From the headlines - Pending Home Sales on the Rise

"The National Association of Realtors says its pending home sales index, which measures contracts to buy homes, increased last month to its highest level in two and a half years.
It's the latest sign of improvement in the battered housing market.
The NAR said its seasonally adjusted index rose 1.7% in November from October to 106.4. That's the highest since April 2010, when a homebuyer tax credit caused a spike in sales. And excluding those months when the tax credit was available, it's the best reading since February 2007."

This news is great for those that are thinking about possibly selling their home in the coming year. As the story goes on to say, with inventory at a 11-year-low in some places and price points, prices are on the rise throughout the country. Locally this is also true with many areas seeing significant price growth over the past year. For buyers this news is further proof that the bottom has come and gone and if you are in the place where you would like to put down some roots now is the time to begin your search.
If you are interested in learning more about how much your home might sell for or beginning the process of looking for a new home we would love the opportunity to talk with you and see how we might be able to best serve you.

For the complete story click here.

Market Update - November

The surge in new contract activity last month translated into a rise in sales for November.  Sales are higher than last year, but new contracts are down slightly compared to November 2011. The inventory of homes for sale continues to shrink, and new listings remain at their lowest level in over a decade. The low supply is putting upward pressure on median sales prices around the region and price gains have been most pronounced in the townhome segment, which has led in year-over-year growth for 3 consecutive months. Other key points from November include:

CLOSED SALES
The 3,556 sales in November in the Washington DC Metro Area was a 21.5 percent gain from this time last year, the highest year-over-year jump since May 2010. Sales typically fall between October and November in the region, but the surge in new contracts in October has caused overall sales numbers to rise 8.8 percent from last month. Similar month-over-month gains have occurred in all property segments. Townhomes led in growth, up 31.4 percent from last November. Condos and single-family homes rose 22.0 percent and 16.2 percent respectively. All property segments had their highest November sales in 3 years.

PRICES
Median sales price continues to climb late in the year and townhomes saw the highest price gains since 2005. At $370,000, the median home price in the DC Metro Area is 10.4 percent higher than this time last year, and the highest November median in 5 years. Falls Church City leads all jurisdictions with a 40.7 percent gain from last November and all other jurisdictions within the DC Metro region experienced median price gains with the exception of Alexandria City, which fell 3.5 percent from this time last year.

NEW CONTRACTS
The 3,732 new contracts signed in November in the DC Metro region was down 1.3 percent from this time last year and is typical for this time of year as new contract activity typically falls between October and November. The unseasonable rise in new contracts last month could have muted the numbers this month as many buyers may have purchased earlier than planned. It could also be reflective of the low inventory of homes for sale. Buyers have fewer options, so many could be waiting it out.

INVENTORY
There were 7,830 active listings in the DC Metro Area at the end of November, 37.8 percent lower than this time last year. The inventory of active listings is now about one third of its peak, which was over 25,000 in the fall of 2007. All property segments continue to see inventory absorption, with active listings down over 40 percent across the board from last November. New listings are following a similar pattern, though the declines are not as dramatic. The low inventory of homes for sale continues to drive down the median days on market, which at 22 days, is half of what it was just a year ago. The average sale-to-list-price ratio also continues to rise, up to 96.6 percent from 93.7 percent last November.

Rent On The Rise

When you are deciding whether or not to buy a home, one consideration is the cost of  renting an apartment, townhouse or home. So where are rental prices heading over the next few years?
Rental prices usually increase by about 3 percent annually. Trulia just released their Trulia Rent Monitor where they revealed that rental prices have increased dramatically in the last year.

“Nationally, rent gains continued to outpace home price increases in October, rising by 5.1 percent.”

Based on the concept of supply and demand, many believe rental prices will continue to substantially increase over the next few years. The long-run 30-year average increase in multifamily rental households is 200,000 each year. Over the next few years, those numbers will more than double to over 500,000 each year. Freddie Mac in their latest report, Multifamily Research Perspectives, projects housing demand going forward.

“Given assumptions consistent with economic growth slightly slower than long run averages, multifamily demand is likely to be in the range of 1.7 million net new renter households between now and 2015.”

Looking at the recent statistics prices are on a consistent and steady rise in the Washington metro area and now could be the perfect time to lock in your long term housing expense by buying your own home. If you have more questions don't hesitate to call or email us to talk more in depth about renting vs buying.

From the headlines....

Two recent stories from USA Today caught our attention regarding the housing industry - both locally and on a national level.

Mortgage rates hit new record low:
http://www.usatoday.com/story/money/business/2012/11/21/30-year-mortgage-record/1719343/

Housing starts rise to four year high for October:
http://www.usatoday.com/story/money/business/2012/11/20/new-home-starts/1716541/

Market Update - October

Demand has picked back up in the Washington DC metro housing market in October following a typical September slow down.  Sales, new pending contracts, and median price gains are all above their 10-year average change from last month, an indication that buyers are still active in the market.  All market indicators are above last years levels, and many are at multi-year October highs. 
The inventory of homes for sale continues to fall, which is playing a role in the price gains.  Active listings are nearly half of their level 2 years ago, and new listings for October are at their lowest point in over a decade. 

CLOSED SALES
Demand appears to be persisting across all property segments with the highest October sales in 3 years. There were 3,269 sales in October in the Washington DC Metro Area, a 16.1 percent jump from last October.  Sales are steady from last month, up a modest 0.4 percent, which indicates demand could be enduring into the historically slow fall season.  The 10-year average change in sales from September to October last month is -3.8 percent.

PRICES
Median price gains continue for most of the region with the highest year-over-year increase for the DC Metro Area in nearly 7 years.  At $362,500, the median home price in the DC Metro Area is 13.3 percent higher than in October 2011.  This represents the highest year-over-year increase for any month since December 2005.  The low inventory of homes for sale coupled with steady demand continues to push prices upward relative to last year.  Prince George’s County leads the way with 20.0 percent growth, an increase of $30,000 to the median price from this time last year.  All other jurisdictions within the DC Metro region experienced median price gains with the exception of Falls Church City, however medians there tend to be volatile due to the low quantity of homes sold. 

NEW CONTRACTS
New contracts are at the highest October level in seven years as townhomes lead the growth.  There were 4,459 new contracts signed in October in the region, up 5.8 percent from this time last year, and the highest October total in 7 years. Townhomes led all property segments in new contract growth for the first time in over a year, up 11.4 percent from October 2011, followed by condos, which rose 8.9 percent. 

INVENTORY
Active listings are roughly half of what they were in October 2010 and new listings for October are the lowest in over a decade.  There were 8,766 active listings in the Washington DC Metro Area at the end of October, 37.2 percent lower than this time last year. This is the first time the number of active listings has dropped below 9,000 since July 2005.  October active listings in the region are nearly half of what they were 2 years ago, indicating dramatic property absorption in the market.  All property segments experienced year-over-year inventory reductions exceeding 40 percent.  The 4,588 new listings in the region are the lowest October-level since 1999, an indication of a persisting pattern of low supply.  The low inventory of homes for sale is having a direct impact on the median days-on-market, which was 23 days in October, down 21 days from this time last year.  Impacts can also be observed with the sale-to-list price ratio, which rose from 93.4 percent in October 2011 to 96.0 percent this month for the metro area.

Maryland Market Update

Washington DC Market Update

Northern Virginia Market Update

Storm Preparations

While it's anyone guess as to whether the "Frankenstorm" is going to affect the Washington D.C. market but we tend to follow the "its better to be safe than sorry" mantra when it comes to large storms. With that said here is a list of items to that would be good to have in the case of emergency, some tips on preparing your home and contact information for the tri-state area. We hope that everyone stays safe and if there is anything that we can do to help please don't hesitate to contact any of us.

Suggested Household Supplies

• Plenty of batteries
• Candles
• Case of bottled water per person
• Loaf of bread per person
• Jar of PB or some other source of protein that doesn’t require refrigeration
• Canned meats/beans with Pop tops/pull tabs
• can opener (manual)
• Dry Matches/Lighters with plenty of fuel - just be careful of candles/fire hazards
• Fruits/Veggies that don’t need refrigeration or cooking
• Check supply of all Rx and regular medications
•  First Aid Supplies
• Clean laundry – because you may not be able to do it for a few days
• Paper products, Toilet Paper, paper towels
• Pet Supplies
• Non –electric charging source (for cell phones, laptops, etc.)
• Battery operated radio – with plenty of batteries
• Full tanks of gas in all vehicles

Preparing Your Home

Make sure to check outside for anything that could become a projectile and move it indoors or secure it somehow – potted plants, patio furniture, trash cans, etc.  and if you have a gas grill – make sure any spare propane tanks are put somewhere safe – keeping in mind you should never store them in an entirely enclosed area.  Additionally, should the grill become your cooking source, do not bring it too close to the house and never use it inside of the house or a garage and make sure you have a full tank.

Important Links

Weather Channel Update:

http://www.weather.com/news/weather-hurricanes/hurricane-sandy-winter-storm-20121025

Virginia

Fairfax County Emergency Management:
http://www.fairfaxcounty.gov/oem/
Loudoun County
http://www.loudoun.gov/index.aspx?NID=725
Orange County Emergency Management:
http://orangecountyva.gov/emerg_manage/index.asp

Maryland

Frederick County Emergency Management:
https://frederickcountymd.gov/index.aspx?nid=2001
Frederick County Emergency Preparedness:
https://frederickcountymd.gov/index.aspx?NID=4541
Montgomery County Emergency Management:
http://www6.montgomerycountymd.gov/oemtmpl.asp?url=/content/homelandsecurity/index.asp
Montgomery County Emergency Preparedness:
http://www6.montgomerycountymd.gov/mcgtmpl.asp?url=/content/pio/news/preparedness.asp

DC

http://hsema.dc.gov/page/emergency-management

FEMA

www.mema.state.md.us/
http://www.vaemergency.com/
dcema.dc.gov

September Market Update

The housing activity has cooled slightly  in the Washington metro area as we end September, which follows the typical seasonal market patterns. However closed sales, new pending contracts, and median prices all  remain above September 2011 levels, and in many cases are at multi-year September highs, providing evidence of a stronger market. The median price is the highest September median price in five years, and the number of new contracts in September is the highest in three years. The inventory of active and new listings continues to shrink, which will likely keep prices stable, even as demand slows.

CLOSED SALES
The 3,256 closed sales in September in the Washington DC Metro Area is a 4.7 percent increase from this time last year. All property segments continue to have stronger sales than last year, however the rate of growth has slowed, particularly in the condo market, which at 6.4 percent had the slowest year-over-year growth in six months.  Single-family home sales rose 1.9 percent from this time last year, and townhomes led all property segments with 8.0 percent sales growth from last year.

PRICES
The median sale price remains up from last year and low inventory will likely keep prices stable. At $360,000, the median sale price in the DC Metro Area is 6.5 percent higher than September 2011.The median price dropped $25,000 from last month; however this is in line with seasonal patterns. Most jurisdictions within the region continue to post year-over-year median price gains. Falls Church City leads the way with 12.7 percent growth, followed by Washington D.C. at 9.9 percent. Arlington had a 3.7 percent decline in median sales price from September 2011, which is likely due to a higher percentage of condo sales and a sharp drop in single-family detached sales in September. Region-wide, all property segments have higher median prices than this time last year. Townhomes lead the way, up 10.9 percent. Median prices of condos and single-family detached properties rose 8.0 and 4.5 respectively. Even as demand cools into the fall season, the low inventory of homes for sale will likely keep home prices relatively stable in the near-term.

NEW CONTRACTS
New contract levels remain relatively strong compared to seasonal norms for all property segments.  There were 4,195 new contracts signed in August in the DC Metro Area, up 9.6 percent from the September 2011 level of 3,829. Condos led all property segments in new contract growth, up 18.1 percent from this time last year. New contracts on townhomes also rose, up 13.6 percent from September 2011, which is the strongest year-over-year growth the region has seen on townhome contracts in over a year. New contracts for single-family detached properties increased 3.0 percent from this time last year.

INVENTORY
Declines in active and new listings persist with the lowest number of active townhome listings on record for September.  There were 9,514 active listings in the DC Metro Area at the end of September, 35.7 percent below this time last year. The number of active listings is now more than 6,000 below the 10-year September average for the area. The shrinking inventory continues across all property segments, with townhomes accounting for the largest reduction, down 43.5 percent from this time last year. The 1,723 active townhome listings in the metro housing market represent the lowest September total on record, with region-wide data available back to 1997. New listings in the region are following a similar pattern. The 5,124 new listings entered are the lowest September level since 2000. The persistent decline in homes for sale will likely keep prices stable even as demand slows. The low inventory continues to drive down the median-days-on-market, which was 26 days in September, down 18 days from this time last year.

DIY - No More Popcorn!

A ceiling paint staple for homes for quite a long time many homeowners now are desiring a smooth finish on their ceiling but dread the work to remove the old popcorn paint. Here is a step-by-step guide from the DIY Network on how to tackle it over a long weekend.

Home Prices On the Rise

Home prices rose in 20 major cities in the U.S. in July according to the latest Standard & Poor's/Case Shiller index that was released this morning. The increase of 1.2% in July, was compared to the same month last year, and it represents the second straight year-over-year gain after two years without one. The report also says prices rose in July from June in all 20 cities tracked by the index. That's the third straight month in which prices rose in every city. 

In the 12 months ending in July, prices have risen in 16 of 20 cities. In the D.C. area, which for the Case-Shiller index's purpose is made up of 23 counties in VA, MD and DC -  prices rose on both a monthly (1.5%) and annual (3.7%) basis.

David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices has this to say about the recent news:
“All 20 cities and both Composites were up on the month for the third time in a row. Even better,
16 of the 20 cities and both Composites rose over the last year. The news on home prices in this report confirm recent good news about housing. Single family housing starts are well ahead of last year’s pace, existing home sales are up, the inventory of homes for sale is down and foreclosure activity is slowing. All in all, we are more optimistic about housing. Upbeat trends continue. For the third time in a row, all 20 cities and both Composites had monthly gains. Stronger housing numbers are a positive factor for other measures including consumer confidence."

For the full report click here

IS IT CHEAPER TO BUY THAN RENT?

When you are considering a home purchase this is an incredibly important question to ask and one that we receive on a consistent basis. Just this week, Trulia - the online home search site, released some new facts about the health of the market across the country and highlighted areas where currently it is cheaper to buy that it is to rent. As you may have guessed the Washington D.C. metro area fell into the "cheaper to buy" category" with  'homeownership being 43% cheaper than renting.'
Now this study has certain nuisances and each person's situation is different so it is important to look at many factors in your life as there is almost never a one size fits all option when it comes to housing. This study uses certain criteria to be part of the "cheaper to buy" category: Lock in a low interest rate (around 3.5% - which is close to where it is currently), are planning to stay in your home for seven years, and take the appropriate tax deductions. If you don't fall into this criteria, the interactive map (click here) allows you to switch out various factors and see what may be best for you.
If you are currently considering purchasing a home in the coming year  we would highly suggest reading through the full story (available here) and please feel free to call or email any member of the team if you have any questions.

DIY - How to patch a hole

We've all been there - you bump the wall with a heavy box or decide to switch the artwork and end up with a 1/2 inch of drywall in your hand. Here is a great video on how to fix those pesky holes on your own.

Gas Saving Tips

Over the past few years, we’ve seen fuel prices increase to record highs, affecting our daily commutes and travel plans. To ease the pain at the pump, follow these easy tips:

1. Don’t tailgate. By keeping your distance from the car in front of you, you can take your foot off the gas pedal to slow down instead of slamming on your brakes.
Gas Savings: Driving aggressively lowers your gas mileage by 33% on the highway and 5% around town.

2. Drive the speed limit. Stay within the posted speed limits, and your vehicle will sip fuel instead of gulp it. Gas Savings: Speeding along at 75 mph, as opposed to 65 mph, can increase fuel consumption by 25%.

3. Close your windows when you’re on the highway. While air conditioning reduces fuel efficiency, you’ll create more drag on your car with the windows open. However, when you’re cruising around town, turn off the AC and run the fan instead.

4. Reduce weight. Remove anything you don’t need from the car. This includes ski racks in the summer, bike racks and golf clubs in the winter and luggage racks when you’re not traveling.
Gas Savings: Extra junk in the trunk can reduce gas mileage by 2% or 8 cents/gallon, while sports racks can reduce gas mileage by 5%.

5. Keep tires properly inflated. Look in your owner’s manual or on the side of the door to find the recommended tire pressure for your vehicle. However, don’t over inflate them as you’ll reduce tire grip and could cause an accident.
Gas Savings: Underinflated tires increase fuel consumption by 3%.

6. Keep your car in top shape: change the air filter, spark plugs and fluids as advised by your owner’s manual. While the fuel savings of a new air filter is debatable, there’s no doubt that keeping your car in good condition will improve its performance.

7. Don’t idle! Turn your car off if you won’t be moving for more than a minute.
Gas Savings: Idling can cost up to half a gallon of gas an hour, especially if your car has a large engine.3

8. Avoid rush hour and combine your trips. By anticipating traffic conditions and combining trips, you’ll keep your engine warm and reduce fuel consumption.
Gas Savings: Improves fuel economy by 5-10%.

July 2012 - Market Update

The shrinking inventory of homes for sale continues to play a major role in the Washington DC Metro Area housing market with the total inventory of active listings at the lowest of any month since August 2005 while on the pricing front the median sales price in July was the highest in five years. The limited quantity of homes for sale is causing the median days-on-market to decrease -currently at 23 days, lowest July-level since 2005- and the sale-to-list price ratio to rise - currently at 96.3 percent, highest July-level since 2006. The condo market continues to strengthen, posting the highest year-over-year increases of all residential property segments in sales, new contracts, and median sale price. For more analysis continue reading below. 


INVENTORY
Active listings are at their lowest level in seven years; back-to-back months of historic lows for new listings. There were 9,650 active listings in the DC Metro area at the end of July, which represents the lowest level of inventory for any month since August 2005. The 4,579 new listings entered in July represent a 14.8 percent decline from July 2011, and the lowest July-level on record with metro-wide data available back to 1997. The shrinking inventory of homes for sale is having an impact on the market as evidenced by the lowest July-level median days-on-market since 2005 (23 days), and the highest July-level sale-to-list-price ratio since 2006 (96.3 percent).

CLOSED SALES
Sales are up from last year, down from last month; condo market continues to lead growth. There were 4,164 sales in July in the DC Metro Area, a 5.1 percent increase from July 2011, and the fourth consecutive year-over-year gain. Detached home sales are up 3.4 percent from this time last year, and townhome sales rose 1.9 percent. The condo market leads in growth for the second straight month, with sales up 12.7 percent from July 2011. All property segments recorded their highest July sales level in three years.

PRICES
The median sale price dropped nearly $15K from last month, but is still the highest July-level in five years. After several months of double-digit price increases for much of the metro area, median sale price growth has slowed, even decreasing in several jurisdictions. At $385,050, the median sale price for the DC Metro Area rose 4.1 percent from this time last year, the sixth consecutive month of year-over-year price gains. For the second month in a row, the condo segment posted the highest median price growth, up 4.4 percent from last year, an $11,750 increase. At $485,000, the median sale price for detached homes rose 4.3 percent from July 2011, a $20,050 increase. The median sale price for townhomes edged up 0.6 percent to $357,000. Year-to-date median sale prices are up in all jurisdictions and rose 7.4 percent for the metro area from the same period last year.

NEW CONTRACTS
Growth in new contracts has slowed; townhome and condo contracts up, detached homes down. There were 4,569 contracts signed in July in the DC Metro Area, up 0.1 percent from July 2011, but down 10.2 percent from last month. Historically, new contract activity has slowed between June and July in the region; however the double-digit drop is sharper than the 10-year month-over-month average change of -8.4 percent. The townhome and condo markets posted year-over-year growth in new contracts of 4.0 percent and 6.0 percent respectively. This is the 15th consecutive year-over-year gain for the condo market, which continues to enjoy strong demand based on lower price points, escalating rents in the region, and easier financing. New contracts on detached properties fell by 4.4 percent from this time last year.

(Information provide by RBI RealEstate Business Intelligence)

August home maintenance checklist

While the humidity is high and temperatures still seem to hover near 90 each day, August is still the time to start thinking about the fall and making sure your home is in good shape to avoid any unnecessary costs.
MSN Real Estate has compiled a great August home maintenance checklist for homeowners. From cleaning up the lawn to checking your faucets and hot water heater here is the list for you look over.
If you aren't in the mood to tackle some of the projects - or they are above your pay grade - you can check out our trusted referral page here.

Kitchen Countertop Primer

One of the essential elements to a kitchen remodel is the countertops and there are plenty of options to choose from. From white marble and natural wood grains to dyed concrete and recycled glass, the choices for the consumer grow each and every year. Cultivate, the kitchen blog for Williams & Sonoma recently posted an easy guide to countertops highlighting eight of the more popular options available currently and the article is a great resource if you are currently remodeling or thinking about it in the coming year. For the complete article click here.

Northern Virginia Market Update

June 2012 - Market Update

Median sale prices continue to climb through most of the Washington Metro Area as the price has reached $400,000 for the first time in four years.  Price gains, decreasing days-on-market (average down 10 days from June 2011), and a tightening sale-to-list price ratio (up 2.0 percentage points from June 2011) are evidence that the diminishing inventory of homes for sale in the region is having an impact on the market. As we have seen throughout the past year the active inventory in the metro area is historically low posting its 16th consecutive month of year-over-year declines in active listings, and the pattern appears to be holding as new listings in June are at a historic low.  Yet the condo market is showing signs of strength, outpacing detached homes and townhomes in June on year-over-year growth in sales, median price gains, and new contracts.

Here are some of the key trends from June 2012:

    CLOSED SALES
    The Washington, DC Metro Area posted 4,665 sales in June, a 5.7 percent increase from June 2011, and the third consecutive month with year-over-year gain in sales.  Despite the continuing gains over last year, the month-over-month growth is somewhat muted.  The 4.2 percent growth in sales between May and June is well below the 10-year May to June average of 14.1 percent.  This is likely attributed to the accelerated winter and spring selling seasons in the region resulting from mild temperatures and pent up housing demand.  Many buyers may have purchased homes earlier than expected due to these conditions.  Sales of detached homes grew 3.6 percent compared to last year, and townhome sales increased 2.7 percent.  The largest growth occurred in the condo segment.  The 1,133 condo sales in June represent a 13.9 percent increase from last year, and the second consecutive month of double digit year-over-year growth.

    PRICES
    The median sale price for the metro area has reached $400,000 for the first time in four years.  Metro-wide, the median sales price grew by 5.3 percent compared to last year, the fifth consecutive month of year-over-year gains.  The last time the median sales price reached the $400,000 mark was June of 2008.  With the exception of Falls Church City, VA, all jurisdictions in the region experienced year-over-year growth in median sales price in June.  At $413,000, Montgomery County, MD led the way posting an 8.4 percent increase compared to the June 2011 level of $381,150. The condo market experienced the sharpest growth with the median sales price rising 12.0 percent from this time last year, a $30,000 increase in value.  Year-to-date medians are also on the rise, up 7.5 percent to $360,000 for the metro area.

    NEW CONTRACTS
    There were 5,086 contracts signed in June in the DC Metro Area, down 9.1 percent from the 5,593 contracts last month, and slightly below the June 2011 level of 5,124.  This is the first year-over-year decline in new contracts in 14 months.  Historically speaking, new contract volumes have declined between May and June nine out of the past ten years in the metro area, however this is the sharpest decline since 2007.  The condo market is the only property segment to post year-over-year growth in this category, rising 5 percent compared to June 2011.  Contracts on detached houses fell 1.2 percent, and townhomes fell 4.8 percent from last year.  New contracts on all property types are down from last month.  

    INVENTORY
    Active listings in the Washington DC Metro Area continue to shrink, with June volume of new listings at historic low.  There were 10,374 active listings in the DC Metro Area at the end of June, 33.2 percent below June 2011, and 32.2 percent below the 10-year June average of 15,291.  This is the 16th consecutive month of year-over-year declines in active inventory.  The same trend can be observed with new listings.  In fact, the 5,588 new listings entered in June are the lowest June-level RBI has on record, with metro-wide data available back to 1997.  The diminishing volume will continue to put upward pressure on prices, and if buyer demand continues to pick up, average days-on-market and sale-to-list ratios will likely tighten.

Summer Energy Tips

The summer of 2012 has been brutal in terms of temperatures and those high temps are usually accompanied by high energy bills at the end of each month. To help ease those end of the month concerns, here are 9 ways to cut your summer energy costs.

June To-Do's

We're now a few weeks into the summer and your to-do list probably has a few open spaces so here is a great list of June maintenance tips for around the house.

http://realestate.msn.com/june-home-maintenance-checklist

Northern Virginia Market Updates

May 2012 - Market Update

Home prices in DC Metro area rose to $392,500 in May an 11% increase from May 2011. This price gain reflects the fourth consecutive year-over-year gain, and the second consecutive double-digit increase for home prices in the region. The increase can partly be attributed to the low Inventory in the Washington region which in May was at its lowest May-level since 2005.  These trends, coupled with decreasing Days on Market (average down 17.6% from May 2011), and an increasing sale-to-list price ratio (up 1.9% from May 2011 to 96.3%) signal that it is a Seller’s market heading into the summer months.
   
Here are some other trends seen from May 2012:
    PRICES
    Home prices continue to gain momentum throughout the region. The median sale price in the DC Metro Area is $392,500, up 11% from May 2011.  This is the fourth consecutive year-over-year increase and the second straight month of double-digit price growth metro-wide.  Pricing in all jurisdictions within the metro area increased relative to May 2011.  Year-to-date medians are also on the rise, up 7.7% to $350,000 for the metro area.

 NEW CONTRACTS
    Newly signed contracts rose slightly with condos posting the strongest growth. New contract activity in the Washington market continues on an upward trajectory, as the region posted its 13th consecutive year-over-year increase in new contracts.   In total, 5,593 contracts were signed in May, a 1.6 percent rise from the previous year.  The condo segment of the market grew the most with 1,362 new contracts in May, 100 more than May 2011, a 7.9 percent gain.  Roughly half of the new contracts are detached homes, a quarter are attached townhomes, and a quarter are condos.

INVENTORY
    Declines in the area’s active listings persist, the lowest May level since 2005.  There were 10,510 active listings in the DC Metro Area at the end of May, a 32.4% decline from May 2011.  This is the 15th consecutive year-over-year inventory decline.  The shrinking supply indicates a stabilizing market, as sales have increased and listings have declined.  As interest rates remain low and demand rises, the low supply will continue to put upward pressure on prices.  This price growth could entice hesitant sellers to enter the market.  The low supply also indicates that many potential sellers may still be wary of their financial situations, and are more comfortable remaining in their current homes.  A similar trend can be observed with new listings.  In May, 6,084 new listings entered the market, which is 6.7% below the previous year and the 11th year-over-year decline in new listings in the past twelve months.

CLOSED SALES
    Sales volumes in the Washington, DC Metro Area continue to improve relative to 2011 levels. The 4,478 closed sales in May represent a 14.3% gain from this time last year and the second straight month of volume gains compared to a year ago.  Most of the growth is being driven by sales of detached homes, which at 2,342 units is 20.9% higher than May 2011.  Townhome sales edged up a mere 0.5% from May 2011.  Condos also fared well in May with 1,062 units sold, a 16.6% increase from last year.
    The number of foreclosure sales is down 47.3% compared to last May, the 25th straight year-over-year decline for this category.  The 307 foreclosure sales in May represent only 6.9% of all sales in the region, the lowest proportion since MRIS began tracking distressed listings in April 2009.  Short sales on the other hand are up 21.2%, the 7th year-over-year increase in the past eight months.  Much of this shift from foreclosure to short sale reflects a change in how banks deal with their distressed assets.


   

Get More 'Life' From Your Living Room

There is a good chance your living room gets a lot of use - watching TV, hosting friends, relaxing - which means it needs frequent refreshers. Luckily, it is one of the more straightforward of rooms to remodel and because it’s typically one of your home’s most public spaces it can offer your whole place a new look. Typical renovations in the the living room include:

• Replacing or renovating the floor
• Refinishing walls
• Upgrading lighting and other electrical systems
• Adding or changing integral features, such as fireplaces or recessed shelves
• Expanding the overall space

Depending on your skill level and budget you can try and tackle any of the first three yourself while the last three typically require building inspections, permits and contractors.

Flooring Tip
Unless you’re tearing out walls or installing all new electrical the floor will likely be your biggest investment. Also depending on what material you choose it may last a long time so think about it carefully.

Here are the most common materials, along with some pros and cons:

	PROS	CONS
FLOORING	Soft, warm, stylish	Not water or stain proof. Typically requires installation by pros
	Cheaper, softer and easier to install than wood	Not as durable
	Good investment, durable, warm, attractive	Expensive
	Cushiony, stylish, versatile an cheaper than tile	Not as durable
	Cool, stylish, versatile and timeless	Expensive and tricky to install
WALLS	Stylish, inexpensive, easy to install and can be made from multiple sources	Can make a wall seem shorter than it is
	Stylish and good investment	Lacks versatility and can be tricky to install
	Versatile, cheap and easy to do yourself	Many choices in colors and textures may be overwhelming
	Warm, stylish, good investment	Can be expensive
	Charming, versatile, long-lasting	Can date a room and hard to blend with other styles
	Inexpensive and versatile	Tricky to install

*For a quick and less costly fix you could reupholster a piece of furniture, purchase a new rug, add some throw pillows or change out the window treatments*

10 Tips for a better lawn

Cutting the grass is once again almost a weekly endeavor this time of year and recently we came across a great top 10 list to consider when you are trying to create the perfect lawn.

Mowing
1. Mow frequently with sharp blades
If your hopes include a green lawn, the key is frequent cutting, which forces it to grow thick and keep out weeds. Keep mower blades sharp so the grass isn't beat up and made vulnerable to disease.
2. Don't go too short
Golf courses mow low for a tightly trimmed look, but grass cut short responds by growing faster. "The lower you mow, the more herbicides and water you need, and then it becomes an intensive management system," says Pete Landschoot, professor of turf grass science at Penn State University.
So how high to cut? That depends largely on your type of grass, but Euel Coats, retired professor of weed science at Mississippi State University, preaches the "one-third rule": Never cut more than a third of the grass' height at a time. If your grass is three inches tall, cut an inch or less. Any deeper and you're "scalping" the plants, which can take two or three mowing cycles to recover.
3. Don't mow a wet lawn
Mowing when the lawn is saturated with water will compact the soil so the roots can't breathe. When that happens, the grass dies and you'll see bald spots in your lawn.
4. Mulch clippings into the lawn
Leave the clippings where they fall. Not only do you eliminate all the bagging and dump trips, but the clippings fertilize the soil. If you're cutting often, the clippings are short and few and work their way back into the soil without becoming brown and messy.

Irrigation
5. Water deeply -- and infrequently
"The No. 1 thing I see homeowners do is overwater, which builds up excess thatch (an unsightly thick mat of tangled roots between the grass blades and soil)," says Brooks. Daily watering encourages shallow roots and wastes water. Instead, water deeply, watching closely to see when more is needed.
Here are signs it's time to water, according to Gaussoin:

• The soil resists when you push a screwdriver or steel rod into the ground;
• Your grass gets a slightly blue tinge; and
• Footprints across the lawn remain compressed.

If you don't have in-ground irrigation, a sprinkler works fine. Landschoot suggests giving the lawn an inch of water each time you irrigate. Measure by putting an empty tuna can on the grass. When it's full, move the sprinkler to another spot and start measuring again. Once you know your lawn's needs, you can put the sprinkler on a timer (they cost $10 to $60).
Poor soil -- composed of too much clay or compacted from heavy traffic -- won't absorb moisture easily. If water pools up and runs onto the street or sidewalk before your tuna can's full, try Plan B: Water just one third of an inch each night for three nights running, then hold off until it needs it again.
6. Avoid nighttime watering
Don't put the lawn to sleep with wet feet. That means to let the grass dry out before the dew falls, since prolonged moisture invites disease. The best time to water is pre-dawn or early morning. You'll lose water to evaporation by sprinkling in midday.

Fertilizer
7. Don't overdo it
Over-fertilizing stimulates very fast growth, thatch and the need for more mowing -- and you don't want that. Homeowners use far more fertilizer and pesticides than golf courses do, says Brooks. "It's overkill." (Excess fertilizer also is bad for the environment: It washes into streams and lakes, clogging them with algae. Sweep or blow any type of spilled fertilizer into the grass.)
To find out your lawn's particular needs, test the soil every three or four years by sending a sample to a local lab. A test costs $20 or less and reveals the contents, including salts, organic matter, phosphorus, nitrates and nitrogen, lime and texture. Then take the results to your local garden shop for help deciding which fertilizers and amendments to apply.
Most fertilizer comes in dry grains or pellets. Distribute it evenly using a hand-held fertilizer spreader (roughly $13 to $80) for small areas, or a wheeled spreader ($90 and up).
Natural fertilizers -- sometimes called "organic" -- work slowly because they need heat and water to break down so grass can absorb them. The USDA doesn't regulate the term "organic" as it does with food, so ignore label claims and identify products by reading the key ingredients. Ingredient names you'd recognize from a chemistry book -- ammonium nitrate, say -- are a clue the product is probably synthetic. Organics use stuff in the forms found in nature -- dried manure, kelp, blood and bone meal, feather meal or poultry waste, for instance. Both types are applied in spring and again in fall.
8. Don't mix your fertilizers
Regardless of which type of fertilizer you choose, stick with only one. Mixing natural and synthetic gives poor results, says Scott Meyer, editor of Organic Gardening magazine.

Pest control
9. Grow thick grass -- and stay on top of your weeds
The best defense against pests -- weeds and diseases -- is to grow thick, vigorous turf. If you've only got a few weeds, pull them by hand or use a dandelion weeder ($8-$10), a tool with a forked metal end. Pay your kids or someone else's for every weed they pull.
By observing your lawn closely, you may let a problem resolve itself or stay contained without treatment, just as golf-course professionals do. "If we have a little bit of disease on a green, we let it go unless we get to the point where we could lose some serious putting quality," says Brooks.
10. Choose the right herbicide
If you decide you need extra help with weeds, there are two types of herbicides to choose from:

• "Pre-emergents" prevent weed seeds from germinating and are often applied once a year.
• "Post-emergents" are used after the weed is visible to control broadleaf weeds, such as dandelions and chickweed, or grassy pests such as crab grass, quack grass or even wild varieties of rye or bluegrass that aren't controlled by mowing or hand-pulling.

Most herbicides are synthetic. Natural approaches mostly involve beefing up the soil to prevent infestation, although corn gluten does both fertilize and stop seed germination and is used as a natural pre-emergent.
If you've followed all the tips on the product’s box and your yard is brown, dying or not thriving, you could have a disease or insect infestation. Treating diseases and insects is a complex task requiring accurate identification before taking action. Cut a sample of the affected grass, including plenty of roots and some healthy plant tissue, too. Put it in a sandwich bag and take the evidence to a local Extension service or garden center for help in identifying the culprit and choosing an approach.