News

November 2019 Market Update

Leave a comment

Fall-Season-REMAX-700x360

Happy Fall!

The change in the weather has not changed the real estate market here in Northern Virginia. We still have a limited supply of houses for sale with lots of demand. Houses are selling quickly when priced right, are in the right condition and in a desirable location.  In all of Northern Virginia (Arlington, Fairfax, Loudoun, Prince William, and Fauquier Counties plus all of the cities in between – Alexandria, Fairfax, Falls Church, Manassas, etc.) the median days on market are just 14. As you can see, properties are selling quickly! The important thing to note however is prices are not drastically increasing with this supply and demand issue and when prices do get “pushed” we are having appraisal issues. It is important to price your house properly so if you are considering selling, please call me to discuss the right pricing strategy for you as each market is different.

During this time of year, people always ask, is now a good time to sell? My answer is – yes – if you need to sell. If there is a situation in your life that dictates the need to sell, list your house now. As I mentioned, we have a strong demand for houses. There is only a 1.5 month’s supply of housing right now. Also, we know that inventory levels are very low, only 3,855 resale houses are for sale today, so we know what the competition is for you. Who knows who will be selling in the spring and how this will affect pricing? We also know that rates, although they increased slightly this week, they are still great.  At this time, a buyer can get a 30-year fixed-rate at under 4% which is phenomenal.

Additionally, houses that are decorated for the holiday season often show better and, in some cases, give the buyer ideas on how they can enjoy the holidays in the house as well. A nice staging technique that can go a long way.  So, again, if you are thinking about selling and want to know if you should wait or list today, please call me.

I hope you have a festive Thanksgiving with your family and friends!

September Market Update

Leave a comment

My whole career I have been asked, “So, how’s the market?” Well, this year and more specifically, in the last few months, I have been asked this even more. It is a loaded question because it depends on whether you are a buyer, a seller, or if you are looking to rent and most importantly where you are looking to do any of these types of transactions.  After we clarify what they want to know, I find it is a lot of curiosity because people love to talk about real estate. It also is of interest to them because in our discussions I hear things like, “I don’t see any for sale signs in my neighborhood”, “when houses go up for sale in my area, they sell right away”, “my friend is looking for a house and they are losing out on multiple contracts” and many other similar comments so there is a genuine interest in “How’s the market”.

Overall, in Northern Virginia, the inventory on active resale homes is down over 31% from last year and units sold are virtually the same which means it is extremely competitive to be a buyer and if you price your house correctly, you can be a very happy seller. As always it is a hyper-local market so let’s take a deeper dive into the counties.

  • Arlington County – the Amazon Effect is keeping inventory low, median days on the market extremely low but interestingly enough, prices are not as high as you would think considering the supply and demand in that area. Closed sales are down as inventory is down and prices are up just 4%. Houses sell quickly – median days on market are just 9!
Statistic Jul YoY MoM
Total Sold Dollar Volume 182,179,254 down5.9% down7.5%
Closed Sales 266 down9.5% -0.4%
Median Sold Price $616,000 up1.3% +9%
Average Sold Price $684,884 up4% -7.2%
Median Days on Market 9 days down75.7% 0%
Average Days on Market 30 days down40% -16.7%
  • Fairfax County – Prices are up Year over Year but down Month over Month which indicates sellers are starting off too high and then making adjustments to get them sold. Days on market for Median Days and average days indicate a strong market but remember, price is critical to getting houses sold today. Closed sales are up Year over Year but are down Month over Month.
Statistic Jul YoY MoM
Total Sold Dollar Volume 1,027,443,963 up7.9% down5.9%
Closed Sales 1,680 up6.5% -4.8%
Median Sold Price $539,900 up2.3% -4.4%
Average Sold Price $612,668 up1.5% -1.1%
Median Days on Market 17 days down56.4% +6.3%
Average Days on Market 33 days down31.3% +6.5%
  • Loudoun County – the market in Loudoun is slowing a little as they are experiencing what other regions are – Year over Year gains but Month over Month declines. Median Days on Market jumped MoM but prices are maintaining in the area.  There is lots of pent up demand in Loudoun – stay tuned on their progress.
Statistic Jul YoY MoM
Total Sold Dollar Volume 408,811,460 up8.4% down2.8%
Closed Sales 747 up1.8% -1.2%
Median Sold Price $512,250 up8.5% -0.5%
Average Sold Price $549,478 up6.9% -1.4%
Median Days on Market 23 days down39.5% +43.8%
Average Days on Market 38 days down34.5% +22.6%
  • Prince William County – consistent with the other counties showing price reductions but an overall strong market as sales are strong and Days on Market are low. Prince William offers the lowest prices so more value!
Statistic Jul YoY MoM
Total Sold Dollar Volume 318,271,988 up5.4% down1.5%
Closed Sales 778 down0.4% 0%
Median Sold Price $385,000 up6.9% -2.5%
Average Sold Price $409,616 up5.9% -1.8%
Median Days on Market 24 days down41.5% +14.3%
Average Days on Market 38 days down19.2% +5.6%

Remember, within the counties, there is also a deeper dive that needs to be taken into consideration in neighborhoods and price points. Hopefully, this gives you a better idea of what is happening in our real estate market in Northern Virginia.  If you have any questions or concerns or if you are looking to make a move, please feel free to call me.

My 2019 Real Estate Predictions

Leave a comment

It’s time for Scott MacDonald’s Annual Top 10 Real Estate Predictions for 2019.

What do you think? Do you agree with these predictions? Do you have any predictions of your own for 2019?

Need more real estate information? Give me a call at 703-652-5777 or email me at scottmacdonald@remax.net

August Market Update

Leave a comment

As Summer Winds Down…

Wow, did July fly by or what? It seems like it just started and it is over already. This month we saw inventory levels stay steady – which is typical for this time of year. The biggest difference is the amount of inventory available in the resale market. We are currently down 12% from this time last year. The good news for sellers is the pace of sales is comparable to last year’s sales – resulting in a 1.9 month supply of homes versus 2.1 last year. Unfortunately, while overall home prices are up, they are not flying off the market as quickly as they did earlier this year. Therefore, patience is required in some selling situations. The buyers in today’s market are taking their time making decisions as they are not feeling compelled to write an offer on the home the first time they view it. The market dynamics have shifted, and sellers need to be aware of this, so they remain patient and not anxious. If you are thinking of selling, let’s get together to discuss your plans in more detail.

Mortgage interest rates are about a half point higher than last year, so this may also be impacting a buyer’s decision-making process. In addition, some houses have higher price tags than what they are worth resulting in some buyer hesitation on making offers as they don’t want to offend the seller. It is a complex transaction and will, in many cases, be someone’s largest asset, so taking the time and analyzing the house, the market and various options available to them can be a good thing for many people. In any of these
situations, I’d be happy to assist in helping find the best location and home
for you when deciding to make a move.

end of summer

As high school sports are back in full swing with their practices starting and the vacation season behind us, let’s see if we don’t have a quick uptick in housing sales before September. As always, time will tell.  Enjoy the hot rainy weather and feel free to call us anytime.

 

July Market Update

Leave a comment

Mid-Year Update18_300364_SummerSocialCovers_FB4

With half of the year over, the real estate market in Northern Virginia has slowed to a normal pace. This has put some sellers and Realtors in a bit of a panic as they felt the brisk market we experienced earlier this year was going to continue for a longer time than it did. It is important to understand that the frenetic pace of sales in February, March and into April was not sustainable nor the norm. We still are experiencing sales, but houses are not selling in hours or days for the most part, but are now selling in weeks, which is what is the expected time frame. Buyers are being more selective and taking their time making decisions which, again, is normal. Keep in mind, there is now more inventory and houses are staying on the market longer which means more choices and time for buyers to make decisions. If you are the seller, please know that this is okay. Your house will sell if it has a compelling price, is in great condition and a in nice location, it just won’t sell as fast as your neighbor’s house did earlier this year. Keep in mind, we are still seeing multiple offers on homes that meet the conditions above.

The real estate market can and does change on a dime. Important factors to pay attention to are: inventory levels in your price range, days on market – both average and median, and prices – if are they up or if are they are down. Every market is different and therefore deserves special attention which we can help you analyze. Experience matters so be sure to reach out to us if you are considering selling.

Interest rates on mortgages increased but have recently eased back down which is good news for buyers. We expect to be in this type of environment through the end of the year – somewhere between 4.5 and 5% for 30 -year fixed loans. These are awesome rates for sure, which is important for buyers to remember. The theory is higher rates will affect first time buyers in lower price points more than move up buyers or even first-time buyers in higher price points, so keep an eye out if you are considering a purchase. We are here to help you determine what loan program is best for you. We are full service!
Have a very Happy 4th of July celebrating with family and friends. Be safe!

December Market Update

Leave a comment

As we enter the holiday season, we continue to see strong sales numbers in the Northern Virginia housing market, even as inventory levels continue to decline. Right now, we have 24% fewer homes for sale than the last week of November in 2016. We are seeing houses that are priced right still receiving multiple contracts, which is unusual for this time of year. Purchasers are ready to buy when they see the right house!

holiday banner

During this time of year, I often get asked, “should I keep my house on the market or take it off”. My advice is simple –  if you need to sell, keep it on. Nicely decorated houses look festive and cozy which attracts many buyers (see the article about holiday staging on the next page). Additionally, buyers who are looking over the holidays are serious buyers; we don’t get many window shoppers this time of the year.  These buyers are looking because they have a real housing need; whether their lease has ended, they are relocating into the area or they are looking to get a great deal as sellers tend to be a little more motivated when listing their homes at this time of the year. If you don’t have a real need to sell, take your house off the market and kick back, relax and enjoy the holidays. Wait until the second or third week of February to put it back on the market. If you or someone you know is thinking about selling or buying a home, please let me know so I can give them advice specific to their situation.

In other news… After much deliberation, the Senate tax bill narrowly passed during the early-morning hours on Saturday December 2nd in a vote of 51-49. The House passed their bill in mid-November so now they need to both come to an agreement to put on the President’s desk for signature. Details of the final plan are still forthcoming, but we do know that you can write off up to $10,000 in property taxes to local and state authorities and the corporate tax rate is staying at 20%. Both tax reform proposals double the standard tax deduction, which may, in many cases, provide a greater benefit to renters than to homeowners. You will be able to write off mortgage interest up to $500,000 which is helpful to many tax payers as well. The question becomes, will homeowners now also have a dis-incentive to sell their home in order to keep their current interest rate deduction of up to $1 million as they will be grand-fathered? If so, this would potentially add new supply constraints. Stay tuned for additional details soon.

I hope that you enjoy the holidays with your family, friends and loved ones!

Sincerely,
Scott 

P.s… there is still time to RSVP to join us for our Annual Breakfast with Santa event this weekend!!
Breakfast with Santa HEADER ONLY

 

October Market Update

Leave a comment

As the summer comes to an end, we’re seeing the real estate market continue to move steadily along. We don’t anticipate any drop off in sales as we enter the fall selling season. We have buyers looking to enter the home buying market – especially first-time buyers. Interest rates remain low, new loan programs are becoming available to help cash strapped purchasers and these opportunities are available in all price points. As I see it, our challenge will continue to be inventory levels, as many home owners are staying in their homes. They are doing so because they are not able to find homes to fit their needs in available move up price points. We are also seeing an increase in the amount of people that are renting their houses since they are gaining equity and have low interest rates/payments which allow them to have positive cash flow.

We also have three types of sellers – those who want to sell, those who need to sell and those who have to sell.  Those who want to sell typically take their houses off the market as we head into the holidays, therefore reducing inventory.  As long as we have houses to sell, the market will stay steady.  Let me know if you have any questions or concerns if you are considering selling – the market conditions just might be in your favor.

Lastly, please keep an eye on what is happening with the President’s Tax Reform – doubling the standard deduction, eliminating state and local tax deductions and only having three tax brackets. Industry professionals predict these may all affect home values by 10%.  Again, if these changes occur, it could affect housing as tax payers who claim mortgage interest deductions may no longer be able to claim this deduction, thereby eliminating the need to buy as a tax plan.  Housing is critical to our economy so implementing this plan could put damper on the economic recovery.  Let’s hope this reform doesn’t pass in its current form.

Halloween-Sold-Sign

Have a happy and safe Halloween!

September Market Update – Special Message

1 Comment

Hi Everyone,

As many of you know, I am extremely passionate about our philanthropic endeavors here at RE/MAX Gateway. We have supported many great causes over the years to include Children’s Miracle Network, The Last Well, Life with Cancer, YouthQuest and many more.

As this latest natural disaster unfolds in Texas, it leaves many of us wondering how we can help. There are many, many different groups/people that will certainly need financial assistance in the coming months, but how does one decide who/how to help?

In a recent article, I read a story about a RE/MAX broker whose entire office has been destroyed by the flood. It got me thinking – imagine if our office was completely wiped out and worse yet, business came to a complete standstill. Or if the entire community we serve was destroyed, our hard-working agents would no longer be able to earn a living and assist others.

Because we are proud members of the RE/MAX family and because our business affects so many in the community with their housing needs, I have decided to organize an effort to help our fellow RE/MAX agents. Our donations will go to a fund to help them clothe and feed their families as they recover from this catastrophic event.

RE/MAX Gateway will donate $25 for every closed transaction by all of our agents in the month of September. Obviously, our contributions will not solve there their problems, but our support will let them know that they are not alone, they are part of a family and that we care.  We are #remaxstrong.

We hope you will join and help make a difference in the lives of the thousands of people whose lives were affected by this storm. Please consider donating to one of the many charities supporting this enormous need.

If you would like to contribute to the RE/MAX Million Dollar Match fundraising campaign, you can do so by clicking here >>> https://www.gofundme.com/weareremax

Have a wonderful September.

Thank you!
www.gateway2realestate.com 

 

August Market Update

Leave a comment

pageA
Wow, what a year we are having in Northern Virginia real estate!

Inventory remains low – 13% below last year’s inventory levels, yet sales year over year are up 7.7%. We still have low interest rates and new loan programs – including grant programs – that are becoming available to help more people buy homes. Additionally, days on market are down to just 32 days which is unreal. As a result, we only have a two-month’s supply of houses in all of Northern Virginia. These factors, coupled with strong demand, has prices up over 2%. This is very moderate growth in housing prices, which is sustainable, so there is no fear of a bubble here. The projections for housing prices in our area are an increase of nearly 6% from June of 2017 to June of 2018.  If you are considering a move, now would be the time!

In July, our sales pace was very comparable to last year sales numbers which were strong – we would like this momentum to continue for our sellers. Historically, August inventory levels have stayed relatively flat, but sales do trend down. Let’s keep an eye out to see if this trend continues.

The one other area to keep an eye on is distressed inventory. Short sales are creeping back into the market. Many people who purchased homes back in 2006 and 2007 did so with interest only loans for 10 years, then they adjust to fully amortized loans over the remaining 20 years. This results in big monthly payment increases. Some of the home values are not back to the original purchase price, so refinancing is not always an option for the owner, hence the increase in short sales. It is a tough situation for many people – let’s see how this impacts the market going forward.

School starts early throughout our region this year, so I hope you are able to take advantage of the few remaining weeks of summer.  As always, if you have any specific questions about your situation and the housing market, please feel free to call me anytime.

703-652-5777 or scottmacdonald@remax.net

June Market Update

Leave a comment

Summer is here!

Wow, that was one of the fastest months ever, in my opinion. Memorial Day weekend came and went in a blink of an eye, so it must be the height of the Sandbridge Beachdynamic spring market! Median days on the market in Northern Virginia is just 8; the average days on the market is 42. So, houses are virtually selling immediately (often with multiple offers) or they are taking a little while longer to sell. Right now, we are seeing very demanding
buyers in the marketplace. If the house is priced a little high or isn’t updated or staged, they are getting a lot of activity in the first week, but then showings fall off tremendously after that time frame.

So, what is fueling all the activity? There are a few factors, first there is a lot of demand – in certain price points, more on this shortly. Second, interest rates are still great – right around 4% for a 30-year fixed mortgage. Some people are taking advantage of adjustable rate mortgages too. Third, we continue to experience a strong local job market with many people relocating into the area for this reason. Fourth, prices are beginning to increase slightly, so many people are wanting to buy while it is still affordable for them to do so. Lastly, people have equity in their homes and can sell today to move into a larger home or closer to the city to reduce their commute. This is all good news for both buyers and sellers!

What is the situation with pricing I mentioned earlier you ask? The under $500,000 price point for houses and townhouses is on fire, representing a great majority of the median days on market. Yet, homes priced in the $650,000 -$800,000 range outside of the beltway are slow which is causing an increase on the average days on the market number. The upper price points (above $800,000) are seeing activity and sales which is always good for our local market.

I expect to see more of this type of activity and sales at least through the 4th of July. So, if you are considering selling or buying a home, please feel free to call me to discuss your situation in more detail.

Now, go enjoy this beautiful weather!  Happy Summer!