New River Valley and Roanoke Valley Mortgage Market – From Soft to Stable

Margaret Galecki, general manager of Coldwell Banker Townside, REALTORS®

From Margaret Galecki:

At our sales meeting at Coldwell Banker Townside, REALTORS® on Tuesday, 2/3/09, Marianne Lane, New River Valley and Roanoke Valley representative of Coldwell Banker Mortgage, shared good news about the Blacksburg, Virginia and Roanoke, Virginia mortgage market: 

"Lending guidelines have dictated that in order for mortgages to meet agency guidelines, every property upon loan submission must have a designation as to what type of market in which the property is located. The designations run from great (stable), good (soft), not so good (declining), and bad (severely declining)."

"These designations are based on many things and much data, but to nutshell it, it is a clear indicator as to how the properties are retaining their value … i.e. stable market means the values are steady, severely declining means property values are down significantly. In a stable market, for some programs, a minimum down payment of 5% is acceptable where as in a severely declining market the acceptable minimum down payment needs to be at least 10%."

Given the importance of those guidelines, Marianne Lane was happy to announce that the Blacksburg and Roanoke area has been upgraded from "soft" to "stable" in the mortgage market. This means that lenders should have more flexibility in mortgage products they have to offer, particularly with down payment restrictions.

Inventory is high and new listings are popping on the market every day. There have been 500 new listings already this year in the New River Valley and close to 400 of those are new residential listings. Low interest rates in a stable market with high inventory make it a great time to buy homes and investment properties.


From Handshake 2.0:  Margaret Galecki, general manager of Coldwell Banker Townside, REALTORS®, was featured in A New Outlook on Sales Prices by Sarah Cox (.pdf), The Roanoke Times, 10/26/08.


Coldwell Banker Townside, REALTORS® is a full service real estate agency specializing in Blacksburg, Christiansburg, Roanoke, and Salem, Virginia real estate and homes.  We strive to be the best online source for real estate listings in Blacksburg, Christiansburg, Roanoke, Salem and all of the  Roanoke Valley and New River Valley.   Experienced agents are available to provide expert real estate advice and quality customer service.  You're invited to view this week's featured properties, search all area listings, and to read agent tips on the Coldwell Banker Townside, REALTORS® blog, Keepin' It Real Estate.

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