Scott’s weekly market update… a boring market? What? Watch the video to learn more!
Contact Scott MacDonald 703-652-5777 Broker/Owner of RE/MAX Gateway for more information and a personal assessment to meet your goals.
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A Quick Minute of Motivation…
Are you experiencing a real estate dip (it’s not a rut)? Don’t lose motivation! Here’s some motivation to get you out of that ‘dip’ – a quick minute of motivation message from Scott.
Contact Scott MacDonald 702-652-5777 Broker/Owner of RE/MAX Gateway for more information and motivation!
Hot & Sticky… The Northern Virginia Real Estate Market
The real estate market continues to be hot – just like the weather.
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
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?
New Year Sparks Hope and Much Anticipated Home Sales As Early Spring Real Estate Market 2015 Approaches
The beginning of the year always brings about hope, excitement and anticipation of good things ahead and 2015 is no different. We believe that this year will be a much better year for real estate in Northern Virginia. There are many reasons for this optimism – great rates, new financing programs, lower inventory levels, positive consumer confidence and pent-up demand.
Let’s review each of these areas.
- Great rates. Although there has been a very slight uptick in rates recently, rates remain very low historically. Additionally, the interest rates will remain low through 2015 perhaps not reaching 5% until later in the year.
- New financing programs. Freddie Mac and Fannie Mae have both begun to accept 3% down payments for first time home buyers. There will be guidelines such as a minimum 620 credit score, borrowers will have to take an educational class, and they couldn’t have owned a home in the last 3 years to qualify. With 45% of renters delaying a home purchase because of available funds for a down payment, this should increase the number of home buyers in 2015.
- Lower inventory levels. In September of this year, we reached a 7 year high in inventory in Northern Virginia with 9,163 houses for sale. Since that time, the number of available homes has declined each week. We now have just 5,944 homes for sale which resulted in a brisk sales month for December. Some of these properties will come back on the market this upcoming spring, but many sold. As long as we have a moderate winter weather-wise, inventory will slowly enter the market and we won’t have the accelerated inventory levels we experienced in May of 2014 due to the weather.
- Positive consumer confidence. Many more people today believe that the economy, their personal situation and the real estate market are all going to be better in the future. These optimistic expectations are leading indicators to people purchasing in the upcoming months – including housing. Additionally, Freddie Mac and builders also have high expectations of the housing market. These expectations will have a positive impact on housing in 2015.
- Pent up demand. As previously mentioned, December experienced a brisk sales month here locally. We continue to receive calls, emails and internet requests on our homes for sale. This shows us that there are many people ready to buy the right home that suits their personal lifestyle needs. Also, many people who went through distressed sales just a few years ago are able to purchase again. Job growth coupled with population growth locally will also increase demand for housing.
One other area to see home ownership grow in 2015 and beyond is the Millennial homebuyers. They believe in home ownership as a wealth building opportunity and an overwhelming majority of them will be buying in the next 5 years. Lastly, rising rental rates will push more people into ownership as a cost savings measure.
All of these positive influences in our region will strengthen our housing market in 2015 and beyond. As we see our local economy continuing to rebound after 4 years of stagnant growth, this will have a positive impact on housing. To see what this means to you, please feel free to contact me.
Cheers in the New Year!
Scott MacDonald
RE/MAX Gateway
A Stable Real Estate Market and Great Interest Rates – That’s Something To Be Thankful For
Well, we have good news to report on the market – We have reached a point of stability.
We are now officially into the winter market as we are starting to see things wind down. Our listing inventory is currently at 8,512 houses for sale which is actually down from our 7 year high last month. 
We have a 3.7 month supply of homes which is about the same level as last month. Obviously, we would like to see more sales as would our sellers but we are maintaining our sales levels, not decreasing which is more good news. Additional positive news is interest rates remain low and prices are stable so the opportunity for buyers to lock in reasonable monthly payments is available. From the buyer’s perspective, now is a great time to buy.
I had a conversation with Josh Burruss of MVB Mortgage about payments with rates where they are today versus a situation where they to go up .5% – here is the result of our discussion. Currently the rate on a 30 year fixed conforming mortgage is approximately 4.00% (APR 4.058%) based on a sales price of $500,000 with a down payment of 20%. If the interest rate were to rise just 0.5% (4.50% – APR of 4.562%) from current levels, the principal and interest payments would increase by approximately $117/mo. The difference in the overall finance charge in these two interest rates over the life of the loan is approximately $42,241.94. As you can see, just a half percent in interest rate can mean a huge difference in overall cost over the life of a mortgage. If you want to discuss this with him in greater detail, feel free to call him at 703-727-4239.
Moving forward, we need to pay attention to the end of QE3 and the government’s subsequent completion of bond buying. We are expecting rates to rise into 2015 as a result of this policy. Right now we have great rates so take advantage while you can because the Fed still thinks it will be a “considerable time” before it begins to raise interest rates. The Zero Interest Rate Policy remains in full force, as it has been since it began at the end of 2008. This policy will change because we cannot sustain this type of monetary policy as it just continues to add to our National debt. Plus, we need a market-driven interest rate environment and a more predictable monetary policy to help foster long term economic growth. This will definitely impact our housing recovery moving forward.
We would welcome the opportunity to discuss your housing situation in more detail so please feel free to contact me via email scottmacdonald@remax.net or give me a call 703-652-5777
Scott MacDonald
RE/MAX Gateway
The Accidental Entrepreneur: It Takes More
Kristina Bouweiri, President & CEO Reston Limousine kbouweiri@restonlimo.com
The Entrepreneur Business to Business forum at NVAR yesterday featured an accidental entrepreneur, Kristina Bouweiri. She calls herself this because she never thought or had the desire to become a business owner. She was a 100% commission based sales person selling advertising when she was offered a position at Reston Limousine. It was there she learned what it was like to operate a business. She did booking, invoicing, hiring, you name it – she did it all plus was a mother of four.
There were several events that helped shape her business to where it is today. One is when she was approached to provide a shuttle service for the National Geological Survey which got her company into the government and getting government contracts and the other was 9/11. When 9/11 occurred her business ground to a halt and she had to get out behind the desk and out on to the street to make things happen. She got involved in Chambers, Charities and multiple Boards which all helped her gain clients and not only survive but thrive.
Her philosophy of how to run a successful business mirrors running a real estate business whether you are a broker or an agent.
Here are a few things owners and agents need to consider:
- Get out and get involved – network with other professionals in the business but also outside the business to help create opportunities for each other.
- Continually grow your database and maintain regular contact with them through email, phone calls and visits.
- Get into a mastermind group of others in the business from around the country to share ideas on all aspects of the business and to help you develop best practices.
- Join a peer advisory group like Vistage to help you grow your business as well as hold you accountable.
- Attend conventions, seminars and be a continuous learner. Be knowledgeable about your business.
- Develop strategic relationships to grow your business.
- Learn to delegate. Take an hourly calendar and track what you are doing each hour for two weeks. See what your hourly rate of pay is and any tasks you are doing that don’t pay your hourly rate, hire someone to do it.
- Don’t spread yourself too thin
- Hire to your weakness and develop your strengths.
- Always look to hire the top talent and weed out the under performers.
- Be relational not transactional – make great and long lasting relationships and help others to succeed.
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- Hold client appreciation events and solicit sponsors to help fund the events.
- Figure out what you are good at delivering and make that your niche.
- Be tech savvy and be an early adopter
- Embrace social media – have a blog, website, LinkedIn, Facebook and email blast strategies to gain awareness, provide valuable content and to be seen.
- Get involved in charities
As you can see, she was a wealth of knowledge to the numerous agents in attendance and it was great information that parallels our industry. To learn more, feel free to reach out to me.
Now, go sell something!
Scott MacDonald
RE/MAX Gateway
Stable Real Estate Market Dispite Increase In Distressed Properties
The word this past month used to describe the real estate market would be stable.
Although we are at an 8 year high in inventory levels, we didn’t see the rapid increase in inventory like we have experienced since May which is a good thing. One area that we saw an increase in was in distressed property inventory. Even though nationwide there are fewer foreclosures and short sales, we have more of them on the market here locally. They are nowhere near previous levels but they are up 22% since the last week of June. We will continue to monitor this for you and let you know of opportunities that are available. We also did see a slowdown in sales which we don’t like to experience. It was the fewest amount of sales for a month since January of this year but their numbers were virtually identical week to week so they were stable. So, when you have high inventory levels coupled with fewer sales, we have seen more stable prices which is good for buyers. It helps to keep housing affordability levels high for our buyer clients. Owners are seeing the need to properly price their houses to make them competitive with the rest of the marketplace. In addition to these market conditions we saw rates decline which helps keep the market stable as well. Lastly, one area of surprise we experienced was the past week at our listings. We saw an uptick in showings and buyer interest in our listings on line and in phone call inquiries. This is good news as activity leads to sales.
On another note, we have a group of agents from different companies in our area that meet monthly. These agents are in the top 5% of agents across the entire country in regards to sales. We discuss the local market, inventory levels, buyer preferences, seller expectations, listing activity, and many other real estate related topics. In this Platinum Club group meeting this past month we discussed the fall market and what our expectations were about the upcoming season. The sentiment is the fall market will be a solid market in regards to sales. We were all optimistic about what the market is going to bring and seeing activity at our listings pick up this past week may be the start of the momentum our region needs. We will keep you posted.
Please let us know if there is anything we can do to help you or if you know of someone who may need our help. We are here for you. Feel free to call me directly (703) 652-5777.
Scott MacDonald
RE/MAX Gateway
Hey, Why Is It Taking So Long To Sell My Home? Theme Park: Northern Virginia Real Estate Market
The summertime real estate market is a lot like a theme park – ups and downs like a roller coaster with sales, activity and interest rates and a lot of unknowns like a haunted house.
There are a lot of questions around what is happening in the market from sellers and builders we are working with to sell their houses.
It is an interesting dynamic where we have extremely low interest rates – at or near 4% – and a high home affordability index yet sales are not as strong as we expect them to be considering this situation.
What are the reasons for this?
One potential reason is price appreciation along with the multiple offers earlier this year. Many potential homebuyers naturally paused to wonder: is it a new bubble? Or can I afford these prices? But price appreciation has greatly moderated as we have seen inventory rise dramatically since the beginning of the year.
Therefore, potential homebuyers will no longer face the sticker shock and can now make rational decisions about whether or not it makes sense to buy a home.
Along with the increase in houses on the market, we will be creating new buyers as these homes sell. So demand will increase as more sales happen in many instances.
Another reason is the economy isn’t growing as quickly as was expected and consumer confidence is not extremely strong. Once buyers gain confidence in the economy, housing will follow suit and grow with the economy. Until then, we will see moderate house sales as well as price appreciation.
We also are still experiencing tight lending guidelines and underwriting policies on mortgages. It is still hard for many potential buyers to obtain loans. The “qualification pendulum” is still too far to one side and needs to be moderated to allow more buyers into the marketplace with sound lending practices.
So, in order to be a seller in today’s market, you need to be patient. Good houses, properly priced, in the right condition will sell. It will just take a little longer.
If you have any questions or concerns, please call me (703) 652-5777 so we can discuss your personal situation in more detail. We are here to help.
Happy 4th of July!
Scott MacDonald
RE/MAX Gateway
With No True Spring-Selling Market, What Will It Take To Sell Your Home in 2014?
Wow, it is hard to believe that we are almost half way through 2014 and summer is just about to get into full swing. It is going to be interesting to see how we get through the real estate market this summer as we had no true spring selling season. At our June Quarterly Meeting, I announced our numbers were up so far this year but we were expecting to have helped more families buy and sell homes up to this point. Of course the weather got in the way early on and now that school is about to get out, people will be taking their vacations. So it is important for sellers to be prepared for the upcoming situation.
Our inventory levels have continued to escalate since the warm weather broke in May. It has resulted in us having more homes for sale than any time since October on 2011. As we enter the summertime, the season generally slows down which will increase inventory as well, so sellers need to do all they can to attract the buyers that are out looking for a new home. Sellers need to position their properties accordingly, as there is currently a 2 month supply of houses on the market. The inside and the outside of the house needs to shine and show like a model home, as well as be priced to sell! We are not able to “push” prices like we did earlier this year. 
The sellers who overprice their properties, even just above what we recommend, sit on the market. Additionally, we are having appraisal issues with properties in areas where there are no sales to support the higher values – even in multiple contract situations in arm’s length transactions. The underwriting guidelines have made it tougher to get above market values approved, so please price your house accordingly.
If you have any questions, concerns, or would like to discuss your specific situation or the market, feel free to call me today (703) 652-5777.
Scott MacDonald
RE/MAX Gateway
Scott's Motivation and Real Estate Market Updates 