housing market

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How to Get Multiple Offers On Your Home For Sale In Northern Virginia

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Unlike the weather, the real estate market is HOT!

WINTER SCENEWe 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.

REMAX FOR SALE SIGN SOLD

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.

Scott MacDonald

RE/MAX Gateway, LLC

(703) 652-5777

scottmacdonald@remax.net

Why has the real estate market slowed down?

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Why has the real estate market slowed down?  In my opinion, it is a combination of a few factors.

Why has the real estate market slowed down?

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.

So is the sky falling Chicken Little? 

Why has the real estate market slowed down interest rate increase

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!

Scott MacDonald

RE/MAX Gateway, LLC

What You Need To Know When Buying or Selling a House In Northern Virginia This Summer 2013

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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.

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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

Scott MacDonald

RE/MAX Gateway, LLC

 

Confidence is on the rise according to Fannie Mae

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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:

  • 48 percent of those surveyed say home rental prices will go up in the next 12 months, a slight decrease from last month.
  • 51 percent of respondents now say it would be easy to get a mortgage.
  • 21 percent of respondents say their household income is significantly higher than it was 12 months ago.
  • Household expenses remained stable over the past month, with 56 percent responding that their household expenses stayed the same compared to 12 months ago.

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.

It’s all so confusing…

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There is so much confusion in what is being reported about the real estate market it is understandable why so many people are unsure of what to do in regards to housing.  Information recently reported from Standard and Poor’s is just one reporting outlet where mixed signals are being sent out to consumers.  In one report, they claim that housing prices have increased for 8 consecutive months – this is through Standard and Poor’s and then through the Standard &Poor’s/Case-Shiller pricing index they say prices have dropped for the 4th consecutive month – absolutely insane.  How can one agency say prices are going up and down at the same time and not believe they are sending a mixed message to consumers and in turn hurting the housing recovery? 

For the record, The Washington Examiner reported that the Washington area was the strongest in the Nation as we have the right fundamentals in place.  Low unemployment, and scarcity of land are factors they sight in their article – couple this with low inventory, low housing starts, great rates, the home buyer tax credit and relatively affordable prices and we have a better than average housing market.

We too have been hearing, reading and expecting rates to increase when the Fed eases out of and stops buying mortgage backed securities (which has been happening by the way) yet rates have stayed low – conflicting news, but good news none the less.

We watch the market very closely everyday here locally and it is important to understand from a professional what is happening in our market and why.  We want to reiterate that our housing market in Northern Virginia is robust, resilient and is rebounding nicely today.  Our absorption rate remains high, prices are increasing in some areas and we have buyers out looking to capitalize on the remaining days of the home buyer tax credit.  To learn more about what is happening with your home or to learn how you or someone you know can take advantage of the tax credit, call us today!

Numbers, Short Sales and Taxation…oh my!!!

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ScottsCam 001

Wow!  Lots of great info was shared today at training
– numbers, top ten questions ready to be answered, short sales in any market
and then Aronson & Company notes on taxation of debt forgiveness.

 

Numbers (in Northern Virginia)

 

  • Active (Sales)                                      5414
  • Vacant                                                 1597
  • % of Market                                         29.5%
  • Month Supply (For Sale)                      1.8
  • Month Supply (For Rent)                     2.2
  • Month Supply Sold                              2.1

 

 

Top Ten Questions – ready
to be answered!

 

  1. Is the housing market getting better?
  2. When will housing bottom out?
  3. What signals should I watch to determine
    whether my local market is improving?
  4. How can I figure out the value of my home?
  5. Does it matter whether I’m ‘under water’?
  6. If I lose my home to foreclosure, how long
    will it take to repair my credit record?
  7. If I’m renting, is now a good time to buy a
    house?
  8. Can I get a tax credit if I buy a home now?
  9. Can I get a mortgage on attractive terms?
  10. Should I invest in foreclosed homes?

 

 

Aronson & Company
Notes

 

·       
Cancellation
of debt is a taxable event

·       
Bankruptcy
does protect from tax liability from a tax liability that occurred prior to
bankruptcy.

·       
Deed in Lieu
of Foreclosure – similar to short sale – selling to third party with bank’s
approval. 

·       
Loan
Modifications can also result in cancellation of debt and the modifier may
receive a 1099 from the lender – be aware this is could possibly happen!

·       
The discharge
of acquisition debt secured by the taxpayer’s principal residence is excluded
from income up to $2,000,000 until December 31, 2012.  This date is subject to change.


For a complete chart of
the implications of the Taxation of Debt Forgiveness handout we received call
or email me and we will get it to you. 
As is always the case – you learn more by listening, taking notes and
reading the materials than you do by reading my synopsis – get to training
yourself to internalize it more!  Get
it?  Got it?  Good!

 

Now, go sell something!