Scott’s Market Update

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Happy New Year! The temperatures in Northern Virginia are frigid, but the real estate market is anything but that. We are seeing activity throughout our area which is great for sellers. We had showings at our listings on Christmas Eve, Christmas Day, New Year’s Eve as well as New Year’s Day – it is crazy! One of our agents had an open house on New Year’s Eve and had 21 visitors…did I mention it is freezing outside?  I haven’t seen this much activity around this time of year in my career of 30+ years.

It is looking like 2018 will be a very good year in real estate – especially for sellers. We ended the year with inventory levels nearly 18% below last year which is 24% below the previous year. The lack of inventory is putting many sellers in the driver seat in the real estate market today. Buyers should not be concerned; more houses will be coming on the market as we enter the New Year and early spring market. Additionally, rates remain favorable and should stay within .5% of where they are today for 2018.

More good news – the tax reform that recently passed will not affect most of our area. The mortgage interest deduction (MID) is capped at $750,000 for new mortgages and our average sales price in Northern Virginia is $516,000 – so this won’t hinder those looking to buy from buying. Also, the deductibility of property taxes is capped at $10,000 so again, for the most part, we won’t see buyers shying away.

Lastly, the ability to avoid paying capital gains on your mortgage principal (if it was your principal residence 2 of the last 5 years) remained in place along with the limit of the gains at $250,000 for an individual and $500,000 for a married couple. This should help us with inventory levels as well! Again, all good things! If you have any questions about your current situation, please feel free to call me.

Have a great 2018 and please stay warm as we battle these icy cold temperatures.

Scott MacDonald 703-652-5777 or scottmacdonald@remax.net

Scott’s Market Update

Its hard to believe its already December 1st! There are some serious inventory issues going on…. #gatewayagetsrock #bringon2018

 If you have any questions or would like to talk about your particular situation – please feel free to give me a call at 703-652-5777 or email me at scottmacdonald@remax.net 

October Market Update

As the summer comes to an end, we’re seeing the real estate market continue to move steadily along. We don’t anticipate any drop off in sales as we enter the fall selling season. We have buyers looking to enter the home buying market – especially first-time buyers. Interest rates remain low, new loan programs are becoming available to help cash strapped purchasers and these opportunities are available in all price points. As I see it, our challenge will continue to be inventory levels, as many home owners are staying in their homes. They are doing so because they are not able to find homes to fit their needs in available move up price points. We are also seeing an increase in the amount of people that are renting their houses since they are gaining equity and have low interest rates/payments which allow them to have positive cash flow.

We also have three types of sellers – those who want to sell, those who need to sell and those who have to sell.  Those who want to sell typically take their houses off the market as we head into the holidays, therefore reducing inventory.  As long as we have houses to sell, the market will stay steady.  Let me know if you have any questions or concerns if you are considering selling – the market conditions just might be in your favor.

Lastly, please keep an eye on what is happening with the President’s Tax Reform – doubling the standard deduction, eliminating state and local tax deductions and only having three tax brackets. Industry professionals predict these may all affect home values by 10%.  Again, if these changes occur, it could affect housing as tax payers who claim mortgage interest deductions may no longer be able to claim this deduction, thereby eliminating the need to buy as a tax plan.  Housing is critical to our economy so implementing this plan could put damper on the economic recovery.  Let’s hope this reform doesn’t pass in its current form.

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Have a happy and safe Halloween!

Scott’s Market Minute 7/14/17

What do the Washington Wizards and prospective home buyers have in common? Find out in this weeks update.

Looking to buy or sell?  Now is a great time!  Give me a call to discuss your situation –
703-652-5777 or scottmacdonald@remax.net

Have a great weekend!

July Market Update

Wow, it’s the Fourth of July already!

Will we see our sellers celebrate?  Will we see our buyers celebrate?  The answer – it depends.  This answer is not ambiguous, a lot depends upon the location and price point of the home.  For a majority of the Northern Virginia area, houses priced under $600,000 are selling quickly, unless they are condos. The ones priced above $600,000 are sitting on the market accumulating days on market, unless they are inside the beltway where they are having better luck selling.  So now you will know which sellers will be celebrating and which ones won’t.

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Also, if you are a buyer in the under $600,000 price point, you may potentially be in a bidding war and may need to put in an escalation clause to get the home. If not, you may miss out on a few homes because others are willing to pay more. Therefore, no celebration for you.

If you are looking above $600,000 and the sellers have accumulated days on market and truly need to sell, you can often times get a bargain price on the home of your dreams. This is cause for celebration!  Now you know.  Obviously this is a very general comment, each situation is going to be different so be sure to call me to learn more about what you may face in any of these scenarios.

The sales pace slowed down slightly in June and we expect this pace to continue through July and August, as it typically does. This being said, there are still over 900 house a week selling in Northern Virginia. Interest rates are fantastic, so the buying environment is rich. One thing we are noticing is there are more loan programs available and credit is easing, so this could bring more buyers into the market. Let’s keep a close eye on the easing part as we don’t want to go back to the situation that happened in the early to mid 2000’s.  If you have any questions, please don’t hesitate to call me.

I hope you have a great 4th of July and celebrate in style!

 

A Quick Minute of Motivation

In this new motivational series, Scott will highlight how to become a Peak Performer.

In today’s Peak Performer Series message, I wanted to remind you about an old saying… Sometimes you’re the windshield, sometimes you’re the bug. What matters is how you handle these days! Watch this quick message for more…

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

Now go sell something!