Monday, January 19, 2015

Top Housing Predictions for 2015®'s Top 5 Housing Predictions for 2015

Millennials will drive household formations:  Next year's addition of 2.75 million jobs and increased household formation will be the two key factors driving first-time buyer sales.

Existing home sales will increase +8%: Existing home sales will grow as more buyers enter the market motivated by a clear belief that both rates and prices will continue to rise. While the majority of housing activity next year will be driven by baby boomers preparing for retirement, millennials will account for 65 percent of first-time home buyer sales in 2015.

Home prices will gain +4-5%: Low inventory levels and demand driven by improved employment opportunities will push home prices up next year.

Mortgage rates will end the year at 5%: Mortgage rates will increase in the middle of 2015, as the Federal Reserve increases its target rate by at least 50 basis points before the end of the year.

Home affordability will decrease 5-10:  This decline will be somewhat offset by increasing incomes. When considering historical norms, housing affordability will continue to remain strong next year.

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The Right Time To Sell

I had a conversation with a friend today about when might be the best time to list a home. While no one has a crystal ball on consumer confidence, mortgage rate changes and available inventory a peak at last years numbers shows that July had the highest average sold price followed closely by April, then June. Of course, making sure a home is in good list condition will make choosing the right time all the easier.


Strong Finish for Reston Year End Sales

If you sold a home in Reston in December of 2014 you would have realized an average sales price   17% higher than if you sold in January. The median average sold price was a little more than 8.5%. Although one would expect the days on the market to take longer with higher prices, the surprise was in the consistency of the average and median sold to list price numbers. Sellers gave a little more concession to buyers but not much. The typical slow down in December certain showed with a weak start to the year however was noticeably absent in the last month of the year.  

The National Association of Realtors predicts 2015 to be another year for growth in home sales (8%) and a 4-5% gain in sales prices.

Wednesday, October 22, 2014

September Sales Show Seasonal Slump

Reston, VA. The volume of closed sales in September came in at a weak 67 units. In contrast July saw a yearly high of 112 units sold in Reston. The length of time needed to sell a home grew and while the average list price was $37,000 less than August, sellers are paying more in seller subsidies.

If you were purchasing real estate in September, you would have paid an average of $645,648 for a detached home in Reston, $303,324 for a condo and $426,894 for a townhome.  There were 16 detached homes sold, 17 condo units sold and 34 townhomes sold.

Reston real estate sales reflect a region-wide apathy. Fairfax County reported weak sales numbers as well (compared to September 2013 prices):

Average Sold Price is 3.24% lower
Units sold down 9.69%
Average Days on the Market – longer by 32.35%
Average Sales Price to Original List Price – 96.7% (more seller discounts)  
Inventory is 46.76% higher than in September of 2014

Advice for sellers is to price well, anticipate a longer time on the market and anticipate buyers asking for a deal. That does not mean you have to accept any offer.

Advice for buyers is to do your homework and review price comparables with your realtor. Understand the pricing and be reasonable with your offer. There are other buyers in the market. Despite the weak numbers, over half the buyers in Fairfax County in September (518 of 1007) had their contract offers accepted in the first 30 days. In fact, 265 were written and accepted in the first 10 days.

Call us today for a consultation on how we can help you understand and successfully buy and sell real estate in today’s market! We welcome your call.

Thursday, October 2, 2014

Reston Home Tour 2014

Save the date for the Reston Home Tour! 

October 18th from 10 am - 5 pm.

The theme this year is Reston@50 - Celebrating the Decades. The tour offers:
- Original Modernist Architecture designed by Charles Goodman
- a creative contractor's remodel adds another level
- down-sizing leads to a nine-month renovation on Lake Newport
- vaulted spaces and originally combined with Design on a Dime accessories
- an upsize in retirement with space to stargaze

The tour will also include a stop at the newly opened luxury apartment, The Avant. where participants will tour an 8th floor unit and enjoy a food tasting from each of Reston's decades provided by South Lakes HS Culinary Arts Program.

Tickets can be purchased at the Reston Museum, Appalachian Spring, GRACE, Lake Anne Florist. and The Wine Cabinet at North Point.

Thursday, September 18, 2014

Fall Home Maintenance Checklist

Thanks to John Riha and the National Association of Realtors for putting out these seasonal reminders to prep your home for the fall and winter season. To go to the original post visit Fall Home Maintenance Checklist.

Thursday, September 11, 2014

How much will I pay for a house....

                                 * data source RealEstate Business Intelligence, LLC

The August sales numbers have posted and the good news for sellers is that in the three counties of Arlington County, Fairfax County and Loudoun County the average sales price has risen from the same period last year. In Arlington the average sales price rose to $595,113 ( an increase of .11%), in Fairfax County it rose to $555,273 (an increase of 5.66%) and in Loudoun County it rose to $481,576 (an increase of 3.88%).

The good news for buyers is that inventory has increased from the same period last year in all counties as well. In Arlington, the active inventory reached 593 listings (up 50.89% from the same period last year). In Fairfax County the active inventory reached 3796 units (an increase of 54.94%) and in Loudoun County the inventory reached 2,294 listings (a 58.53% increase).

Understanding the real estate market will give you a strategic advantage when pricing a home for sale and when making an offer in an competitive environment. Contact us today to put our knowledge to work for you!