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.

Don't normally do this -- but had to share the news

Hello friends and colleagues of Anthony Carr,

 

I hate sending a bulk email out like this, but I needed to pass on this information to everyone in my address book quickly about mortgage interest rates. They are back down to 4.5% again for 30-year fixed rate and that's pretty darn good. if you're above 5%, now would be a great time to get refinanced or if you're looking to buy, it's time to lock-in! If you need a good loan officer of integrity, I know a couple and would be happy to pass on a name.

 

Sorry for the interruption - you can now return to your regularly scheduled browsing.

 

A

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_______________________
M. Anthony Carr
Sales Manager
Debbie Dogrul Associates, LLC
Long & Foster Real Estate
Ofc: 703-204-1155, ext. 18
#1 Team in Virginia
#4 Team in USA

See the DDA Blueprint to Your Success @ www.TeamDDA.com/HowWeWork

 

Remember 9-11

Hello my friends and co-workers

 

I just wanted to remind you that tomorrow is the 8^th Anniversary of 9/11. It’s been a long and hard battle since then and the memories of that day linger on.

 

Please join me in remembering the families of those who lost their lives on that tragic day and thank God for the mercy and protection He has shown us these last several years.

 

God Bless America!

 

Anthony Carr

 

 

 

Taking Advantage of the Advantage

Housing markets are turning around all across the country. The way this is measured is first through pending sales and then the following closed sales. By the time the national numbers turned, the recovery had already been happening for months.

Albuquerque is one such city. Prices are still down from last year, but they are now leveling out at around $180,000 (for about 8 months now). The pendings have been increasing for months and now the closed sales are following suit. The same is true for cities such as Las Vegas, Washington DC, Miami, and others.

Are you taking advantage of this advantage as a sales person? Are you getting the word out to your local sphere about what's happening in the local market place?

The recovery has happened, predictably, in two fashions in the favor of buyers.

1 - While prices dipped, buyers could have named their price and received thousands of dollars back from the seller to buy their home.

We had a phrase of -- "what would be the price you just couldn't walk away from" on this house. The buyer would look it over and say -- "Well -- if it was $25,000 less, I would buy it." So that's what we'd offer - and that's what they would get. While the market continued it's slide, buyers got ahead of the drop and "stole" houses all over the country. To the shagrin of banks and owners, the buyers pulled in discounts in the hundreds of thousands. The agents who knew how to forecast that drop, helped buyers save a ton of money and made good incomes through the process.

2 - The cost of money kept dropping and then Uncle Sam started throwing in money to boost morale and buyer interest.

In the home-purchase process, buyers have to buy two huge commodities -- the house - of course, everyone knows that. They keep waiting for the price to drop to the bottom and THEN jump in and buy. But you have to also look at that second product - the money.

The cost of money is measured in the interest rate and the points paid for such interest rates. This year, buyers have picked up money for interest rates as low as 4% - those are rates that my grandparents never saw!

So we have low prices and low interest rates. Did you pick up on that as the sales pro? More importantly - did you get your buyers on board and off the fence?

If you wanted to have predicted the come-back, then a look at sales on a state-by-state level would have been a good place to start. The media looks only at price. A very foolish move. A recovery begins when the buyers return - much sooner than when prices start upward.

On this table from Realtor.org you can see that the hardest hit states (California, Nevada, Arizona, Florida, Virginia) have now had the best quarters (up 100%+ in some markets).

Yea - we hit the bottom alright. Get ready for the bounce.

Local Outlook is All that Matters: Inventory Down, Prices Up

As I’ve been saying for months – the Northern Virginia market is totally in a seller’s market. The only price range not fully recovered is the over $1 million price range. Every other price range from the $100,000 condo to the $700,000 single family is selling like the proverbial hot cake. Fresh off the griddle, and ready for the butter and syrup. And therein lies the problem – or should I say, opportunity.

When it comes to housing data, sales prices, inventory levels, pending sales, etc., it doesn’t matter what’s happening across the country when you’re looking for a house in your locality. All that matters is what’s happening in the market where you want to sell or buy. It doesn’t matter that foreclosures are slated to increase nationwide when they are selling like hotcakes in Fairfax, VA.

The challenge for buyers in Northern Virginia is they have little inventory from which to shop. As a result - the bonus for sellers is that prices are on the rise. Not year over year, mind you, but month to month, they are definitely on an upward ascension.

Since January 2009, the overall average sold price has increased 15%. The average price in January was $376,669. In May the average price tapped at $433,257. (Source: Metropolitan Regional Information Systems, Inc.) Is this a trend? Well, consider this: the last time we had a 4-month, month-over-month increase in sales prices was in 2006. (At that time, by the way, the average price hit $553,618).

Why is this happening?
* Foreclosures rates are dropping in Virginia (Source: George Mason University, Center for Regional Analysis)
* The inventory is beginning to include private-seller owned properties (instead of banks), stopping the price drops and pushing them forward and upward.
* Buyers are taking advantage of the affordable housing prices, the historic interest rates and the First-Time Buyers Tax Credit (up to $8,000) before it expires November 30, 2009. (But there’s talk on Capitol Hill to extend the sunset period.)

So what? What does this mean to you? Buyers get in line. You will be competing for well-priced homes now. We have multiple offers in all price ranges. (The highest I’ve heard told of so far is 23 offers in a weekend).

Sellers, get ready to sell quickly if you are priced competitively and start using home of choice clauses and ready to move into your new home sooner. (The higher up you move in price, the more inventory that’s available). You have the opportunity to move up into your bigger home for a smaller price for the home and a smaller interest rate for the loan.