covid-19

December 2020 Market Update

Leave a comment

As we close out 2020…

A lot has transpired since the last newsletter… a presidential election, Covid-19 outbreaks resulting in additional shutdowns, local jurisdictions reverting back to more restrictions on public gatherings, regional school districts canceling or staggering the return to the classroom, and of course, Thanksgiving. Luckily, we had great weather on Thanksgiving and could eat outside with our “at-risk” family members and maintain social distancing with them throughout the day.

Interest rates remain low on the real estate front; fewer people are re-engaging in forbearance on their mortgages, and houses are still selling – often with multiple offers. All in all, it’s a great market not only in Northern Virginia but around the country. 

As we enter the holiday season, inventory levels remain low, making it difficult for buyers looking to take advantage of great rates. We are only 9% below last year’s level of homes for sale during this same week in time. As I look back, this was the beginning of the inventory shortage in our area. It will be interesting to see if we match our low from this past January when we had just over 1,800 houses for sale. If you are considering relocating, downsizing, or upsizing, call me to see how we can help you get into a home. We have strategies for every market to help people become homeowners.

So, the question I am often asked this time of year is, should we sell our house or wait until the spring. My answer is – it depends. Do you need to sell, or do you want to sell? If you sell, where will you go? If you have to sell and have the next home secured or have living arrangements lined up, sell today. If you are looking to sell to take advantage of the market, we need to talk sooner rather than later. As I previously mentioned, rates are great, purchasers are out in the market looking to buy, we know what other houses are for sale right now versus the springtime, and we know what price we can get for it based upon recent sales. Also, in all likelihood, if the house is in great shape, is in an ideal location, and is priced right, it will sell quickly with little inconvenience to the seller. If you find yourself in this situation, please call me to discuss your situation in more detail.

Until next year, be safe, make wise decisions when going out in public so you remain healthy so you can celebrate the holidays with your loved ones.

October 2020 Market Update

Leave a comment

Real estate continues to be the shining light in the current economic recovery. Buyer demand, housing prices, and new and existing home sales continue to be strong – not only in Northern Virginia but also across the country. Our issue continues to be low inventory levels for the demand that we are presently experiencing. As of today, we have 30% less inventory of homes for sale versus this same time last year. The median days a house stayed on the market in August was just six days, so as you can see, demand is there.

Additionally, prices are up year to date 7.95% over last year’s pricing. The pandemic pushed the housing market back about three months, so what would typically be a slower time of the year is one of our strongest. If you are considering selling, now is an ideal time as we couple all this data with the fact that we have the lowest interest rates in the history of tracking. Contact me to discuss your situation in more detail if you are considering selling.

So, where is the market headed into the future? There is talk of another foreclosure crisis that could lead us into a Great Recession… will this happen? There is a housing bubble, and prices are going to crash… will this happen? My answer is no to both. First, we have low inventory levels and high demand. In October 2006, we had just under 23,000 houses for sale; today, we have 3,014. If properties are foreclosed on by banks and released to the market, they would sell quickly and not put us into a housing crisis. Again, back then, we had a 10-month supply of houses, today we have a .8-month supply of houses – a considerable difference. Back then, people “walked away” from their homes because of price drops and lending practices; this is not going to happen now. Today’s loan products, loan qualifications, and lending guidelines are nowhere like what they were prior to the Great Recession.

Back then, we had exotic loan programs, 100% financing programs, teaser rate loan products, and just bad underwriting guidelines. Homeowners today are more financially stable, which will result in fewer foreclosures. If there is an area that may be in jeopardy, it would be in the Mom and Pop landlord arena.  Basically, people who have one or two investment properties may not be able to “carry” the houses if their tenants are unemployed. This is a small segment, so I don’t see it significantly impacting our market.

Additionally, prices are rising, but not at the rate they were in 2004 – 22% year over year increases, 2005 – 24% price increase year over year and in 2006 it was 23%. As I mentioned, we are at a reasonable pace of 7.95% today; therefore, I do not foresee a crash in prices like we saw in the past. We will see a decline in housing price increases, but not a decline in prices… big difference. Our market is stable and will continue to be so for some time, in my opinion. If you would like to discuss this further, please feel free to call me. 

Enjoy the weather! Have a safe and Happy Halloween!

A Quick Minute of Motivation

Leave a comment

In this motivational series, I’ll highlight how to become a Peak Performer. These are unusual times. Do you have COVID-19 brain? Are you fixated on this pandemic or are you forging forward? Hear more of my thoughts on this in my latest Peak Performer message.

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

FOLLOW MY NEW FACEBOOK PAGE for more motivation, success tips and inspiration: https://www.facebook.com/SuccessSecretsforRealEstate/

May 2020 Market Update

Leave a comment

may blog image

Hopefully, you and your loved ones are staying safe and healthy during these unprecedented times. As previously mentioned, real estate is considered an essential business and as such, we have adapted to new ways of conducting business. Yes, homes are being purchased, sold, and leased – people need shelter. We are lucky as we can help those in need of our services. Due to the different lockdown restrictions, many of my friends across the country and around the world cannot help people with their housing needs. It is strange to me how in some areas, lenders, title companies, home inspectors, appraisers, and other professionals are considered essential, but REALTORS are not.  Not to being political here but how can REALTORS not be deemed essential and the others can be? How can they conduct their business without a REALTOR selling the house prior to needing their services?  Odd to me.

Locally, we are practicing all real estate services albeit on a more limited basis and in a different way.  We are doing virtual showings for buyers who do not want to go out to see homes in person. We are conducting virtual open houses and scheduling appointment only showings during the virtual open houses. Settlements are outside or even drive up style – many with no REALTORS present.  We are also seeing e-closings with no one present in the same room. We are wearing masks, gloves, and booties during showings and bringing disinfectant wipes and hand sanitizer – for everyone’s health and safety. If you are considering buying, selling, or leasing a house, it is still possible and I am willing and able to help, so let’s discuss how this all works in more detail.

Now, let’s talk numbers. Inventory levels remain low – 34% below this same time last year. We currently have only 2,974 houses for sale in all of Northern Virginia. Contracts written the previous 30 days are down 31% versus the same week last year. Lastly, closings the previous 30 days are down 20% from the same time last year. Now, the good news is sales have gone up each of the last four weeks and when houses do come on the market, they sell quickly when priced right and they are in the right condition.  We continue to see multiple contracts in many homes throughout the area as well. We have had many buyers move to the sidelines during the pandemic and some sellers have decided to wait or have pulled their homes off the market until “the coast is clear”. One thing is for certain, we will have a lot of pent up demand for housing when we return to a new normal as we have more buyers on the sidelines than sellers. I envision an even more competitive housing market in the future.

Be safe, make wise decisions when going out in public so you and your family remain healthy.

A Quick Minute of Motivation

Leave a comment

In this motivational series, I’ll highlight how to become a Peak Performer. What is the one thing you can be doing today to ensure your success while we are in the midst of this pandemic? Learn my thoughts on this in my latest motivation minute message.

Need more motivation or help getting our of your rut? Give me a call at 703-652-5777 or email at scottmacdonald@remax.net

FOLLOW MY NEW FACEBOOK PAGE for more motivation, success tips and inspiration: https://www.facebook.com/SuccessSecretsforRealEstate/

And don’t forget to subscribe to my blog at www.scottymacsblog.com

April 2020 Market Update

Leave a comment

Spring-Social-Covers-for-Agents-Facebook-Spring-1024x387

First and foremost, I hope you are being safe and making good decisions when going out in public so you can remain healthy. Please let me know if I can do anything at all for you during the COVID-19 situation we are in today.

I never imagined that I would be writing a blog commentary like this one. It is insane. Quite frankly, I can’t remember a time when I have said crazy or insane so often but what other words can be used to describe what is going on around the world. Things are happening so rapidly with changes day to day, hour to hour and even minute to minute. The government has stepped in with the $2.2 trillion stimulus package to assist monetarily but is it enough? Only time will tell.

I am still asked the popular question, “what is happening in the real estate market” several times a day.  Well, that too changes daily. We have been asked to shift our normal process to include doing virtual showings and virtual open houses, to stop searching for buyers, take listings off the market as well as the complete opposite. Some people need to sell so they are keeping their houses on the market and some buyers need to buy because they recently sold their house or their lease is ending, or a job has relocated them here. Some agents are not showing properties or taking listings and others are as active as ever. My response to all of this is simple, if you are not comfortable selling your house, looking at houses or working in this environment, then please don’t.  We would never want you to be uncomfortable or do something that may put your health at risk.

If you are comfortable with the process, please take the appropriate precautions. As such, in an effort to protect our clients and the public as a whole, we are implementing new protocols when any agent, whether from our company or others, shows our listings or if we show houses to our clients. If you are interested in learning more about these protocols, please feel free to call me, I would be happy to share them with you.

Again, please be safe so you can remain healthy and know I am here to help you in any way I can. I hope you have a very Happy Easter with loved ones, it will be one we never forget.