October 2019 Mid Month Market Update

Here’s your latest real estate market update for Northern Virginia. Inventory is low, it’s a seller’s market! And with interest rates still at an all-time low, not is a great time to buy!

What do you think? How is the market in your area?

Thinking of buying or selling? I’m happy to provide you with a free market analysis if your home. Give me a call to talk about your specific situation and needs. Call me at 703-652-5777 or email at scottmacdonald@remax.net

October 2019 Market Update

It is hard to believe we are entering the 4th Quarter of 2019 already.

It will be interesting to see what the vision of the real estate market will be in 2020. Right now, the real estate market is very dynamic and very hyperlocal. We see inventory levels remaining low relative to previous years. We currently have a total of 4,122 houses for sale in Northern Virginia – 33% fewer homes for sale through September this year versus last year. Homes priced below $350,000 represent only 719 houses with only 45 of these are located in Arlington. The Amazon Effect in full force in Arlington. Homes priced between $350,000 and $700,000 make up 1,822 homes of the total inventory numbers, only 46 of these are located in Arlington. Lastly, houses priced above $700,000 make up 1,582 of the houses for sale in the marketplace and there are only 118 in this price range located in Arlington.

As you can see, the market is different in each location, I just picked Arlington as an example.  That does not tell the whole story – prices are up year over year in all of Northern Virginia by 3.6% while in Arlington, they are up 12.4%. Additionally, the median days on market in all of Northern Virginia is 15 days on the market and in Arlington…you guessed it, lower at only 8 days on the market. The market is definitely hot for sellers “if” you price it right and do the right upgrades. Buyers will pay for ready to go houses and will pass on the ones that need work or updating.

This being said, housing prices are up year over year throughout our area – just not substantially. The 3.8% is healthy and sustainable. The issue we are having is sellers are trying to attain 5% per month and therefore the houses are not selling. In today’s market, buyers are being very discerning on prices and are not making offers including low offers. Sellers who overprice their houses or price in “negotiating room” find themselves sitting.

If you are looking to buy or sell in today’s dynamic market, call me today to set up a no-obligation consultation to learn more.

Enjoy the cooler temperatures heading our way! Happy Halloween!

August Market Update

The word on the street is prices are going to collapse…the market is overheated…a recession is coming…we are in a housing bubble. It’s mayhem if you believe everything you read and listen to what the non-experts have to say about the real estate market and the current market we are experiencing.  Quick question. Did you know that 50% of REALTORS have a second job?  Working with a true full-time professional who is up to date on the local Northern Virginia real estate market is more important today than ever before.  You need to have the guidance, advice, and experience to be guided seamlessly through the real estate transaction, so you are protected.  Don’t rely or believe everything you read on the internet.  Call me instead because here are the facts.

Prices – barring an unforeseen event, they are stable in Northern Virginia and will remain this way. Why?  Because our prices have risen only slightly each year after the Great Recession (bar a few examples/areas). We don’t have lending practices in place any longer that allow buyers to buy without strong fundamentals in place and allowing unqualified purchasers to outbid on properties at extreme prices.

The market is overheated – this is not true in all areas of Northern Virginia. Yes, there are areas of Arlington and in certain price points where inventory is extremely low that there are multiple offers but overall, we have seen this trend slow in recent months. Remember, what you read today typically happened 2-4 months ago as stats on the market don’t immediately get released and are reflective of current trends. Every market is different, and this is why you need specific advice on your property if you are selling or if you are considering purchasing a home.

A recession is coming – yes, it is true as we have been in the longest recovery in our history.  All markets are cyclical so a recession will come. What does this mean for housing? It is typically a good thing…interest rates are lowered to stimulate the economy and barring the Great Recession, since 1995 when we have had economic slowdowns, prices have appreciated 81% of the time which is the same as when we have had economic expansion. Don’t fear the word recession and real estate values.

We are in a housing bubble – not true for our area. Prices have not skyrocketed like they have in other areas of the country, as previously mentioned, our prices have only moderately increased year over year. Our inventory of resale homes is 22% below last year’s level and 33% below inventory levels two years ago. Our unemployment rate is one of the lowest in the country. Our salaries are stable to slightly rising meaning people have good-paying jobs.

Lastly, the interest environment we are in is making housing more affordable – rates are low and are going lower. 30-year fixed rates are in the mid to high 3’s (percent) today. There are many refinances that are taking place and there will be more to come so these people will be staying in their houses for a while and will be potential, future landlords which will keep the housing inventory tight moving forward.  This too will keep our market out of a crisis in my opinion.

Again, barring an unforeseen event, we will be in a strong real estate environment for some time here in Northern Virginia.  We actually need more houses to sell as there is pent up demand. If you are considering a move of any kind, please call me today to learn more. I can be reached at scottmacdonald@remax.net or 703-652-5777.

July Market Update

Mid Year Update

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It is hard to believe we are already halfway through 2019. The two questions that I have are; where does the time go and where is the housing inventory? The number of houses in Northern Virginia remains extremely low – 20% below last year and nearly 33% from two years ago. The inventory with the lowest levels is in the first-time home buyer price range which is basically houses and condos priced below $350,000. At the time of this newsletter, there are only 717 properties for sale in all of Northern Virginia at this price point. These homes are flying off the market with an absorption rate resulting in a .75 month’s supply of housing. As such, we are seeing multiple offers as there just not enough supply for the number of buyers in this market. To climb the pricing ladder, we will see the month’s supply and inventory rise. As a comparison, houses priced between $350,000 and $500,000 have a .83 month’s supply with only 872 houses for sale. The $500,000 and $750,000 priced houses have a 1.2 month’s supply with 1,252 currently on the market. Both of these numbers are low, historically speaking, so don’t be alarmed if you are thinking of selling your house. Where we see the market slowing is in the $750,000 and above price point. In this price point, we have over a 3 month’s supply of inventory with 1,683 houses for sale. This is obviously a larger price range but shows the higher you go, the longer it takes to sell. I have mentioned many times if a house isn’t compelling – it isn’t selling and the best way to make it compelling is price. If you are considering selling in any of these price points, please call me to learn how to best position your house to sell for the most money in the least amount of time.

So, what does it mean for buyers? There are opportunities in the market to own but you need to be strategic in doing so in every price point. It is important to utilize the services of a professional to negotiate for you to get you into the home you desire. If you are considering becoming a homeowner for the first time or if you are moving up or down, give me a call to learn how this can be done for you.

Have a very Happy 4th of July and please be safe!

May Market Update

I’m Still Amazed…

The real estate market never ceases to amaze me. We have weeks, months and years where sales go up and down, prices go up and down, inventory goes up and down, but now, we are dealing with people’s emotions going way up and way down – including real estate agents. The lack of inventory in some areas have resulted in buyers losing out multiple times on their home of choice. They become frustrated and make irrational decisions on prices, terms or location. These decisions will have an impact on their financial lives as well as their quality of life (including potentially longer commutes). When clients lose out on offers multiple times, agents get frustrated too, either because the clients don’t listen on how to position themselves or with other agents believing they were treated unfairly during the negotiations. This is why it is imperative to work with an experienced agent to help you navigate through this emotional time in real estate. An agent that has been there before, understands what is going on and can provide the right advice so you (or someone you know looking to buy) get the proper guidance and the house you want – without getting tied up in the emotion adding stress to the situation. Well, guess what? I have been through these types of turbulent, emotional times and I can lead you or someone you know through these situations, just call me.  I will help everyone stay calm and focused on the eventual task which is getting the house sold.

Keeping with the amazement theme, we still have very low inventory levels – 20% below last year’s levels. This is creating the type of market I just mentioned. Unfortunately, sellers are not immune to the emotions of selling. Unrealistic expectations of timing, pricing and response times from buyers/buyer agents make for stressful times during selling. It is important to have the right expectations when selling a house, mostly to keep the seller on an even keel. Once again, I am here to help provide the right advice, guidance and emotional balance to get you through the home selling process, just give me a call. I am happy to help!

Have a great Memorial Day!

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Scott’s Market Update 8/18/17

College bound this weekend … is anyone else doing the same thing? The market is holding strong, inventory is low, but that is normal for this time of year. When will it pick back up? Check out my latest market minute message for more details!

Would you like to discuss your specific situation? Give me a call at 703-652-5777 or email me at scottmacdonald@remax.net

Have a great weekend!

Unlike the weather out there…the Northern Virginia Real Estate Market is HOT!

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.

Scotts Market Minute 2016FEB12

Now is a great time to buy and sell a home in Northern Virginia!

Scott MacDonald

RE/MAX Gateway

Hyper-local Northern Virginia Real Estate Market Has Sellers and Realtors Nervous

Watch Scott’s Market Minute on YouTube:   Hyper-local Northern Virginia Real Estate Market Has Sellers and Realtors Nervous

 

Inventory of houses for sale in Northern Virginia increased again this week.  A hyper-local real estate market can be a challenge for buyers, sellers, and their REALTOR.

Watch and listen as Scott MacDonald of RE/MAX Gateway offers the insight and explains strategies necessary for success in the Northern Virginia real estate market.

If you would like to discuss your specific real estate market, options or challenges, give Scott MacDonald of RE/MAX Gateway a call (703) 652-5777

Scott MacDonald

RE/MAX Gateway