Keeping you up to date on the real estate market in Northern Virginia. Demand is HIGH, supply is LOW. Hear what Scott has to say…now is the time to….
Contact Scott MacDonald 702-652-5777 Broker/Owner of RE/MAX Gateway for more information and a personal assessment to meet your goals.
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.
Leaves are falling and so is our inventory of homes for sale in Northern Virginia. It is typical that homeowners who don’t need to sell or don’t have to sell take their homes off the market this time of year.
Along with the falling leaves and inventory, house sales are also falling – again, typical for this time of year. Many potential homebuyers take a break over the holiday in anticipation of the spring market.
All this being said, there are sales happening in the marketplace. Year over year sales are up in Northern Virginia as are sales prices making our housing market healthy. If you have a situation which causes you to sell, now is a good time to do so. With lower inventory levels and serious buyers in the market you can set your house apart from the competition to attract a sale. Couple this with mortgage interest rates remaining low adds to the allure of home ownership right now.
On an interesting note, the SEC passed a ruling – Title III – which will allow retail investors to have access to invest in private businesses without that company having to register with the SEC. This could have an impact on real estate as Equity Crowdfunding is a $2.5 Billion market. These are groups that are forming to purchase properties and rent them out or fix and flip them. This ruling goes into effect in 90 days and it won’t transform real estate overnight but it is something for us to keep an eye on moving forward. To learn more about this, please feel free to call me 703-652-5777.
Oh, and we cannot forget, it is that time of year again, when the holiday season comes into full swing! We have Thanksgiving right around the corner followed by Christmas and New Year’s Day – lots of time to spend with family and friends. We wish you a happy time this season and hope you have a great holiday season. And always remember, if you have any questions or concerns about real estate, we are here to help!
RE/MAX Gateway
4090B Lafayette Center Drive, Chantilly, VA 20151
Offices strategically located throughout Northern Virginia.
Wow, the summer real flew by this year. Swim meets, baseball games, family vacations and house sales all made time fly. As school begins and Labor Day is upon us, we generally see a little slow down in our market but a few weeks into September and through the first few weeks of November we see the market generally pick back up and this year should be no different.
In my daily routine I often run into friends, past clients, other real estate professionals and of course my agents. The question most asked is “how’s the market”. The answer is always, “it depends”. Are you a buyer, seller or are you looking to rent or are you a landlord PLUS, where are you speaking about the market specifically? The reason is, it is different under each scenario and in different locations. Real estate is and will always remain, hyperlocal. Generally speaking, the Northern Virginia market is better than it was last year. We have more sales, prices are stable, but there are also more homes for sale. There are pockets where inventory is low and others where inventory is increasing making it even more important today to speak with a professional about your situation in more detail.
The second most asked question is “how are interest rates and are they going up anytime soon?” Mortgage interest rates remain great hovering right around 4% for 30 year fixed loans. A few months ago the Fed spoke about raising rates around this time but with the recent financial market setback and the fact that the job market for higher paying jobs is still flat, it appears a rate hike is not likely. Additionally, with an election year just ahead of us, no one will be eager to raise them while trying to get re-elected or be in favor of an increase if they are trying to get elected. Therefore, it does not appear we will see an increase in rates anytime soon keeping our interest rate environment stable. To learn more, please feel free to call me.
So, kick back and enjoy the Labor Day holiday with friends and family as I climb Mount Kilimanjaro. I will report back about our great adventure next month. We are accepting donations until October 3rd so please feel free to help our cause by visiting http://fundraise.thelastwell.org/scottymac and make a difference in the lives of others.
Thank you!
The word this past month used to describe the real estate market would be stable.
Although we are at an 8 year high in inventory levels, we didn’t see the rapid increase in inventory like we have experienced since May which is a good thing. One area that we saw an increase in was in distressed property inventory. Even though nationwide there are fewer foreclosures and short sales, we have more of them on the market here locally. They are nowhere near previous levels but they are up 22% since the last week of June. We will continue to monitor this for you and let you know of opportunities that are available. We also did see a slowdown in sales which we don’t like to experience. It was the fewest amount of sales for a month since January of this year but their numbers were virtually identical week to week so they were stable. So, when you have high inventory levels coupled with fewer sales, we have seen more stable prices which is good for buyers. It helps to keep housing affordability levels high for our buyer clients. Owners are seeing the need to properly price their houses to make them competitive with the rest of the marketplace. In addition to these market conditions we saw rates decline which helps keep the market stable as well. Lastly, one area of surprise we experienced was the past week at our listings. We saw an uptick in showings and buyer interest in our listings on line and in phone call inquiries. This is good news as activity leads to sales.
On another note, we have a group of agents from different companies in our area that meet monthly. These agents are in the top 5% of agents across the entire country in regards to sales. We discuss the local market, inventory levels, buyer preferences, seller expectations, listing activity, and many other real estate related topics. In this Platinum Club group meeting this past month we discussed the fall market and what our expectations were about the upcoming season. The sentiment is the fall market will be a solid market in regards to sales. We were all optimistic about what the market is going to bring and seeing activity at our listings pick up this past week may be the start of the momentum our region needs. We will keep you posted.
Please let us know if there is anything we can do to help you or if you know of someone who may need our help. We are here for you. Feel free to call me directly (703) 652-5777.
RE/MAX Gateway
Watch Scott’s Market Minute on YouTube: Hyper-local Northern Virginia Real Estate Market Has Sellers and Realtors Nervous
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
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
Why has the real estate market slowed down? In my opinion, it is a combination of a few factors.
First and foremost, it is interest rates. Over the last year, rates have risen nearly 1.5%. A lot of people say they can’t believe with rates so low, how people cannot qualify for a mortgage. Well this kind of increase will remove buyers from the market regardless of where the rates start and where they end up – 3.25 to 4.75 or 8 to 9.5. An increase in interest rates like this is going to have an impact on the market.
Also, house prices have increased by over 17% the last 3 years in our area. This price increase has also helped to eliminate buyers from the market. Higher prices in any area of our lives – cars, restaurants, food, etc. will eliminate buyers – it is a natural fact. Couple this with the interest rate increase and we have a slower market.
Additionally, there are fewer homes to choose from in the lower price points as well making it difficult for buyers to even find acceptable housing to purchase. There are only 1,210 properties priced below $300,000 in all of Northern Virginia and only 271 are single family homes, the rest are town houses or condos. If there are fewer options for entry into the market, there are going to be fewer sales thus slowing down the market.
The upcoming finance reform with QM, QRM, and Basel III the first of the year together with the easing of QE 3 leaves a lot of speculation about the future of rates and sequentially, the housing market. Keep a keen eye on these developments to measure their impact.
Well, let the numbers tell the story. The housing market today is not substantially different than this same time last year and everyone was excited about the market then. Funny how the brisk spring market with low inventory, low interest rates and multiple contracts has clouded the vision of some people. Inventory is up just 6% over last year – not a terrible or scary number. Sales are up in a week to week comparison to last year by 3.5% – a pretty good increase, right? The 2.1 month supply of homes is virtually the same as last year’s 2.0. Distressed property inventory has dropped 40% – which is a fantastic number. This has resulted in a majority of the increase in homes for sale being arm’s length transactions – another good thing. The last number to mention is properties that settled the last 30 days. We are up 14% over last year indicating we are actually experiencing more sales. So, if looked at from a long term perspective, our real estate market is actually doing pretty well. All this being said, we still need to price properties properly as well as get them in the right condition to get them sold for our clients.
Keep a positive outlook on the market, good things will happen. Now, go sell something!
RE/MAX Gateway, LLC
The real estate market continues to be hyper-local today. We are seeing multiple contracts in many areas and yet houses are sitting on the market in others. Prices are rising in many areas while we see price reductions in others. We see houses staying on the market for mere hours to just a few days in some areas while other markets see houses staying on the market for over 30 days to even longer further out from Washington. If you are buying or selling it is important to seek the advice of a professional so you know what the market is like in your area of interest to give you the right advice.
There are some aspects of the market that are not hyper-local. These areas that are influencing the market are interest rates and distressed property inventory. Interest rates have been on the rise for nearly the whole month of May. Don’t get me wrong, interest rates are still great and people shouldn’t be concerned but if you are waiting for them to come back down to make a move, the sage advice is to do something now and don’t delay as it will cost you more in the future. As far as short sales and foreclosures are concerned, their numbers continue to dwindle in Northern Virginia which is great news for everyone who owns a home. As of the end of May, only 6.1% of the total inventory was made up of distressed homes and they represented only 8.2% of sales in the region. How does this affect the market? These numbers have help aid in the rising of prices throughout our area as there are fewer blighted properties, more people caring for their yards and homes so everybody wins.
Our real estate market continues to be one of the best in the country because of our low unemployment rates, increasing property values, tourism, plus we have easy access to water, mountains and all the Washington DC metro area has to offer. Please let us know how we can help you or someone you know looking to buy or sell a home. (703) 652-5777
RE/MAX Gateway, LLC
Despite continued uncertainty surrounding the fiscal cliff, Americans are showing increased confidence in the housing market and the direction of the economy. According to results from Fannie Mae’s November 2012 National Housing Survey, such improvement bodes especially well for continued strengthening in the housing sector, which in turn should lead to overall economic growth.
According to the survey, the share of respondents who say now is a good time to sell a home jumped 5 percentage points in November to 23 percent – the highest level since the survey began in June 2010. The percentage of respondents who expect mortgage rates to go up increased by 4 percentage points to 41 percent. Those expecting home prices to go down within the next year also rose by 4 percentage points to 14 percent over last month, a rebound from the survey’s record low in the prior month, while the share who believe home prices will go up in the next 12 months edged up to 37 percent, tying the survey high. Of note, 51 percent of respondents now say it would be easy to get a mortgage, marking the highest rate since the survey’s inception.
These survey statistics support the trends that real estate brokers around the country are beginning to witness: an increasing lack of inventory, rising home values, and home buyers – who have been waiting five years or more – finally ready to purchase their first home or move-up home.
Positive housing indicators are connected to a generally improving outlook regarding the nation’s overall economic picture. When asked about the economy, those who say it is on the wrong track dipped 6 percentage points since October and a total of 25 percentage points in the past year.
Other noteworthy results from the Fannie Mae survey include:
As a Member of the Top 5 in Real Estate Network®, I have a wealth of real estate and home-ownership information that may be of help to you. Feel free to contact me any time to learn more about this important information, and be sure to forward this article on to any friends or family that may be interested as well.
Scott's Motivation and Real Estate Market Updates 