A Quick Minute of Motivation

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 input and output. What you put into your mind you output in your actions. Learn more about this action/reaction in my latest motivational message video.

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

August Market Update

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.

A Quick Minute of Motivation

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 personal relationships. Not work, or customer relationships – your family relationships!  Learn why having these important relationships is imperative to your success. Check out my latest video.

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

 

A Quick Minute of Motivation

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

June Market Update

The Summer Market is Upon Us!

It is hard to believe we are already through the Memorial Day holiday weekend. Time is really flying this year – at least it seems that way to me. Kids are home from college, summer jobs have started, weekend pool parties are in full swing and the real estate market is just as busy as it has been all year. Let’s start with the amazing mortgage interest rates that continue to tumble downward. They are now well into the threes for 30-year fixed rates and are expected to go down even further. This makes now a great time to buy a home! It can still be a challenge to find the right house, as inventory levels remain extremely low – 19% below last year this same week and nearly 30% below what was on the market two years ago. What is also amazing is that sales are up with inventory levels being down. Through April (latest available data point), there was one more sale this year than last year…one more is one more than before. I believe that interest rates will continue to foster sales through the summer as inventory will come on the market. Let’s talk about your plans if you are considering selling – we can position you properly to take advantage of today’s market.

All this being said, the market is not good to all sellers. The reason for this is some sellers are under the belief that their property will sell regardless of price and condition. We are seeing a lot of unrealistic prices on properties, as well as houses in disrepair or in need of substantial work to get the prices sellers are asking. We have seen average prices up over last year by 2.75% which is great, but it is not 2.75% per month like some sellers are pricing their houses at today (and “hoping” to get for them).

From a buyer’s prospective, we are still in a price conscience market. Buyer’s are concerned about paying too much and are analyzing prices closely, especially if they are using a professional REALTOR and not the internet to help them buy a house. The internet is not the way to buy a house today or anytime. The guidance and expertise of a real estate professional is more important today than ever before. If you are considering buying, we should talk sooner rather than later so give me a call.

Have a great June – enjoy the graduation parties!

Hot & Sticky… The Northern Virginia Real Estate Market

The real estate market continues to be hot – just like the weather.independence day  Inventory levels remain below 7,800 active properties for sale in Northern Virginia.  Last year at this time we had over 9,550 – quite a difference.  There is pent up demand but we are lacking “really good” inventory.  We have buyers that would move up if they found something suitable in a higher price points but nothing seems to be coming on to help with this situation.  So here are a few quick stats on the overall market:

  • Sales of existing homes reached the highest annual pace in over 9 years at 5.29 million.
  • Inventory remains below the 6-month norm and prices are still on the rise, however, this is very hyper-local so ask me for details.
  • Interest rates are at a historic low of 3.48%.

Now, just like the weather, things can be a little sticky…if properties get priced too high, they are sitting on the market.  They are getting lookers, just no offers which at times has led to frustration for our sellers.  It is important to keep in mind proper pricing today is still critical.  To learn more about how we can help you with selling your home, feel free to call me.

The big news recently has been Brexit and how it will affect us in the United States.  Well, virtually immediately, interest rates on mortgages dropped to three year lows.  The good news is they are expected to stay this way for a while.  There is speculation that International investors may sell off their holdings in the UK and invest in the US which could be good news for cities like Washington, DC, New York, Chicago and Los Angeles – let’s keep an eye out for this movement.  The overall sentiment is we may not see its full impact for years but in the short term it will be good for the US housing market.

As always, we are here to help with any questions you may have regarding the Northern Virginia real estate market and have a safe, fun and enjoyable July 4th celebration.

Scott MacDonald

RE/MAX Gateway

Economic Forecast for 2016 and what it means to the Northern Virginia Real Estate Market

Happy Holidays!  Sorry for the delay this month but I wanted to have our Economic Summit with Dr. Stephen Fuller to fill you in on what is coming down the pike for our economy here in Northern Virginia.happy holidays from REMAX gateway

This year sales remained strong and higher than last year indicating we are still in an improving market.  Prices are stable as we wait for higher paying jobs which happened in the last local jobs report.  Higher paying jobs, along with lower inventory will put upward prices on houses in the future.  Next year will be even better than this year but it appears as if 2017 will be the best year of the decade so we have that to look forward to in housing.  Also, new home starts as well as sales are projected to increase in this same manner which will create even more jobs for our local economy.

Additionally, we see no reason that the Continuing Resolution bill will not pass and be implemented which will lead to the first of 8 interest rate hikes by the Federal Reserve.  Both announcements are due the second and third week of December.  The mortgage interest rates published today already have this rise in rates priced into them so we are not expecting a spike in mortgage interest rates next week when it is announced.  It is projected that by 2018, the Fed rate will be about 3.25% and mortgage interest rates will be around 6%.

Our job market will continue to grow in mostly higher paying jobs but the food and leisure jobs still are the strongest in our economy.  Professional Services and Health Care are coming on strong and this is where the higher paying jobs are for us.  This trend will continue for the next few years.

All in all, a bright forecast for our real estate market just in time for the holidays!  If you would like a copy of the presentation he gave us, please let me know and I will send it to you.

Enjoy this time of year with your friends and family and please be safe!  Until next year, Happy Holidays!

Scott MacDonald

RE/MAX Gateway
4090B Lafayette Center Drive, Chantilly, VA 20151
Offices strategically located throughout Northern Virginia.

 

NFL Super Bowl Challange and a “No Deflate-Gate” in the Northern Virginia Real Estate Market!

Watch Scott’s Market Minute!

Low interest rates, low resale housing market inventory and great loan options.  If you are considering buying or selling real estate – contact me for a free consultation 703-652-5777 or scottmacdonald@remax.net

Will You accept Scott MacDonald’s NFL Challange?

Video

LOW INVENTORY: Homes for Sale Needed in Northern Virginia!

Low inventory and multiple offers – listen as Scott MacDonald explains the current housing market from both buyer and seller perspective.  Scott offers practical advice to homeowners who are thinking of selling, as well as, market trends and forecast for the Northern Virginia Real Estate Market.
Contact Scott MacDonald (703) 652-5777 scottmacdonald@remax.net to learn more about your specific real estate market or read scottymacsblog.com/

Why you should close on your home before July 1, 2013 Grantor’s Tax Increase

Big changes are on the forefront for Virginia real estate if you are selling or buying a house.  The state Grantor’s Tax is going from $1.00 per thousand to $2.50 per thousand of the sales price or tax assessed value, whichever is higher on July 1, 2013.  Here is the impact – on a sales price of $500,000 the fee is going to go from $500 to $1,250Grantors Tax Increase to help ease congestion

The tax is typically paid by the seller in a resale scenario and the builder usually passes this fee on to the buyer.  As a result, it has become a nominal cost associated with selling to one of a greater impact and one that will potentially bring attention to people on both sides of the table.  In other states, including Maryland, this tax is absorbed by the seller with first time buyers, is split in most cases but in the end, is a negotiable item between the seller and buyer.  It will be interesting to see if this becomes the case in Virginia.  Our fee is less than Maryland’s but is still is significant enough to take notice and pay attention to what will be the impact as it becomes implemented and the prices increase.

The change goes into effect on July 1st so you will want to plan accordingly.  This year July 1st falls on a Monday so in order to avoid paying the tax, we are encouraging our clients to close by the 26th of June.  This will ensure the property gets recorded at the courthouse prior to the Friday rush that many title companies are expecting and save your money.

Many of you may recall that back in January of 2008, this tax went up 5 times so the same scenario listed above would have resulted in a $2,500 tax on the sale of properties in Virginia.  Therefore, this increase is not as significant.  In March of that year the Supreme Court of Virginia repealed the tax stating a transportation authority NVTA did not have the right to levy taxes.

The additional fees today are also put in place to cover costs associated with transportation initiatives and road improvements in Northern Virginia and Hampton Roads in an effort to ease the congestion in these regions.  As such, this tax is only applicable to these regions.  Let’s see some results, please.