Yesterday's CNBC survey to find America's Top States for Business found Virginia to be #1. We also placed well in the quality of life. CNBC rates Virginia #1 for Business
Where did all these listings come from? Investors are bottom fishing. Young Couples are everywhere.
Sunday, June 12, 2011
Good morning Friends & Clients:
Well, after months of having nothing to show, all the listings finally flooded onto the market in the past week. After the upbeat real estate news in May, that the Washington DC area was the number 1 market in the country, sellers finally realized that they can offer their homes for sale. May 2011 saw the most number of contracts for May since 2005. Sales activity at the low end of the real estate spectrum was fierce, with investors and home owners grabbing up foreclosure listings as soon as they come on the market. Many investors are paying cash for the properties. And the home buyers want to take advantage of the very low interest rates, which are currently hovering between 4.6 -5.2%. My investor clients have been grabbing up terrific bargains in Prince George's county where they are buying townhouses for about $80,000, fixing them up, and then finding tenants to rent them for about $1200/month.
We are having trouble trying to find discounted properties in Northern Virginia. The Woodbridge invesment properties often have 3 contract on them within a few days, and prices are rising. The investors have tried using the Auction sites to find properties; but this is problematic, as the price in Northern Virginia usually gets bid up to pretty close to market price. And there are not as many protections for the buyers when they buy through these auctions (for example, you may not be able to view the property). There are a few condos in the Alexandria area where properties pop up at investment prices; but these homes will usually have condo fees in the $500/month price range.
On a really positive note, I am meeting lots of young couples at open houses. This must be "echo-boom" we have been hearing about for a while. There are just lots of young families out there looking at the townhouses and entry-level single family homes. The Alexandria & Sprinfield areas both offer "Class A" real estate opportunities. Prices are good, around their 2004 levels, and interest rates are low; so people with steady incomes and good credit can buy a home for a monthly payment pretty much the same as paying rent with a very small down payment. Buyers love the FNMA, homepath properties where they can buy with just 3% down, and pay no PMI. Many of the homes have already been prepared with paint, carpet and new appliances for the new buyers.
Short sales are still here, but they are the stepchild of the industry. Buyers love the the attractive pricing on these properties, but are often disappointed with the amount of time it takes the seller's bank to approve the sale. Consequenty, it is often the investors, who can take a laissez-faire attitude towards the sale, or those buyers who want to wait for a specific location, who are entering into these short sale listings.
Call or email me if you are wondering if this is a good time for you to make a real estate move.
Best wishes,
Well, after months of having nothing to show, all the listings finally flooded onto the market in the past week. After the upbeat real estate news in May, that the Washington DC area was the number 1 market in the country, sellers finally realized that they can offer their homes for sale. May 2011 saw the most number of contracts for May since 2005. Sales activity at the low end of the real estate spectrum was fierce, with investors and home owners grabbing up foreclosure listings as soon as they come on the market. Many investors are paying cash for the properties. And the home buyers want to take advantage of the very low interest rates, which are currently hovering between 4.6 -5.2%. My investor clients have been grabbing up terrific bargains in Prince George's county where they are buying townhouses for about $80,000, fixing them up, and then finding tenants to rent them for about $1200/month.
We are having trouble trying to find discounted properties in Northern Virginia. The Woodbridge invesment properties often have 3 contract on them within a few days, and prices are rising. The investors have tried using the Auction sites to find properties; but this is problematic, as the price in Northern Virginia usually gets bid up to pretty close to market price. And there are not as many protections for the buyers when they buy through these auctions (for example, you may not be able to view the property). There are a few condos in the Alexandria area where properties pop up at investment prices; but these homes will usually have condo fees in the $500/month price range.
On a really positive note, I am meeting lots of young couples at open houses. This must be "echo-boom" we have been hearing about for a while. There are just lots of young families out there looking at the townhouses and entry-level single family homes. The Alexandria & Sprinfield areas both offer "Class A" real estate opportunities. Prices are good, around their 2004 levels, and interest rates are low; so people with steady incomes and good credit can buy a home for a monthly payment pretty much the same as paying rent with a very small down payment. Buyers love the FNMA, homepath properties where they can buy with just 3% down, and pay no PMI. Many of the homes have already been prepared with paint, carpet and new appliances for the new buyers.
Short sales are still here, but they are the stepchild of the industry. Buyers love the the attractive pricing on these properties, but are often disappointed with the amount of time it takes the seller's bank to approve the sale. Consequenty, it is often the investors, who can take a laissez-faire attitude towards the sale, or those buyers who want to wait for a specific location, who are entering into these short sale listings.
Call or email me if you are wondering if this is a good time for you to make a real estate move.
Best wishes,
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