How’s the Market? Depends – are you Buying, Selling or Investing?

How’s the Market? Depends – are you Buying, Selling or Investing? by Realestateology.org I regularly get asked, "How's the market?" From a Realtor's point of view, it's ALWAYS a good market! It just depends on what YOU want to do – buy, sell or invest? In today's market, it's actually good for all three classes of clients. Sellers are benefiting from increased home prices; buyers are enjoying some of the lowest interest rates on record and a strong housing inventory; and for investors, if you're getting a mortgage, interest rates are low enough that the payments can be covered by your rental income in most cases. Let me break it down: FOR BUYERS Currently, the Northern Virginia market is at about a 3 months' supply. Traditionally, three months constitutes a "normal" market. Normal is good for buyers because it allows them an ample amount of inventory to look over and then the ability to negotiate on price and terms. For the past several years, buyers in the D.C. metro market have been battling each other with escalation clauses and giving up home inspections to win contracts. Now, there is calm in the market which allows buyers to get a more level playing field. Meanwhile, interest rates are under 4% again! FOR SELLERS Prices have continued their appreciation this year in most zip codes. In October, median home prices increased beyond last year's prices in Fairfax County by 2.3% (+$10,000). The median price for October stood at $450,000 (for all property types). In Arlington, the median price increased 1.6% to $536,000. In Washington D.C., median sales prices moved up 9.9% to $500,000. FOR INVESTORS It's all about cash flow for investors. And in today's market with the low interest rates, investors are able to purchase a condo, and including condo fee and taxes, still walk away with a cash flow (disclaimer: it has to be the right price and the right condo fee – call to start your search). If you're able to strike out the high condo fees, the return on investment is even more attractive. An interesting factor that plays in the D.C. area market is politics and mid-term elections, which have historically placed a temporary damper on the market. This year was no exception. In the two weeks running up to the election pending sales dropped 22% compared to the same two week period last year (a non-election year). In the third week, once all the votes were counted, contract writing increased 6.3% over the same period of time last year. (Source: data from MRIS.com). The market is in good shape for nearly every type of buyer and seller. Until next time… I'm never too busy for YOUR referrals! Until next time… Anthony http://www.AnthonyCarr.net Thanks for flying with WordPress.com

Future D.C. Job Growth Boom to Real Estate Market

Realestateology.org posted: "When it comes to the question - "How's the real estate Market?" I always point to the job market first. After all, "Homes are where the jobs go at night." And in the Washington, D.C. area, local economist say we're headed toward a boon of a jobs market in" Respond to this post by replying above this line New post on The Realestateology Blog Future D.C. Job Growth Boom to Real Estate Market by Realestateology.org When it comes to the question - "How's the real estate Market?" I always point to the job market first. After all, "Homes are where the jobs go at night." And in the Washington, D.C. area, local economist say we're headed toward a boon of a jobs market in the coming years.  The George Mason University Center for Regional Analysis runs the numbers on job growth and D.C. is growing at a rate ahead of the need for housing. In the next 5 years, there will be more than 295,000 net new jobs in Northern Virginia, D.C. and suburban Maryland. Northern Virginia will garner the most of those with about 100,000 net new jobs in just the coming three years. Another interesting part about this job growth is that the federal government is slipping from being the front runner employer. Private industry is slowly but surely taking the front spot. So what will that do to the housing market? Well, we aren't growing the housing pool that fast, meaning the pressure on the inventory will most likely push price appreciation even more than what we've seen this last year. Want the deeper data? Visit this link for a presentation by CRA Chief Economist Stephen Fuller on what to expect.

National Home Prices up 13% – But That’s Old News for D.C. Market

National Home Prices up 13% – But That’s Old News for D.C. Market by Realestateology.org S&P/Case Shiller announced that national home prices have jumped 13.3% in October 2013 - the highest jump since 2006. This Reuters news video talks about an increase in permits, prices and builder plans to continue the growth in 2014. (See a quick news clip here about the gain.) In Northern Virginia and the surrounding Washington, D.C. market, the Metropolitan Regional Information Systems, Inc., reports average home prices have been on the rise since 2009. In October prices over 2012 levels increased: Fairfax County: +10.13% City of Alexandria: +2.93% Arlington County: +10.14% Washington D.C.: +4% For more data and charts on the Washington, D.C. market, visit http://www.Realestateology.org or catch it on Facebook at http://www.Facebook.com/Realestateology.org. (Don't forget to "like" the page!) Thanks for flying with WordPress.com

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.