Month: November 2010

It’s the most wonderful time of the year…

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For glogl 
 
Well, well, well what do we have in store for the real estate market now through the end of the year in Northern Virginia?  I believe we are in for a surprise this year.  We are going to finish the year stronger than many expect.

Typically, this is a slower time of year but we haven’t seen as big a slowdown as we normally do during the holidays.  The trends show us houses are coming off the market rapidly both through sales and being withdrawn from the market due to it being “that time of year”.  But interest rates are at all time lows and buyers are out in full force!  In speaking with other professionals – the ones who have been working hard the last few months networking, giving great advice along the way about our market and are communicating with their clients are reaping big rewards.  We have one agent, Becky Green, who sold 3 houses this past week – a holiday week no less.   Toll Brothers Amberlea in South Riding had 25 visitors on Saturday and we wrote a contract early Sunday morning but I am sure they saw similar activity later in the day – 2 visitors were in the model when we left.  An agent in our office wrote a contract on a town house in Herndon and there were 3 others competing for the same house.  So much for the slow down around the holidays!

So, where are these buyers coming from?  Many are relocation buyers coming into the area and others are relocation buyers from the spring who decided to rent.  They wanted to get familiar with the market, our area and wanted to wait and see what was going to happen with the economy and housing sector and now, their leases are ending and they are ready to buy.

In a recent Fannie Mae survey, the following information was revealed by the participants:

  • People trust homeownership as an investment over buying stocks (66% to 16%). The stock market has seen its’ tremendous fluctuations and people have no control over which direction the stock will fluctuate.  In contrast, upgrading the home adds value and paying down your mortgage increases the equity in the homes plus the many other advantages of home ownership.  In addition, they also trust owning a home over investing in a 401k, buying an insurance annuity or investing in a mutual fund. People find investing in a home safer than any other investment except putting their money into a savings account.
  • 96% of homeowners feel that homeownership has been a positive experience – what’s not to like?  Stability, pride in ownership, sense of community and many other factors contribute to this positive experience.   17% of renters think renting has been a positive experience which means 83% feel it is negative or neutral. This is a huge disparity which reflects now is a good time to buy!

Additional findings in the report that we need to make note of in the report include:

  • 62% of renters have long-term ownership aspirations – we just mentioned this above in the buyer pool in the market today.  Many more will enter the market as their leases come to an end – stay tuned.
  • Americans continue to expect home rental prices to rise more than home prices over the next year. Americans believe that it is more likely that home rental prices will go up rather than go down by a ratio of almost 4 to 1.  Right now, we have a 1.7 month supply of rentals and we see rental rates increasing on a year over year basis in our property management group.
  • An overwhelming majority of mortgage borrowers remain satisfied with their loans and 3 in 4 Americans are confident they would receive the necessary information to choose the right loan.  The teaser rate products, no income no asset loans, and balloon products are out of the market along with many others that created our housing crisis that we are climbing out of today.
  • Non-financial considerations, such as accessing good education and safety, continue to trump financial reasons for owning a home. With the top three reasons (education, safety, and more space) all increasing in percentages since the last report.  People realize how important “home” and one that is theirs is in life.
  • Since the time of purchase, 59% of mortgage borrowers have seen their home value increase.  In many markets, prices have stabilized or increased throughout Northern Virginia.  It is time to get into the market before the price escalations begin to soar.
  • In conclusion, the Fannie Mae survey showed that homeownership is still considered by the vast majority as a good investment (66%) and a positive experience (96%) and, most importantly to those sitting on the fence, 68% think it is a good time for people to buy a home – and you should!

Based upon the information above, it is critical, now more than ever to reach out to a true real estate professional and get the facts on the market and don’t rely on the national media for your real estate information.  Who knows, Santa may bring you a nice surprise for Christmas!  Get it?  Got it?  Good!

Now, go buy something!

Top 10 Reasons to Sell!

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Well, it’s that time of year and we receive the same question from a lot of people about whether or not to sell now.  The answer is yes and here the top 10 reasons why:

  1. Inventory levels go down every year around the holidays because not everyone “needs” to sell so there is less competition.
  2. People will usually decorate their homes for the holidays putting them in a nicely staged condition and it can help attract buyers.
  3. We don’t know who the competition will be after the holidays.
  4. We don’t know how many properties will be for sale in the spring.
  5. We know where the competition is priced today and we don’t know where they will be priced at later or if the prices will be deeply discounted.
  6. The buyers looking this time of the year are typically not tire kickers – they are real buyers.
  7. We see houses that are priced right, are in the right condition and are staged properly are attracting multiple offers recently.
  8. Interest rates are fantastic – near record lows make now an attractive time to buy.
  9. We are seeing many buyers in the market today and we don’t know if they will be around after the New Year.
  10. If you are looking to buy – only serious sellers are on the market, who need to sell, so strike while the iron is hot!

If you are considering selling your house, please give us a call.  We would be happy to discuss with you how we can help and what you can expect when selling.  Get it?  Got it?  Good!

Where’d Chicken Little go?

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Ok chicken little, the sky didn’t fall which is a good thing for us in real estate.  The moratorium has come and gone – the freeze was lifted – and foreclosures continue to happen.  Reports indicate that foreclosures were up 65% the third quarter of this year in year over year reporting.  As much as foreclosures are a part of the market now and will be for some time, they are just trickling onto the market here locally.  Currently, they account for only 494 of the 7,979 houses for sale in Northern Virginia.  As these distressed properties are such a low percentage, they are having little to no impact on housing values in our area.  As a matter of fact, Fannie Mae is spending thousands of dollars renovating homes to maximize their values to get a better return than they received previously when they foreclosed on houses. 

We have heard of people waiting for prices to drop or they are anticipating a wave of foreclosures to crash onto our market.  Up to this point we have not seen any indication of either of these phenomenons.  Historically speaking, foreclosure trends show that the foreclosure rate slows down this time of year until just after the New Year.  There has also been a slight uptick in rates which may continue into this week with the elections, unemployment numbers being reported and the Fed meets to discuss the economy.  If they continue their trend, it means waiting to buy can cost you money.  Inventory levels have stabilized, prices have stabilized and rates are fantastic and we see no reason why now isn’t the ideal time to buy a home in Northern Virginia.  We have the fundamentals in place that transcend markets – the government, cultural activities, diversity, great schools, low unemployment, access to the mountains and the ocean plus so much more.  If you are looking for long term stability in the housing sector, look no further than Northern Virginia.  Get it?  Got it?  Good!

Now, go buy something!