Northern Virginia Real Estate and Community News

July 1, 2020

A Historic Rebound for the Housing Market

A Historic Rebound for the Housing Market | MyKCM

Pending Home Sales increased by 44.3% in May, registering the highest month-over-month gain in the index since the National Association of Realtors (NAR) started tracking this metric in January 2001. So, what exactly are pending home sales, and why is this rebound so important?

According to NAR, the Pending Home Sales Index (PHS) is:

“A leading indicator of housing activity, measures housing contract activity, and is based on signed real estate contracts for existing single-family homes, condos, and co-ops. Because a home goes under contract a month or two before it is sold, the Pending Home Sales Index generally leads Existing-Home Sales by a month or two.”

In real estate, pending home sales is a key indicator in determining the strength of the housing market. As mentioned before, it measures how many existing homes went into contract in a specific month. When a buyer goes through the steps to purchase a home, the final one is the closing. On average, that happens about two months after the contract is signed, depending on how fast or slow the process takes in each state.

Why is this rebound important?

With the COVID-19 pandemic and a shutdown of the economy, we saw a steep two-month decline in the number of houses that went into contract. In May, however, that number increased dramatically (See graph below):A Historic Rebound for the Housing Market | MyKCMThis jump means buyers are back in the market and purchasing homes right now. Lawrence Yun, Chief Economist at NAR mentioned:

“This has been a spectacular recovery for contract signings and goes to show the resiliency of American consumers and their evergreen desire for homeownership…This bounce back also speaks to how the housing sector could lead the way for a broader economic recovery.”

But in order to continue with this trend, we need more houses for sale on the market. Yun continues to say:

“More listings are continuously appearing as the economy reopens, helping with inventory choices…Still, more home construction is needed to counter the persistent underproduction of homes over the past decade.”

As we move through the year, we’ll see an increase in the number of houses being built. This will help combat a small portion of the inventory deficit. The lack of overall inventory, however, is still a challenge, and it is creating an opportunity for homeowners who are ready to sell. As the graph below shows, during the last 12 months, the supply of homes for sale has been decreasing year-over-year and is not keeping up with the demand from homebuyers.A Historic Rebound for the Housing Market | MyKCM

Bottom Line

If you decided not to sell this spring due to the health crisis, maybe it’s time to jump back into the market while buyers are actively looking for homes. Let’s connect today to determine your best move forward.

Posted in Market Updates
June 30, 2020

63 Boulder Drive, Stafford VA 22554 - Another Listing Sold - Austin Ridge

Another Listing Sold by Brandy Glauner with the Price, Rich and Associates team of Century 21 New Millennium. The home was a beautiful Brick Front Colonial located in Austin Ridge at 63 Boulder Drive in Stafford VA. The day the home hit the market it went under contract and sold for more than list price!  Due to low interest rates and low inventory homes are moving quickly in the North Stafford Real Estate market.  If you are interested in finding out what your home is worth or if you are thinking about selling your home Brandy Glauner is here to help.  Click here to find out how to connect with Brandy.  https://www.searchnorthernvahomes.com/brandy-glauner/ 

Posted in Brandy Glauner
June 30, 2020

Need a Little Good News? What Experts Are Saying About the Rest of 2020!

What Are Experts Saying About the Rest of 2020? | MyKCM
One of the biggest questions on everyone’s minds these days is: What’s going to happen to the housing market in the second half of the year? Based on recent data on the economy, unemployment, real estate, and more, many economists are revising their forecasts for the remainder of 2020 – and the outlook is extremely encouraging. Here’s a look at what some experts have to say about key areas that will power the industry and the economy forward this year.

 

Mortgage Purchase Originations: Joel Kan, Associate Vice President of Economic and Industry ForecastingMortgage Bankers Association

“The recovery in housing is happening faster than expected. We anticipated a drop off in Q3. But, we don’t think that’s the case anymore. We revised our Q3 numbers higher. Before, we predicted a 2 percent decline in purchase originations in 2020, now we think there will be 2 percent growth this year.”

Home Sales: Lawrence Yun, Chief Economist, National Association of Realtors

“Sales completed in May reflect contract signings in March and April – during the strictest times of the pandemic lock down and hence the cyclical low point...Home sales will surely rise in the upcoming months with the economy reopening, and could even surpass one-year-ago figures in the second half of the year.”

Inventory: George Ratiu, Senior Economist, realtor.com

“We can project that the next few months will see a slow-yet-steady improvement in new inventory...we projected a stepped improvement for the May through August months, followed by a return to historical trend for the September through December time frame."

Mortgage Rates: Freddie Mac

“Going forward, we forecast the 30-year fixed-rate mortgage to remain low, falling to a yearly average of 3.4% in 2020 and 3.2% in 2021.”

New Construction: Doug Duncan, Chief Economist, Fannie Mae

“The weaker-than-expected single-family starts number may be a matter of timing, as single-family permits jumped by a stronger 11.9 percent. In addition, the number of authorized single-family units not yet started rose 5.4 percent to the second-highest level since 2008. This suggests that a significant acceleration in new construction will likely occur.”

Bottom Line

The experts are optimistic about the second half of the year. If you paused your 2020 real estate plans this spring, let’s connect today to determine how you can re-engage in the process.

Posted in Real Estate News
June 25, 2020

Pricing Your House to Sell this Season

The key to selling your house is to price it just right.  Let's connect to make sure your house is priced to sell this season.

 

Posted in Selling Your Home
June 23, 2020

Homebuyers Are in the Mood to Buy Today

Homebuyers Are in the Mood to Buy Today | MyKCM

According to the latest FreddieMac Quarterly Forecast, mortgage interest rates have fallen to historically low levels this spring and they’re projected to remain low. This means there’s a huge incentive for buyers who are ready to purchase. And homeowners looking for eager buyers can take advantage of this opportune time to sell as well.

There’s a very positive outlook on interest rates going forward, as the projections from the FreddieMac report indicate continued lows into 2021:

“Going forward, we forecast the 30-year fixed-rate mortgage to remain low, falling to a yearly average of 3.4% in 2020 and 3.2% in 2021.”

 With mortgage rates hovering at such compelling places, ongoing buyer interest is bound to keep driving the housing market forward. Rates also reached another record low last week, so homebuyers are in what FreddieMac is identifying as the buying mood:

“While the rebound in the economy is uneven, one segment that is exhibiting strength is the housing market. Purchase demand activity is up over twenty percent from a year ago, the highest since January 2009. Mortgage rates have hit another record low due to declining inflationary pressures, putting many homebuyers in the buying mood. However, it will be difficult to sustain the momentum in demand as unsold inventory was at near record lows coming into the pandemic and it has only dropped since then.”

There’s no doubt that even though buyers are ready to purchase, it’s hard for many of them to find a home to buy today. Mortgage rates aren’t the only thing hovering near all-time lows; homes available for sale are too. With housing inventory as scarce as it is today – a nearly 20% year-over-year decline in available homes to purchase – keeping buyers in the purchasing mood may be tough if they can’t find a home to buy (See graph below):Homebuyers Are in the Mood to Buy Today | MyKCM

What does this mean for buyers?

Competition is hot with so few homes available for purchase and low mortgage rates are helping to drive affordability as well. Getting pre-approved now will help you gain a competitive advantage and accelerate the homebuying process, so you’re ready to go when you find that perfect home you’d like to buy. Working quickly and efficiently with a trusted real estate professional will help put you in a position to act fast when you’re ready to make your move.

What does this mean for sellers?

If you’re thinking of selling your house, know that the motivation for buyers to purchase right now is as high as ever with rates where they are today. Selling now before other sellers come to market in your neighborhood this summer might put your house high on the list for many buyers. Homebuyers are clearly in the mood to buy, and with today’s safety guidelines and precautions in place to show your house, confidence is also on your side.

Bottom Line

Whether you’re looking to buy or sell, there’s great motivation to be in the housing market, especially with mortgage rates hovering at this historic all-time low. Let’s connect today to make sure you’re ready to make your move.

 

Posted in Real Estate News
June 20, 2020

Top Reasons to Own Your Home in 2020

There are many financial and non-financial benefits to owning a home. Let’s connect to put your homeownership plans in motion this year.

Posted in Buying a Home
June 19, 2020

9032 Mullen Rd, King George VA 22485 has a New Price of $415,000

This Beautiful Colonial has a new price and is move-in ready!  Located in Oakland Park in King George County this home offers three finished levels of living. There are a total of 5 bedrooms and 4.5 Baths.  The basement offers a walkout to the rear fenced yard that includes a deck and patio.  The home is located only one mile from the Stafford County line and has easy access to the Commuter and shopping Options in Fredericksburg.      

To schedule a tour or if you have additional questions about this lovely home or Oakland Park reach-out to Mary Beth Rich with Century 21 New Millennium and the Price, Rich & Associates team @ 540-220-6782 

https://www.searchnorthernvahomes.com/mary-beth-rich/

 

Posted in Listings We Love
June 19, 2020

Best Practices for a 2020 Open House

7 Strategies for a 2020 Open House [INFOGRAPHIC] | MyKCM
Although we at Price, Rich & Associates are continuing to Host Virtual Open House tours and provide multiple viewing opportunities on-line, there is a desire by many buyers to see and feel a home first hand. During this time, as we move through the phases of reopening, we are using Covid Care guidelines as outlined above to Host our Open Houses.     

Some Highlights

  • Buyer interest is high right now, so this summer is a great time to sell your house.
  • Here are 7 strategies to help make your house showing a safe and effective one.
  • Let’s connect today to get your house on the market while buying is hot.

 

Posted in Selling Your Home
June 18, 2020

Real Estate Tops Best Investment Poll for 7th Year Running

Real Estate Tops Best Investment Poll for 7th Year Running | MyKCM

Every year, Gallup conducts a survey of Americans to determine their choice for the best long-term investment. Respondents are asked to select real estate, stocks/mutual funds, gold, savings accounts/CDs, or bonds.

For the seventh year in a row, real estate has come out on top as the best long-term investment. Gallup explained:

“Real estate remains the most favored investment to Americans, as has been the case since 2013, when the housing market was on the rebound. More than a third of Americans have named real estate as the top investment since 2016.”

This year’s results indicated 35% of Americans chose real estate, followed by stocks at 21%. The full results covering the last decade are shown in the chart below:Real Estate Tops Best Investment Poll for 7th Year Running | MyKCM

Bottom Line

The belief of the American people in the stability of housing as a long-term investment remains strong, even through the many challenges our economy faces today.

Posted in Real Estate News
June 17, 2020

Another One Under Contract - 30 Saint Williams Way, Stafford VA 22556

The Real Estate market in Stafford Virginia is hot!  This lovely Colonial located in North Stafford in St Georges Estates was listed by Brandy Glauner with Century 21 New Millennium and received multiple offers and was under contract in less than 4 days. Brandy can do the same for you.  If you are interested in selling or buying in Stafford County or are just curious about the value of your home in the current market feel free to contact Brandy Glauner today by visiting her at:  https://www.searchnorthernvahomes.com/brandy-glauner/  

Posted in Listings We Love