How's the market? Don't focus as much on the national news since everything is "local" and in our local market area buyers (and renters too) are out there looking and the housing inventory is low along with historically low interest rates.
The momentum from the surge in sales activity from November and December has created a seller's market in most locations with the falling supply and rising demand. With some buyers there is lack of urgency while serious buyers are more focused to find a property and compete for it in many cases. I have experienced multiple offers in several scenarios so far this year which is not uncommon for a high demand and low supply real estate market. After witnessing a similar pattern over my 27 years of selling real estate it is clear to me that the majority of home sellers who come on the market in the first quarter of the year achieve faster sales at higher prices than those who typically wait until spring. Home buyers and investors can still acquire property in this environment although they need a good buyer's agent to help them navigate through the maze of negotiating contracts and inspections along with many issues (title, surveys, HOA and condo rules). Speaking of national news there has recently been some promising data suggesting a rebound in the housing market and the various areas that impact the housing market such as unemployment. RealtyTrac (www.realtytrac.com), the leading online marketplace for foreclosure properties, released its Year-End 2011 U.S. Foreclosure Market Report, which shows a total of 2,698,967 foreclosure filings 2011, a decrease of 34% in total properties from 2010. Foreclosure activity in 2011 was 33% below the 2009 total and 19% the 2008 total. There are still foreclosures and short sales in the Northern Virginia although they have declined as well and are not threats in most neighborhood markets. Nationwide, starts of new single family homes were up 4.4% in December which is the third monthly increase in a row. Homebuilders are more hopeful because more people are saying they might be open to buying in 2012. In my market areas of Northern Virginia and Washington DC there was "organic growth" in 2011 without any government incentives while the overall inventory was down 22% compared to housing levels in 2010 and prices were even in December 2011 and 2010. Pending sales in 12/11 were up 13.5% compared to 12/10. Predictions are that the 2012 spring market will be positive and January traffic levels and pending contracts are pointing towards that. Investors and first time buyers are still battling the entry level housing (anything under $300,000) and most of the time cash is king if a multi-offer scenario occurs. In most situations a buyer will pay a higher price than an investor although the highest and best price still needs to appraise for mortgage financing. FHA loans are the most popular with first time buyers since you only need 3.5% down payment (which can be gifted from relatives). The maximum loan amount for FHA is $729,750.
For sellers, conditioning and initial realistic pricing are essential to attract attention since buyers will pay market value for homes in turn-key condition. Sellers often ask me if it is worth putting in new flooring, new appliances, countertops and will they get back the money for their investment. I tell them that in most scenarios they need to do these things just to get the home sold. Buyers expect to find homes in move-in-ready condition. Except for do-it-yourselfers, builders, and investors looking for a fixer-upper (with a lower price to match) buyers want older homes to look like new and they now expect sellers to have renovated older kitchens & bathrooms, replaced windows, carpeting and refinished floors.
The rental market is very tight on supply, and demand for close in housing remains strong with especially for rentals priced under $2,500/month. Being a transient area many people relocating to this area for employment and usually want to rent before buying. For investors, this can create an opportunity for a long term buy and hold strategy. One strategy that is gaining in popularity is for people to invest in real estate with their IRA, which can offer great returns and huge tax advantages for buying rental property (contact me for details on this type of program!). Here is an awesome financing plan - FHA 203K Rehab Loan offers incredible value for a low down payment for purchase or refinance! The FHA 203K loan provides home buyers the resources to rehabilitate a home that may be in need of repair, with the ability to finance the home in in its present "as-is" condition with low money down. Whether it's the home that they currently occupy, or purchasing a "fixer upper", this single loan can pay for the purchase or refinance and the cost of renovation.
Purchase a house in need of repair with only 3.5% down payment! Obtain only one loan, at a long term fixed rate (30 yr. or 15 yr.) to finance both the purchase price and the renovation of the property. FHA will insure loans in the Metro DC area up to $729,750. The renovation loan amount is based upon what the property will be worth after it is improved. The loan includes the cost to purchase the property, costs to fix-up the property, other costs like inspection and consultant fees, and finance up to six months of mortgage payments during the construction period, permits and contingency reserves. Complete rehab of distressed property is an option; some of the original foundation must remain on the property. Here are some of the highlights of the FHA loan program for regular and renovation loans: *FHA loans can allow a credit score as low as 620 *The borrower has to put in 3.5% of the sales price into the transaction. *All 3.5% can come from a gift if necessary. You need no cash reserves. *Qualification ratios can go as high as 50% for debt to income ratio. *The seller can pay up to 6% of the sales price toward closing costs; however the borrower still MUST put 3% into the transaction. *All single family homes and townhouses are eligible for FHA financing. Condos must be approved for FHA. *FHA does not have an issue with declining markets (Fannie Mae and Freddie Mac do) *This will really help with first time buyers, or buyers who have slightly below average credit and little cash. *FHA mortgages are consumer friendly loans made by private banks that are insured by the government, making them attractive because the government guarantee enables lenders to easily sell off the loans. Get Educated! Buyers and sellers need to be well informed. They need to educate themselves with all the fundamental local information that affects pricing and sales: including time on the market, inventory declines and increases, the overall pace of sales, and the average differential between asking prices and sold prices. With knowledge of this information you will be well positioned to buy or sell.
We would be glad to help you and your referrals with straight forward, world class service and guidance when buying or selling.
Our relocation network can help connect you to agents in 63 countries. For over a host of Facts, Tips, Free Reports, and Mistakes to Avoid, visit www.CaseyOneal.com Feel free to call or email with questions, we want to help you with all of your real estate needs!
Buyer Programs/Tips *Beat out other buyers to Hot New Listings (and those with newly adjusted prices) with priority real time automatic email notification - including the Foreclosure bargain Hot list *3 Ways to Buy a Home for Less Money *How to Avoid 9 Common Buyer Traps BEFORE Buying a Home *www.BuybackorFree when you purchase through our team
Seller Programs/Tips *Free Over-the-Net Home Evaluation *27 Tips to Drive up the Sale Price *How to Set the "Right" Asking Price *11 Costly Home Inspection Pitfalls *Guaranteed Sale Program
Casey O'Neal, Associate Broker, RE/MAX Allegiance 703-824-4196 casey@caseyoneal.com Serving Northern Virginia for over 27 years
ZIP Code: 22003 Approximate Location Boundaries: Annandale is located inside and outside of the Capital Beltway (I-495) with Braddock Road and Little River Turnpike as main feeder arteries
Location Characteristics: Annandale is a close in suburban area in the Northern Virginia area with close proximity to everything, featuring established communities with great schools and neighborhood amenities with close proximity to shopping and public transportation.
About Casey ONeal, Associate Broker:
What is your biggest concern when purchasing or selling a home? There are always questions and issues that every buyer or seller deals with before they seriously enter the process.
For BUYERS it might be getting the best financing, paying the right price, inspections and property condition, and getting to settlement without any hassles.
For SELLERS it might be pricing their home, making inexpensive repairs for preparing for the market, and timing of sale, and ensuring a successful closing with no problems.
There are many publications and web sites that offer information about buying a home, although the internet cannot consult, counsel, advise and have knowledge of local laws and market conditions. More importantly the internet cannot understand your goals and needs and care about you as a client.
After 25 years in the real estate business I have learned that educating a client is the best way to overcome fears and apprehension. That is why we have published comprehensive handbooks for both buyers and sellers to explain the various steps and procedures along with our own service process. We also have performance guarantees not offered by the typical real estate agent, one of which is our Easy Exit Agreement. All of our buyer and seller clients have the ability to cancel their agreement at any time, placing you in control.
After handling over 1000 career residential transactions through 2008, we can offer expert advice with proven experience in the Northern Virginia marketplace. Casey is a licensed real estate Broker and is constantly involved with continuing education and has earned the Accredited Buyer Representative designation (ABR), Certified Residential Specialist (CRS), and Internet Professional (e-Pro).
Casey is also is an Accredited Buyer Representative (ABR) designation, which is the benchmark of excellence in buyer representation. This coveted designation is awarded by the Real Estate BUYER'S AGENT Council (REBAC), an affiliate of the National Association of REALTORS, to real estate practitioners who meet the specified educational and practical experience criteria.
Our team member Sarah is an ASP, Accredited Staging Professional. Our seller clients can benefit from this value added service which will maximize their property’s appeal for an increased sales price and faster sale.
We would be glad to help you and your referrals with straight forward, world class service and guidance when buying or selling. Our relocation network can help connect you to agents in 63 countries.
For over 162 Facts, Tips, Free Reports, and Mistakes to Avoid, visit www.CaseyOneal.com Feel free to call or email with questions, we want to help you with all of your real estate needs!
VIP Buyer Programs *Beat out other buyers to Hot New Listings (and those with newly adjusted prices) with real time automatic email notification - * New construction * 3 Ways to Buy a Home for Less Money * How to Avoid 9 Common Buyer Traps BEFORE Buying a Home * $10,000 Guaranteed savings when you purchase*
Home Sellers * Free Over-the-Net Home Evaluation * 27 Tips to Drive up the Sale Price * How to Set the “Right” Asking Price * 11 Costly Home Inspection Pitfalls * Guaranteed Sale Program
These reports reflect the views and opinions of their authors and are not necessarily the views and opinions of Realty Times.
