Report: Vacation & Investment Homes Recover, Local Prices Up 15%

Report: Vacation & Investment Homes Recover, Local Prices Up 15% by Realestateology.org While the Washington, D.C. market has tightened into a sellers market, you may find a good deal in your favorite vacation destination as investors have started moving to second-home buying. Meanwhile, average prices in the D.C. area keep moving up, up, up! The National Association of Realtors 2013 Investment and Vacation Home Buyer Survey "shows vacation-home sales rose 10.1 percent to 553,000 from 502,000 in 2011.  Investment-home sales declined 2.1 percent to 1.21 million from 1.23 million in 2011, but those sales had been well under a million during the market downturn.  Owner-occupied purchases jumped 17.4 percent to 3.27 million last year from 2.79 million in 2011," according to http://www.Realtor.org. The survey revealed that "11 percent of vacation buyers and 16 percent of investment buyers purchased the property for a family member, friend or relative to use, often for a son or daughter to use while attending school." A good number of investors and vacation home buyers also used their cash to invest: "half of investment buyers paid cash in 2012, as did 46 percent of vacation-home buyers.  Forty-seven percent of investment homes purchased in 2012 were distressed homes, as were 35 percent of vacation homes." Cash is still a popular means of purchasing even in the higher-end market of Northern Virginia. Buyers in Fairfax County in February 2013 paid all cash 13% of the time in February 2013 according to MRIS.com (the regional multiple listing service for the DC region.) The median price of a home in Fairfax County was $420,000 in February - up more than 15% year over year. For a complete report for February 2013 sales, click here.   Thanks for flying with WordPress.com

Two Largest Banks Nearly Double Real Estate Forecasts

Two Largest Banks Nearly Double Real Estate Forecasts by Realestateology.org The real estate market has become the "little engine that could" in the latest rise in economic news. Meanwhile, both JP Morgan Chase & Co. and Bank of America have nearly doubled their forecasts in home value appreciation for 2013, according to http://www.NationalMortgageNews.com. JP Morgan rose its estimate from 7% increase to a 14% increase on national averages. Bank of America tweaked its estimate from 4.7% to 8%. If their forecasts come to fruition (and I don't see why it won't) the economy should steam forward quarter after quarter. Here's why. Unlike many other industries, real estate construction and sales create a huge domino effect. Think about the last time you bought a house (or even rented one). What happened to make that transaction occur? Builders purchased building supplies: lumber, nails, screws, glue, roofing tiles, windows, insulation, plumbing, electrical wiring, you name it. Then they purchased decor for the interior -- flooring (carpet, hardwood, synthetic), paint, light fixtures, granite counters, upgraded faucets, even more. Then, they bought stuff like appliances, air conditioners, furnaces, turf, plants, and on and on it goes. Not only do builders purchase these items, new homeowners do to. When you bought your last house, I'm sure you got busy decorating the house and making it your own. When real estate gets going, the country gets going - from manufacturing to finance to Wall Street. So - what's happening to pricing in Northern Virginia? Year to date (2013) home prices are up across the board. Single Family: $688, 616 (+8.5%) Townhomes: $423,780 (+7.4%) Condos: $308,682 (+9.8%) If you're looking to take advantage of today's market in Virginia/Maryland/DC - give Weichert Realtors/McLean a call at (703) 821-8300. The Northern Virginia area includes Arlington and Fairfax counties, and the cities of Alexandria, Falls Church and Fairfax. http://wp.me/pB0Rb-9I Thanks for flying with WordPress.com

Lumber Costs Another Good Reason to Buy Home Now!

Lumber Costs Another Good Reason to Buy Home Now! by Realestateology.org Just in case you missed the announcement on lumber prices this month (and who wouldn't want to miss that??), they're up. Waaaaay up.  The National Association of Home Builders, which monitors the cost of materials to build homes, has a pretty neat chart on the cost of framing lumber prices. At this time, they are up more than 45% from the same time last year.  This is the cost of lumber builders use to frame all the homes across the U.S. Click this link for a quick look at the pricing and you'll see that the prices have been on the rise pretty much all through the recession.  As you're shopping for properties this spring and if new construction is on your list, this will be a factor in what you're going to pay for a newly built home. Again - there's a perfect storm on purchasing a home right now instead of waiting. Prices are on the rise, but they've not hit the feeding frenzy price increases which are sure to come with a shrinking inventory, AND the cost of money is still very affordable (though I can't make the same promises about lumber!) Have a question or need some sound advice on your sale or purchase? Call us here at Weichert Realtors in McLean (we serve Virginia, Maryland and D.C.) at (703) 821-8300. Thanks for flying with WordPress.com

Foreclosures in N. Virginia have a non-effect in 2013

Realestateology.org posted: "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 " Respond to this post by replying above this line New post on The Realestateology Blog Foreclosures in N. Virginia have a non-effect in 2013 by Realestateology.org 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!  If you'd like more information about today's real estate market, join us at Weichert Realtors on Saturday, March 9, 10 a.m. for a Market Update Seminar. The meeting will be held at 6257 Old Dominion Drive, McLean VA 22101. Call (703) 821-8300 for more details. Thanks for flying with WordPress.com

Market turns to sellers’ delight in Northern Virginia

New post on The Realestateology Blog Market turns to sellers' delight in Northern Virginia by Realestateology.org Sellers - it is time. It is time to get off the fence with a full jump into Sellers Market Meadow! Prices are starting to really pick up in the suburbs of Washington, D.C. and the inventory continues to tighten a bit with absorption rates dipping below 1 months' supply in various price levels. This means sellers can now make up the losses from the past, sell their home for a good price and then move up, down, laterally or out of the area with continued historic low interest rates. Freddie Mac has this week's interest rates below 3.60% (http://www.freddiemac.com/pmms).  The table below demonstrates the absorption rates for the varying price ranges in Northern Virginia according to data from MRIS.com, the regional multiple listing service. A one-month supply means at the rate that houses are going under contract, the inventory would be absorbed in 4 weeks. Looking to sell or move up? Want to know what buyers are paying for homes in your area? Give us a call at Weichert Realtors, McLean, VA to get a free market analysis of your home. Licensed in Virginia, Maryland AND D.C., the agents at Weichert Realtors stand ready to help you with your selling needs at (703) 821-8300. Or connect with us 24/7 at www.Weichert.com.