Very Low Inventory + Lots of Buyers = Good News for Sellers! click to play
Thinking about selling your home? Contact Scott MacDonald 702-652-5777 for more information and a personal assessment to meet your real estate goals.
Now is a great time to buy and sell a home in Northern Virginia!
RE/MAX Gateway
Wow, 2015 flew by in a blink of an eye and I am sure 2016 will as well. As 
I mentioned in my previous market updates, we pretty much enjoyed a stable market for housing in 2015. I expect things to pick up in 2016 because of all the recent activity. Many of our agents have been working through the holidays with clients and I too have been meeting with both buyers and sellers looking to make moves in 2016 – more so than any other recent December. So buckle up, the market will be moving forward in a positive direction.
A few areas in the mortgage arena for us to keep our eyes on are rising interest rates and loan products. Now that the Fed has raised their rate, mortgage interest rates are now just above 4%. Still great, don’t get me wrong, but they are just a tad higher than where they have been most of 2015. The other interesting thing to watch with mortgages are the new programs coming into the market. Fannie Mae now has a low down payment loan to compete with FHA loans. These loans compete because the down payment can be a gift so buyers don’t need to have their own money saved for the down payment. Additionally, I have read there are potentially no down payment loans coming back into the market soon. These two loan products could help Millennial buyers enter the market sooner as they have not been able to save for their down payments due to high rents, student loan debt and lower paying jobs. This is important because Millenials will be the largest home buying demographic once they can afford to buy.
Something else to watch is as sales continue to rise, prices too will follow – hopefully at a sustainable rate and not like the San Francisco market or our market from 2002-2006. Home ownership is extremely important to wealth building and consistent growth in prices help this happen for many people. We don’t need an escalating housing price market like we had in the past, as no one wins in the end. I would expect a 3-5% increase in housing overall in Northern Virginia. Some areas will see more, others less, so please ask me about your home’s value if you are interested.
As always, if you or someone you know is looking to buy or sell a home, I am here to help so please feel free to call me. Here is to making 2016 one of your best years ever! Happy New Year!
RE/MAX Gateway 4090B Lafayette Center Drive, Chantilly, VA 20151 Offices strategically located throughout Northern Virginia.
The beginning of the year always brings about hope, excitement and anticipation of good things ahead and 2015 is no different. We believe that this year will be a much better year for real estate in Northern Virginia. There are many reasons for this optimism – great rates, new financing programs, lower inventory levels, positive consumer confidence and pent-up demand.
Let’s review each of these areas.
One other area to see home ownership grow in 2015 and beyond is the Millennial homebuyers. They believe in home ownership as a wealth building opportunity and an overwhelming majority of them will be buying in the next 5 years. Lastly, rising rental rates will push more people into ownership as a cost savings measure.
All of these positive influences in our region will strengthen our housing market in 2015 and beyond. As we see our local economy continuing to rebound after 4 years of stagnant growth, this will have a positive impact on housing. To see what this means to you, please feel free to contact me.
Cheers in the New Year!
RE/MAX Gateway
We currently have a 1.8 month supply of houses on the market in Northern Virginia.
Interest rates remain low so buyers are buying homes and jobs in the DC Metro area continue to be created so people are looking for housing in our market. We expect this trend to continue for the next several months. Sellers are in the proverbial driver seat if they do the right things to their property before putting it on the market. If you are considering selling your house, read more below…
As I mentioned, right now our biggest issue is finding houses to sell. We currently have 3,850 properties for sale in all of Northern Virginia – down from a high of the last year when we had 6,005 in the second week of October. That is a 36% decrease in houses for sale in just 3 months. We expect more properties to come on the market as the ice and snow melt, as well as, into the spring market but we have a lot of people looking so I don’t see that it will have a huge impact in regards to our inventory level moving forward.
The low inventory situation has resulted in multiple contracts on properties that are in great shape, priced well and show well. As properties come on the market that are in the same situation, they too will have multiple contracts. Therefore, buyers need to be prepared. We have developed a strategy to help buyers position their contracts to win when in competitive situations – check out my blog to learn more – www.scottymacsblog.com simply search for multiple contracts or click the link here. Sellers need to seek our advice when selling so we can help stage the house, give direction on what improvements/repairs need to be made and to price the home properly so they can take advantage of the market.
As always, I am available to answer any questions you may have in regards to your personal situation so feel free to contact me anytime.
RE/MAX Gateway, LLC
(703) 652-5777
scottmacdonald@remax.net
October took the real estate market roller coaster ride.
Rates went up, rates came down. Sales went down, sales went up. Inventory rose, inventory came back down.
In some areas, the number of multiple contracts went down, then they went back up. Inventory of short sales and foreclosures were down, then they rose but luckily by not too much. The government shut down and the government opened back up – luckily, it was not too long and did not have a tremendous impact on the housing market.
Our emotions went up, our emotions came back down, as there was a lot of concern about delays in closings associated with the shut down because of the reduced number of employees at FHA and the IRS, but we avoided a potential disaster there. Additionally, we were worried about the government defaulting on their debt which would have sent interest rates skyrocketing, and again, fortunately, this did not happen.
Even though there were so many ups and downs, the market in October this year was still better compared to a year ago. There were more home sales, higher home prices and more homes for sale for buyers to choose from, although the uncertainty skewed people’s perception. So now you know why October was such a roller coaster for real estate.
What lies ahead on the horizon as we enter the winter market? My belief is we will be in our typical winter market. Homes will come off the market for the holidays. Motivated, savvy buyers will be out buying homes. Interest rates will remain in the low 4% range. Home prices will continue to stabilize throughout the Northern Virginia area. Houses that are priced right, in the right condition and right location will see multiple offers and our market won’t be as up and down as it was in October. Basically, we will continue to have a robust housing market locally.
To learn more about your situation, please feel free to call me today. Scott MacDonald (703) 652-5777.
RE/MAX Gateway, LLC
Scott MacDonald of RE/MAX Gateway offers valuable information and insight in his Northern Virginia Real Estate Market Minute as to why the Spring 2013 Northern Virginia Housing Market is slowing down just a little. Homes priced competitvely are selling fast! Home Buyers and Sellers will want to save money by closing before July 1, 2013 Grantor’s Tax increase. There’s still time to get your home listed for sale! Call Scott MacDonald (703) 652-5777
We recently attended the RISMedia convention in New York and have compiled notes that I will share with you on what was discussed and comment – occasionally how it will affect our business and ask that you do research on certain topics to inform yourself to give our clients the most up-to-date information so they can make the right decisions when buying or selling a house.
Finance update
FHA–
There have been two price increases on FHA loans recently – upfront MI and monthly MI.
-Lenders paid less on FHA loans.
-FHA loan amounts decrease.
-Potential increase in down payment requirements are also on the horizon.
-FHA Loans are 30% of the market.
-MI – 5% down training on MI is required for agents who want to stay in the know!
Additional facts on the market:
-2/3 mortgage applications don’t go through.
-Do consumers understand the process of obtaining credit – no – Agents are transactional
-7 million people have been out of work for 26+ weeks.
-19.8% of all prior mortgages are 90+days delinquent.
-Eminent defaults are on the horizon – stay tuned.
-60 million + people with less than 630 credit score.
Lenders are looking for point of sale contact with Realtors
-Want to help you grow your biz and attract more agents into their database?
The question is how?
-Training and education
-Shared marketing dollars
-Leads
-Exposure to listings through marketing ventures.
– What else can they provide?
GSE’s are stagnant on Capitol Hill and we shouldn’t expect progress anytime soon. Too much else is on their plate.
270 points in Dodd-Frank bill – The lending industry WILL change. We are expecting to receive talking points of the bill for you to share with your clients so stay tuned!
Do you know what Qualified Residential Mortgages are? It is important to stay up on the trends. QRM will push a 1/3 of Buyers out of market. The comment period on QRM ends 6/10/2011 – get in the know and make your comments to your elected officials!
“Stuff” is thrown up against the wall right on Capitol Hill now to see what sticks
– A tax on new home sales was proposed so that the existing home inventory could get absorbed and new home sales would subside as a result.
What is the HAMP Mod’s default rate within 6 months? It occurs 60% of the time.
Average consumer has 13 credit obligations – 9 credit cards.
48% of college students leave school with bad credit
58% of college grads move home because of poor credit.
Ask your clients, “What is likelihood of you buying furniture, blinds, etc., if you do, can you really afford this house with this additional debt?”
Become a long term trusted advisor for your clients – provide valuable content – early and often.
Education is a continued effort so get educated. Get it? Got it? Good!
Now, go sell something!
Scott's Motivation and Real Estate Market Updates 