Dave Griffith's Blog

Spent the better part of yesterday playing golf on the Arnold Palmer course at this development.  It has got to be one of the best kept secrets on the East Coast.  Bay Creek has only been in existence since the late 1990's and yet they have two world class golf courses built by the two best players to ever play the game of golf, Arnold Palmer and Jack Nicklaus.  The Palmer course opened in 2002 and the Nicklaus course around 2006.  There is hardly a day that you cannot just walk up and tee off.  Tee times are appreciated but really not needed.  If I was going to drive a long distance I would make one just incase a tournament was scheduled.  While you are there take in the scenery.  You will be amazed at what 1800 acres of pristine Eastern Shore real estate has become.  There are the usual housing developments, miles of beach, sports club, golf pro shop and restaurant, world class marina the list goes on and on...Their web site is www.baycreek.com

Check it out....Oh, if you need a playing partner, let me know...shot an 86 yesterday....

Recent Quotes & Excerpts about the Positive Signs in the Real Estate Market:

Real Estate Numbers Looking Better … This Week

Ø Resales of existing homes jumped by 5.5 percent last week -- that was the largest monthly increase since July 2003, in the middle of the housing boom. In the western states, sales were up a record 34.4 percent!

Ø Sales of newly constructed homes also were higher in the latest month, according to the Census Bureau -- up by 2.7 percent on average nationwide, but by an impressive 22.7 percent in the West.

Ø A quarterly survey by the Wall Street Journal released last week found inventories down in a majority of the 18 markets studied.

Ø Across the country, the backlog of unsold but listed houses dropped 1.2 percent to a 9.4 month supply last month, according to the National Association of Realtors^® -- that was down from an 11 month supply the previous month.

Ø One week of good news does not mean we're officially in turnaround mode … But you've got to start connecting the dots. Week after week, month after month, housing and real estate numbers are starting to look better and better.

-- “Real Estate Outlook: Home Sales Rise,” by Kenneth R. Harney, Realty Times, Nov. 5, 2008.

A Sign that Home Buyers on Sidelines Want Back In

Due to falling real estate prices and rising foreclosures on the West Coast, sales of existing homes rose to its highest level in 13 months and highest percentage increase in five years, according to a report issued today by the National Association of Realtors (NAR).

Ø “This is the first time since November 2005 that home sales have been above year-ago levels. Credit tightened at the end of September, but the improvement demonstrates that buyers who’ve been on the sidelines want to get into the market to make a long-term investment in their future.” -- Richard F. Gaylord, NAR President and broker in Long Beach, Calif.

Ø “The sales turnaround which began in California several months ago is broadening now to Colorado, Kansas, Minnesota, Missouri and Rhode Island.” -- Lawrence Yun, NAR chief economist.

-- “Good News For Real Estate? Largest Monthly Home Sale Percentage Increase In 5 Years Reported,” RISMedia, National Association of Realtors^® press release, Oct. 27, 2008.

Existing Home Sales at Highest Levels Since August 2007

Ø “It’s still a great time to buy real estate when you look at the pricing in the marketplace. It is a good time for people to move up, move sideways or even move down.”

Ø “You have to be credit worthy to get a mortgage. You have to show that you pay your bills on time and you have to show that you have some money to put down. There is money out there and the interest rates are great.”

-- Tom Kunz, president & CEO, Century 21, “Good News For Housing?,” Fox Business News (video), Oct. 24, 2008.

Mortgage Rates Fall

Mortgage rates continued riding a seesaw this week, plunging one-third of a percentage point compared with the week before. The benchmark 30-year fixed-rate mortgage fell 33 basis points, to 6.44 percent, according to the Bankrate.com national survey of large lenders. A basis point is one-hundredth of 1 percentage point. The mortgages in this week's survey had an average total of 0.35 discount and origination points.

-- “Mortgage Rates Plunge,” by Holden Lewis, Bankrate.com, Nov. 6,, 2008.

Regional Update: Good News from Markets around the Nation

Colorado

"This is the best buyers' market I've ever seen in 32 years with the industry. Financing is available for those who are qualified. Both government and conventional private sector loans are available.

“As the excess inventory in the lower prices are absorbed, we'll start to see activity in the move up markets. First-time homebuyers that bought six, eight, 10 years ago can now move up and afford a better, nicer, more expensive home. For now, the decline in interest rates and a significant rise in affordability may be enough to offset some of the other negative economic news.”

-- Steve Murray, CEO, Real Trends, “Housing Market Recovering At The Entry Level,” Denver Nine News, Oct. 29, 2008.

Springfield, Mo.

Springfield's housing market has remained largely unaffected by market turbulence and could be heading for an upturn once the national market stabilizes, area Realtors say.

-- “Bargains to be had locally for first-time home buyers,” by Ryan Colvard, News-Leader (Springfield, Missouri), Nov. 2, 2008.

South Florida
Broward and Palm Beach County saw double-digit sales gains from a year ago in sales of existing homes and condos in September, while prices continued to fall. Statewide, sales were up 24 percent, the Florida Association of Realtors said Friday. It marked the first year-over-year increase in the housing market since 2005.

-- “Despite The Ailing Economy, Home Sales In South Florida Were Way Up In September,” by Marcia Heroux Pounds, South Florida Sun-Sentinel, Oct. 25, 2008.

Recent Quotes about the Positive Signs in the Real Estate Market:

Americans Optimistic about Homeownership – AOL/Zogby Poll

Americans still feel optimistic about homeownership, according to a recent survey from AOL Real Estate and Zogby International. More than half of the survey respondents said they believe homeownership is still attainable for most people. Continued messaging about the long-term investment value of a home is taking hold:

Ø 69 percent of those surveyed said they see real estate as a viable investment; 31 percent of participants said they feel their home is worth more today than it was a year ago, and 56 percent do not think their home will be worth less in five years.

Ø The “buyers market” message is taking hold as well. According to the survey, if Americans had to sell today, 50 percent would consider buying another home instead of waiting out the market and renting.

-- “AOL/Zogby Survey: U.S. Trends on Home Values,” AOL Real Estate, April 21, 2008.

Positive Signs for Economy Provide Hope for the Housing Market

It's undeniable that there are some glimmers out there that the underlying economy and financing marketplace, which after all are what support real estate activity, finally may be headed in a positive direction.

Ø The latest Conference Board "Index of Leading Indicators," which is based on a broad survey of industry data and predicts economic activity three to six months down the road, registered its first increase in six months. The index suggests that there should be positive growth underway in the second half of the year, if not sooner.

Ø A new report from the National Bureau of Economic Research which found that industrial production in the U.S. showed an unexpected uptick in March.

-- “Real Estate Outlook: Index Says Positive Growth Underway,” by Kenneth Harney, Realty Times, April 24, 2008.

OFHEO: Home Prices Rise 0.6% in February

U.S. home prices rose 0.6% in February from the prior month, the Office of Federal Housing Enterprise Oversight reported Tuesday. The OFHEO index is based on repeat sales of homes mortgaged through Fannie Mae and Freddie Mac. For February, prices rose a seasonally adjusted 2.2% in New England, and 0.3% in the Pacific region.

-- “U.S. Feb. OFHEO Home Prices Rise 0.6%,” by Ruth Mantell, MarketWatch, April 22, 2008.

Home Affordability Provides Opportunity for First Time Homebuyers

Ø “The home affordability index is at a 58 month high and I think that first-time buyers have noticed this. … Thirty-nine percent of homebuyers now are first-time homebuyers.”

Ø “Interest rates are at historic lows, inventory levels make this a buyer’s market because there’s a lot more to choose from and prices are relatively flat across most of the country.”

-- Jim Gillespie, president and CEO, Coldwell Banker, “Real Estate Realities – Interview with Jim Gillespie,” CNBC (video), April 22, 2008.

“I'm still a believer in the long-term viability of housing as a solid investment if you buy at the right price. This has me thinking that the current shakeout is in fact creating an interesting sweet spot for first-time homebuyers to at least start checking out the market.”

-- Suzie Orman, author and TV host, “This Could be the Time to Buy a House,” Detroit Free Press, April 21, 2008.

It's too early to talk of a trend, but lower house prices and mortgage rates are bringing buyers out of hibernation, at least in some markets. Provided sellers are prepared to cut prices, buyers are willing to bid, real estate agents say. “I'm seeing a lot more young purchasers. The phones are ringing, multiple offers, more showings, just a lot more activity than we were having.”

-- Lauralee Ensign, owner, Fairfield, Calif. real estate office, “Brokers Feel a Pulse in Home Market,”
by Lynn Adler, Reuters, April 16, 2008.

Regional Update: Good News from Markets around the Nation

San Francisco, Calif.

A market dynamics study for single-family dwellings and condominiums in San Francisco shows sale prices continue to climb. In March 2006, the median sale price was $780,000 and it jumped to $810,000 in March 2008. “There is a great deal of inventory in the marketplace, interest rates are low and, as this data clearly indicates, San Francisco continues to be one of the best performing areas in the entire country.”

-- Chuck Colliver, president of the board of directors of the San Francisco Association of REALTORS^®, “Median Sale Price of San Francisco Single-Family Dwellings and Condominiums Continue to Rise,” Business Wire, April 22, 2008.

Brevard County, Fla.

New numbers from the University of Central Florida said Brevard County was getting hit harder than anywhere else in Central Florida by the housing slump, but things could be changing. “It's actually increased over the last couple months. I'm surprised that they're still coming out with reports the housing market's down. We are swamped.”

-- Jason Bucci, a real estate agency sales manager, “Study: Brevard Housing Slump Worst in Central Florida,” News 13, April 21, 2008.

Spokane, Wash.

Fortunately for the local real estate market, the wintry weather has passed, and Spokane's housing industry still enjoys a key benefit: The area's diversified economy is in better shape than are many other parts of the nation. Forbes.com recently named Spokane the country's ninth-best metro area for business and careers. “We're bucking the trend that's around the country.”

-- Rob Higgins of the Spokane Association of Realtors, “Diversified Economy Helps Spokane Home Prices Hold Up,” USA Today, April 22, 2008.

Exciting new happenings all around Cape Charles in the last 2 weeks include Bay Creek, the STIP Park on the Harbor, the old Myers fish dock downtown and the old Fish factory across the harbor.  All of these activities indicate that we are truly in for an interesting spring and summer in the real estate business. 

Bay Creeks owner has sold a 50% interest in the development to a group owned by Sinclair Communications.  This infusion of capital will likely put on the fast track many of the infrastructure plans that have been langushing due to lack of capital or other issues.  Likely amenities that you will see include the Bayside village's carosel, pier, shops and more. 

The STIP Park which stands for Sustainable Technologies Industrial Park is over 100 acres of land between Bay Creek and the Harbor.  4 investors purchased the park from local government who had been unable to attract tenants to the park. Over 15 million dollars has been spent in the park over the years.  The new owners say they have committments from a major Yacht company to locate here as well as various suppliers to the Yacht company. 

A major development firm with hotels all over the world has unveiled plans for over 400 waterfront condos, shops and other commercial activities on the old Meyers property.  This kind of development along main street would make Mason Avenue come alive. 

The ower of the old Fish Factory has unveiled plans for a boat hotel and assorted commercial activities on this site.  It is long overdue and would be a big plus for the hundreds of boaters that come to Cape Charles during the fishing season and have to pull their rigs back to where ever they come from. 

If you would like more details or links to these stories in the local papers and or on the web just email me and I will forward them to you....Thanks, Dave

STATISTICS FOR 2007

Types of properties sold: Number sold:

Single family 174

Lots 66

Commercial 5

Farms/Acreage 6

Townhouse/Condo. 5

Mobile 7

______

Total 263

Co-brokes 121

Over $50 million in sales

406 sides closed

263 properties sold

14 Million Dollar Producers

9 Multi-Million Dollar Producers

Cooperative Sales-46% of total sales

Sides of sales that were $1million and over-7

Coldwell Banker continues to lead the pack on the Eastern Shore.  If you are thinking about listing your home for sale give me a call and lets talk about what we can do for you.  If your home is listed by our competition check out that Cooperative Sales stat....46% of total sales were us selling the competition's listings or them selling ours.  We work hard to sell real estate.  Our agents are dedicated and experienced.  We are looking forward to making 2008 a great year in Real Estate. 

Thanks,

Dave