Northern Virginia Real Estate Blog

National Housing Market News This Week

2009-08-22T06:56:00.000-07:00

You have may have read earlier this week that the U.S. housing market is on the rise! That is good news for all of us and hopefully for our overall national economy. Some national housing experts seem to think the worst is now behind us. What has fueled the current housing market? Well in working with lots of buyers this spring and summer I can tell you some of the reasons:

• $8,000 first time home buyers credit
• Low interest rates
• Price affordability

The National Association of Realtors reported the sales of previously owned U.S. homes in July rose to an annual rate of 5.24 million units. This is the highest rate since August 2007 and a monthly gain of 7.2% over the previous month. The monthly sales gain was the largest on record for the total existing-home sales since 1999. The United States Department of Commerce Department has reported new housing starts for single-family homes have been up for five consecutive months. I attended a real estate conference in July out in Denver, Colorado. One of the hot topics of the session was whether the federal government would extend the first time home buyers credit and possibly increase the dollar amount. According to the National Association of Realtors chief economist Lawrence Yun, “The housing market has decisively turned for the better. A combination of first-time buyers taking advantage of the housing stimulus tax credit and greatly improved affordability conditions are contributing to higher sales,” he said. So as things look up nationally, how are things locally?

Here are the July numbers for Prince William County:
New Listings 963
Closed Sales 710
Pending Sales 980
Median Sales Price $213,000
Percent of Original List Price Received at Sale 98.6%
Average Days On Market 59

Source: MRIS

Mortgage Rates Going Up

2009-06-10T07:11:00.000-07:00

While the real estate market in the Northern Virginia area seems to be heading up lately, so do interest rates! I found the below article interesting and wanted to share.

Mortgage Applications Fall as Interest Rates Jump

June 10 (Bloomberg) -- U.S. mortgage applications fell last week to the lowest level since February as a jump in borrowing costs discouraged refinancing and signaled that Federal Reserve Chairman Ben S. Bernanke’s efforts to cap rates is stalling.

The Mortgage Bankers Association’s index of applications to purchase a home or refinance dropped 7.2 percent to 611 in the week ended June 5, from 658.7 the prior week. The refinancing gauge fell 12 percent. The purchase index gained 1.1 percent.

Fixed U.S. mortgage rates jumped to the highest level this year last week, threatening to deepen the housing slump and sideline prospective home buyers. An improving economic outlook spurred an increase in rates even as a rising jobless rate is contributing to record home foreclosures. Still, lower property values are helping the housing market stabilize.

“We still have a long way to go before conditions are good,” said Joel Naroff, president of Naroff Economic Advisors Inc. in Holland, Pennsylvania. “We need to get this market back up and running more normally.”

Government bond yields, consumer rates and price swings are increasing as the Fed fails to say if it will extend the $1.75 trillion policy of buying Treasuries and mortgage bonds through so-called quantitative easing, traders say.

Rising Yields

The yield on the benchmark 10-year Treasury note rose to 3.90 percent last week as volatility in government bonds hit a six-month high, according to Merrill Lynch & Co.’s MOVE Index of options prices. Thirty-year fixed-rate mortgages jumped to 5.45 percent from as low as 4.85 percent in April, according to Bankrate.com in North Palm Beach, Florida. Costs for homebuyers are now higher than in December.

The mortgage bankers’ refinancing gauge issued today fell to 2,605.7, the lowest level since November, from 2,953.6 the previous week, today’s report showed. The purchase index rose to 270.7 last week from 267.7.

The share of applicants seeking to refinance loans fell to 59.4 percent of total applications last week from 62.4 percent.

The average rate on a 30-year fixed-rate loan surged to 5.57 percent, the highest since November, from 5.25 percent the prior week.

Borrowing Costs

At the current 30-year rate, monthly borrowing costs for each $100,000 of a loan would be $572, or about $44 less than the same week a year earlier, when the rate was 6.25 percent.

The average rate on a 15-year fixed mortgage rose to 5.10 percent from 4.80 percent the prior week. The rate on a one-year adjustable mortgage increased to 6.75 percent last week from 6.61 percent.

The Washington-based Mortgage Bankers Association’s loan survey, compiled every week, covers about half of all U.S. retail residential mortgage originations.

Construction companies continue to struggle. Toll Brothers Inc., the largest luxury homebuilder, and Hovnanian Enterprises Inc., New Jersey’s biggest builder, this month reported quarterly losses that exceeded analysts’ estimates. Revenue dropped at both businesses.

Among reports indicating an improvement in housing, figures from the National Association of Realtors showed the number of Americans signing contracts to buy previously owned homes climbed 6.7 percent in April, more than forecast and the fourth increase in five months, as lower prices attracted buyers.

The rise in borrowing costs in the face of record low interest rates, Fed purchases and a contracting economy is the opposite of the challenge Bernanke’s predecessor, Alan Greenspan, confronted when he led the Fed.

In February 2005, Greenspan said in the text of his testimony to the Senate Banking Committee that a decline in long-term bond yields after six rate increases was a “conundrum.” At the time, he was trying to keep the economy from overheating and sparking inflation. Now, Bernanke may be facing his own.

Latest First Time Homebuyer Tax Credit- A Unique Buying Opportunity

2009-02-21T06:46:00.000-08:00

With the passage of the latest stimulus package, I was disappointed with the final home buyers tax credit that was eventually passed. The original proposal in the Senate was a $15,000 tax credit for any owner occupied home with no income limits. What ended up passing was an $8,000 tax credit for anyone who has not owned a home in three years, which is essentially a first time home buyer. However, something is better than nothing and we’ll take what we can get. This presents a unique buying opportunity while home prices are VERY attractive.

So here is what you need to know about the credit:
• This credit is $8,000 or 10 percent of the purchase price of the home and applies only to first-time home buyers and principal residences (i.e. owner occupied home). The earlier $7,500 home buyer tax credit had to be repaid…this one does not!
• A "first-time home buyer" is defined as someone who hasn't owned a principal residence for three years before buying a house.
• This is only for 2009 buyers only. The only persons eligible for this tax credit are those who purchase a principal residence on/after January 1 and before December 1, 2009.
• There are income limits to this tax credit. The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit with a modified adjusted gross income of $150,000 for married couples. Those earning more than these thresholds may be eligible for reduced credits.
• If you file your 2009 taxes and owe $0, you will get $8,000 back. Because the tax credit is "refundable," qualified buyers can take advantage of it even if they don't owe any taxes.
• Lastly, you have to own the home for at least three years in order to capitalize on the credit. Selling before then will cause you to return the credit to the government.
• All material above is deemed to be true and accurate based on my reading and research. Please consult your tax advisor or financial advisor regarding eligibility for the tax credit.

MAINTAIN YOUR VALUE BY MAINTAINING YOUR HOME--PREPARE YOUR LAWN AND GARDEN FOR WINTER

2008-12-03T18:12:00.001-08:00

• Maintain your lawn at 2.5 in. as long as it continues to grow. Seed your lawn with premium grass seed for a thicker lawn that will crowd out weeds when spring arrives.
• Apply a winter care fertilizer approximately four weeks before you expect frost.
• Pick-up fallen fruit to prevent disease and insects from overwintering.
• Remove dying annuals and spent flowers on perennials.
• Fertilize acid-loving plants like camellias, azaleas and rhododendrons.
• Plant tulip, daffodil, narcissus, colchicum, crocus and hyacinth bulbs and feed them with bone meal for welcome blooms in the spring.
• Add mulch and/or raked leaves to protect your flowerbeds and shrubs from the cold temperatures.
• Drain water from all hoses and coil and hang them properly to avoid freezing and splitting.
• Clean all of your gardening tools, spreaders and implements. Apply penetrating oil to metal parts to prevent rust and lubricate axles. (Check with the Virginia Cooperative Extension for more information)

What is an Accredited Buyers Representative?

2008-09-06T11:03:00.001-07:00

A REALTOR® is a real estate professional who is a member of the National Association of REALTORS®, (NAR), the world’s largest professional association. A REALTOR® with the ABR designation has taken Accredited Buyer’s Representative training, offered by the Real Estate Buyer’s Agent Council (REBAC). ABR REALTORs® know the dynamics of the local market and understand the special needs of buyers.

Buying a home is one of the largest single investments YOU will ever make. Traditional real estate agents are hired by sellers to represent their best interests in the sale of their property. As an Accredited Buyer Representative (ABR), I am responsible to YOU and YOU alone.

I’m not selling you a house
I’m finding you a home

As your Buyer agent, I will:
• Represent you and help you find the right community
• Listen to what you want and not waste your time
• Help you negotiate the best price and terms
• Protect your confidentiality on all matters
• Spot problems, investigate issues, counsel you on the market and the area
• Preview properties and advise you on future salability and any potential problems
• Run a market analysis and advise you on a recommended offer
• Charge you NOTHING for my representation!

FORECLOSURES…BARGAINS?

2008-09-06T11:02:00.001-07:00

Buying a foreclosure used to be just about a guaranteed bargain. Buyers would go to the courthouse steps and make a bid on a property purchasing it directly from the bank’s representative. The home may have needed repairs and the bidder may have had to evict the previous owner, but nearly always, the home was selling below market value and the new owner would have instant equity.

Think about it, just 10 years ago, most purchasers made a down payment. Mortgage payments not only paid interest but also paid the principal down as well. And because the market was appreciating, the property would probably have appreciated from the time of purchase .

Fast forward to 2008, where home values are either stagnant or in decline. Recent owners often bought their homes with no money down and interest only loans. Many refinanced and took out their home equity. Many of the homes currently in foreclosure are upside down in value.

When I am asked “Do you do foreclosures?” The answer depends on what you mean by foreclosures? I cannot help you make a bid at an auction or at the courthouse steps. But I can help you look at foreclosures that are now a Real Estate Owned property (REO). Today, most foreclosures will end up under the bank’s umbrella as a REO, using realtors to market the properties through the MLS. I have access to those properties. Many are listed at significant discounts and are worth going through the hurdles that working with a REO entails. There are incredible opportunities out there, but now more than ever, it’s important to work with a buyers agent who can help you navigate the ins and outs of this current market.

Radon in Your Neighborhood?

2008-05-13T15:23:00.000-07:00

The EPA says RADON is the second leading cause of lung cancer, estimates up to 22,000 eaths per year from RADON, and that approximately 1 in 15 homes have dangerous RADON levels. Several homes in a neighborhood I have serviced have been found with unacceptable levels of RADON. The transactions went through when the danger of the radon was mitigated.

RADON is an odorless, tasteless, radioactive gas found in rocks, soils, and water. It is generally harmless outdoors where it mixes with air. Indoors, it can collect in greater concentrations by seeping through cracks in a home’s foundation and joints. Lower levels of the house are more vulnerable. The EPA standard is 4 pCi/L (pico curies per liter of air), so they recommend taking steps to reduce any higher reading.

HAVE YOUR HOME TESTED NOW!
It's Easy and Inexpensive
The U.S. Surgeon General and EPA recommend that all homes be tested. You can test your home yourself or hire a professional. Test kits and detectors are available online or in most home improvement stores with prices ranging from $9 to $125. Professional prices usually range from $100 to $200. Fix your home if you have a radon level of 4 pCi/L or more.

Select a qualified Radon-Reduction (Mitigation) Contractor to reduce the radon levels in your home. Any mitigation measures taken or system installed must conform to state regulations. Test again after the radon mitigation work has been completed to confirm that previous elevated levels have been reduced. EPA recommends that the test be conducted by an independent qualified radon tester. Radon levels can be readily lowered for $800 to $2500 (with an average cost of $1200).

For more information go to: www.epa.gov/radon

HR 5140, The Economic Stimulus Package and You!

2008-02-09T11:58:00.000-08:00

Some people I have talked to lately have being doing the math and checking it twice…trying to figure out of they will be receiving their $600 rebate check in the mail. Well the Economic Stimulus Plan is much, much more than just a rebate check. For a high cost housing area such as ours, it means lower rates and the easing of jumbo loan rates. I believe that relief is coming to the Northern Virginia area. We all just have to be patient for the next couple of weeks and see how everything “shakes out.”

The stimulus package is expected to be signed sometime next week by President Bush. Specifically, the stimulus package temporarily raises the size of mortgages that government-sponsored mortgage companies Fannie Mae and Freddie Mac can buy and market as securities. The rate will go from the current threshold of $417,000 to as high as $729,750 in higher cost areas. Eligible loans must be made by December 31st of this year when the limits would revert back to their existing levels unless Congress extends the cutoff date.

What does this mean for our area? Well, the U.S. Department of Housing and Urban Development will be the government agency that decides what loan limits apply in various parts of the country. In our area of Northern Virginia, it's VERY likely that higher limits will apply.

This change to a higher “conforming loan” limit will allow more homeowner or prospective homeowners to buy homes and refinance their existing loans at a lower interest rate. Anyone wanting to buy a home with a loan amount that is higher than $417,000 currently has to typically sign up for a “jumbo” loan, which means a higher interest rate and very stringent qualification requirements with high down payments.

This will hopefully encourage buyers to take advantage of the large inventory of homes on the market. This will also help home sellers as more buyers enter the market and take advantage of the new financing provisions. Bottom line…if you live in Northern Virginia and have a house to buy or sell, hopefully things will be getting better real soon.

I am currently working with a family that is hoping to take advantage of this stimulus package and buy a home in the western Fairfax County area. Home they could not look at last month may become available to them next month! They hope to be one of the first home loans under this new stimulus package!

Real Estate Market 2008 in Northern Virginia

2008-01-13T09:20:00.000-08:00

Happy New Year everyone! Where may real estate be going in 2008?

I thought the article below by Chuck Haggee of the Gazette was worthwhile to read. I am not endorsing the article or its views, I found it interesting and informative.

Let me add some of the statistics I have compiled from MRIS for Prince William County.
* During the month of November 2007, 388 home sold in Prince William County. *There were 426 homes under contract in November 2007
* There were 5,963 homes listed for sale in November 2007.
* The average “Days on Market” for a home to sell is 136 days in Prince William County.
* My listings normally sell in roughly half the time.

My trade secrets to getting homes sold faster include marketing, pricing strategies and proper home presentation during the listing.

2008 Real Estate Improvement Forecast
Beltway determining factor in plus or minus market
By Chuck Hagee, Gazette

January 9, 2008

True to the old real estate axiom, "Location, Location, Location," Northern Virginia's housing market in 2007 was very much of a mixed bag. And, it is predicted to stay that wy through the first quarter, and possibly the first half, of 2008.Those were some of the conclusions reached at the 2007 Northern Virginia Realtors Association (NVAR) year-end press conference at the National Press Club early last month. Speakers from realtor associations throughout the Washington Metropolitan Region agreed "2007 was a year of continued market correction" but "strong local fundamentals" kept metro-DC ahead of the national curve."We lost our competitive edge. It's almost like we needed to have a housing market adjustment, (otherwise) we wouldn't have been able to get anyone to move here," said John McClain, senior fellow and deputy director, George Mason Center for Regional Analysis.However, the latest statistics available from the Moving Industry, supplying service to household in transit, indicates that this area remains one of the most sought after in the nation. Nearly double the amount people arrived as departed in 2007, according to those statistics."Our economic fundamentals in the metro region are sound. These factors should bolster a resurgence of the housing market by the second half of 2008," McClain said.Paraphrasing the old political adage that "All politics is local," NVAR 2007 Board Chairman Luis A. Lama emphasized, "All real estate is local." He stated, "Each neighborhood has its own market dynamics" pointing to wide ranging disparities in Northern Virginia.According to the local Multiple Listing System, the 2007 average sold price for a home in Northern Virginia was only $1,998 less than in 2006 -- $538,000 as compared to $539,998. The primary change between the two years has been time on the market and existing inventory.In the first case the average home is now on the market an average of 99 days as compared to 85 days in 2006. And, where there was a very tight inventory previously there is now an estimated nine month supply, again depending on location within the overall region, and, more specifically, the Northern Virginia market, according to NVRA statistics.IN 2006 there were 22,377 total units sold for an average sale price of $539,998. In 2007 both those numbers dropped to 18,000 units selling for an average price of $538,000, representing a decline of 19.6 percent and .37 percent respectively.One very obvious characteristic that statistically stood out was that properties inside the Capital Beltway were faring better, both in price and time on the market, than those further outside the Beltway. An example cited by Lama was that "Prince William and Loudoun counties ranked highest in the region's foreclosure rates."During the summer of 2007 there were 5,800 Virginia homes in foreclosure with 4,000 of those victims of the subprime loan implosion, according to the U.S.Department of Housing and Urban Development (HUD). However, "Virginia's foreclosure rate is nearly two thirds lower than the national average," according to Lama's presentation.Emphasizing his point that all real estate trends are local, Lama compared McLean with Herndon as to median sale price and days on the market for 2006 and 2007. McLean's average sale price rose from $875,000 to $950,00 while days on the market dropped from 106 in 2006 to 54 in 2007. By contrast Heardon's average home sale price dropped from $449,500 in 2006 to $387,500 in 2007 while their time on the market rose from 101 days in 2006 to 114 in 2007.Those changes represented an 18 percent increase in the average sale price in McLean coupled with a 50 percent reduction in market hang time. In Loudoun there was a 15 percent decrease in average sale price and a 13 percent increase in market hang time.Those two jurisdictions were cited as more or less representative of Northern Virginia overall using inside and outside the Beltway comparisons.The same held true for foreclosures in Northern Virginia. Alexandria City as well as Arlington and Fairfax counties posted the lowest numbers. As of November 30, Arlington County listed 27 with both Alexandria City and Fairfax County showing 34 each, according to NVAR.On the flip side Prince William, Loudoun and Stafford counties posted the highest number of foreclosures as of November 30, 2007. They came in at 167, 219, and 262 respectively, NVAR reported.Nationally, Washington, DC, was the sixth lowest large city in the nation suffering foreclosures in 2007 with only 79 compared with the Miami which registered 283.Northern Virginia also led the region in employment gains with an increase of 28.7 percent for 2007. Although this was a 1.8 percent drop from 2006, it represented an 18.2 percent lead over the closest competitor area, Maryland, which showed a 10.5 percent increase. Northern Virginia is predicted to show a 2.7 percent increase in employment for 2008, according to McClain.

Predictions for 2008:
For the economy and housing market overall in 2008, John McClain , senior fellow/deputy director of the George Mason Center for Regional Analysis made the following predictions:*Metro 2008 will be moderately better than 2007 due to the soundness of the areas economic fundamentals.*Housing sales continue to be below long-term levels, inventories continue to be above long-term levels, but those trends will begin to moderate in 2008.*Housing prices will be flat until at least Spring with a mixed story across the region -- some jurisdiction will experience increases while other will remain negative

Subprime Mortgage Developments

2007-12-15T16:34:00.000-08:00

Some of my friends and clients have asked me about the recent action by President Bush and his attempts to assist in the subprime mortgage situation. I thought the below might be helpful for you to read.

On December 6th, the President announced a plan that is supposed to help as many as 1.2 million homeowners keep their homes. Below is the press release from www.hopenow.com.

Also below is something I found the below on the Official White House website. It is a Q&A session held online called "Ask the White House". This allows citizens to interact with Bush administration officials. In the case below, I took portions of a transcript from a December 7, 2007 online forum with Treasury Secretary Henry Paulson.

HOPE NOW Hails Broad Effort to Refinance and Modify Mortgage Loans
Alliance Members Agree to Streamlined Solution for Many Subprime Borrowers with Adjustable Rate Mortgages
Washington, D.C. – December 6, 2007 – Today, the HOPE NOW Alliance announced its support for a proposal unveiled today by Treasury Secretary Henry Paulson and HUD Secretary Alphonso Jackson. This solution freezes the rate on a certain category of subprime adjustable rate mortgages, scheduled to adjust in the next several years.
Under the plan, borrowers with subprime loans with interest rates scheduled to adjust between January 2008 and July 2010, who are current on their mortgage payments and have been no more than 60 days late in the past year, and who would be unable to afford their new mortgage payment, could have their rates frozen at the introductory rate for a period of five years.
“Today’s announcement builds on what the industry was already doing, and demonstrates what the public and private sectors can do when we work together to keep people in their homes,” said Faith Schwartz, Executive Director of HOPE NOW. “Under the leadership of Secretaries Paulson and Jackson, servicers and investors will work together to be more efficient in providing relief, and will free up resources to better help those most-troubled borrowers who need individual attention.”
The Mission for HOPE NOW is to maximize the preservation of homeownership while minimizing foreclosures, and assist borrowers who have the willingness and wherewithal to remain in their homes but need some help to do it. The goal is to keep people in their homes and, when that is not possible, prevent foreclosure.
Homeowners having difficulty paying their mortgage should contact their servicer immediately. Another alternative would be to contact the Homeowner’s HOPE™ Hotline, 888-995-HOPE. The 888-995-HOPE Hotline is provided by the Homeownership Preservation Foundation.

HOPE NOW is an alliance between counselors, mortgage market participants, and mortgage servicers to create a unified, coordinated plan to reach and help as

many homeowners as possible. The members of this alliance recognize that by working together, they will be more effective than by working independently. The Department of the Treasury and the Department of Housing and Urban Development encouraged these leaders to form this alliance, which includes, American Bankers Association, American Financial Services Association, American Securitization Forum, America’s Community Bankers, Assurant, Inc., Bank of America, CCCS Atlanta, Inc., Citigroup Inc., Consumer Bankers Association, Consumer Mortgage Coalition, Countrywide Financial Corporation, EMC Mortgage, Inc., Fannie Mae, The Financial Services Roundtable, First Horizon National Corporation, First Tennessee Home Loans, Freddie Mac, GMAC ResCap, Homeownership Preservation Foundation, Housing Partnership Network, The Housing Policy Council, HSBC Finance, JPMorgan Chase & Co, National City, NeighborWorks America, Mortgage Bankers Association, Option One Mortgage Corporation, PMI Mortgage Insurance Co., Securities Industry and Financial Markets Association, State Farm Insurance Companies, SunTrust Mortgage, Inc., Washington Mutual, Inc., Wells Fargo & Company. More companies and organizations are expected to join in the coming months.
Visit www.HOPENOW.com for more information.

Partial Transcript from "Ask the White House"

December 7, 2007
Henry PaulsonThank you all for writing in today. We’ve been hard at work over the past few months to develop ways to prevent some struggling homeowners from losing their homes. Many of you saw the announcement made yesterday to streamline the process of refinancing and modifying subprime loans for able homeowners – I look forward to answering your questions on that. But let me stress here at the outset, the approach announced yesterday is not a silver bullet. It is one piece of a plan President Bush has directed his Administration to pursue. We face a difficult problem and there is no perfect solution. But we will continue to work on this in an effort to preserve communities by preventing foreclosures.

Stephen, from Ann Arbor, MI writes: I am a loan originator who has written ARMS. How will I know if my clients are going to have their rates frozen, so that I may answer my clients' questions?
Henry PaulsonThe best thing you can tell your clients to do is to call their mortgage servicer or call 1-888-995-HOPE to reach a mortgage counselor to find out if they are eligible for assistance. And be sure to tell your clients that the earlier they call, the more likely they can find an affordable mortgage solution.
No one can be helped if they don’t reach out and ask. The single most important thing is to make sure people know that if they are facing a mortgage reset they are worried they can’t afford, they need to call for information and assistance before they fall behind on their payments.

Randall, from Kearney, Ne writes: Why are we responsible for bailing out the ARM lenders, or if you insist, the borrowers that were fully informed of the consequences of an Adjustable Rate Mortgage? This is for the benefit of lenders, isn't it?
Henry PaulsonLet me say first, this is not a bail-out – there is no federal money involved in what was announced yesterday. It’s a private-sector led initiative that is to the benefit of everyone – the families who face losing their homes, the neighborhoods and communities they live in, as well as mortgage servicers and mortgage investors. Foreclosure is to no one’s benefit. I’ve heard estimates that mortgage investors lose 40-50 percent on their investment if it goes into foreclosure.
Because everyone loses in foreclosure, the industry – lenders and investors – already has a process for working with struggling borrowers to avoid foreclosure whenever there is a better option for everyone. What we announced yesterday is simply a streamlining of this process.
There are 1.8 million owner-occupied subprime ARMs expected to reset in 2008 and 2009. The combination of lax underwriting standards when these loans were originated followed by stagnant or declining home values in the last two years means we expect a dramatic increase in the number of borrowers who are likely to find these mortgage resets unaffordable. The standard loan-by-loan process for working with struggling borrowers would not be able to handle the volume of work that will require. The industry needs a systematic approach, in order to cope with increased volume over the next few years, and we applauded them yesterday for putting forward just such a streamlined approach.
And let me be clear – we will not avoid all foreclosures. Borrowers who are struggling even with the lower initial ARM rate are unlikely to be eligible for assistance, and likely will become renters again. We worked with the industry to create a streamlined process so that those for whom there is a better solution don’t end up in foreclosure simply because the system was too overwhelmed to assist them in time.
Michele, from Maryland writes: As someone who would probably benefit from President's Bush's plan for subprime homeowners, will I need to do anything specific in order to qualify or be included in the plan. I do currently make all mortgage payments on time, but know that within a year I will face the challenges that others have been facing. Thank you.
Henry PaulsonMichele – the first thing you should do is reach out and speak with your mortgage servicer – the company you send a check to every month. You should be able to find the phone number on your payment coupon book or in the original loan documentation. The sooner you explore financial options, the more likely that you will be able to find an affordable mortgage solution. Many good counseling services are also available to provide guidance. The Department of Housing and Urban Development has a list of approved counselors on their website. You can also reach a mortgage counselor by calling 1-888-995-HOPE.
http://www.fha.gov/sf/counseling/index.cfm

Sam, from Gaithersburg, MD writes: How will the administration's plan to fix interest rates for five years affect investors? Will they continue to receive the interest income they expected during this time and, if so, how? Aren't you concerned that if investors are forced into a rewriting of their investment agreements that you will cause many investors to forego future investments in mortgage-backed securities or home loans?
Henry PaulsonI think it’s important to note here that what was announced yesterday was spear-headed by a trade association that represents investors, the American Securitization Forum (ASF). ASF worked on these new guidelines because it is in fact in the best interest of the investors to avoid preventable foreclosures; investors know how expensive foreclosures are. They know that if a borrower can afford the starter rate but not the reset rate, a modification is less costly to them than foreclosure. Investors have been at the table to help develop this plan from the beginning.
The plan announced yesterday does not change the fundamentals of the contract between servicers and investors. Servicers have always been charged with collecting payments on behalf of investors, and when a borrower falls behind in his payments, working with the borrower to reach an outcome is in the best interest of the mortgage investors. Whenever a mortgage is modified or foreclosed, that changes the payments to investors – that is the nature of the investment. This streamlined plan announced yesterday continues that relationship between investors and servicers, it gives servicers an additional tool to identify when a streamlined refinance or modification is in the best interest of the mortgage investors.
Kim, from Minnesota writes: Hi. My husband Chris and I are going through a foreclosure, which the sale is December 21, 2007 at the Sheriff's office where we live. I am wanting to know what kind of relief the government is going to give me when it comes time to file our taxes for 2007. I feel we are getting a double edged sword first by losing our home and than also having to pay penalties due to a cancellation of debt. We are honest working American citizens who are trying to raise 4 children and just had to move into my parent's home for the winter because we just can not make it. We have tried working with our mortgage company but they were just not able to help us and our poor credit history has not allowed us to refinance to keep our home.
Henry PaulsonKim I agree with you – you’ve been through a difficult event, and the last thing you need is a tax bill in addition to everything else you are going through. When your home is losing value and your family is under financial stress, getting hit with higher taxes is not helpful. In many cases, there is relief available. The IRS can help you determine whether you are eligible – call the IRS's toll free number for taxpayer assistance at 1-800-829-1040. In order to make sure that all taxpayers are afforded this relief during these difficult times President Bush has called on Congress to temporarily reform this provision of the federal tax code. The House of Representatives has passed this provision, and I’m hopeful it will be passed by the Senate so the President can sign it into law before the end of the year.

Jason, from California writes: Mr. Paulson: Will there be a income limit put on the assistance program? In other words, can a family make too much money to qualify?
Thank you.
Jason from California
Henry PaulsonJason –There are several factors that come into play, and the best way to get an answer is to talk with a mortgage counselor or your mortgage servicer. Home prices are very different across the nation; I know they are particularly high in California.
Nationwide, we know that approximately 1.8 million owner-occupied subprime adjustable rate mortgages will reset in 2008 and 2009. Of those, approximately 1.2 million homeowners could qualify to be fast tracked into consideration for a refinanced or modified mortgage. A borrower expecting to have trouble with a mortgage reset needs to call their servicer or a mortgage counselor to find out if they qualify.

Henry PaulsonThe Administration is taking action to help homeowners, and I’ve called on Congress to do the same before they leave for the year. They need to pass the President’s FHA modernization proposal which, by lowering the down payment requirement, increasing the loan limit and allowing risk-based pricing, will make affordable FHA loans more widely available. This would help refinance another estimated 200,000 families into affordable FHA-insured loans. President Bush has also called on Congress to provide tax relief for mortgage debt forgiven; to create a strong, independent regulator for Fannie Mae and Freddie Mac; and to allow state and local governments to temporarily broaden their tax-exempt bond programs to include mortgage refinancings so that they can reach more struggling homeowners.
The problems we are facing are complex. There is no single solution to address all of the issues currently affecting the mortgage market. But the plan announced yesterday is a positive step, and an infrastructure to reach struggling borrowers is now in place.
Thank you to everyone who submitted questions today – I really appreciate this opportunity to answer some of them.

Genteration X News Article Worth Reading

2007-11-08T17:46:00.001-08:00

I found the below article on MSNBC. As a member of Generation X, I found the article interesting. I hope you do too...

For Gen X, time to grow up and get a broker
Many say they have high debt, little ability to save for retirement
By Jennifer Alsever
MSNBC contributor
updated 6:52 p.m. ET, Thurs., Nov. 8, 2007

Generation X may have shed the slacker image over the past decade as its members moved beyond coffee shop jobs and into the suburbs, SUVs and corporate boardrooms. But when it comes to saving for retirement, the description still fits.
Most Gen Xers, the oldest of whom are heading into their 40s, are woefully behind in saving for retirement. Nearly half of the 5,000 Gen Xers surveyed by Charles Schwab this year said they are so saddled with debt or live on such tight budgets they can’t even think about saving.
“They’re not a saving generation — they’re spenders,” said Gio Van Remortel, a 36-year-old who studies her generation as a futurist at Social Technologies, a research and consulting firm in Washington.
Melanie Keller, 35, admits that fact. She worries about retirement because she only has $3,000 put away in a 401(k) plan and has no other investments. But instead of socking away money for retirement, the pharmaceutical saleswoman is trying to save $60,000 so she can buy a starter home where she lives in San Jose, Calif.
“I am worried, but I don’t feel like after I pay all the bills — with rent, car payment — I have enough money” for savings, she said.
Indeed, the expenses of a house, car and all the other possessions that go along with being an adult often leave Gen Xers very little to sock away in a 401(k) system that grows money incrementally, said Van Remortel. Even if they are not supersizing their lives and living beyond their means, she said, many Gen Xers — generally defined as those born from 1965 to 1980 — carry significant debt due to college alone. Once they have kids, they begin to worry about saving for their college educations, and retirement planning often drops in priority.
Recognizing those pressures, investment firms are offering new incentives tailored to get Gen Xers to invest. The Principal Financial Group, which runs 401(k) plans for 47,000 employers and their 3 million workers, offers free music downloads to people who boost their contributions to retirement accounts. The company also sends financial counselors to the offices of their clients to offer free advice on 401(k) planning.
Broker Charles Schwab meanwhile has lowered its minimum balances to $100 for people opening new investment accounts and offers high-yield checking accounts linked to brokerage accounts. “If they can start with a checking account, they can invest easily over time,” said Jonathan Craig, a vice president at Schwab.
Still, Gen Xers may face bigger financial challenges than their parents and grandparents did. On top of the big mortgages, college loans and the rising child education costs, they face the fact that few employers offer traditional pensions anymore, meaning they take on more of the burden of retirement. Plus, the future of Social Security is more uncertain than ever. Unless Congress makes changes, the trust fund that helps pay for the federal entitlement is likely to be exhausted by 2040 — about the time most Gen Xers hit retirement.
Credit card debt, too, remains another big roadblock to many people. As many as 40 percent of Gen X women and 58 percent of men said they carried a credit card balance of $5,000 or more, according to a 2006 survey of 300 people by OppenheimerFunds. Nearly half of women interviewed said they would rather buy 30 pairs of shoes than save $30,000 for retirement.
Waiting to pay off that debt before saving for retirement could be a big mistake, said Doug Charney, president of the Charney Investment Group of Wachovia Securities in Harrisburg, Pa.
“Pay yourself first,” Charney said. He advises people to set aside at least 15 percent of their income into a retirement account. If that’s too much, people should start small with maybe 4 percent or 5 percent and gradually increase the contribution as they get pay raises.
“If you don’t save 10 percent of your income, you won’t be able to maintain the lifestyle you’re used to,” Charney said. For many people, that equates to saving about $2 million by retirement, after accounting for inflation. Those who haven’t put away enough money may have to work into their 70s. (Charney later sent an e-mail raising his target to 15 percent of income.)
Still, many people don’t understand how to invest or what is the best way to invest, and some are spending the retirement money they do save, according to surveys by financial institutions. As many as 40 percent of people cash out their 401(k) money when they leave a job rather than rolling the money over to grow in another retirement account, according to the Principal Financial Group.
Count Robert Betts as one of those people who made that decision. Burned out on his job at a Manhattan advertising agency, the 36-year-old Betts quit his job in 2005 and blew through $28,000 from his 401(k) plan while unemployed for 18 months. Now working for a Denver ad agency, he puts $500 a month into his 401(k) in an effort to catch up.
“When you see your 401(k) grow on top of what you put into it, it’s tough to swallow that you could have been doing that for 10 years,” said Betts. But he doesn’t regret using the retirement money to take time to clear his head.
“I could die poor in the gutter at 60, and I wouldn’t regret taking that money,” he said. “I’m much happier, and my career is on track.”
© 2007 MSNBC Interactive

All Hallows Eve Filled with Spirit

2007-11-02T13:08:00.000-07:00

I grew up in a family that downplayed Halloween for a variety of reasons. So now, I feel somewhat guilty, as I consider how much I enjoyed taking my kids trick or treating last night.

As a realtor, I have come to appreciate this holiday more than I did in the past. Unlike other holidays Halloween is essentially a “Neighborhood Holiday”. It relies on communities to make it work. In the purest sense it is about showing hospitality to strangers, but also showing a little community spirit.

I live in a neighborhood that seems to have spirit. A few weeks ago, I was “boo’ed” by an anonymous ghost who left goodies on my door step, with the instructions to spread the spirit to 2 people (who will boo 2 people, who will boo 2 people and on and on) as it grows and spreads through the community.

Last night, I felt this tremendous sense of pride in my neighborhood, as I saw the streets filled with children of all ages. Many houses decorated as if it were Christmas, people sitting on their porches, teens skipping through the streets singing songs, dressed in silly costumes. I saw many friends and neighbors who had moved away or live in other neighborhoods, but they come here to trick or treat here because their neighborhoods did not have the same spirit and energy. By the end of the night, I had said hello to many neighbors and had affirmation as to why I love to live where I live.

The interesting thing is that when buyers look at houses, this is one of the things they often can’t see or even get a feel for…community. They will judge the house on its merits alone, but may not get a sense for how their neighbors will affect their day to day life. This is where working with a neighborhood specialist and a realtor who has lived in the local area for years can be a benefit to buyers. When you first sit down with a realtor, describe what you want out of your neighborhood. Your realtor should be familiar with not just the houses, but also the communities. Don’t just consider the house, take a look at the neighborhood as well. Drive through the neighborhood at different times of the day (or year). What do you see? Kids on the playgrounds? Joggers? Dog walkers? Holiday Decorations?

Well, I’m off to Target, to buy discounted Halloween decorations. I have been inspired to decorate my house next year, and contribute to the community spirit that so many of my neighbors demonstrated last night.

If you have interest in living in a “Spirited” community, I currently have 2 homes on the market in my neighborhood, Brittany. Call me to arrange a showing.

Property Taxes in Prince William County

2007-10-14T07:35:00.000-07:00

Thought I would keep any of my Prince William Countyclients/prospective clients informed of the latest on taxes in the county. This is from an article I read.

Real estate tumble could force tax increase
By KEITH WALKER
kwalker@manassasjm.com
Friday, October 12, 2007
Prince William supervisors learned Thursday that they'll have to raise the tax rate several times if they want to keep the county flush over the next five years.
Real estate values that are down by 14 percent will force their hands.
The current tax rate is 78.7 cents per $100 of assessed value.
At that rate, the county would come up $51.7 million short in fiscal 2009, $79.5 million short in fiscal 2010 and $108 million short in fiscal 2011, according to information county finance director Christopher Martino presented to the board of supervisors at the annual budget retreat.
Projections show that raising the tax rate to 91.5 cents in fiscal 2009 will balance the budget and leave the average tax bill about the same.
In 2010, the tax rate will have to be raised to 99.5 cents and in 2011 it will take a tax rate of $1.03 to keep the budget balanced while leaving the tax bill the same, Martino said.
Steadily decreasing home values are not likely to recover any time soon and there are a lot of houses that aren't selling.
"It's going to take quite some time to work off that inventory," Martino said.
While Martino stopped short of predicting a recession, he said the real estate market will remain below average for the next three to four years.
"It will be a very long period of time before our values recover," he said.
During last year's round of cuts to balance the budget, the county delayed building a fire station in the mid-county area and a central district police station, as well as an expansion at the Public Safety Training Center among other things.
Gerhart said that can't continue to happen.
"We don't think we can not add fire staff, not open the fire stations, have our police and fire folks start going out the door because of compensation differences with the rest of Northern Virginia," Gerhart said
The county also eliminated renovations at Pfitzner Stadium and an expansion at Forest Greens Golf Course.
The cuts also included the elimination to some social services, contributions to the Virginia Railway Express and the Potomac Rappahannock Transportation Commission reserves and the police take-home car program.
Gerhart said there's not much left to cut.
But if cuts are to come, they would have to come from layoffs in the county executive's, the registrar's and county attorney's offices as well as the planning, social services, human rights, economic development and public works departments.

Real Estate Conditions Today

2007-09-22T14:12:00.001-07:00

It has been a while since I wrote my blog. My promise to myself was to try and blog every week but it has been one heck of a couple of months in the roller coaster ride of real estate. I recently attended a presentation on the mortgage meltdown that was titled appropriately as “The Perfect Storm.” The storm included increased sub prime lending, quickly rising home prices and lots of mortgage companies, hedge funds, mutual funds and investors bringing an appetite for profit. This all led to loose underwriting. How loose? I read in one Wall Street Journal article about a loan called the “Ninja Loan.” To my surprise, the definition of a “Ninja Loan” was a loan that required no income, no job and no assets!

Things seem to be calming down in the mortgage area and let’s hope things stay calm. So what is the status of the market? As of August, the average home in Stafford County, VA is selling for approximately 91% of its list price and was on the market for about 116 days. Additionally, in the month of August there were 1,531 active homes for sale, 105 homes that went under contract and 127 homes that sold.

As of August, the average home in Prince William County, VA is selling for approximately 92% of its list price and was on the market for about 126 days. Additionally, in the month of August there were 5,984 active homes for sale, 425 homes that went under contract and 461 homes that sold.

As the dust continues to settle, lenders are getting back to business with most if not all sub prime loans gone and full documentation loans the norm. For buyers, this means you will have be ready to produce your pay stubs, investment statements, tax returns, etc. For sellers, people are still buying houses. You need to ensure the buyer of your home is a pre-qualified buyer. You will also need to be realistic about how fast your home is going to sell and how much it is going to sell for. As I always say, PRICE and CONDITION of a house being sold are the two most important items that will get your house sold.

Feel free to visit my website and search for homes at http://www.yournovaagent.com/. If you are a seller or a buyer, I would love to work with you!

The Market/Mortgage Mess and You!

2007-08-16T17:35:00.001-07:00

What a rough couple of weeks it has been. Headlines such as “Another Mortgage Lender Teeters on Bankruptcy,” “Dow Plunges 300 Points in Turbulent Session,” and “Mortgage Mess, Who is To Blame?” If you have been following this saga like I have, you have undoubtedly heard about the growing delinquencies on loans that have hit hedge funds and investors of publicly traded lending companies. The one question I have had people ask me is…. what does this mean to me if I am trying to buy or sell a house?

Depending on your loan amount and credit rating, things could better or worse for you. For those buyers with excellent credit who are taking out loans of less than $417,000, rates have begun to slide down a bit as borrowers like you (with excellent credit history and credit scores) are in demand.

“Jumbo” loans are those loans in excess of $417,000, which exceeds the limit for those eligible for purchase and guarantee by mortgage institutions such as Fannie Mae and Freddie Mac. Rates of these loans have jumped almost a full percentage point since these loans are now considered more “risky.” For real estate markets such as our Northern Virginia markets (Fairfax County, Prince William County, Stafford County, Fredericksburg, etc.), sellers of more expensive homes may face a slowdown as buyers who need jumbo loans sit on the sidelines and take a “wait and see” approach.

For those buyers with less than stellar credit, things are going to get a lot tougher. Lenders are tightening up standards, requiring borrowers to have down payment funding (2.5%, 5%, 10% down) and requiring more stringent income and asset verifications.

People still need to sell their houses for any number of reasons and there will always be people to buy them! However, right now the buyers seem to be in shorter supply and the numbers of sellers are steadily increasing. The two keys things for any seller and/or buyer are price and condition of a house. Now more then ever this is going to crucial for a home to possess the right balance of price/conditions that moves the house for the seller and pleases the buyer!

Real Estate Trend for Prince William County June 2005 Through June 2007

2007-08-05T08:24:00.000-07:00

As a realtor, I do my best to stay up to date on trends and statistics of Prince William County, where I live and work. The below is the real estate market trends for Prince William County for June of both 2005, 2006 and 2007. As the below statistics show, in June 2005, over 80% of all homes active on the market were selling every month. By June of 2006, that statistic had dropped to just a little over 14% of all active homes selling per month and now as recently as June of 2007, only 8.5% of homes that are active are selling every month. What does all of this mean? If your house is for sale, you need to make sure your house is in the best condition and has the best price compared to your competition. This will make you stand out amongst the crowd. If you are a buyer, there are lots of choices for you, interest rates are still relatively low compared to historical levels, and you have a unique buying opportunity. Feel free to visit my website and search for homes at http://www.yournovaagent.com/. If you are a seller, I would love to work with you and make sure we do our best to make your home one of the 8.5% that will sell whether you live in Ascot Woods, Brittany, Montclair, Powells Landing, Winding Creek, Ashland, Potomac Club or in any neighborhood in Prince William County.

June 2005
Active Market Listing- 1618
Houses Under Contract- 1237
Houses Sold- 1301

June 2006
Active Market Listing- 5131
Houses Under Contract- 647
Houses Sold-732

June 2007
Active Market Listing- 6014
Houses Under Contract- 516
Houses Sold- 511

Data Source: MRIS

ABOVE CHART IS NOT TO BE REPRODUCED WITHOUT WRITTEN CONSENT OF KRISTIN BURNS

Starpower Annual Conference 2007, Phoenix, Arizona July 25-28, 2007

2007-07-30T17:36:00.000-07:00

Kristin recently returned from attending the top educational opportunity offered in the real estate industry, the STAR POWER Annual Conference.

The faculty at the conference consisted of 170 of North America’s top producing real estate professionals ranking in the top 1% of all realtors in North America. They shared their methods of success and systems of efficiency. Kristin believes that to be a successful realtor, one must take the time, money, energy and spirit to obtain additional insights and incorporate the latest technologies to keep oneself on the cutting edge of real estate. That is the “business reason” why she went. The plain and simple answer as to why she went is this…she wants to become a better realtor each year to give the best service possible to her clients. She wants to do this by using the latest techniques in the real estate market place to help you buy and/or sell your home. It does not cost the consumer any more to have a realtor who is willing to go the extra mile to educate themselves on the best techniques in the industry. In this case, Kristin flew over 2,300 miles obtain that education!

This was Kristin’s third STAR POWER conference and each year I have seen her come away with additional knowledge, renewed energy, and added determination when she comes home. She did not ask me to write this blog post…I just felt that you should know where she had been last week!

Joe (the unpaid realtor helper)

Competition In Selling Your Home

2007-06-10T06:50:00.000-07:00

Well it is springtime in the Washington, D.C. area. That means a couple of things in our area. It means cherry blossoms, Washington Nationals baseball, warm days, end of school, lawn work and it also means “time to sell our house” to a lot of Northern Virginians. Spring in our area is a historically popular time to sell a house as the school year winds down and many military, civilian and private sector employees are either retiring or moving on to other opportunities outside of our area.

If you are one of those people getting your house ready to sell, you have to think about your competitors and how to make your house stand out. A couple of things normally come into play when you go to sell your existing home, namely its price and its condition. But what if you when to put your house on the market and your neighbors were offering the following: finish your basement for free, free plasma television, homeowners association fees paid in full for a year, $4,000 towards closing costs and free upgraded appliances.

While your neighbors, the John and Jane Doe family might be offering the above, chances are better than not the person offering these incentives is the same neighbor who might have sold your home to you….your builder. If you live in a newer home community, your toughest competition may be the existing builder trying to sell existing homes.

Some builders have a rising inventory of available homes and available lots ready to build upon. With this unsold inventory of homes and future homes/lots, these builders are ramping up their promotional efforts to prospective buyers. Some of these incentives are for anyone buying a home or like a recent client of mine; these incentives were made available to them when they used the builders preferred lender for their financing.

The purpose of this blog is not to make any builder out to be the “bad guy,” it is just to make you aware of the competition you are going to face out there from your neighbor selling his/her home. Builders are just like you…they have a house to sell and they want the same thing as you….a sold house.

Realtor Bonuses....Tell Me More!

2007-02-17T18:25:00.000-08:00

Imagine the following scenario. You have been working with a realtor you know and trust and he/she is trying to help you find a home. You have looked at home after home and finally your agent frantically calls you and says ……“I found it! The right house for you and your family. This is the one!” You see it, like it, buy it and then find out at the settlement table that your realtor not only received the commission as buyers agent for the home, but they also received a $3000 bonus the seller was offering to the buying agent. You begin to get a pit in your stomach. Did you choose the right house? Were there other homes you could have and should have seen? Did your realtor purposely steer you to this house based on the $3000 bonus they hoped to receive?

In our current market, I have noticed more and more these types of bonuses offered with current homes listed for sale. Both new home builders and existing home sales agents are using this bonus to help “reel in” the buyer. The problem in this bonus goes to the beginning paragraph of my blog. Do agents have a potential conflict of interest when they show and recommend properties to their buying clients? While an agent cannot force you to buy a house, he/she can have a large influence on your decision by their actions and/or words. “Oh you will love it here….this house is perfect for you…..etc.”

Does an agent have to inform his/her client about the bonus? The answer, believe it or not, is “no.” There is no obligation for an agent to inform their buyers in advance of the commission. However, the information will be on the settlement documents, namely the HUD-1 form. However, some buyers might not even see this nor know what it is.

Have I, Kristin Burns, ever taken a bonus before? No, not yet. However my policy is as follows:

Inform my client of the bonus prior to any contract writing. I believe that ethically I should inform them. It is the right and proper thing to do.
Offer the bonus, or a portion of the bonus to my clients if allowed by specific lender regulations.

I will only show my clients homes that I think are right for their needs and family. To steer someone towards a certain home based what I will earn is not how I run my business.

I have walked clients through houses that have healthy bonuses attached and have recommended they look at the next house because this house is not right for them. I will never steer a client to a house that is not right for them just for a bonus. Since I make my living in the real estate business, it would not do much good to have a nice sized bonus and a dissatisfied client who would not want to recommend me to their friends and family.

A large Fortune 500 company has the following in their Business Conduct Guidelines --“Honesty is integral to ethical behavior, and trustworthiness is essential for good, lasting relationships.”At the end of the day, my professional reputation is very important to me as is my relationship with my clients. I feel it is vitally important to be upfront about any bonuses that come with a house.

Home for the Holidays

2006-12-07T17:41:00.000-08:00

Walk into any mall, department store, or stroll down any residential street and the signs are everywhere. The holidays are coming! Lights, gifts, holiday cookies, decorated trees, yuletide joy…what about selling a house? There are a lot of home sellers who take their homes off the market during the holiday season opting to wait until after the first of the year. What does this mean for the overall market? Well if there are still home buyers and less homes available for sale...demand stays the same and the supply goes down. Early spring normally means a pick up in sales and normally carries us into the peak of the home buying/selling season. There are the stress reasons of not wanting to try to sell a house on top of everything else that goes into making the holidays successful. But, if you can swing it, here are a few things to consider.

1) Less supply and more demand for your house!
2) Everyone else is waiting until after the New Year…you are the early holiday bird hopefully getting the worm (umm…sale)
3) Most people clean and decorate their homes for the holidays. This type of home during the holidays will be warm and inviting to buyers
4) Many people have time off during the holidays and couples have more time to look at houses together. Additionally, buyers looking during the holidays are likely to be more serious.
5) If you sell now and plan to buy after the sale of your house, your choices will be more plentiful and you will be a better position to negotiate.

So how do you get these buyers into your house?

1) Curb appeal. Have the outside looking nice!
2) Decorate the home tastefully
3) Add a holiday welcome mat and wreath to your door
4) Keep the house warm, toasty and inviting for showings

Happy Holidays!!!!

Future Houses

2006-11-19T16:43:00.000-08:00

Houses come and houses go. If we walk into certain houses in the area, it is sometimes stepping back in time. From the 1970’s (shag carpeting, dark paneled walls, etc.) to the 1980’s (country kitchens, stenciled walls, and mixed geese and ducks), the 1990’s (faux wood kitchen floors, white appliances, and oak cabinets), to today (granite countertops, stainless steel appliances and brushed nickel fixtures). In 2030, what will my kids think when they walk through their first open house that was built and decorated in 2006? What will the home of the future look like? According to a recent survey of the National Association of Homebuilders, here are some of the things the house of the future might have (keeping in mind some the items are already here):

• Dual closets in the master bedroom
• Wider entry doors throughout the house by at least a half foot
• Bigger garages, some with tandem parking due to smaller lots
• Larger shower stalls with multiple shower heads
• Outdoor kitchens and fireplaces will become standard
• Staircases moving to the middle or rear of the home
• Total disappearance of living rooms (dens, parlors, libraries will replace)
• Rear walls will be glass (opening to the outdoors)

I guess one day, our kids will walk through a house and laugh at each other and say “this house is so early 2000’s.”

Should I Say It? The Cooling Market…

2006-09-03T07:13:00.000-07:00

We’ve all read it. Most suspect it. The Washington, D.C. metropolitan area is cooling down in the area of real estate. There…I said it! The statistics say it and most sellers will now say it. However, the market marches on. Whether it is heating up or cooling down, the reality is, people still need to sell and buy homes for various reasons.

Right now there appear to be more seller than buyers, given the inventory of available homes on the market. For example, when national new home sales figures were recently released for July, there was a 6.5 month supply of new homes, the highest level since November 1995. Additionally, national figures on the sale if existing homes across the nation were also down in July (as compared to a year ago) and fell to the slowest pace since January 2004. As a result, there is a 7.3 month supply of existing homes, the highest since the early to mid 1990’s.
For all of you buyers, read the above and realize the days of escalation clauses and above price offers are over. Prices have come down and requests for things like closing cost assistance are becoming acceptable to sellers.

If you are a seller, you must recognize that the condition of your house and the price of your house are more important than ever based on the existing inventory of homes. When a buyer has a seven month inventory of homes to choose from, yours has to not only stand out but also inspire a buyer to make an offer.

Don’t lose heart, Mr. & Ms. Seller! Chances are that if you are selling, you will also be buying. If the cooled housing market has you depressed because your house doesn't get you as much as you had expected, remember that when you buy, you will also benefit from the current lower prices and the historically low interest rates. Move because the move is right for you, the rest will balance out!

Interest Rates and You

2006-08-13T06:58:00.000-07:00

It has been a roller coaster with interest rates lately. What is the most recent information? Well rest easy for the moment. Interest rates dropped for the third straight week with the average 30 year fixed rate mortgage sitting right now at approximately 6.55% according to rates listed at Freddie Mac. Rates are now the lowest they have been since early Spring of this year. The recent Federal Reserve Board’s decision to pause in its hiking of interest rates contributed to the overall lowering of mortgage rates. What does this mean for you? As I noted on my last blog from July 30, you have a unique buying opportunity with current supply of homes outpacing demand. The lowering of rates has only increased this opportunity.

For those current homeowners with adjustable rate mortgages, refinancing into standard fixed rates loans is beginning to look more attractive based on the lower rates. Of course should you decide to do this, consult with your financial planner or loan officer to see if this is a good course of action for you.

In the meantime, if you are in the market to buy a home in Montclair, Brittany, Ashland, Aquia, Meadowbrook Woods, Augustine, or anywhere else in Prince William County, Stafford County or Fairfax County, give me a call! I would love to be your realtor!

2006-07-30T08:57:00.000-07:00

The below is the real estate market trends for Prince William County for June of both 2005 and 2006. As the below statistics show, the number of houses available has almost tripled while the number of buyers for these available houses has been cut in half.

What does all of this mean? If your house is for sale, you need to make sure your house is in the best condition and has the best price compared to your competition. This will make you stand out amongst the crowd. If you are a buyer, there are lots of choices for you, interest rates are still relatively low compared to historical levels, and you have a unique buying opportunity. Feel free to visit my website and search for homes at www.yournovaagent.com.

Real Estate Market Trends

Number of Active Properties over $500K

June 2005 -- 833
June 2006-- 2181

Number of properties With Pending Contracts

June 2005-- 1007
June 2006-- 512

Number of Contracts Marked "Sold"

June 2005-- 1301
June 2006-- 732

Average Days On the Market

June 2005-- 17
June 2006- 61

Average Sale Price of List Price Average

June 2005-- 99.74%
June 2006-- 96.75%

Data Source: MRIS