Rental Market is UP * Sales Mixed Signals
Tuesday, September 21, 2010
Hi Folks:
Welcome from the wonderful world of Real Estate in Northern Virginia. The news at this time is that the rental market is firing ahead. Rents seem to have spiked up last month; many of the townhouses are renting for about $200 over last years prices in this area of Alexandria, Arlington and Springfield. People are moving here from all over the country to take advantage of the stronger job market.
The sales prices are still doing pretty well compared to last year, but the effects of the tax credit seem to be wearing off as Buyers stick to their budgets and drive hard bargains. There are fewer short sales and foreclosures affecting the market, but they are still in play. In the first time buyer price range, bidding can be competitive for properties which are in good shape, in good locations, and are not hampered by a short sale. NVAR shows sales prices rising 7.6% over last year, as normal sales make up a larger percentage of the transactions. More Sellers were encouraged to into the market in August, and number of listings rose 15% which may temper sales prices in the Fall.
Welcome from the wonderful world of Real Estate in Northern Virginia. The news at this time is that the rental market is firing ahead. Rents seem to have spiked up last month; many of the townhouses are renting for about $200 over last years prices in this area of Alexandria, Arlington and Springfield. People are moving here from all over the country to take advantage of the stronger job market.
The sales prices are still doing pretty well compared to last year, but the effects of the tax credit seem to be wearing off as Buyers stick to their budgets and drive hard bargains. There are fewer short sales and foreclosures affecting the market, but they are still in play. In the first time buyer price range, bidding can be competitive for properties which are in good shape, in good locations, and are not hampered by a short sale. NVAR shows sales prices rising 7.6% over last year, as normal sales make up a larger percentage of the transactions. More Sellers were encouraged to into the market in August, and number of listings rose 15% which may temper sales prices in the Fall.
Rental Market is UP * Sales Mixed Signals
Hi Folks:
Welcome from the wonderful world of Real Estate in Northern Virginia. The news at this time is that the rental market is firing ahead. Rents seem to have spiked up last month about $200 over last years prices in this area of Alexandria, Arlington and Springfield. People are moving here from all over the country to take advantage of the stronger job market.
The sales prices are still doing pretty well compared to last year, but the effects of the tax credit seem to be wearing off as Buyers stick to their budgets and drive hard bargains. There are fewer short sales and foreclosures affecting the market, but they are still in play. In the first time buyer price range, bidding can be competitive for properties which are in good shape, in good locations, and are not hampered by a short sale. NVAR shows sales prices rising 7.6% over last year, as normal sales make up a larger percentage of the transactions. More Sellers were encouraged to into the market in August, and number of listings rose 15% which may temper sales prices in the Fall.
Welcome from the wonderful world of Real Estate in Northern Virginia. The news at this time is that the rental market is firing ahead. Rents seem to have spiked up last month about $200 over last years prices in this area of Alexandria, Arlington and Springfield. People are moving here from all over the country to take advantage of the stronger job market.
The sales prices are still doing pretty well compared to last year, but the effects of the tax credit seem to be wearing off as Buyers stick to their budgets and drive hard bargains. There are fewer short sales and foreclosures affecting the market, but they are still in play. In the first time buyer price range, bidding can be competitive for properties which are in good shape, in good locations, and are not hampered by a short sale. NVAR shows sales prices rising 7.6% over last year, as normal sales make up a larger percentage of the transactions. More Sellers were encouraged to into the market in August, and number of listings rose 15% which may temper sales prices in the Fall.
BRAC keeps Northern Virginia Real Estate market hot
Saturday, August 14, 2010
People are moving to Northern Virginia from all over the country. Many are taking jobs with the federal government, and with local defense contractors. Also, Northern Virginia still has one of the lowest unemployment rates around. Buyrers and Sellers in this area feel more secure in their jobs than many around the country, and so they are more likely to buy their first home, or move-up to a home which better meets their needs.
Every week I hear from people taking jobs at Fort Belvoir. This has resulted in very strong sales in the surrounding areas of Alexandria, Springfield, Lorton and Woodbridge. The market for affordable townhouses in Alexandria is very hot with multiple offers on properties and homes staying on the market for only a few days. Prices are rising in Springfield, where families can find larger homes in tidy neighborhoods with good schools close to Fort Belvoir. In Lorton where the housing stock is newer, it is very hard to find a property on the market which is not a short-sale. In Woodbridge, investors who snagged up foreclosed and short sale properties over the winter have tidied them up and put them on the market $50000-$100000 above their purchase price. Home buyers looking for move-in ready homes are snapping up these still affordable properties.
As one contractor explained to me, the recent announcement by Robert Gates to "cut" defense spending, was mostly just a re-assing of funds. So there will still be lots of jobs in this area.
Many of my clients are obtaining loan quotes for 30 year mortgages of 4.5%-4.75%; a 30 year low.
Click here to see the full real estate market statistics for the Washington DC area.
Its a good time to buy and sell in Northern Virginia
Every week I hear from people taking jobs at Fort Belvoir. This has resulted in very strong sales in the surrounding areas of Alexandria, Springfield, Lorton and Woodbridge. The market for affordable townhouses in Alexandria is very hot with multiple offers on properties and homes staying on the market for only a few days. Prices are rising in Springfield, where families can find larger homes in tidy neighborhoods with good schools close to Fort Belvoir. In Lorton where the housing stock is newer, it is very hard to find a property on the market which is not a short-sale. In Woodbridge, investors who snagged up foreclosed and short sale properties over the winter have tidied them up and put them on the market $50000-$100000 above their purchase price. Home buyers looking for move-in ready homes are snapping up these still affordable properties.
As one contractor explained to me, the recent announcement by Robert Gates to "cut" defense spending, was mostly just a re-assing of funds. So there will still be lots of jobs in this area.
Many of my clients are obtaining loan quotes for 30 year mortgages of 4.5%-4.75%; a 30 year low.
Click here to see the full real estate market statistics for the Washington DC area.
Its a good time to buy and sell in Northern Virginia
Spring Market Keeps Going After Tax Credit ** Strategic Defaults
Wednesday, May 12, 2010
May 2010:
The tax credit expired almost 2 weeks ago and........ the market in Northern Virginia keeps going. There are still as many people at open houses. Contracts are being written on good properties all over the region. There are very few available homes in the sought after subdivisions. There are still multiple bids on some properties when they come on the market.
Don't expect prices to rise too dramatically, but in a lot of neighborhoods prices have seen the bottom and have started to rise. Buyers are still very cautious with their dollars. They want to be sure that they are not paying too much. While interest rates remain low, the banks have returned to fully underwriting their loan, which makes it difficult for some prospective purchasers to obtain financing. It is good to see full underwriting again. In some neighborhoods this means that better qualified people are moving in, fixing up the homes, and not over crowding the properties.
For the mid & upper price ranges, buyers are better off if they can put down larger down payments as mortgage insurance has become quite expensive. At the entry level, buyers can find financing through FHA, VA or VHDA. These low down payment programs worked well through the '80s and '90s and they will help qualified purchasers buy today. Cash transactions are a larger part of the market than ever before with almost 30% of the homes selling for cash in Northern Virginia. You can read more details at this link Northern Virginia Housing Trends by NVAR
**Strategic Defaults**
Many in the industry feel like we are entering the third round of defaults and short sales. The first two rounds of defaults and short sales were generally sellers who had trouble making their mortgage payments, due either to job loss or rising adjustable rate mortgages. Now we are seeing some sellers who have seen the value of their properties drop by up to 50% in some areas, and while they still can make the payments, they are choosing not to. You have to have a very long term view to keep paying on a mortgage of $285,000 when the properties around yours are selling for $150,000!! The lenders are getting more realistic about their loan modifications. The lenders will often write down the interest rate to 3% or even less, but they are very reluctant to write down the principal.
Yes, things remain interesting in the local real estate maket.
The tax credit expired almost 2 weeks ago and........ the market in Northern Virginia keeps going. There are still as many people at open houses. Contracts are being written on good properties all over the region. There are very few available homes in the sought after subdivisions. There are still multiple bids on some properties when they come on the market.
Don't expect prices to rise too dramatically, but in a lot of neighborhoods prices have seen the bottom and have started to rise. Buyers are still very cautious with their dollars. They want to be sure that they are not paying too much. While interest rates remain low, the banks have returned to fully underwriting their loan, which makes it difficult for some prospective purchasers to obtain financing. It is good to see full underwriting again. In some neighborhoods this means that better qualified people are moving in, fixing up the homes, and not over crowding the properties.
For the mid & upper price ranges, buyers are better off if they can put down larger down payments as mortgage insurance has become quite expensive. At the entry level, buyers can find financing through FHA, VA or VHDA. These low down payment programs worked well through the '80s and '90s and they will help qualified purchasers buy today. Cash transactions are a larger part of the market than ever before with almost 30% of the homes selling for cash in Northern Virginia. You can read more details at this link Northern Virginia Housing Trends by NVAR
**Strategic Defaults**
Many in the industry feel like we are entering the third round of defaults and short sales. The first two rounds of defaults and short sales were generally sellers who had trouble making their mortgage payments, due either to job loss or rising adjustable rate mortgages. Now we are seeing some sellers who have seen the value of their properties drop by up to 50% in some areas, and while they still can make the payments, they are choosing not to. You have to have a very long term view to keep paying on a mortgage of $285,000 when the properties around yours are selling for $150,000!! The lenders are getting more realistic about their loan modifications. The lenders will often write down the interest rate to 3% or even less, but they are very reluctant to write down the principal.
Yes, things remain interesting in the local real estate maket.
Real Estate Sales Stong in Northern Virginia; Alexandria & Arlington areas.
Hello Friends and Folks Interested in Real Estate
We are in the middle of the Spring selling season, and there are lots of real estate contracts being written each week at Re/Max Allegiance.
In my travels, I have noticed the following:
For the Arlington condos priced below $600,000, at this me, 37 condos went under contract last week out of 367 listings on the market, not counting new home sales. At about 10%/ week > 40%/month. This checks with the other data. Of 628 condo properties listed in the past 90 days, 268 or 42% have sold. Only 58 owners decided not to sell. The others are still on the market.
A 42% absorption rate is up from the 33% which Arlington condos sustained in the weak year of 2007. After that weak year, prices fell slightly. The newer condos are out performing the rest of the condo market. The average days on market was 18 days.
You can compare this with the Kingstowne townhouse market in Alexandria, Fairfax County. At this time, there are multiple offers on most townhouses. The absorption rate is 62%, and average days on market is 11. Prices are rising in that area.
Most Realtors in this area expect prices to remain pretty stable over the next few years. In areas where prices were severely depressed, the values are rising.
You can click the following link to see Northern Virginia Housing Statistics http://nvar.com/MarketStatistics/MonthlyReports/2010/March2010MarketReports/tabid/604/Default.aspx
We are in the middle of the Spring selling season, and there are lots of real estate contracts being written each week at Re/Max Allegiance.
In my travels, I have noticed the following:
For the Arlington condos priced below $600,000, at this me, 37 condos went under contract last week out of 367 listings on the market, not counting new home sales. At about 10%/ week > 40%/month. This checks with the other data. Of 628 condo properties listed in the past 90 days, 268 or 42% have sold. Only 58 owners decided not to sell. The others are still on the market.
A 42% absorption rate is up from the 33% which Arlington condos sustained in the weak year of 2007. After that weak year, prices fell slightly. The newer condos are out performing the rest of the condo market. The average days on market was 18 days.
You can compare this with the Kingstowne townhouse market in Alexandria, Fairfax County. At this time, there are multiple offers on most townhouses. The absorption rate is 62%, and average days on market is 11. Prices are rising in that area.
Most Realtors in this area expect prices to remain pretty stable over the next few years. In areas where prices were severely depressed, the values are rising.
You can click the following link to see Northern Virginia Housing Statistics http://nvar.com/MarketStatistics/MonthlyReports/2010/March2010MarketReports/tabid/604/Default.aspx
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