Okay – what did the shutdown do to D.C. real estate? Not much…

Okay – what did the shutdown do to D.C. real estate? Not much… by Realestateology.org In the D.C. area, where the majority of federal workers that were furloughed live, you would think buyers of real estate would have taken a break from house searches until the area's largest employer got back to work. But the numbers tell a different story.  Looking over the pending sales (contracts written), buyers kept competing on the low inventory of homes during the shut down. Measuring the contract writing from October 1 - 15, 2013 showed that overall, buyers wrote 19.5% more contracts than the same time last year. Contracts in Northern Virginia as a whole were flat with an increase of 1.1%, but the other areas surrounding surged ahead. Prince George's County, MD saw the largest increase with 39% (PG Co., was also the hardest hit after the housing bubble popped). Montgomery County was up 36%; while D.C. came in at 23% above the same period last year.

D.C. home values tight despite Federal job shrinkage

Realestateology.org posted: "            The federal government job sector continues to shrink in the D.C. area, but local economic experts say that will not do much to slow economic growth in the region. The Northern Virginia Association of Realtors held its annual Economic Summit a" D.C. home values tight despite Federal job shrinkage by Realestateology.org             The federal government job sector continues to shrink in the D.C. area, but local economic experts say that will not do much to slow economic growth in the region. The Northern Virginia Association of Realtors held its annual Economic Summit at George Mason University last week, and the news looks good for Northern Virginia and its surrounding suburban neighbors.             "Federal jobs will shed about 22,000 in the next few years, but mostly through attrition," said David E. Versel, Senior Research Associate for the George Mason University Center for Regional Analysis (CRA).             While such shrinkage will make headlines over the coming months, the actual effect on the local economy will not be that great because the regional economy is in transition, according to Versel. In the past, it relied heavily on  federal spending, and now it is more diverse, full of national and international corporations which have moved to the region because of its well-educated and skilled labor force.             In 2010, federal spending and wages accounted for  39.8% of the local economy, according to CRA. By 2017 that share will drop to around 29% while local and non-local private sector businesses will increase from 36% to 44% - which can help insulate the local base from relying on just one major income generator like the federal government.             Keeping in mind that houses are where the jobs go at night, the loss of federal jobs will not necessarily have an adverse effect on the local housing market. Just looking at the numbers reveals that if anything, we are going to be facing a tighter market moving forward.             In fact, in the next four years, the federal government is the only sector losing jobs. All others are projected to increase. Various sectors will enjoy robust growth such as education/health (+10%); professional & business services (+20%) and construction (+37.8%).             The bottom line is that more than 280,000 jobs will make their way into the D.C. market by 2017, according to the CRA; and those who are in the market now will benefit from the appreciation that is bound to result because of the supply and demand.              Want more data or input on your personal economic situation with your home? Give us a call at (703) 821-8300 at Weichert Realtors, McLean VA, serving Virginia, Maryland and D.C.

Up, up, up! Northern Virginia summer market keeps chugging

Up, up, up! Northern Virginia summer market keeps chugging by Realestateology.org Well - the spring market (that started in January 2013) just keeps on going! (Now, it's August 2013!). The stats are out for the Northern Virginia area and just about every category is UP comparing July 2012 to July 2013. Sales are up. Dollar volume is up. And average/median sales prices are up. Statistic Values YoY MoM Total Sold Dollar Volume $1,195,041,514 +24.24% -14.99% Closed Sales 2,146 +16.13% -14.02% Median Sold Price $489,950 +6.8% -1.99% Avg Sold Price $556,869 +6.98% -1.13% Avg Days on Market 25 days -43.18% +4.17% Avg Sold to Orig List Ratio 98.46% +1.32% -0.57% The average days on market, as a result of the tight inventory, keeps moving downward. The average time is 25 days on the market (less than 4 weeks!). Currently the monthly absorption rates are just as tight: Arlington County: 1.99  Alexandria City: 1.75 Fairfax County: 1.55 Washington DC : 1.53 Need more info on your personal market? Give us a call at Weichert Realtors in McLean, VA at (703) 821-8300 to connect. We serve Virginia, Maryland and Washington, D.C. Thanks for flying with WordPress.com

Foreclosures? What foreclosures?

Foreclosures? What foreclosures? by Realestateology.org You may have picked up the report from news media outlets that we've now hit the lowest level of foreclosures in the country since before 2006. Well, it's true. USA Today reports "Fewer U.S. homes entered the foreclosure process or were repossessed by banks in June, the latest sign that the nation is shaking off its housing bust hangover," in a recent report. How that really matters to you is that in the Washington, D.C. area, except for Prince George's County, MD., most foreclosures and other distressed sales are nearly non-existent. The chart below rates the percentage that distressed properties make up of the available inventory in the D.C. metropolitan area. As far as the housing pool (foreclosures as a share of all housing units) Virginia stands with one out of every 1,654 houses; D.C. with 1 out of every 42,216 houses; and Maryland is at 1 out of every 647 houses in a distressed situation, according to RealtyTrac.com, which tracks foreclosure rates nationally. On a local level, 11.7% of all available homes on the market in the D.C. metropolitan area are distressed properties (short sale or bank-owned). The majority of them are in Prince George's County, MD where 30.5% of the available homes for sale are short sales or bank-owned properties. Montgomery County is down to 11.1%, with Alexandria City standing at 7.5%. Arlington County has 9 distressed houses on the market at this writing, which is 2.1% of their inventory. Fairfax County and D.C. are at 4.8% and 6.1% respectively. The financial effect distressed properties have on your home is nearly non-existent today. Appraisals these days rarely use the foreclosed sale as a comparable, so the value of regular sale properties are no longer impacted by the distressed sale in the neighborhood. Looking for sound real estate advice? Connect with me at Weichert Realtors in McLean, Virginia on Old Dominion Drive at (703) 821-8300 or leave a comment right here.  Thanks for flying with WordPress.com

Interest rates on the rise – you better buy now

Interest rates on the rise – you better buy now by Realestateology.org Home shoppers purchase two products when they buy a house - the property itself and a mortgage. The difference between the two is the house price is advertised in living color online, on postcards, in QR codes, etc. The loan pricing, however, is a little less dramatic.  The house listed in today's market in Northern Virginia, while listed at $500,000, may actually sell for $515,000 or there abouts. The mortgage price, on the other hand, is measured in interest rates. How will it effect your buying power? Take a look at the chart below and you can actually measure the power of your  monthly payment by watching rates move up and down. About a month ago, rates were around 3.5% - now they are roughly a full percentage point ahead of that mark (yes - 4.5%). What's the phrase? You snooze you... Oh well - 4% rates are STILL REALLY GOOD RATES. Give us a call if we can help you talk with a loan professional or see how these moves in the market affect your buying power. (703) 821-8300. Thanks for flying with WordPress.com