We have 3 items in our September-October Newsletter for you!
We have changed the frequency and format of our newsletters going forward. We will be publishing our newsletter on a bi-monthly basis and we will reinstate our “Potpourri” section in each newsletter. The Potpourri section will provide you with assorted real estate articles of possible interest. Likewise, we will continue providing our local market summary and forecast in our bi-monthly newsletters and we will still provide a market update each month on our Team blog that can be seen at this link. We hope you will enjoy these changes.
1. MARKET SUMMARY & FORECAST: The DMC market cooled off after a hot spring market and prospects are that the local real estate market will further cool as we go into the fall market. While we have seen a 5.2% increase in DMC property values over the past year, the data indicate that DMC property values depreciated slightly during the summer market at -0.1% per month and some depreciation is expected during the fall market. MLS data for the real estate market in the DMC indicate that during the past month buyer contractual activity eroded by an added 13% compared to the previous month while inventory levels decreased by 5% during the same period (latter is primarily attributable to increased listing withdrawals and expirations). At present, our analysis indicates that current inventory levels remain approximately 35-40% below normal levels for this time of year. Overall, as we continue into the fall market, our analyses indicate that we can expect further decreasing buyer activity/competition and that property values are likely to continue to depreciate at least slightly.
Our most recent analyzes of market absorption rates indicate that we still have a sellers market. The market absorption rate for single family detached (SFD) homes indicates that we currently have 2.4 months of available inventory, while the townhouse market absorption rate indicates 1.4 months of available inventory and condo data indicate 1.9 months of available inventory. FYI: Market absorption rate represents the number of months needed to sell off existing inventory for a particular property type based on recent buyer activity. Real estate pundits nationally and regionally indicate that market forces typically need to stabilize home inventory levels at a 3-to-4 month-supply-level to constitute a normal or balanced market (where economists say that supply and demand are in equilibrium). A market absorption rate that falls below this norm indicates a sellers market, while a rate that is above indicates a buyers market...
Based on U.S. economy performance indicators, the Federal Reserve Board increased the prime interest rate again at its June meeting by another quarter point to 1.25% but have held off on any further increases since then. Contrary to expected results from these recent Fed rate hike actions, mortgage interest rates responded by declining most of 2017 while the 30-year fixed-rate conventional mortgage dropped and remains below 4.0%. However, if the Fed further increases the prime interest rate as is expected later this year, most pundits believe such actions will eventually lead to higher mortgage interest rates. .
With continued job growth in the Capital Region, relatively low inventory levels, reasonable buyer activity and cureently attractive mortgage interest rates, we expect the DMC real estate market to continue to be more robust than in past years but to be still significantly slower during the remainder of 2017 compared the the spring and summer markets that we just experienced. This annual slow-down beginning with the summer market and continuing into the fall market is normal for the local real estate market. However, as is also typical, we can expect a significant uptick in buyer activity early on in 2018.
Again, for sellers and buyers who are already active in the real estate market or planning to enter the marketplace in the near term, we highly recommend that you monitor for updates on the local market and review the latest detailed data for each of the important market status indicators on our Team website at this link: R&R Team Blog: Local Real Estate Market Status.….
(The *Dulles Market Corridor (DMC) encompasses the large market area of Herndon/Oak Hill, Reston, Sterling/Potomac Falls/Dulles, Ashburn/ Broadlands/ Brambleton, Leesburg/Lansdowne, South Riding/ Chantilly (Loudoun County), Stone Ridge, Aldie/ Arcola and Chantilly (Fairfax County). The R&R Team has been tracking market data closely in the DMC for the past 18 years.)
2. KEEP THE REFERRALS COMING AND THANKS FOR YOUR TRUST! The finest compliment we can ever receive is your referral of our services to your family and friends. Besides using us for you own repeat business, we request that you keep telling your family and friends about our services and please keep sending us your referrals! Here are some key points to remember: sellers pay listing fees as low as only 4%; all buyers get generous cash-back assistance; and our support to our clients continues to be the best in the business backed by nearly 20 years of successful results. Please see added information on our service offerings for sellers at this link and for buyers at this link. Our continuing promise: we will continue to take great care of each of you and your referrals. Thank you for your trust!
If you have any questions, please call 703-421-1433 or send us an email today.
3. ASSORTED REAL ESTATE POTPOURRI: Hopefully, you will find one or more of these real estate-related topics of possible interest.…
- The Low-Down on Down Payments: The number one hurdle to home ownership is down payment according to the National Association of Realtors. Many buyers still think they need 20% down to buy a home, not true! Many mortgage lenders now have programs that require zero down payment, 1% down, 3% down and the more traditional FHA loans with 3.5% down. We have many recommended lenders at this link who would be happy to help buyers sort through the options that work best for them.
- How the Equifax Hack Affects Homebuyers and How You Can Protect Yourself: At least half of the country is freaking out. That is about how many people are potentially affected by the unprecedented Equifax hack. If you are the average person who is afraid of having your data stolen (and by data, we mean your name, Social Security number, birth date, addresses, credit card numbers and drivers license number that were reportedly involved in this security breach), you may have already taken some steps to limit the damage. But what if you are in the process of buying a home or are getting ready to do so? How does this hack affect you and what can you do to make sure you are protected? You may find this article helpful.
- Down Payment Assistance GRANT MONEY Is Still Available! This free GRANT MONEY program is available to those who qualify…only 1% needed for down payment from the buyer or from a qualifying gift source. Here are a few added details:
- Requires buyers to have 1% of their own money toward down payment…properly documented gift funds are allowed;
- Maximum income limits for households of 2 or less is $100,500 and for 3 or more $117,300…varies by Virginia county;
- FHA option allows for credit scores down to 620 and for conventional option credit scores down to 660;
- Buyers with a previous bankruptcy, foreclosure or short sale do not qualify;
- All collections and judgments must be paid off prior to closing;
- FHA option allows maximum sales price of $500K or county limit; conventional option has a maximum loan amount of $424,100;
- 45% maximum debt to income ratio;
- Cannot have owned a home within the last 3 years for the FHA option; conventional option allows for previous home ownership if the property being purchased has not been the buyer primary residence in 3 years.
- Home being purchased must be primary residence.
Funds for this program are in limited supply so please contact your favorite mortgage lender now to get yourself fully approved under this program and contact us to begin the search for your dream home. You can also find our Team preferred mortgage lenders at this link.
- The 10 Dos and Do Nots When Getting a Mortgage Loan: If you are in the process of buying a home, you have probably already met with a lender who advised you on what to do and what not to do during the mortgage process. But if you are just getting ready to buy or plan on doing so in the near future, there are a few financial tips that can mean the difference between qualifying or not qualifying for a mortgage loan or even in getting a loan at a decent rate. These few universal "Dos” and “Do Nots” can be found at this link and need to be followed to keep the mortgage process on track (even before getting a lender involved).
- Are You Prepared for Disaster? Natural disasters are more common than we think: forest fires, floods, hurricanes, storm surges, tornados, earthquakes, heat waves, mud slides and more. Our first reaction to a disaster that hits someone else is to pitch in and help others with donations of food, clothing, daily basics, building materials, hands-on assistance, and cash which are essential and welcome to help rebuild lives, homes, and communities. Also, after taking time to give thanks that your family and home were spared, why not take some time to make sure you are as prepared as possible should natural disaster strike you and your family. This article discusses 7 disaster management strategies that may shift the odds in your favor if disaster strikes.
We very much appreciate your continued support and hope that you find our newsletters helpful. Please feel free to pass this newsletter along to your friend and associates and please let us know if there is any particular subject you would like us to address in a future newsletter. Kindly send us your questions or comments in an email or call 703-625-5586. Thank you.
Ron Layton, Realtor
B.S. & M.S.+ degrees, Licensed in Virginia
Awarded Life Top Producer, NVAR Multi-Million Dollar Sales Club
Inducted into RE/MAX Hall of Fame
Affiliated with & Empowered by: United Real Estate
10780 Parkridge Blvd, Suite #80, Reston, VA 20191
Ofc/Cel: 703-625-5586, Fax: 1-703-997-8772