Greetings!
I am sure you have been hearing a lot of information about what is going on with the stimulus package – designed to help jump start the economy and lagging home sales. But, since all real estate is local, I thought I’d share my take on what is happening in the market, some relevant county information, regional trends and some information about the stimulus. If you’d like to receive a neighborhood specific analysis, please let me know. I would be happy to provide you with that information.
First things first!
The stimulus package has been signed into law and provides great incentives for first time home buyers to get into the market now! In fact, I have learned that if you are a first time home buyer (or renter who has not owned a home within 3 years), and you close on your home before the April tax deadline, you will get immediate access to that $8,000 tax credit. Read all about the stimulus package here on Realtor.org. There are also new loan limits for Freddie Mac and Fannie Mae that have helped boost affordability of home buying for all types of buyers. Talk to a lender (or your tax professional) to get the specifics on how these items relate to your situation. If you would like recommendations of someone to talk with, I am happy to refer you to a pro that I trust.
Time for Action! Tax Credits, Great Values and Interest Rates at Historic Lows!!
Conforming (non-Jumbo) home loan limits have been increased in our area to $729,500, allowing for much more affordable rates for all types of loans! That coupled with the drop in interest rates are really heating up the market! Interest rates saw a recent drop into the 4 ½ – 5% range (Jumbos are in the 6 ½% range) which make buying more affordable now. With sales prices considerably lower, on average, area wide -- the area is much more affordable for first time home buyers, investors and those looking to move up to a larger home. Remember if you are buying and selling in the same market, you may receive less on the selling side, but you will make up for those losses on the buying side.
Across the Region in 2008
The home price trends in Northern Virginia show a considerable decline in sales prices over the last few years. 2008 took the largest hit on prices across the region as a whole. Fairfax, Prince William and Loudoun Counties all saw an astounding 20 – 30% decline in prices from 2007 to 2008 across the board. The average price in the 4th quarter of 2008 declined 9.2% from the previous quarter and 28.1% from 4th quarter 2007. The total time homes were listed for sale (Days on market) averaged 99 days in the 4th quarter - 98 days in the 3rd quarter 2008. But the number of homes sold increased considerably.
Days on Market are leveling off, seeing more of a flat line, and as you can see in the following information for January 2009 data, those numbers are changing. While this isn’t yet an indicator that prices will begin to rise, it does show some stabilizing. AND, the number of homes selling shows an increase in demand. That coupled with more limited supply of listings (fewer homes on the market), could indicate that we are near or at the bottom. Some communities may have already seen the bottom and could begin to see modest price increases if demand continues. Ultimately, we won’t know where the bottom of the market is until it is behind us. What we do know is that demand for well priced homes in good condition is leading to situations where we see multiple contracts and bidding wars, above the asking price of the home.
Promising News for Early 2009
Though it is only February, we have already seen big changes in the market this January versus 2008. There has been a huge increase in the number of home purchases AND the average days on market have dropped considerably. The number of homes available – versus average homes sold per month (Month’s Supply) is down significantly, making this a great time for would be sellers to get their homes listed. The news of the stimulus coupled with extremely low interest rates are bringing more buyers into the market. This coupled with fewer active listings means less competition from other sellers.
Greater Northern Virginia Statistics*
Jan-08 Jan-09 % Change
Homes Sold 1,379 2,132 55.51%
Days on Market 105 129 -18.65%
Sales Price $303,275 $422,591 -28.23%
Active Listings 8,831 11,500 -25.36%
Month’s Supply** 7.17 14.95 -52.01%
County Specific Updates are available for Loudoun, Fairfax and Prince William (our primary markets), but didn't come through to be easily posted here. Please email or call me if you'd like me to send them your way.
I am sure you have been hearing a lot of information about what is going on with the stimulus package – designed to help jump start the economy and lagging home sales. But, since all real estate is local, I thought I’d share my take on what is happening in the market, some relevant county information, regional trends and some information about the stimulus. If you’d like to receive a neighborhood specific analysis, please let me know. I would be happy to provide you with that information.
First things first!
The stimulus package has been signed into law and provides great incentives for first time home buyers to get into the market now! In fact, I have learned that if you are a first time home buyer (or renter who has not owned a home within 3 years), and you close on your home before the April tax deadline, you will get immediate access to that $8,000 tax credit. Read all about the stimulus package here on Realtor.org. There are also new loan limits for Freddie Mac and Fannie Mae that have helped boost affordability of home buying for all types of buyers. Talk to a lender (or your tax professional) to get the specifics on how these items relate to your situation. If you would like recommendations of someone to talk with, I am happy to refer you to a pro that I trust.
Time for Action! Tax Credits, Great Values and Interest Rates at Historic Lows!!
Conforming (non-Jumbo) home loan limits have been increased in our area to $729,500, allowing for much more affordable rates for all types of loans! That coupled with the drop in interest rates are really heating up the market! Interest rates saw a recent drop into the 4 ½ – 5% range (Jumbos are in the 6 ½% range) which make buying more affordable now. With sales prices considerably lower, on average, area wide -- the area is much more affordable for first time home buyers, investors and those looking to move up to a larger home. Remember if you are buying and selling in the same market, you may receive less on the selling side, but you will make up for those losses on the buying side.
Across the Region in 2008
The home price trends in Northern Virginia show a considerable decline in sales prices over the last few years. 2008 took the largest hit on prices across the region as a whole. Fairfax, Prince William and Loudoun Counties all saw an astounding 20 – 30% decline in prices from 2007 to 2008 across the board. The average price in the 4th quarter of 2008 declined 9.2% from the previous quarter and 28.1% from 4th quarter 2007. The total time homes were listed for sale (Days on market) averaged 99 days in the 4th quarter - 98 days in the 3rd quarter 2008. But the number of homes sold increased considerably.
Days on Market are leveling off, seeing more of a flat line, and as you can see in the following information for January 2009 data, those numbers are changing. While this isn’t yet an indicator that prices will begin to rise, it does show some stabilizing. AND, the number of homes selling shows an increase in demand. That coupled with more limited supply of listings (fewer homes on the market), could indicate that we are near or at the bottom. Some communities may have already seen the bottom and could begin to see modest price increases if demand continues. Ultimately, we won’t know where the bottom of the market is until it is behind us. What we do know is that demand for well priced homes in good condition is leading to situations where we see multiple contracts and bidding wars, above the asking price of the home.
Promising News for Early 2009
Though it is only February, we have already seen big changes in the market this January versus 2008. There has been a huge increase in the number of home purchases AND the average days on market have dropped considerably. The number of homes available – versus average homes sold per month (Month’s Supply) is down significantly, making this a great time for would be sellers to get their homes listed. The news of the stimulus coupled with extremely low interest rates are bringing more buyers into the market. This coupled with fewer active listings means less competition from other sellers.
Greater Northern Virginia Statistics*
Jan-08 Jan-09 % Change
Homes Sold 1,379 2,132 55.51%
Days on Market 105 129 -18.65%
Sales Price $303,275 $422,591 -28.23%
Active Listings 8,831 11,500 -25.36%
Month’s Supply** 7.17 14.95 -52.01%
County Specific Updates are available for Loudoun, Fairfax and Prince William (our primary markets), but didn't come through to be easily posted here. Please email or call me if you'd like me to send them your way.
The sales prices in many counties have declined significantly across the board. However, there are some neighborhoods that have been the driving factor in those declines. Some areas in PW and Loudoun Counties, for example, had substantial numbers of sub-prime loans, which have gone into foreclosures and have brought the overall county statistics down sharply. So, while these numbers may be alarming, and a guide of what has happened on a more local level, every neighborhood should be looked at independently to judge the value of those homes as well as the buying and selling conditions.
Real Estate is a Long Term Investment
For those of us who bought homes during the peak, or near-peak, this news is difficult to swallow. We have to remember that real estate is a long term investment. John McClain, an economist with George Mason University said recently on an interview on WTOP News that if you look at how prices have risen over the last 10 years, even with this significant market correction, homes have still appreciated an average amount. This means real estate prices are in line with normal growth patterns. What we experienced in the early part of this decade was atypical. And, it will take some time to build those values back. It is, however a great time to continue to maintain the value in your home. Continue to do quality maintenance and repairs. Upgrade the home so that you can enjoy living in it for a few years to come. Don’t make the mistakes so many of us do and wait to upgrade or even paint your home just before you sell it. You may discover that you love your home even more if you give it a little TLC.
Please let me know if you have any questions about the information I have provided, or if you’d like to speak with me about your neighborhood. Remember, I am neither an economist, nor a tax attorney nor a CPA. I am gathering this information from various sources including MRIS, the local MLS board that I belong to and the market that I see on a daily basis as a licensed Realtor®. If you question the data, please feel free to contact MRIS at www.mris.com. I am reporting the information I receive there.
And, if you know someone looking to buy or sell their home, it would be my pleasure to help them.
Jodi Spelbring
Jodi@JodiSellsVA.com
703-625-4667
Real Estate is a Long Term Investment
For those of us who bought homes during the peak, or near-peak, this news is difficult to swallow. We have to remember that real estate is a long term investment. John McClain, an economist with George Mason University said recently on an interview on WTOP News that if you look at how prices have risen over the last 10 years, even with this significant market correction, homes have still appreciated an average amount. This means real estate prices are in line with normal growth patterns. What we experienced in the early part of this decade was atypical. And, it will take some time to build those values back. It is, however a great time to continue to maintain the value in your home. Continue to do quality maintenance and repairs. Upgrade the home so that you can enjoy living in it for a few years to come. Don’t make the mistakes so many of us do and wait to upgrade or even paint your home just before you sell it. You may discover that you love your home even more if you give it a little TLC.
Please let me know if you have any questions about the information I have provided, or if you’d like to speak with me about your neighborhood. Remember, I am neither an economist, nor a tax attorney nor a CPA. I am gathering this information from various sources including MRIS, the local MLS board that I belong to and the market that I see on a daily basis as a licensed Realtor®. If you question the data, please feel free to contact MRIS at www.mris.com. I am reporting the information I receive there.
And, if you know someone looking to buy or sell their home, it would be my pleasure to help them.
Jodi Spelbring
Jodi@JodiSellsVA.com
703-625-4667
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