TREND watching. Lately, we've seen a number of listings (on MLS) that look like investors flipping 'their' properties back into the market. Case in point: Del Ray (a section of Alexandria City) and Manassass in Prince William county.
Del Ray vs. Manassas it's like inside vs. outside the beltway. It's true, some hoods in Del Ray, prices have come down to 50% off from what it was in 2005. The houses are smaller, uhm, maybe tiny in comparison to - McMansions. But, hey, it's close to DC.
Del Ray and Manassass, are the two places, where not too long ago distressed properties were selling in the $100's to $200's. Because they're distressed (need some fix-up), many first time buyers 'stay away' from the deals. Too scared to jump in and buy as-is. Right now, if you look at listings for the two areas you won't find anything decent for $100's to $200's anymore. They're all taken. Prices have been trending up.
So, investors walked in to seal the deals. Fix up these properties and put it back on the market (for twice the amount they paid for - and some!)...just in time for market madness.
Here is the market madness indicator: inventory of homes in July '09 drops from 5.39 to 3.62 months in Northern Virginia and from 6.6 to 4.19 months if we include the exurbs. Less than 6 months supply of homes - is a seller's market.
Tags: alexandria city, business, del ray, distressed, fixer-upper, foreclosure, home buying, home buying, housing, manassas, new homes, prince william, properties, real estate, rehab, residential, selling, short-sales, trends
Ask Mike Haskins, a Raleigh, N.C., resident who recently was able to lower his rent. The vacancy rate had risen in his neighborhood after two other apartment complexes had been built. He knew that the complex in which he was renting wasn't at capacity, and rent for a similar unit on the first floor was set at $650; his rent was $750.News from around DC Region:
Tags: business, buyers, green homes, home buying, home selling, investments, northern virginia, real estate, residential, sellers, transit, transportation, trends, washington dc
In one word, this is what sales for Northern Virginia in July, looked like: number of homes sold up, sales price (still) declining, listings stay shorter on the market, and inventory of homes drop. That's why we see multiple contracts' back - on the table.
The "big" news should be this: 77.4% (1,590 units) of homes sales in July are homes under $400,000!
Here's the stats for July:
2009 2008 % change
Total sales 2,053 1,857 +10.55%
Under contract 2,266 2,056 +10.21%
Active listings 7,439 10,002 -25.62%
Sales price $460,807 $485,225 -5.03%
Median price $410,000 $399,000 +2.76%
On a YTD (year-to-date), here is the stats:
Homes sold 11,018 9,871 +11.62%
YTD sales price $423,048 $482,767 - 12.37%
In today's market, a minimum of 30 days is needed for people still in the stage of looking. After contract ratification, another 45-60 days is needed to closing. The process of getting a lender approved your loan - takes 'longer' time than before (2005).
Oh, and there are other things buyers will have to clear up with lender's underwriting (like credit dings) before finally can go to closing.
The message here: if you're still looking and haven't come up (close to) with making the decision yet, with November 30 first-time buyer tax credit deadline coming up soon, you really don't have much 'leeway' time to be in multiple contracts situations...
Posted at 02:47 PM in Alexandria Real Estate, Arlington Real Estate, Business, Condominium, Fairfax Real Estate, Foreclosure, Home buying & selling, Homes Sales, Housing market, Loudoun County Real Estate, Mortgage & Financing, Prince William Real Estate, Real Estate, Real Estate Investments, Real Estate Trends | Permalink | Comments (1) | TrackBack (0)
Tags: ARRA, business, buyer tax credit, home sales, housing, new homes, northern virginia, real estate, suburbs, trends, virginia, washington dc
Okay, get your antenna ready. And smell the BS. There are so many lying listings out there, especially in foreclosure and short-sale. Some listing agents don't even know what's inside the property until you tell 'em. This is especially true with foreclosures and short-sale.
This description of 'lying-listing' from Bankrate.com just nailed it: "Most homebuyers have encountered a "lying listing" -- the house for sale that doesn't even remotely resemble its colorful description in the Multiple Listing Service or classified ad."
S-t-r-e-t-c-h-i-n-g it, would be pretty accurate in today's market..
This translation guide will help you go past the smell test. (compiled by the National Association of Exclusive Buyer Agents to help their agents go past the listings BS.) It's so true and hilarious!
[via bankrate.com]I love it when I see the remark on a listing that says, "this house will go fast.." You looked at the days on the market - s%^&, it's more than 60 days!! And the funny thing is, the listing agent don't even bother to 'update the remarks.'
What about this. This house has been remodeled. Remodeled means different thing to different people. The listing says 'sellers just remodeled the house"' could mean to you "they painted and replaced the appliances.. like 3 years ago?".. And don't even look for granite there. (Don't even go there). People remodeling standard might be 'different' than what you have in mind.So, what's your favorite?
Posted at 12:59 PM in Alexandria Real Estate, Arlington Real Estate, Business, Condominium, DC Real Estate, Fairfax Real Estate, Foreclosure, Home buying & selling, Loudoun County Real Estate, Maryland Real Estate, Prince William Real Estate, Real Estate, Real Estate Trends | Permalink | Comments (4) | TrackBack (0)
Tags: bank-owned, business, foreclosure, home buyers, home buying, home selling, housing, luxury homes, maryland, northern virginia, real estate, REOs, short-sale, trends, washington dc
Image by Kathy McGraw via Flickr
We skip weekly roundup for this more important topic.. - dewita
Buyers: do you know if your agent "only" represent you exclusively, as your buyer agent?
Or, does your agent also work for the sellers as their "listing agent?" Sellers: the same question goes to you.
If your agent is working both sides of the transactions, we call this 'dual agency' or 'dual representation'. Many states, including Virginia, allows dual agency. Most agents only represent one side at a time, but, there are agents out there who are doing both sides.
The 'dual agency' transactions might not happen so much in resale. But it's not so with the new homes.
Before you walk into any new homes' sales office, you need to understand this: that builder's sales reps work for the builder to represent the builder - and "not" you, the buyer! Their sales agents work exclusively for the developer to protect builder's interests. So, if a builder sales rep writes a sales contract for you, and you are not represented by any Realtor - that means you have "NO" representation - at all! Nothing. If they write contracts, they're just doing admin stuff for you. And they have no fiduciary responsibilities to you, other than "you are" the company's customers. Yup- you read that right.
To put it in perspective, here's something worth reading. (I'm putting it in its entirety). Via MarketWatch e-newsletter (subscription):
When home prices are rising and houses are selling like hot cakes, realty agents don't have to worry so much about where their next commission check is coming from. In the boom times in the middle part of the decade, the market pretty much maximized incomes.
Not so today. Commission checks are much harder to come by and they are way smaller when they do come, given the drop in home prices across most of the country. That can lead to shenanigans among unscrupulous agents as they try to pocket as much cash as the can from deals, including the unethical practice of favoring buyer offers from their own clients or their brokerage-represented buyers, practices that let them keep both sides of a commission split.
That's why this is a good time to remind home buyers -- and sellers -- what the concept of agency means and why it is critical that you know who your real estate representative really works for. That's especially important when you are dealing with situations of dual agency, in which a broker is acting for both sides -- a situation ripe for abuse. (emphasis added)
Not that there weren't plenty of nasty tricks going on in the boom, too, especially in the sale of mortgages. But in the bust the financial incentive to stray can be boosted by desperation as well as greed.
-- Steve Kerch, assistant managing editor/personal finance
Posted at 11:24 AM in Alexandria Real Estate, Arlington Real Estate, Business, Condo Conversion, DC Real Estate, Fairfax Real Estate, Foreclosure, Home buying & selling, Homes Sales, Luxury Homes, Maryland Real Estate, New developments, Pre-constructions, Prince William Real Estate, Real Estate | Permalink | Comments (2) | TrackBack (0)
Tags: agency, brokerage, business, condominium, economy, home buying, home selling, housing, investments, luxury homes, NAR, real estate, residential, sales, single family home, townhouse, trends
Governor O'Malley (D-MD) announced a few days ago, that the two projects - the 14-mile of east-west light rail red line connecting the existing Baltimore Light Rail system with MARC stations and 16-mile Purple line that connects Bethesda to New Carrollton - will now be submitted for Federal approval. The two projects are part of Maryland's smart growth plan.
[via One Maryland]
Tags: baltimore, baltimore light rail, bethesda md, business, federal, housing, light rail, MARC, martin o'malley, maryland, new carrollton md, rail, real estate, smart growth, transportation
Yesterday, over watercooler conversation two agents were sharing stories about appraisals. One agent said that in her case the "buyer's lender did a second appraisal - after they did the closing!" The other one said, that "mine have to have second."
Typically, a settlement company (that does the closing for you) would confirm "that funds is in" before we proceed with the closing. So for a title lawyer to do the closing 'before' buyer's funds is available, is a pretty 'sloppy' job. What if- there's no funds transfer at all? It turns out to be, according to the listing agent (to follow- up the story) the lender transferred the funds (finally!) - after they did a second appraisal! - which happened "after" the fact.
The second agent talks about how lender ask for a second appraisal for above $400k house. Because the first one came in lower than sales price.
Facing with the prospect of under-appraisals - if later lender would require for second appraisal to be done - we can see why listing agents should price the property more in line with market conditions. It's not easy. I understand, though, sometime seller/s have 'unreasonable demand' when it comes to pricing their house. Their thinking it's like "my house is better than that house... blah blah blah.." so, it should be higher ..and so it goes..
The truth of the matter is: these days, it's more challenging for Realtors to come up with the fair-market-value of a property. (remember we're not appraisers) Because we have foreclosures, short-sale mixed in with regular properties (resale or new homes) - in the pipeline.
So, there's concern among Realtors about how under appraisals might be the next shoe to drop...
Posted at 12:29 PM in Alexandria Real Estate, Arlington Real Estate, Business, Condominium, Current Affairs, DC Real Estate, Fairfax Real Estate, Home buying & selling, Homes Sales, Housing market, Loudoun County Real Estate, Maryland Real Estate, Mortgage & Financing, Prince William Real Estate, Real Estate, Real Estate Investments, Real Estate Trends | Permalink | Comments (3) | TrackBack (0)
Tags: appraisal, bank-owned, business, conventional, fha, financing, home appraisal, home buying, lenders, lending, loans, maryland, mortgage, new homes, real estate, REOs, resale, residential, trends, VA, virginia, washington dc