In this motivational series, I’ll highlight how to become a Peak Performer. In today’s Peak Performer Series message I’d like to talk to you about the last quarter of 2019. Have you gotten the results you wanted so far this year? If you have, great! If not, what are you doing to make it happen? It’s time to analyze what’s working and not working in your business to end 2019 strong. Learn more in my latest motivational message video.
Need more motivation? Give me a call at 703-652-5777 or email at scottmacdonald@remax.net
My whole career I have been asked, “So, how’s the market?” Well, this year and more specifically, in the last few months, I have been asked this even more. It is a loaded question because it depends on whether you are a buyer, a seller, or if you are looking to rent and most importantly where you are looking to do any of these types of transactions. After we clarify what they want to know, I find it is a lot of curiosity because people love to talk about real estate. It also is of interest to them because in our discussions I hear things like, “I don’t see any for sale signs in my neighborhood”, “when houses go up for sale in my area, they sell right away”, “my friend is looking for a house and they are losing out on multiple contracts” and many other similar comments so there is a genuine interest in “How’s the market”.
Overall, in Northern Virginia, the inventory on active resale homes is down over 31% from last year and units sold are virtually the same which means it is extremely competitive to be a buyer and if you price your house correctly, you can be a very happy seller. As always it is a hyper-local market so let’s take a deeper dive into the counties.
Arlington County – the Amazon Effect is keeping inventory low, median days on the market extremely low but interestingly enough, prices are not as high as you would think considering the supply and demand in that area. Closed sales are down as inventory is down and prices are up just 4%. Houses sell quickly – median days on market are just 9!
Statistic
Jul
YoY
MoM
Total Sold Dollar Volume
182,179,254
down5.9%
down7.5%
Closed Sales
266
down9.5%
-0.4%
Median Sold Price
$616,000
up1.3%
+9%
Average Sold Price
$684,884
up4%
-7.2%
Median Days on Market
9 days
down75.7%
0%
Average Days on Market
30 days
down40%
-16.7%
Fairfax County – Prices are up Year over Year but down Month over Month which indicates sellers are starting off too high and then making adjustments to get them sold. Days on market for Median Days and average days indicate a strong market but remember, price is critical to getting houses sold today. Closed sales are up Year over Year but are down Month over Month.
Statistic
Jul
YoY
MoM
Total Sold Dollar Volume
1,027,443,963
up7.9%
down5.9%
Closed Sales
1,680
up6.5%
-4.8%
Median Sold Price
$539,900
up2.3%
-4.4%
Average Sold Price
$612,668
up1.5%
-1.1%
Median Days on Market
17 days
down56.4%
+6.3%
Average Days on Market
33 days
down31.3%
+6.5%
Loudoun County – the market in Loudoun is slowing a little as they are experiencing what other regions are – Year over Year gains but Month over Month declines. Median Days on Market jumped MoM but prices are maintaining in the area. There is lots of pent up demand in Loudoun – stay tuned on their progress.
Statistic
Jul
YoY
MoM
Total Sold Dollar Volume
408,811,460
up8.4%
down2.8%
Closed Sales
747
up1.8%
-1.2%
Median Sold Price
$512,250
up8.5%
-0.5%
Average Sold Price
$549,478
up6.9%
-1.4%
Median Days on Market
23 days
down39.5%
+43.8%
Average Days on Market
38 days
down34.5%
+22.6%
Prince William County – consistent with the other counties showing price reductions but an overall strong market as sales are strong and Days on Market are low. Prince William offers the lowest prices so more value!
Statistic
Jul
YoY
MoM
Total Sold Dollar Volume
318,271,988
up5.4%
down1.5%
Closed Sales
778
down0.4%
0%
Median Sold Price
$385,000
up6.9%
-2.5%
Average Sold Price
$409,616
up5.9%
-1.8%
Median Days on Market
24 days
down41.5%
+14.3%
Average Days on Market
38 days
down19.2%
+5.6%
Remember, within the counties, there is also a deeper dive that needs to be taken into consideration in neighborhoods and price points. Hopefully, this gives you a better idea of what is happening in our real estate market in Northern Virginia. If you have any questions or concerns or if you are looking to make a move, please feel free to call me.
The word on the street is prices are going to collapse…the market is overheated…a recession is coming…we are in a housing bubble. It’s mayhem if you believe everything you read and listen to what the non-experts have to say about the real estate market and the current market we are experiencing. Quick question. Did you know that 50% of REALTORS have a second job? Working with a true full-time professional who is up to date on the local Northern Virginia real estate market is more important today than ever before. You need to have the guidance, advice, and experience to be guided seamlessly through the real estate transaction, so you are protected. Don’t rely or believe everything you read on the internet. Call me instead because here are the facts.
Prices – barring an unforeseen event, they are stable in Northern Virginia and will remain this way. Why? Because our prices have risen only slightly each year after the Great Recession (bar a few examples/areas). We don’t have lending practices in place any longer that allow buyers to buy without strong fundamentals in place and allowing unqualified purchasers to outbid on properties at extreme prices.
The market is overheated – this is not true in all areas of Northern Virginia. Yes, there are areas of Arlington and in certain price points where inventory is extremely low that there are multiple offers but overall, we have seen this trend slow in recent months. Remember, what you read today typically happened 2-4 months ago as stats on the market don’t immediately get released and are reflective of current trends. Every market is different, and this is why you need specific advice on your property if you are selling or if you are considering purchasing a home.
A recession is coming – yes, it is true as we have been in the longest recovery in our history. All markets are cyclical so a recession will come. What does this mean for housing? It is typically a good thing…interest rates are lowered to stimulate the economy and barring the Great Recession, since 1995 when we have had economic slowdowns, prices have appreciated 81% of the time which is the same as when we have had economic expansion. Don’t fear the word recession and real estate values.
We are in a housing bubble – not true for our area. Prices have not skyrocketed like they have in other areas of the country, as previously mentioned, our prices have only moderately increased year over year. Our inventory of resale homes is 22% below last year’s level and 33% below inventory levels two years ago. Our unemployment rate is one of the lowest in the country. Our salaries are stable to slightly rising meaning people have good-paying jobs.
Lastly, the interest environment we are in is making housing more affordable – rates are low and are going lower. 30-year fixed rates are in the mid to high 3’s (percent) today. There are many refinances that are taking place and there will be more to come so these people will be staying in their houses for a while and will be potential, future landlords which will keep the housing inventory tight moving forward. This too will keep our market out of a crisis in my opinion.
Again, barring an unforeseen event, we will be in a strong real estate environment for some time here in Northern Virginia. We actually need more houses to sell as there is pent up demand. If you are considering a move of any kind, please call me today to learn more. I can be reached at scottmacdonald@remax.net or 703-652-5777.
In this motivational series, I’ll highlight how to become a Peak Performer. In today’s Peak Performer Series message I’d like to talk to you about the summertime blues. Are you currently experiencing the summertime blues? Go out there and be proactive, get out of the blues rut – don’t let it bring you down and put you behind on the goals you have set for this year. Learn why this is so important in my latest video.
Need more motivation? Give me a call at 703-652-5777 or email at scottmacdonald@remax.net
The real estate market never ceases to amaze me. We have weeks, months and years where sales go up and down, prices go up and down, inventory goes up and down, but now, we are dealing with people’s emotions going way up and way down – including real estate agents. The lack of inventory in some areas have resulted in buyers losing out multiple times on their home of choice. They become frustrated and make irrational decisions on prices, terms or location. These decisions will have an impact on their financial lives as well as their quality of life (including potentially longer commutes). When clients lose out on offers multiple times, agents get frustrated too, either because the clients don’t listen on how to position themselves or with other agents believing they were treated unfairly during the negotiations. This is why it is imperative to work with an experienced agent to help you navigate through this emotional time in real estate. An agent that has been there before, understands what is going on and can provide the right advice so you (or someone you know looking to buy) get the proper guidance and the house you want – without getting tied up in the emotion adding stress to the situation. Well, guess what? I have been through these types of turbulent, emotional times and I can lead you or someone you know through these situations, just call me. I will help everyone stay calm and focused on the eventual task which is getting the house sold.
Keeping with the amazement theme, we still have very low inventory levels – 20% below last year’s levels. This is creating the type of market I just mentioned. Unfortunately, sellers are not immune to the emotions of selling. Unrealistic expectations of timing, pricing and response times from buyers/buyer agents make for stressful times during selling. It is important to have the right expectations when selling a house, mostly to keep the seller on an even keel. Once again, I am here to help provide the right advice, guidance and emotional balance to get you through the home selling process, just give me a call. I am happy to help!
In this motivational series, I’ll highlight how to become a Peak Performer. In today’s Peak Performer Series message I’d like to talk to you about taking action. Are you taking action on the right activities to be successful? Or are you taking action to just be “busy”? Learn more in my latest Motivation Minute.
Need more motivation? Give me a call at 703-652-5777 or email at scottmacdonald@remax.net
The Spring Market has sprung into action! Although inventory levels are down, activity on listings is up, open house visitors are abundant and multiple contracts on listings are happening more frequently throughout Northern Virginia. In Arlington and close in locations, we are seeing contingencies getting waived and huge escalation clauses for buyers to win contracts. It is a good sign for our market to have such great activity and I expect it to continue for the next few months.
All this being said, pricing properties properly is still paramount to success in getting houses sold. Along the Route 1 corridor close to Amazon’s HQ2 people are definitely “future pricing” their houses. Their hopes to cash in are not bearing any fruit and I don’t believe this pricing strategy is going to get them sales any time soon. At this time, pinpoint accuracy in pricing is the strategy to undertake. Do not price for negotiations. Do not price higher because the neighbor received multiple contracts (as not all listings with multiple contracts are going above list price as I mentioned last month’s newsletter).
If you are a buyer, do not despair, we can help you find a house even in the low inventory market dynamic that we are currently experiencing. Although we are below 3,000 active houses for sale in Northern Virginia, the pace of houses coming on the market for sale is increasing each week. We also have access to “Coming Soon” properties through our network of professionals whom we deal with on a regular basis. Having someone scout out properties for you before they officially hit the market is extremely important, so please feel free to call me to discuss this in more detail.
Don’t forget to set your clocks ahead this month and get out there and enjoy the longer days!
In this motivational series, I’ll highlight how to become a Peak Performer. In today’s Peak Performer Series message I’d like to ask you a question – what is your motivation? Is it the carrot or the stick? Or is it growth? My suggestion for the best motivation is to find an advocate. Learn more about my suggestion on motivation in my latest Motivational Minute message.
Need more motivation? Give me a call at 703-652-5777 or email at scottmacdonald@remax.net
What an interesting January we have experienced both weather-wise and in the real estate business. We have golfed and we have shoveled snow/ice this month. We have had multiple contracts on some houses, and we have had houses sitting on the market (with no showings) for days and even weeks. We have had mild temperatures and we have had epically cold days. We have had 30 plus people at open houses on weekends and we have had no visitors at others. We have windy days and days that had no breezes. We have seen mortgage interest rates go up and now they are at yearly lows. And, like the temperatures this week, we have seen inventory levels drop to 14-year lows. As I said, it was a very interesting January.
The biggest question we have in the real estate industry is… When will more houses come on the market for sale? Historically we have seen houses start go up for sale the second week of February. So, will this year be the same or will we continue along the same path we are on now…inventory levels going down? The answer is, time will tell. In conversations with agents across our five offices, we are hearing about some houses will be “coming soon” but not a significant number of them. If you are considering selling, this could be your perfect time to do so.
What is odd to me, and others, is prices are not escalating like you might expect. The tried and true economic theory of supply and demand in regard to pricing does not apply in this market. We have a lack of supply and LOTS of demand, but prices are staying relatively flat and, in some situations, we are even seeing price reductions fairly regularly. Additionally, in several multiple contract situations, we have not seen escalation clauses or even full price offers. Going back to my original sentence, it was an interesting January.
All this being said, we can provide you with the right advice on how you should approach this “interesting” market. Whether you are selling or buying a home, each market and personal situation is different. So, give me a call to learn more.
In this motivational series, I’ll highlight how to become a Peak Performer.
In today’s Peak Performer Series message I’d like to talk to ask you about the Proximity Principle. Have you heard of this? The thought of this principle accounts for the tendency for individuals to form interpersonal relations with those who are close by. Who are you closest with? Are they a good influence? Where are you spending your time? Should you be going to these places? Are these factors contributing or detracting from your success?Learn more in my latest Motivational Minute message.
Need more motivation? Give me a call at 703-652-5777 or email at scottmacdonald@remax.net
Scott's Motivation and Real Estate Market Updates 