low interest rates

October 2020 Market Update

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Real estate continues to be the shining light in the current economic recovery. Buyer demand, housing prices, and new and existing home sales continue to be strong – not only in Northern Virginia but also across the country. Our issue continues to be low inventory levels for the demand that we are presently experiencing. As of today, we have 30% less inventory of homes for sale versus this same time last year. The median days a house stayed on the market in August was just six days, so as you can see, demand is there.

Additionally, prices are up year to date 7.95% over last year’s pricing. The pandemic pushed the housing market back about three months, so what would typically be a slower time of the year is one of our strongest. If you are considering selling, now is an ideal time as we couple all this data with the fact that we have the lowest interest rates in the history of tracking. Contact me to discuss your situation in more detail if you are considering selling.

So, where is the market headed into the future? There is talk of another foreclosure crisis that could lead us into a Great Recession… will this happen? There is a housing bubble, and prices are going to crash… will this happen? My answer is no to both. First, we have low inventory levels and high demand. In October 2006, we had just under 23,000 houses for sale; today, we have 3,014. If properties are foreclosed on by banks and released to the market, they would sell quickly and not put us into a housing crisis. Again, back then, we had a 10-month supply of houses, today we have a .8-month supply of houses – a considerable difference. Back then, people “walked away” from their homes because of price drops and lending practices; this is not going to happen now. Today’s loan products, loan qualifications, and lending guidelines are nowhere like what they were prior to the Great Recession.

Back then, we had exotic loan programs, 100% financing programs, teaser rate loan products, and just bad underwriting guidelines. Homeowners today are more financially stable, which will result in fewer foreclosures. If there is an area that may be in jeopardy, it would be in the Mom and Pop landlord arena.  Basically, people who have one or two investment properties may not be able to “carry” the houses if their tenants are unemployed. This is a small segment, so I don’t see it significantly impacting our market.

Additionally, prices are rising, but not at the rate they were in 2004 – 22% year over year increases, 2005 – 24% price increase year over year and in 2006 it was 23%. As I mentioned, we are at a reasonable pace of 7.95% today; therefore, I do not foresee a crash in prices like we saw in the past. We will see a decline in housing price increases, but not a decline in prices… big difference. Our market is stable and will continue to be so for some time, in my opinion. If you would like to discuss this further, please feel free to call me. 

Enjoy the weather! Have a safe and Happy Halloween!

August 2020 Market Update

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As we enter the dog days of summer and the Month of Miracles…

And prepare for a new version of back-to-school, I hope you and your family are safe, remaining healthy, and are making wise decisions when going out in public.

This month’s update may seem like a broken record, but it is what it is these days. Inventory levels of resales homes in Northern Virginia remain extremely low – 41% below last year’s levels.  Currently, there are only 2,714 houses for sale throughout our area, which includes Arlington, Fairfax, Prince William, Loudoun, and Fauquier Counties, as well as all the cities in between. Even with low inventory levels, sales remain strong as they are up 18% week-over-week from last year and up 17% over the previous 30 days from last year. This result is a .7 month’s supply of houses – last year it was a 1.5-month supply. We are still receiving multiple offers on our listings, and the median days on market are a mere seven days making it an exceptionally strong seller’s market. I believe we are going to be in this market for some time as the discussions I am having with homeowners and agents is that they are not likely to sell or they don’t have a lot of houses coming on the market. This has resulted in the increased prices we are seeing. Year to date, prices are up 6.25% over the same time frame from last year. As I’ve said before, it is an excellent time to be a seller. If you are considering selling, call me to discuss your situation in
more detail.

Buyers do have challenges in today’s low inventory, multiple contract situation market we are in, but we are getting our clients into homes! Our team has exclusive strategy sessions where we share ideas on how we are negotiating to get our clients the home of their dreams. These sessions and strategies have been working, which is great for our clients. In addition to this, interest rates are now below 3%! The expectation is they are going to stay in this range for some time, so there is good news for those looking to become owners or potentially moving up to their “forever” homes. If you are considering looking into the option of purchasing a home, call me to set up a private consultation. I am here to help!

Please remember, even if now is not the right time for you to buy or sell, it may be the perfect time for you to refinance! I can put you in touch with one of our lender partners, so feel free to reach out.

Stay cool in this heatwave we are experiencing. Good luck to all of the students out there! Curious what the Month of Miracles is? Give me a call, I’d love to tell you all about it!

July 2020 Market Update

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As We Begin to Reopen…

As we transition into Phase III with some areas beginning to open up while others remain on restricted status, I encourage you to stay safe, make wise decisions when you go out in public, so you and your family continue to remain healthy.

The result of the pandemic has limited the number of houses coming on to the market here in Northern Virginia. Potential sellers are still concerned about people coming into their homes, which is understandable during this time. The crazy thing is – the pandemic and various Phases we have been in have not slowed down home sales! The inventory level of houses for sale is down 43% from this same week last year, yet sales are up 16.5%. It is critical that we find people looking to sell their home and are comfortable doing so because we are continuing to see multiple contracts on houses throughout Northern Virginia (in most price points). It is not uncommon to receive 15-25 contracts on a house in less than 48 hours when it is priced right, in the right condition and location. Most recently, I heard about a condominium in Falls Church that received 44 contracts – one of our fellow agents lost out on that one just last week.

The onslaught of offers has prices escalating, and as a result, we are experiencing some appraisal issues. I make sure to set the proper expectations for both sellers and buyers if I feel the house will not appraise.  In addition to this, I meet the appraiser at the property to keep them informed on the situation – the number of contracts, prices, the quantity of showings, etc. to try to avoid low appraisals. However, they still are happening in some cases, as some prices just cannot be supported by the appraisers. We have had several people waive the appraisal contingency to secure a home, which has been great for my sellers. We have also had many appraisal waivers from lenders when the borrower has excellent credit, is putting down 20% or more, and the neighborhood can support the pricing. To learn more about this, please call me.

Buyers – get in the game!  We can help, and rates are still amazing. Today’s rates are below 3% on 30-year fixed loans. Additionally, if you aren’t planning to move and you haven’t refinanced, now is a great time. Call me to learn more about this and our strategies to win in multiple contract situations or for a connection to one of my preferred lending partners. I am always here to help!

I hope you had a great 4th of July!!

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