Northern Virginia Foreclosures - a non-effect in early 2013

Just in case you’re wanting to finally get into the real estate market with all the low interest rates and price appreciation you may be hearing about – just wanted to let you know, there are only 9 foreclosures on the market as of today, in the Northern Virginia area.
That includes Arlington county, Alexandria city, and Fairfax County. Yep – just 9 – that’s roughly 0.4% of the available inventory. There are also another 79 short sales (4.9% of the inventory) for those who want to go after that sort of purchase. Distressed properties are no longer a major part of the D.C.-area market.
Sellers are now having an easier time of selling houses in this market. The buyers are squaring off to bid houses up and forego some traditional negotiation strategies to get the home of their choice.
It doesn’t mean buyers can’t get a good house at a good price – it just means you need a good pro on your side to help negotiate the contract and get you in the house.
As you can see on the chart below – there really is not a lot of short sale or foreclosure inventory in Northern Virginia. Those pieces of the pie have generally been eaten and the plate licked clean!

Home Prices On the Rise

The D.C. housing market has been a shining light in an otherwise tepid economic picture for the region. Home sales prices are set to finish up for 2012 over 2011 — which will be the fourth year in a row that the region has enjoyed value appreciation.
The charts below is for Northern Virginia which had a high average price of more than $525,000 for the summer and finished December out with more than $518,000. (The average home price includes all housing types – condo, townhouse and single-family).
The December price is only 8.1% below the highest December price on record, which was set in 2005. The tortoise-speed appreciation over the years is actually a very healthy road to recovery, rather than the sky-rocketing fashioned appreciation of the mid-2000s.

Most home sellers and buyers have not even noticed the recovery and many buyers are surprised at the level of activity at open houses these days when they visit on a Sunday. (First opens are drawing dozens of visitors these days, instead of the usual trickle in open houses of the past).

Home sellers can be assured of good traffic and a strong sale if their home is priced appropriately. Buyers are continually blessed with excellent mortgage interest rates.
To discuss this in more detail and get area specific information tailored to your search or property please don't hesitate to email or call us at 703-822-5240.

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.