Real Estate Market Update

Local Real Estate Market, Winter 2013/2014

            Northern Virginia ; Washington DC

The market generally recovered in this area during the last year after bumping along the bottom for several years.  Prices rose in all areas of the region.  The past Spring 2013 saw a huge burst of activity and prices rose dramatically from their lows of 2010 and 2011.  The interest rate burst of the early Summer slowed sales somewhat through the Fall 2013.  It was hard to sustain the peaks of the Spring.  Renovated and well-presented homes are sold more quickly throughout the year.  Bank foreclosures sank to a 6 year low; to the same levels as the period before the Great Recession.  This makes it hard to find foreclosed properties. The number of short sale properties sold shrank last year and  will continue shrink in 2014, now that the tax exemption for sellers has been removed.  This all points to a decent market in 2014. 

The real estate market is generally expected to be good during 2014.  Prices are expected to rise  about 5%+/-, which is about half the appreciation of 9%+/- seen during 2013(*1).  In nearly all parts of our region, prices have recovered to at least their "pre-real-estate-bubble" prices of  2005 (*2).   In most neighborhoods in our region, nearly all the property owners are in good financial standing, and their homes are worth more than their mortgages(*3).  This means that sellers will only enter the market if they are happy with the prices.  In a few areas the high prices of around 2007 were met this Spring and in only in a few of these places were these "high" prices of the Spring 2013 sustained into the Winter(*4). 

At this time, there are fewer home on the market than have been seen since 2007, this will pressure prices upward.  However the government is not expected to continue their quantitative easing or bond buying.  Without this support, interest rates are expected to rise which will lead to monthly payments creeping upward.  When you also consider that wages are generally stagnant and that buyers are now financially conservative, this will hold down prices.  Investors will find it harder to find bargain properties.  The number of sales in 2014 is not expected to meet the number of sales seen in 2013.

If you would like to chat about the market, and how this will affect your real estate decision making, please call or email me.

*1 Zillow.com reports that our region’s prices rose 8.9% during 2013 and are expected to rise 2.3%      during 2014.  RBIntel reports that our region’s prices rose 5.5% last year

*2 Zillow.com November 2013 Real Estate Market Report

*3 Zillow.com Negative Equity Report, Q3 2013

*4 TaylorBrownAroundTown, January 2014

Get Your Home Ready for Winter

1. Check your windows

Cleaning your windows will give you an opportunity to check for cracks and damaged caulking. If you notice any damaged caulking be sure to fix it immediately. If you removed your storm windows for the warmer months be sure to put them back up.

2. Clean the Gutters

You want to do this before the winter rain and snow comes. While cleaning your gutters you can see if they are still secure and free of cracks.

3. Clean your drains

Ensure that all your floor drains are free of leaves and debris. This will protect you from basement flooding.

4.  Have your furnace inspected

By doing this now you will avoid being stuck in the cold while you wait for an appointment.

5. Plug hidden leaks

Doing this you will save money on your monthly utilities and stay warmer. Check around spigots and laundry vents and check door frames while you are at it.

6. Protect Pipes from Freezing

This is the time to turn off the water inside the house and drain the spigots.

7.  Trim Bushes and Trees

Trim your bushes and trees so they are not touching your house. Wait until the leaves fall before pruning. This will help ready your shrubbery and trees for spring. Also check for dead and broken branches. These can be a safety hazard and should be removed.


8. Clean your Chimney

If you have a fireplace you want to make sure you get your chimney cleaned before it gets really cold. If you don't clean your chimney it is a potential fire hazard. There is nothing better than a warm fire on a cold winters day.

9. Check your Alarms

Make sure your smoke and carbon monoxide alarms have working batteries. The colder months usually means

10. Gather Emergency Supplies

Stock up on batteries for Flash lights, locate candles, find snow shovels, buy cat litter or sand, buy some bottled water for emergencies.