 9.13 months inventory on the market
• 117 homes sold in November 2008 – this is 28 more than in November 2007
• The most popular price range was $200,000-$249,999
• The average sold price was $240,598, compared to $348,270 in November 2007

Prince William County

• 107 days on market – this is 25 less than November 2007
• Sellers received, on average, 89.82% of their list price when the home sold
• There is 5.4 months inventory on the market
• 726 homes sold in November 2008 – this is 391 more than in November 2007!
• The most popular price range was $300,000-$399,999
• The average sold price was $221,504, compared to $350,589 in November 2007

What does this all mean for the non-delinquent seller trying to sell their home traditionally, i.e. no bank involvement?  It means you are going to be competing with foreclosures for some time to come.  You will have to be extremely marketable and priced very well!  Traditional sellers also better be prepared to pay a buyer’s closing costs.  Traditional Sellers need to keep in mind that they are not “giving their homes away” in this market.  If they are walking away from a closing table with a $1 they are fairing far better than most homeowners!  The only people “giving their house away” are short sale sellers and banks.  Those types of sellers are actually loosing money, going into the negative, on what is owed on the loan.  Traditional sellers may not like what this market will allow them to sell their home for, but that doesn’t mean they are “giving away” their home to a buyer.  One day, not anytime soon, traditional sellers will get to bask in the sun again and reap the rewards of little work for high equity.  But right now, our market has some more correcting to do.