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.

Halloween-Sold-Sign

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.

happy 4th of July_FB post

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!

June Market Update

Summer is here!

Wow, that was one of the fastest months ever, in my opinion. Memorial Day weekend came and went in a blink of an eye, so it must be the height of the Sandbridge Beachdynamic spring market! Median days on the market in Northern Virginia is just 8; the average days on the market is 42. So, houses are virtually selling immediately (often with multiple offers) or they are taking a little while longer to sell. Right now, we are seeing very demanding
buyers in the marketplace. If the house is priced a little high or isn’t updated or staged, they are getting a lot of activity in the first week, but then showings fall off tremendously after that time frame.

So, what is fueling all the activity? There are a few factors, first there is a lot of demand – in certain price points, more on this shortly. Second, interest rates are still great – right around 4% for a 30-year fixed mortgage. Some people are taking advantage of adjustable rate mortgages too. Third, we continue to experience a strong local job market with many people relocating into the area for this reason. Fourth, prices are beginning to increase slightly, so many people are wanting to buy while it is still affordable for them to do so. Lastly, people have equity in their homes and can sell today to move into a larger home or closer to the city to reduce their commute. This is all good news for both buyers and sellers!

What is the situation with pricing I mentioned earlier you ask? The under $500,000 price point for houses and townhouses is on fire, representing a great majority of the median days on market. Yet, homes priced in the $650,000 -$800,000 range outside of the beltway are slow which is causing an increase on the average days on the market number. The upper price points (above $800,000) are seeing activity and sales which is always good for our local market.

I expect to see more of this type of activity and sales at least through the 4th of July. So, if you are considering selling or buying a home, please feel free to call me to discuss your situation in more detail.

Now, go enjoy this beautiful weather!  Happy Summer!