1. MARKET SUMMARY & FORECAST: As owner of the R&R Team and as a graduate economist/research analyst, I take great pleasure in completing recurring analyzes of the *Dulles Market Corridor (DMC) residential real estate market and in providing the results of these analyzes to our clients. We strive to ensure that the analyzes are consistently accurate by using only highly reliable data. For those of you who have followed these analyzes over the past 20 years, we believe that you will attest that the analyzes have been consistently accurate in providing real-time assessments of the local real estate market and in also providing an accurate near-term market prospectus.
THE EARLY-ON 2019 DMC REAL ESTATE MARKET IS DRIVEN BY A MIX OF LOW PROPERTY INVENTORY LEVELS, GOOD BUYER DEMAND AND STABALIZED MORTGAGE INTEREST RATES. Current resale property inventory levels are only 25% of normal levels for this time of year compared to the same time periods in past years and have further decreased in the past month. The latest decrease in inventory occurred while there was a 7% increase in buyer contractual activity during the same period. While inventory levels are projected to increase with onset of the spring market, the data indicate that we will also have very good buyer activity in the 2019 spring market that will quickly buy up the increasing but still relatively low inventory levels...these two forces will combine to drive up DMC home prices during a very robust 2019 spring market.
Mortgage interest rates seem to be more cooperative recently for buyers and sellers as well that should also contribute to a very robust 2019 spring market. After the 30-year fixed-rate mortgage rate rose to its highest level in 7 years to nearly 5.0% in 2018, the rate has dropped off and stabilized in recent weeks. Freddie Mac weekly survey reporting indicated an average rate of 4.46% this past week. The Federal Reserve Board increased the prime interest rate 4 times in 2018 to offset inflationary pressures in the economy and has indicated the possibility of two prime rate increases in 2019. A major concern with higher interest rates is that they may serve as a knock-out punch for some homebuyers, particularly first-timers. However, Freddie Mac indicates that the real culprit may be the continued lack of actual housing inventory in affordable price ranges for entry-level buyers (and continued increasing home prices). But, to the contrary, mortgage lender have indicated a recent increase in mortgage loan applications.
Based on our most recent analyzes of market absorption rates, we continue to have a SELLERS MARKET in the DMC. The market absorption rate for single family detached (SFD) homes indicates that we currently have only 1.4 months of available inventory, while the townhouse market absorption rate indicates 0.7 months of available inventory and condo data indicate 1.0 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.
Our MARKET PROSPECTUS FOR 2019 is to expect continued JOB GROWTH in the Capital Region, to have continuing LOWER THAN NORMAL INVENTORY LEVELS for residential property, to continue to have STRONG BUYER DEMAND and contractual activity, to have ATTRACTIVE MORTGAGE INTEREST RATES and to have APPRECIATING PROPERTY VALUES/PRICES particularly during the spring market. Overall, we should continue to have a HEALTHY DMC REAL ESTATE MARKET in the foreseeable future.
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 20 years.)
If you have any questions, please call 703-625-5586 or send us an email today.
2. WHY HIRE THE R&R TEAM TO HELP YOU EITHER BUY OR SELL YOUR HOME (OR BOTH):
Here are some of the reasons The R&R Team has helped over 600 clients succeed over the years in buying and selling homes and we can help you succeed too:
- We are an EXPERIENCED and PROVEN FULL-SERVICE Team; we have successfully closed over 600 transactions for sellers and buyers (more than $210 million in sales volume) throughout Northern Virginia. .
- We will apply our more than 20 years of proven experience assisting you every step of the way from start to finish (buyers can learn more details on our services at this link...and sellers can see more at this link.
- Most importantly, besides applying our expertise and energies on your behalf, you will enjoy HONESTY, INTEGRITY & RESULTS...that is our GUARANTEE when you hire The R&R Team!
If you would appreciate our attention to detail and our expertise, then do yourself a favor and call us at 703-625-5586 or send us an email.
3. KEEP THE REFERRALS COMING AND THANK YOU 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 your repeat business, please keep telling your family and friend 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 clients continue to be the best support in the business backed by 20+ years of experience and successful results.
Please see added information on our service offerings for sellers at this link...and for buyers at this link.
Our promise to you: we will continue to take great care of each of you and your referrals.
Thank you for your continued trust!
If you have any questions, please call 703-625-5586 or send us an email today.
4. REAL ESTATE POTPOURRI: Hopefully, you will find one or more of these real estate-related topics of possible interest.
- Realty Times Checklist of Top 10 Things to Look For In A Realtor: There are a lot of opinions on the criteria to use in selecting a realtor...Realty Times specifies the top 10 things to look for in this article (Source Realty Times).
- 10 “Skips” That Will Help You Save for a Down Payment: New year, new house. That is the plan, right? But the daily habits that only cost a couple bucks here and there may be doing more damage to your budget than you realize, making it impossible to save for that down payment. That is why adjustments to your lifestyle may be necessary when saving for a down payment. If your goal is buying a house, the “skips” discussed in this article may be well worth it (Source: Realty Times).
- To PMI or Not to PMI: Is Private Mortgage Insurance (PMI) necessary? Will it help me buy a house? Is there a way around it? These are some of the questions, among others, addressed in this article (Source: Realty Times).
- Common Mistakes Home Sellers Make: There is no shortage of advice for home buyers. Getting approved for a mortgage or how to keep on top of a credit report is certainly good advice but there should be just as much attention given to those who are selling their home. After all, home sellers also typically turn around and become home buyers. For most, selling the home means coming up with the necessary funds for a down payment and closing costs. This article discusses common mistakes home sellers make (Source: Realty Times).
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.