Blog • February 23, 2024

Benefits of a Real Estate Group

by Denise Fuller

Embarking on a real estate journey is a significant endeavor, and choosing the right professionals to guide you can make all the difference. While individual agents and mega teams have their merits, the advantages of collaborating with a real estate group are noteworthy and often underestimated. We delve into key aspects that set groups apart. From specialized expertise to the unique advantage of having the support structure that keeps things running smoothly, we’ll explain it all. We uncover why a real estate group offers a holistic and effective approach. Join us on this journey as we navigate the landscape of real estate, exploring the perks that come with choosing a collaborative and knowledgeable team for your property endeavors. Here are the benefits of a real estate group.

1. SPECIALISTS VS. GENERALISTS

Working with a real estate team offers a distinct advantage in the form of specialized expertise. Unlike individual agents who may be generalists, real estate groups often comprise professionals with specific skills and knowledge in various aspects of the industry. These specialists may focus on key areas such as market analysis, negotiation, marketing, or client relations. This division of labor allows each team member to hone their skills and stay updated on the latest trends and developments within their niche. As a result, clients benefit from a comprehensive and well-rounded approach to their real estate needs. Additionally, having multiple agents allows for the team to represent Seller and Buyer clients. Specialists bring depth and precision to their respective roles, ensuring that every aspect of a transaction is handled with the highest level of proficiency.

2. PRICING – TWO EXPERIENCED FULL TIME AGENTS FOR THE PRICE OF ONE

One compelling advantage of collaborating with a real estate team is the prospect of getting two experienced agents for the price of one. When working with a team, clients often benefit from a dynamic duo of professionals who bring complementary skills and perspectives to the table. This synergistic approach can significantly enhance the overall service provided. With two agents dedicated to a client’s needs, the workload is efficiently distributed, ensuring that no detail is overlooked. Whether it’s simultaneous property showings, comprehensive market research, or round-the-clock availability, the collaborative effort of two skilled agents amplifies the level of attention and support a client receives throughout the real estate process. This not only expedites the transaction but also fosters a sense of security and confidence, knowing that their real estate journey is being navigated by a team of dedicated experts.

3. SUPPORT TEAM OFFERS MORE COVERAGE

Another key advantage of opting for a real estate team lies in the valuable support staff they have at their disposal. Real estate transactions can be intricate, demanding, and often fast-paced. In such scenarios, having a dedicated support team becomes a game-changer. From administrative assistants and transaction coordinators to marketing experts, teams boast a range of professionals who collectively ensure that no detail is overlooked and every task is efficiently managed. This increases the availability of team members to their clients. This support structure not only alleviates the workload on the agents but also contributes to a smoother and more organized real estate experience for clients. When things get busy, which is not uncommon in the real estate industry, the additional hands-on-deck allow the team to handle multiple aspects simultaneously, ensuring that client needs are met promptly and with precision. The presence of a support staff enhances the overall efficiency and responsiveness of the team, making them well-equipped to navigate the complexities of the real estate landscape.

4. NOT TOO LARGE; NOT TOO SMALL

The size of a real estate team plays a crucial role in determining its effectiveness, and a team of two agents offers the perfect balance – not too large and not too small. In this compact yet dynamic setup, the strengths of each team member are maximized, fostering a close-knit and collaborative environment. With two agents, there is an ideal equilibrium between personalized attention and shared responsibilities. Clients benefit from the advantages of a team approach, such as diverse skill sets and seamless collaboration, while still enjoying the intimacy and familiarity that come with working closely with a smaller group. This middle-ground size allows for streamlined communication, efficient decision-making, and a more agile response to client needs. The synergy between two agents in a real estate team of this size creates a harmonious and client-focused experience, striking the right balance between a personalized touch and the resources and capabilities of a larger team.

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5. LARGER AND WIDER NETWORK OF AGENTS AND VENDORS

Embracing a real estate team expands the horizons of professional networks, offering an invaluable advantage in the industry. With a real estate group, there is access to a larger and more diverse network of fellow agents and vendors, enriching the resources available to clients. The extended reach of these networks opens doors to a broader range of opportunities, whether it’s identifying off-market properties, collaborating on exclusive deals, or tapping into a vast pool of trusted vendors and service providers. This expansive network not only enhances the team’s ability to stay well-informed about market trends and opportunities but also allows for more extensive marketing and exposure for clients’ properties. The collaborative nature of a real estate group amplifies the collective knowledge and connections, providing clients with an enhanced and well-connected team that can leverage a vast network to navigate the complexities of the real estate landscape effectively.

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FINAL THOUGHTS

In conclusion, opting to work with a real estate group presents a myriad of benefits that extend far beyond what an individual agent or large mega teams can offer. The dynamic combination of specialists, the advantage of having two skilled agents for the price of one, the support staff to handle busy periods, and the access to a larger network of agents and vendors all contribute to a more comprehensive and efficient real estate experience. The collaborative efforts within a team provide clients with a well-rounded and personalized approach to their needs, ensuring that every aspect of their real estate journey is expertly managed. Whether navigating complex negotiations, staying ahead of market trends, or accessing a broad network for increased opportunities, a real estate team proves to be a strategic choice that maximizes the strengths of its members while offering clients a seamless and successful real estate journey.

NEED HELP UNDERSTANDING THE CURRENT REAL ESTATE MARKET?

QUESTIONS?

Denise Fuller
703-881-6947

Please CONTACT ME.

Blog • February 15, 2024

Market Update – February 2024

by Denise Fuller

This past month, the real estate market update February 2024 in Northern Virginia has been vibrant. More homeowners put their properties up for sale in the new year. This happened as the holiday season came to an end, the new year began, and mortgage interest rates fell. With mortgage interest rates now around 6.9% , it is highly anticipated that rates will continue to slowly go down over the coming months. This is great news for homebuyers and home sellers.

The Department of Labor Statistics released the new Consumer Price Index (CPI) report stating that the inflation rate is now 3.1%. This is down only 0.3% from last month. There will be one more CPI report on March 12th before the Federal Reserve announces the federal funds rate on March 20th. In Northern Virginia, inventory spiked 70% between December 2023 and January 2024. Mortgage interest rates hover between 6.1% and 6.9%. The market activity is picking up with more homes for sale, more buyers looking for homes, and more mortgage applications. Here what this all means for the Northern Virginia real estate market update for February 2024.

Statistics and What it Means

Using statistics from MarketStats by ShowingTime, we looked at 10 counties in Northern Virginia – Alexandria, Arlington, Fairfax, Falls Church, Fauquier, Loudoun, Manassas City, Manassas Park City, and Prince William. Here are the highlights for Northern Virginia.

The median sale price for a home in Northern Virginia is now $615,000, which is about the same as the previous month and up 7% from this time last year.

At the end of January 2024, there were 1,359 homes sold in Northern Virginia. This is down 16% from the previous month and up 0.7 % from last year. This speaks to the low number of homes that went on sale in the slow months of November and December.

The number of Days on Market for Northern Virginia is now 29 days, which is 5 more days than last month and the same from this time last year.

This month, there are 1,748 homes for sale. This is down about 4% than last month and down about 20% from last year. Additionally homes sold at 98.9% of the original asking price. In general, home owners are getting close to their asking price. Keep in mind that these figures vary depending on the city and neighborhood of your home.

Inventory Levels

The phrase “Month’s Supply” refers to how many months it will take to sell all the homes currently on the market. Most consider a balanced market, where buyers and sellers are on the same playing field, to be about 3-6 months supply. Currently, Northern Virginia has a month’s supply of homes for sale of 1.3; this is up from 1:1 from last month.

Bright MLS Buyer Demand Index

According to Bright MLS Home Demand Index, buyer demand in the Washington Metro Area (which includes Northern Virginia) remains “Limited”. The Bright MLS | T3 Home Demand Index measures and tracks consumer and real estate professional behavior related to shopping for real estate. They look at metrics such as the number of views of homes online and in-person showings. Ratings are categorized into 5 score points: Limited (under 70 points), Slow (70-89), Steady (90-109), Moderate (110-129), and High demand (over 130).

This month, buyer demand is LIMITED across most areas and may be due to the winter season. Here are the top 5 in Northern Virginia: MODERATE in Arlington (118); SLOW in Alexandria City (82), Falls Church (82), and Prince William (75); and LIMITED in Winchester (66). Loudoun County’s buyer demand is LIMITED at (54).

What to Expect in the Coming Month

As anticipated, the real estate market is slowly gaining more inventory. Inflation continues to be a problem and thus mortgage interest rates are expected to stay around 6.5% for now. The good news is that home prices remain strong in Northern Virginia, with homes up in value 7% from last year.

Advice to Sellers

For homeowners in Northern Virginia, accurate pricing and good condition remain crucial ingredients to ensure a smooth and successful sale. If done properly, expect to get close to your original list price and go under contract in about 3 weeks.

Advice to Buyers

Lower interest rates mean higher buying power and more affordability. If you were thinking to buying, this is the time to prepare by checking credit score and evaluating savings needed for closing.

Bottom Line

The market update for February 2024 shows a more vibrant real estate market.

Questions/Concerns? Please contact me

Denise Fuller, Real Estate Specialist

Blog • January 11, 2024

2023 Year in Review

by Denise Fuller

What a year 2023 has been. It’s been challenging yet so rewarding. Here it the Home Estate Realty Group’s video recap.

Questions/Concerns? Please contact me.

Denise Fuller
Real Estate Specialist
Home Estate Realty Group | Coldwell Banker Realty
703-881-6947

Blog • December 14, 2023

Market Update – December 2023

by Denise Fuller

This past month, the real estate market in Northern Virginia continues to be steady with some key positives. The Department of Labor Statistics announced inflation rose only 0.1% from November to December and the new inflation rate from November 2022 to November 2023 was 3.1%. Additionally, the Federal Reserve announced they would not raise the federal funds rate for a third straight time. This are excellent indicators for an improved real estate market. In Northern Virginia, inventory levels remain low, partly due to this seasonably slower time. Still, home prices remain steady. Mortgage interest rates also fell under 7% and have been holding. Here what this all means for the Northern Virginia real estate market update for December 2023.

Statistics and What it Means

Northern Virginia Counties for market statistics

The median sale price for a home in Northern Virginia is now $628,645, which is up 1.4% from the previous month and up 7.5% from this time last year.

At the end of October 2023, there were 1,816 homes sold in Northern Virginia. This is down 12.6% from the previous month and down 7% from last year. This speaks to the extremely low number of homes for sale in the area. Part of this is also due to the holiday season, which tends to be a slower time in the real estate market. Many homeowners are willing to wait to the Spring before listing their home for sale.

The number of Days on Market for Northern Virginia is now 20 days, which is 3 more days than last month and 7 days less than this time last year.

This month, there are 2,468 homes for sale. This is 382 less homes than last month (down 15%) and 673 less homes than this time last year (down 27%).

Inventory Levels

Inventory levels remain low in Northern Virginia. Month’s Supply refers to how many months it will take to sell all the current homes currently on the market. Most consider a balanced market, where buyers and sellers are on the same playing field, to be about 3-6 months supply. Currently, Northern Virginia has a month’s supply of homes for sale of 1.4; this is the same as it was last month.

The hesitancy of many home owners to sell their homes may continue next year. Many are unwilling to give up their 3-5% mortgage interest rates to buy another home at 7%. Only time will tell if they decide differently.

Bright MLS Buyer Demand Index

According to Bright MLS Home Demand Index, buyer demand in the Washington Metro Area (which includes Northern Virginia) remains “Limited”. The Bright MLS | T3 Home Demand Index measures and tracks consumer and real estate professional behavior related to shopping for real estate. They look at metrics such as views of homes online and in-person showings. Ratings are categorized into 5 score points: Limited (under 70 points), Slow (70-89), Steady (90-109), Moderate (110-129), and High demand (over 130).

This month, the top five highest ranking areas in Northern Virginia are: STEADY in Arlington (98); SLOW in Alexandria City (75) and Fairfax (73); and LIMITED in Prince William County (69), Manassas City (61). Loudoun County’s buyer demand is LIMITED at 59.

What the Experts are Predicting

As 2024 is fast approaching, the predictions are also rolling in. According to the National Association of Realtors (NAR), inventory will remain an issue and home prices will go up slightly at 0.7%. Bright MLS also predicted an increase in home prices but by 1.5%. Zillow predicted prices to fall 0.2% and Realtor.com predicted prices to fall 1.7%. The general consensus is that home prices are not expected to change much in the coming year as low inventory continues to plague the real estate industry. Homeowners will still have a slight advantage. They should have expectations of longer days on the market, more negotiations, and price adjustments. Multiple offer situations will still occur when price, condition, and marketing all line up.

The good news of the market update for November 2023 is that home prices seem to holding steady and strong. When correctly priced, homes continue to sell for what sellers are asking. Multiple offers are no longer the norm. There are exceptions, however. When proper pricing and excellent condition meet, multiple offers are an advantage to homeowners. In the articles, Home Pricing for Multiple Offers and Get Top Dollar for Without the Stress you’ll learn more about the right conditions for successful home-run sales.

Mortgage Interest Rates

The annual percentage rate on 30-year conventional mortgages hovers a smidge below 7%. This is the new normal. The latest Consumer Price Index figures (used to measure inflation) were announced to be at 3.1%. This percentage shows change over time in the prices for a basket of consumer goods. The Federal Reserve has stated that they want to see the inflation figure down to 2%. The next Consumer Price Index report announcement was today (December 12, 2023) and the next Federal Reserve announcement is set for 2 pm tomorrow, December 13, 2023.

Advice to Sellers

Advice to Buyers

Lower interest rates are on the horizon so stay vigilant in looking out for homes listed for sale each day. Expect mortgage interest rates to stay between 6.5% and 7%. The National Association of Realtors predict the 6% range in Spring 2024. Mortgage Bankers Association (MBA) forecasts mortgage rates to end 2024 at 6.1% and reach 5.5% at the end of 2025.

WATCH RELATED VIDEO

Bottom Line

The market update for December 2023 continues STRONG and STEADY. If you’re looking for expert real estate agents to work with, reach out to us to see if we’re a good fit.

Questions/Concerns? Please contact me.

Also feel free to compare this update with last month’s Market Update – November 2023

Blog • December 7, 2023

What Homeowners Should Know about Mortgage Interest Rates

by Denise Fuller

Presently, mortgage interest rates on a 30-year fixed loan are down to around 6.8%. This is a big difference from just one month ago when rates were closer to 7.8%. This is great news for anyone thinking of buying a home as they can expect to be able to afford more. For example, a home loan for a $500,000 home with 20% down at 7.8% is about $3,500 per month (with taxes and fees). The same conditions at 6.8% is about $3,200 per month. A $300 savings each month adds up to about $108,000 over the life of the loan. So the benefits of lower mortgage rates is quite obvious for the home shopper. But what about homeowners? Here is what home sellers should know about mortgage interest rates.

5 Things to Know

Home sellers might not be directly impacted by mortgage interest rates, but these rates can significantly affect the pool of potential buyers for their homes. Here’s why sellers should pay attention to mortgage interest rates:

Impact on Buyer Demand: Lower interest rates can attract more buyers as it makes borrowing cheaper. This increases the the number of potential buyers interested in purchasing a home. This can lead to a higher demand for homes on the market and a better bottom line.
Affordability for Buyers: When interest rates are lower, buyers can afford more expensive homes because their monthly mortgage payments are reduced. This expands the range of homes that buyers can consider purchasing.
Faster Selling Process: Lower interest rates can speed up the selling process. With more potential buyers and increased affordability, homes tend to spend less time on the market. This is great news for home sellers with plans for the future.
Price Negotiation: In a market with lower interest rates, sellers might have more negotiating power as there can be multiple buyers interested in the same property. This can lead to higher offers and better selling prices.
Market Activity: Mortgage rates can influence the overall health of the real estate market. High rates might discourage potential buyers, slowing down market activity and making it more challenging to sell a property.

Ultimately, while sellers might not be directly affected by mortgage interest rates in the same way as buyers, understanding their influence on buyer behavior and market dynamics is crucial. These mortgage interest rates set the tone for pricing, timing the home sale, and attracting potential buyers.

LATEST MORTGAGE INTEREST RATE NEWS

BOTTOM LINE

What home sellers should know about mortgage interest rates is that it affects how they will want to sell their homes. Mortgage interest rates play a significant role in shaping the dynamics of the real estate market. With lower interest rates, home buyers can afford more. And home sellers will enjoy more activity in the selling process. Lower interest rates invigorate the home buying process for bother buyers and sellers.

QUESTIONS?

Please contact me.

Also feel free to compare this update with last month’s Market Update – November 2023.

Blog • November 28, 2023

Market Update – November 2023

by Denise Fuller

The current real estate market in Northern Virginia continues to be steady. Inventory levels are lower than normal and this is keep home prices high. Mortgage interest rates remain around 7.5% and it appears that this is the new normal. This is just some of the indicators of this Market Update for November 2023.

Statistics and What it Means

The median sale price for a home in Northern Virginia is now $619,000, which is the same as last month and up 3% from this time last year when the median sold price was $599,900.

At the end of October 2023, there were 2,078 homes sold in Northern Virginia. This is up about 3% from last month and down 9% from last year. So this illustrates the low inventory we’re currently experiencing compared to last year.

The number of Days on Market for Northern Virginia is now 17 days, the same it was last month and down from 8 days this time last year. This is good news for buyers as they have more time to see the homes they are interested in.

Inventory Levels

Inventory levels seem to be the new normal. There are 2,850 homes for sale, which is about the same it was last month. It’s also down about 38% from this time last year. Month’s Supply is another factor to consider. This refers to how many months it will take to sell all the current homes currently on the market. Most consider a balanced market, where buyers and sellers are on the same playing field, to be about 3-6 months supply. Currently, Northern Virginia has a month’s supply of homes for sale of 1.4; this is the same as the 5-year average. These numbers appear to be the new normal.

Many home owners are hesitant to sell their homes. They are unwilling to give up their 3-5% mortgage interest rates to buy another home at 7.5%, no matter the profit margin.

Bright MLS Buyer Demand Index

According to Bright MLS Home Demand Index, buyer demand in the Washington Metro Area (which includes Northern Virginia) remains “Slow”, the same as the previous month. The Bright MLS | T3 Home Demand Index measures and tracks consumer and real estate professional behavior related to shopping for real estate. They look at metrics such as views of homes online and in-person showings. Ratings are categorized into 5 score points: Limited (under 70 points), Slow (70-89), Steady (90-109), Moderate (110-129), and High demand (over 130).

This month. the highest ranking areas in Northern Virginia are: STEADY in Arlington (104); SLOW in Alexandria City (83); and LIMITED in Prince William County (69), Manassas City (67) and Falls Church (64).

What the Experts are Seeing

WATCH OUR WEEKLY VIDEO

Mortgage Interest Rates

This is the new normal for now. The annual percentage rate on 30-year conventional mortgages hovers around 7.5%. The latest Consumer Price Index figures (used to measure inflation) were announced to be at 3.2%. This percentage shows change over time in the prices for a basket of consumer goods. The Federal Reserve has stated that they want to see the inflation figure down to 2%. The next Consumer Price Index report announcement is December 12, 2023 and the next Federal Reserve announcement is set for December 13, 2023.

Advice to Sellers

Home pricing and good condition remain crucial ingredients to ensure a smooth sale. If done properly, expect to get close to your original list price and go under contract in under 3 weeks.

Advice to Buyers

For the home shopper, the mortgage interest rates are lower than a month ago. Rates around 7.5% is the new norm. Most agree that Northern Virginia has a very strong real estate market grounded in its proximity to Washington DC, solid job market, great schools, and endless amenities. This means that home owners will see financial gains the longer they own a home in the area.

Bottom Line

The market update for November 2023 is all about STRONG and STEADY. This is our new normal. We’re here to help you decide on what is best for you.

Questions/Concerns? Please contact me.

Also feel free to compare this update with last month’s Market Update – October 2023.

Blog • November 9, 2023

Bitten by the Real Estate Investment Bug?

by Denise Fuller

bug hovering over a condo with cash in the air

More and more homeowners are thinking about renting out their homes. This could include parts of their homes or even buying an investment property. More than likely, they’ve heard that it’s a great way to make passive income and build generational wealth. And this is very true. If you have thought about investing in real estate, it’s important that you know as much as possible before getting started. There are so many factors such as financial stability and an interest in real estate. The question is: have YOU been bitten by the real estate investment bug?

CHARACTERISTICS OF REAL ESTATE INVESTORS

A great real estate investor should have most of these characteristics before getting started.

Financial Stability:
Individuals with a stable financial situation. This includes a reliable source of income and a good credit score. These are well-suited for investment property ownership. If this is you, congratulations.
Cash Reserves:
It’s important you have sufficient cash reserves. You will need this for down payments, property maintenance, mortgage payments even when property is vacant. The need for repairs are another issue to consider. This is essential for property investment.
Long-Term Investment:
You should plan to hold the property for an extended period, usually five years or more. This will likely benefit you with solid gains in real estate appreciation and rental income.
Knowledge of Real Estate Market:
You should have a good understanding of the local real estate market, including trends, property values, and rental demand. My Northern Virginia Market Update for October 2023 gives you an example. This type of information is crucial to your success.
Risk Tolerance:
Real estate investments carry some level of risk. You should be comfortable with potential market fluctuations and property management challenges. This includes a lower than normal demand for rental homes and tenants who are delinquent in making payments.
Property Management Skills or Support:
You should decide if you will be a landlord or pass the responsibilities on to a property manager. Those who are willing and capable of managing the property themselves is great. If not, you should have access to professional property management services are well-positioned.
Interest in Real Estate:
It’s also important you have a genuine interest in real estate and a willingness to learn about the industry. This is an important attribute of an investor.

WATCH THE RELATED VIDEO

BUILDING YOUR REAL ESTATE INVESTMENT TEAM

There is no reason to begin the journey of becoming a landlord on your own. So if you’ve been bitten by the real estate investment bug, consider finding and reaching out to your trusted team members in the following areas:

Financial Planner
They will work with you to discuss your plans and assist you in crunching to numbers to make sure you are financially prepared to become an investor.
Certified Public Accountant
These professionals will be able to guide you on how to account for the costs of investments and save as much as possible come tax time.
Real Estate Professionals
These advisors will help you find the best home to meet your budget. The old adage is “Make Profit in the Purchase”. With the right help, you can negotiate a fair price for your investments property.
Property Management Company
If you prefer to not work as a landlord full time, management companies are great. They assist with communicating with tenants and address repair issues. These services cost on average between 8-10%.

BOTTOM LINE:

Are you still excited at the prospects of buying an investment property? If so, you have probably been bitten by the real estate investment bug. Additionally, it’s important to note that real estate investment is not one-size-fits-all. There are different types of investments and different circumstances to consider. Before investing in an investment property, it’s advisable to consult with the right advisors. Also, you’ll want to conduct thorough research to ensure the investment aligns with your financial objectives, risk tolerance, and resources. I’m here to help get you started. With years of experience and a slew of investor clients, I’m happy to help you on this journey.

NOTE: This article is not to be construed as legal advice. This is the opinion of the Author and has not been vetted by a lawyer.

Questions/Concerns? Please contact me.

Denise Fuller
703-881-6947
Denise@HomeEstateRealty.com

Also read COUNTRY LIVING IN NORTHERN VIRGINIA

Blog • October 21, 2023

Market Update – October 2023

by Denise Fuller

The current real estate market in Northern Virginia appears to be the new normal. Inventory levels match the 5-year averages. Home prices are leveling off. Additionally, the average sold price to list price is just at 100%. The latest Federal Reserve announcement also suggests that we should get used to higher interest rates for the next few years. They are waiting for inflation levels to go down to the desired 2% level. Here is the full breakdown of the market update for October 2023.

Statistics and What it Means

The median sale price for a home in Northern Virginia is now $620,000, which is down about 5% from last month ($651,000) and up 6% from this time last year when the median sold price was $585,000.

At the end of September 2023, there were 2,024 homes sold. This is down a whopping 22% from the previous month and down 23% from last year. The number of Days on Market for Northern Virginia is now 17 days, up 1 day from the previous month and down from 5 days this time last year.

Inventory Levels

Inventory levels seem to be the new normal. There are 2,840 homes for sale, which is a 8% increase from the previous month but down 40% from this time last year. Month’s Supply is another factor to consider. This refers to how many months it will take to sell all the current homes currently on the market. Most consider a balanced market, where buyers and sellers are on the same playing field, to be about 3-6 months supply. Currently, Northern Virginia has a month’s supply of homes for sale of 1.2; this is the same as the 5-year average. These numbers appear to be the new normal.

Many home owners are hesitant to sell their homes. They are unwilling to give up their 2-3% mortgage interest rates to buy another home at 7%, no matter the profit margin. So for now it seems that only those who must sell at this time are doing so.

Bright MLS Buyer Demand Index

This month. the highest ranking areas in Northern Virginia are: MODERATE DEMAND in Arlington (126) and Alexandria (119); STEADY in Manassas City (100) and Prince William County (91); and SLOW in Fairfax (73). Loudoun County buyer demand was recorded as LIMITED (59).

What the Experts are Seeing

The good news of the market update for October 2023 is that home prices seem to be leveling off. The days of rapid 20% price increases appear to be a thing of the past. When correctly priced, homes continue to sell for what sellers are asking. Multiple offers are no longer the norm. There are exceptions, however. When proper pricing and excellent condition meet, multiple offers do happen.

WATCH OUR WEEKLY VIDEO

Mortgage Interest Rates

This is the new normal for now. The annual percentage rate on 30-year conventional mortgages hovers around 7.7%. This is 6 basis points lower from the previous week and also up 78 basis points from last year. The latest Consumer Price Index figures (used to measure inflation) were announced in June to be at 3%. This percentage shows change over time in the prices for a basket of consumer goods. The Federal Reserve has stated that they want to see the inflation figure down to 2%. The next Consumer Price Index report announcement is October 12, 2023 and the next Federal Reserve announcement is set for November 1, 2023.

Advice to Sellers

Home pricing and good condition remain crucial ingredients to ensure a smooth sale. For those not needing to buy another home right away or who are downsizing, this is a great time to sell their home.

Advice to Buyers

For the home shopper, the mortgage interest rate around 7.8%. This is the new norm. Most agree that Northern Virginia has a very strong real estate market grounded in its proximity to Washington DC, solid job market, great schools, and endless amenities. This means that home owners will see financial gains the longer they own a home in the area. This means securing you home now and then waiting to refinance once rate fall again. As a reminder, those who own their home have a median net worth 40 times that of renters.

WATCH THE RELATED VIDEO

Bottom Line

The market update for October 2023 is all about stabilizing this Fall. This is our new normal. No matter how many reports we read, no matter how may experts we listen to, there is NO crystal ball as to EXTACTLY what happens next in the housing market. What we DO know is that everyone’s situation is different. Some may be living in a home that is too large and requires too much maintenance. Others may want want to buy their first home and begin to build wealth. Regardless of your needs, it’s important to know that we are here to give you up-to-date and accurate information ALWAYS. We’re here to help you decide on what is best for you.

Questions/Concerns? Please contact me.

Also feel free to compare this update with last month’s Market Update – September 2023.

Blog • September 22, 2023

Country Living in Northern Virginia

by Denise Fuller

Fewer than one in five Americans live in rural areas, whoever, over half of Americans say they would prefer to live in the country. This is according to a recent poll. And Northern Virginia is no exception. Factors such as lower property prices, larger living spaces, and a quieter lifestyle attract individuals and families wanting a simpler, more “wholesome” environment. However, it’s important to note that this trend may vary depending on various economic, social, and personal factors. Here are some reasons this phenomena is trending upward and why many are looking for country living in Northern Virginia.

BACKGROUND – CURRENT HOUSING MARKET CONDITIONS

To understand the reasons people want to move out to the country, it’s important to understand the current real estate market. As we outlined in our August 2023 Market Update, housing is marked by high interest rates and low inventory. Those wanting to buy a home are either renting or own a home that no longer meets their needs. Some may need to downsize as they become empty nesters or are going through some other life change. Others may need more space for a growing family of children or aging parents. With interest rates higher than last year’s, home buyers realize they may not be able to afford the home they could have afforded before.

high interest rates means you can afford less home

WORK FROM HOME OPTION

One major reason people are thinking more about moving out to the country is the ability to work from anywhere. The pandemic made remote work a realty for many who never had that opportunity before. In Northern Virginia, with so many technology companies, a great proportion of the population were already doing this. Still, while many employers are asking their workers to return to the office setting, there are also some employers who see the benefit of having more of their staff work from home.

The Wall Street journal article comments, that companies that “allow at least one work-from-home day each week are higher in the Northeast. They appear to be fading across much of the South, Midwest and parts of the West.” It makes sense that for many in Northern Virginia, where tech jobs are in demand, there is less of a need to live close to where you work. This opens up areas where buyers can start looking. This means moving away from high concentration areas closer to Washington DC like Arlington and Alexandria and looking out west to Loudoun and Fauquier counties.

MORE HOME FOR MONEY

Affordability is another major issue people are looking to live in more rural areas. With interest rates closer to 7%, home buyers cannot afford as much as they could have last year this time. Pair this with home prices in Northern Virginia going up year over year and it’s easy to understand the dilemma.

As an example, based on today’s interest rates, a person wanting to keep the monthly mortgage payments under $3,000 could afford a home for about $484,000. When compared to the median sale price for Northern Virginia at $650,000, it explains the dilemma for many. To stay in a larger city, this means considering condos and small townhomes. The option is to continue renting until a salary increases or looking where you can get more home for your money.

To remedy this, many home buyers are now looking in counties where home prices are closer to what they can afford. This usually means they will look further away from large metropolitan areas like Washington, DC. Homes tend to be larger and you can get more land as well.

CHANGE IN LIFESTYLE

Another reason homebuyers are looking further out for homes is a significant change in lifestyle. As we all transition through different stages of our lives, the peace and tranquility promised by country living lures many away. A growing family may want more safety and wholesome living for their little ones. Empty nesters closer to retirement may want a more quiet and less fast paced setting. Others may be looking at a more modest frugal lifestyle and no longer have the desire to be in high cost areas. Whatever the reason, moving out to more rural areas offers more opportunities for starting fresh.

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BOTTOM LINE

Country Living in Northern Virginia offers more open space, quiet, and a more natural setting to live in. People tend to feel more connected to nature than when living in more urban settings. Home buyers enjoy more home and land for their money and a more laid back lifestyle. While not for everyone, it does have an undeniable appeal.

Questions/Concerns? Please contact me.

Blog • September 18, 2023

Market Update – September 2023

by Denise Fuller

The real estate market this summer has been a waiting game. Home sellers are waiting for mortgage interest rates to come down so they can justify moving; buyers are waiting for more homes to come on the market so they can achieve their dreams of home ownership; mortgage lenders are waiting for the Federal Reserve to stop raising the rates; and real estate agents are waiting for a busier fall season. Here is the market update for Septembr 2023.

Statistics and What it Means

The median sale price for a home in Northern Virginia is now $651,000, which is about the same it was the month before (at $650,000). This is up 9% from this time last year.

At the end of August 2023, there were 2,640 homes sold. This is up 6% from the previous month and down 15% from last year. The number of Days on Market for Northern Virginia is now 16 days, up 3 days from the previous month and down from 19 days this time last year.

Inventory continues to be low with many home owners hesitant to sell their homes with no place to go. They are unwilling to give up their 3% mortgage interest rate to buy at 7%, no matter the profit margin. Still inventory appears to be improving. There are 2,640 homes for sale, which is a 6% increase from the previous month but down a whopping 42% from this time last year.

Bright MLS Buyer Demand Index

According to Bright MLS Home Demand Index, buyer demand in the Washington Metro Area (which includes Northern Virginia) remains “Slow”, the same as the previous month. The Bright MLS | T3 Home Demand Index measures and tracks consumer and real estate professional behavior related to shopping for real estate by looking at metrics such as views of homes online and in-person showings. Ratings are categorized into 5 score points: Limited (under 70 points), Slow (70-89), Steady (90-109), Moderate (110-129), and High demand (over 130).

This month. the highest ranking areas in Northern Virginia are: MODERATE DEMAND in Arlington (126), Alexandria (119), STEADY in Prince William County (103), Manassas City (100), and SLOW in Stafford County (81). Loudoun County buyer demand was recorded as LIMITED (59).

What the Experts are Seeing

The good news in this Market Update for September 2023 is that home prices seem to be remaining constant though interest rates remain elevated. The Month’s Supply of inventory of homes has gone from 0.97 from 1. Month’s Supply refers to how many months it will take to sell all the current homes currently on the market. Most consider a balanced market, where buyers and sellers are on the same playing field, to be about 3-6 months supply.

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Mortgage Interest Rates

This is the new normal for now. The annual percentage rate on 30-year conventional mortgages hovers around 7.3%. This is 3 basis points higher from the previous week and also up 172 basis points from last year. The latest Consumer Price Index figures (used to measure inflation) were announced in June to be at 3%. This percentage shows change over time in the prices for a basket of consumer goods. The Federal Reserve has stated that they want to see the inflation figure down to 2%. Being just 1% off of the target is good news for everyone. Many experts are hopeful that the inflation rate of 2% will be achieved soon. When this happens, the Federal Reserve can then halt raising the central bank’s rates. This will result in lower interest rates for everyone.

Advice to Sellers

Homeowners are still enjoying low available inventory/competition, which helps them get above asking prices on the sale of their homes. It’s seems this will stay the same for now. Home pricing and good condition remain crucial ingredients to ensure a smooth sale. It also appears inventory levels are beginning to increase. Still, the real estate market remains as strong as ever.

Advice to Buyers

For the home shopper, the mortgage interest rate around 7.4% is the new norm. Most agree that Northern Virginia has a very strong real estate market grounded in its proximity to Washington DC, a strong market, great schools, and endless amenities. This means that home owners will see financial gains the longer they own a home in the area. As a reminder, those who own their home have a median net worth 40 times that of renters.

Bottom Line

The best is yet to come.

Questions/Concerns? Please contact me.

Also feel free to compare this update with last month’s Market Update – August 2023.

1. SPECIALISTS VS. GENERALISTS

2. PRICING – TWO EXPERIENCED FULL TIME AGENTS FOR THE PRICE OF ONE

3. SUPPORT TEAM OFFERS MORE COVERAGE

4. NOT TOO LARGE; NOT TOO SMALL

5. LARGER AND WIDER NETWORK OF AGENTS AND VENDORS

FINAL THOUGHTS

NEED HELP UNDERSTANDING THE CURRENT REAL ESTATE MARKET?

QUESTIONS?

Statistics and What it Means

Inventory Levels

Bright MLS Buyer Demand Index

What to Expect in the Coming Month

Advice to Sellers

Advice to Buyers

Bottom Line

Questions/Concerns? Please contact me

Questions/Concerns? Please contact me.

Statistics and What it Means

Inventory Levels

Bright MLS Buyer Demand Index

What the Experts are Predicting

Mortgage Interest Rates

Advice to Sellers

Advice to Buyers

Bottom Line

Questions/Concerns? Please contact me.

5 Things to Know

BOTTOM LINE

QUESTIONS?

Please contact me.

Statistics and What it Means

Inventory Levels

Bright MLS Buyer Demand Index

What the Experts are Seeing

Mortgage Interest Rates

Advice to Sellers

Advice to Buyers

Bottom Line

Questions/Concerns? Please contact me.

CHARACTERISTICS OF REAL ESTATE INVESTORS

BUILDING YOUR REAL ESTATE INVESTMENT TEAM

BOTTOM LINE:

Questions/Concerns? Please contact me.

Denise Fuller 703-881-6947 Denise@HomeEstateRealty.com

Statistics and What it Means

Inventory Levels

Bright MLS Buyer Demand Index

What the Experts are Seeing

WATCH OUR WEEKLY VIDEO

Mortgage Interest Rates

Advice to Sellers

Advice to Buyers

Bottom Line

Questions/Concerns? Please contact me.

BACKGROUND – CURRENT HOUSING MARKET CONDITIONS

WORK FROM HOME OPTION

MORE HOME FOR MONEY

CHANGE IN LIFESTYLE

BOTTOM LINE

Questions/Concerns? Please contact me.

Statistics and What it Means

Bright MLS Buyer Demand Index

What the Experts are Seeing

Mortgage Interest Rates

Advice to Sellers

Advice to Buyers

Bottom Line

Questions/Concerns? Please contact me.

Denise Fuller
703-881-6947
Denise@HomeEstateRealty.com