January 2021 Market Update

Happy New Year!  Welcome to 2021!  I predict this will be yet another exciting year with lots of new challenges, adversity, change, and so much more. The good thing to note is out of these situations come positive outcomes for many if you keep the right mental attitude, stay adaptable, and take care of yourself and those around you. We do not know what lies ahead but keeping strong is as vital as ever.

I have been asked, “what is going to happen with real estate in 2021”?  It depends on whether you are a buyer, seller, renter, landlord, or investor. Inventory levels in Northern Virginia continue to decline. We ended the year with only 1,737 houses for sale in Arlington, Fairfax, Prince William, Loudoun, and Fauquier Counties and all the cities located within this area. As you can imagine, this number is extremely low, historically speaking. This makes purchasing a home extraordinarily difficult for buyers. I am currently working with a buyer where we have bid $30,000 over list, $40,000 over list, and $50,000 over list and on three separate houses, and we have lost out on each of them. They are in the $400,000 – $500,000 price point. The listing agents said they were overwhelmed with offers and calls – one had 17 offers in hand in less than 24 hours. So, you can see the buying environment is uber-competitive. On the flip side, this makes it a great time to sell a home if you are looking to move. Depending on the price point, location and condition, sellers can expect multiple showings as well as multiple contracts with purchasers paying more than the sales price and waiving many, if not all, the contingencies associated with a sale. Renting houses is also a challenge as there is a .4-month supply of homes available, and of those, 40% are single-family or townhouses. Again, this makes being a landlord easier to get results as there is a brisk rental market in Northern Virginia. Most investors like houses that cash flow, and with prices being bid up, many investors are choosing to wait on the sidelines to see if more inventory comes on the market prior to getting into bidding wars. Time will tell if we get more inventory or not, but I believe we will experience low inventory throughout 2021. Call me to discuss your situation in more detail so we can help you make the right decisions.

So, the market that is struggling the most right now in our area is condos. In Arlington County, 84% of the resale inventory is condominiums. The average days on the market for a condo in Arlington is 76 days and the average overall days on the market for all properties in NOVA is 16. Quite a difference, right? The rental market is remarkably similar in all of NOVA – condos are on the market for 126 days, and single-family and townhouses are on the market for 42 days. Be careful when considering an investment in condos right now.

As always, I am happy to speak with you about your situation as each one is different.  Happy New Year, and as always, be safe, make wise decisions when you go in public, so you

August 2020 Market Update

As we enter the dog days of summer and the Month of Miracles…

And prepare for a new version of back-to-school, I hope you and your family are safe, remaining healthy, and are making wise decisions when going out in public.

This month’s update may seem like a broken record, but it is what it is these days. Inventory levels of resales homes in Northern Virginia remain extremely low – 41% below last year’s levels.  Currently, there are only 2,714 houses for sale throughout our area, which includes Arlington, Fairfax, Prince William, Loudoun, and Fauquier Counties, as well as all the cities in between. Even with low inventory levels, sales remain strong as they are up 18% week-over-week from last year and up 17% over the previous 30 days from last year. This result is a .7 month’s supply of houses – last year it was a 1.5-month supply. We are still receiving multiple offers on our listings, and the median days on market are a mere seven days making it an exceptionally strong seller’s market. I believe we are going to be in this market for some time as the discussions I am having with homeowners and agents is that they are not likely to sell or they don’t have a lot of houses coming on the market. This has resulted in the increased prices we are seeing. Year to date, prices are up 6.25% over the same time frame from last year. As I’ve said before, it is an excellent time to be a seller. If you are considering selling, call me to discuss your situation in
more detail.

Buyers do have challenges in today’s low inventory, multiple contract situation market we are in, but we are getting our clients into homes! Our team has exclusive strategy sessions where we share ideas on how we are negotiating to get our clients the home of their dreams. These sessions and strategies have been working, which is great for our clients. In addition to this, interest rates are now below 3%! The expectation is they are going to stay in this range for some time, so there is good news for those looking to become owners or potentially moving up to their “forever” homes. If you are considering looking into the option of purchasing a home, call me to set up a private consultation. I am here to help!

Please remember, even if now is not the right time for you to buy or sell, it may be the perfect time for you to refinance! I can put you in touch with one of our lender partners, so feel free to reach out.

Stay cool in this heatwave we are experiencing. Good luck to all of the students out there! Curious what the Month of Miracles is? Give me a call, I’d love to tell you all about it!

July 2020 Market Update

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As We Begin to Reopen…

As we transition into Phase III with some areas beginning to open up while others remain on restricted status, I encourage you to stay safe, make wise decisions when you go out in public, so you and your family continue to remain healthy.

The result of the pandemic has limited the number of houses coming on to the market here in Northern Virginia. Potential sellers are still concerned about people coming into their homes, which is understandable during this time. The crazy thing is – the pandemic and various Phases we have been in have not slowed down home sales! The inventory level of houses for sale is down 43% from this same week last year, yet sales are up 16.5%. It is critical that we find people looking to sell their home and are comfortable doing so because we are continuing to see multiple contracts on houses throughout Northern Virginia (in most price points). It is not uncommon to receive 15-25 contracts on a house in less than 48 hours when it is priced right, in the right condition and location. Most recently, I heard about a condominium in Falls Church that received 44 contracts – one of our fellow agents lost out on that one just last week.

The onslaught of offers has prices escalating, and as a result, we are experiencing some appraisal issues. I make sure to set the proper expectations for both sellers and buyers if I feel the house will not appraise.  In addition to this, I meet the appraiser at the property to keep them informed on the situation – the number of contracts, prices, the quantity of showings, etc. to try to avoid low appraisals. However, they still are happening in some cases, as some prices just cannot be supported by the appraisers. We have had several people waive the appraisal contingency to secure a home, which has been great for my sellers. We have also had many appraisal waivers from lenders when the borrower has excellent credit, is putting down 20% or more, and the neighborhood can support the pricing. To learn more about this, please call me.

Buyers – get in the game!  We can help, and rates are still amazing. Today’s rates are below 3% on 30-year fixed loans. Additionally, if you aren’t planning to move and you haven’t refinanced, now is a great time. Call me to learn more about this and our strategies to win in multiple contract situations or for a connection to one of my preferred lending partners. I am always here to help!

I hope you had a great 4th of July!!

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