Richmond VA Condos

  • A Must Read for Condo Buyers
  • 804.767.7566
  • The Sarah Jarvis Team
  • Big Projects
    • Ginter Place
    • GreenGate
    • Libbie Mill
    • Monument Square
    • Rocketts Landing
    • Riverside On The James
    • Vistas on the James
    • West Broad Village
  • By Neighborhood
    • Downtown Richmond
    • Fan and Museum District
    • Church Hill
    • Jackson Ward and Carver
    • Manchester
    • West End and Glen Allen
  • Around The Colleges
    • Near VCU
    • Near VCU Medical (MCV)
    • Near VUU
  • One-Click Searches
  • Blog
  • Stats
  • Rentals

Government: “We Forgive You?”

For a brief time last week, there was some buzz on Capital Hill about Fannie Mae (and maybe Freddie Mac) essentially forgiving the negative equity in the real estate mortgage market. The idea has apparently perished for now, but they were basically saying something to the effect of if you owe $500,000 on a $400,000 home (that obviously was worth more a few years ago when you bought it), then you now owe $400,000.

I think it is an interesting concept that warrants discussion.

I am not smart enough to analyze the macroeconomic effects on the entire economy and whether bailing out more entities, institutions or debt-laden consumers with tax payer money is a good or bad idea. I will leave that to the folks who do these types of studies for a living. What I am saying, is in the micro, the idea has merit and this is why.

Right now, I would make the argument that there is the largest percentage of people in the US who are ‘incorrectly housed’ than ever before. I am pretty sure that ‘incorrectly housed’ is not an official statistic tracked by some agency (can you imagine the Incorrectly Housed Americans Department or I.H.A.D.) but if it was, it would track those people who are in houses that are either too small, too large, in the wrong location or designed in a way that no longer fits a lifestyle. This demographic of IHAD’s is larger than ever before.

While we have been living through the effects of an economic meltdown during which almost all economic activity ceased, other facets of life didn’t stop changing. Aging has not stopped…families expanding has not….children growing and leaving has not….children moving BACK home has not….moving to another city for a job has not….in other words, life has not stopped.

The inputs that define whether or not a home is efficient for your stage of life do not change because the value of the home has changed but the ability to do anything about it has. Living inefficiently has its own costs on the market that no one speaks about. Heating and cooling extra space and longer commutes are obvious negatives but what about the stresses caused on young couples living in condominiums or townhomes who now have children and a need for green spaces? It is a real issue and I can name countless examples.

The common thread in all cases is that the market is frozen in place and people are stuck. No amount of stimulus can fix it until you fix debt/equity ratio. As a seller, EVEN if you are able to break even on the sale of your home, the mortgage products that exist now to buy the next one are much more restrictive. Selling your house is a battle, but finding the down payment to go to the next home is even more challenging, and consequently, people stay in place.

Unlocking the ability to allow all of us match our houses to our situation will balance the market better than 3.75% interest rates. Interest rates, while low, do not erase debt or create down payments. Until those two factors are back in balance, we will not see balance in our market.

What do you think?

For more information, see Richmond VA Condos.

Related Posts

Filed Under: Market Updates

804.767.7566


How Do I Schedule a Showing or Find Out More?

I am Kendall C. Kendall, Client Care Coordinator for the team. I am a licensed Realtor and it's my job to answer questions and schedule showings for the properties shown on our sites. Here's our call policy.
kendall@richmondvamls.net

Working with Buyers

Working With Buyers

I am Sarah Jarvis, Broker at One South and I work with our buyers. I bring 20+ years of experience to our Buyers Advocacy program and take great pride in helping our clients understand the RVA marketplace.
sarah@richmondvamls.net

What You Should Know About Condo Financing

Price Point Searches

  • Condos, less than $125,000
  • Condos between $125k and $200k
  • Condos between $200k and $300k
  • Condos between $300k and $500k
  • Condos over $500k

# Bedroom Searches

  • Condos with 1-bedroom
  • Condos with 2-bedrooms
  • Condos with 3-bedrooms
  • Condos with 4 or more bedrooms

By Neighborhood

  • Condos In Downtown Richmond
  • Condos In The Fan/Museum District
  • Condos In Manchester
  • Condos In Jackson Ward and Carver
  • Condos In Church Hill
  • Condos in West End, Short Pump & Glen Allen

Big Projects

  • Ginter Place
  • GreenGate
  • Libbie Mill
  • Monument Square
  • Rocketts Landing
  • Riverside on the James
  • Vistas on the James
  • West Broad Village

Find Us

One South Square Logo

2314 West Main Street
Richmond, VA 23220
804.767.7566
kendall@richmondvamls.net

Accessibility
Copyright

Lending

Richmond Home Loans Thru Southern Trust Mortgage

Chris Owens
Branch Manager / Loan Officer
NMLS# 211853
804.909.0184
email Southern Trust Mortgage

Tweets

  • It’s wise to follow mortgage rates, but don’t get to caught up nitpicking the rates, because once your locked in th… https://t.co/qLAjQT1QNf March 10, 2023 7:39 pm
  • Are you viewing a housing asset correct? ⁣ #rvahousing #rvarealtor #rvarealtors #rvahousinginsights… https://t.co/gJtuSo6Wkh March 10, 2023 7:35 pm
  • Your miscalculation could cost you. ⁣ #rvahousing #rvarealtor #rvarealtors #rvahousinginsights #onesouthrealtygroup… https://t.co/RqwoqwXaKH March 10, 2023 7:08 pm
  • Don’t lose money in real estate. Work with a trusted agent to build wealth through real estate. ⁣ #rvahousing… https://t.co/IRTHSroHBL March 10, 2023 7:05 pm
Our Network of Sites: RichmondVaNewHomes.net, RichmondVaMLS.net, RichmondLuxuryNeighborhoods.com,
RichmondFanRealEstate.net, RichmondVaMLSSearch.net, ChesapeakeBayMLS.com
Housekeeping: RVA Condos sitemap, Listings sitemap

All of the information displayed here is deemed to be gathered from reliable sources but no warranties, either express of implied, are made part of this site. Additionally, the IDX Feed for listing information may contain descriptions of properties not represented by One South Realty, its agents or staff and any violations or misrepresentations are the sole responsibility of the listing brokerage of the subject property in violation.


Equal Opportunity Realtor Disclaimer

I agree to provide equal professional service without regard to the race, color, religion, sex, handicap, familial status, national origin or sexual orientation of any prospective client, customer, or of the residents of any community. Any request from a home seller, landlord, or buyer to act in a discriminatory manner will not be fulfilled.