So Hows the Real Estate Market?

This is a question I get asked all the time, so here is a quick update about what is going on in Northern Virginia.  This information comes from an article in the Sept/Oct 2014 issue of RE+VIEW, the magazine of the Northern Virginia Association of Realtors. The full article is available here.

The red arrows indicate that things have changed from last year.  In each case this year's metrics are not as good as last year.  I have seen this in the market as homes are staying on the market longer and pricing is softer than it was.  It is taking some more aggressive marketing and price adjustments to get homes sold.

In Fairfax Station subdivision, there was only one home on the market which has since sold after a rather significant price adjustment.  Currently there are no homes on the market in our subdivision.

Overall, the market is shifting from single family detached homes to more condo and townhouse sales.  This reflects more first time buyers and fewer move up buyers that typically purchase detached homes.  This has the effect of reducing the average sale prices for the area as a whole.  In 2014 only 5000 jobs were added May to May. By comparison, the 2011-2012 and 2012-2013 job growth for that time period was around 40,000.  Projections of job growth for the next 4 years are approximately 40,000-50,000 per year.  Since housing is a function of job growth, the outlook remains positive. Despite the dip from last year, the overall market is still much stronger than it was three or four years ago.

How Does Your Home Compare?

How Old are America's Homes?

America has approximately 132 million homes. The median age of a home built in the United States is 40. In 1974, when those houses were built, interest rates on 30 year fixed mortgages averaged 9.1 percent; the median existing home price was $32,000; President Gerald R. Ford had announced a $300 million mortgage credit initiative to help alleviate the housing market recession; and the energy crisis had spurred the incorporation of energy efficient feature new construction.

Source: The U.S. Census Bureau's 2011 Housing Profice, published July 2013, which examines owner-occupied housing and homes in the single-family, multifamily, and manufactured/mobile categories as presented by American Home Shield in Realtor Magazine July/August 2014.

Six Items a Home Inspector Looks For

systems of your home and render a report about things that may need to be fixed.  You can make the inspection easier and less stressful if you take a look at these items and keep them in good repair.

• Plumbing - Make sure you don't have any active leaks, especially under sinks.  Just go around you home now and check to see if there is any water or dampness.  Common culprits are loose trap fittings which you can easily tighten and also the point where the drain plunger mechanism enters the drain line.
• Electrical - The inspector will check to make sure all the lights work, so a burned out bulb will be noted on the report but not necessarily as a bad bulb but as a circuit that is not working. They will check for reversed polarity, missing cover plates, extension cords powering permanent items and things of that nature.  You can check your polarity with an inexpensive tester from the hardware store.  You can also check for working ground fault circuits.  If any fail, get the advice of an electrician to remediate.  Replace any cover plates that may be missing, even if on the basement ceiling.
• Mechanical - Your heating and air conditioning systems will be checked to make sure they provide heat and cooling and that the temperature drop/gain is adequate.  You can help by making sure you change your filters regularly.  Water heaters will be checked and any scald threat will be noted so maybe turn down your water temp if it is too hot.
• Exterior - The inspector will look at your roof from the outside as well as from the attic to see if there are any leaks. They will look for signs of mold.  They will look for any joists of rafters that may be weakened because of previous contractor work.  They will look at the windows to make sure they all open and that screens are in place.  They look for wood rot in the soffits or around the windows and for missing caulk.
• Appliances - An inspector will check to make sure all the appliances work.
• Interior - Check for any loose railings, doors that don't close properly. Fireplace flues that work correctly and that gas fireplaces work.

These are just some of the items that you might want to stay ahead of rather than trying to get repaired after your home has an offer.  Anything you can do to reduce the stress of selling is great.  Remember, I am here to help and if you have any questions just give me a call.

Homeowners Insurance Part 3

This wraps up our short series on homeowners insurance with some additional items to consider.

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Homeowners Insurance Part 2

More information about what to think about in case bad things happen to your house

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Homeowners Insurance Part 1

Your home is your biggest investment but if something disastrous happened would your insurance cover the complete cost.  Here are some things to think about...

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Why Homes Don't Sell

Why do some homes sell in just a few days while others languish on the market?  Find out why in this insightful video from Christine.

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