Sales Report for Northern Virginia Real Estate
Released February 11, 2008
info from Northern Virginia Association of Realtors^®

The rising number of foreclosures and short sales over the past year have dramatically affected the supply of homes on the market for Northern Virginia real estate. This has in turn, brought the housing demand down (”economics 101″), along with NOVA area home values. The average home stayed on the market 21 days longer in Jan ‘08 versus Jan ‘07. On the other hand, the recent increase in conforming loan and FHA loan limits should give a boost the the DC Metro area real estate market. We should see a good amount of activity over the next few months into Spring and Summer as home buyer confidence rises. The stars are aligned for a buyer’s market in Northern Virginia!

Dr. Stephen Fuller of George Mason University’s Center for Regional Analysis (CRA) located in Fairfax VA, noted in a report in Feb ‘08 that the regional job picture is very strong. More than 20,000 new jobs are projected for Northern Virginia each year through 2011. The report stated that of the 15 largest U.S. job markets, the D.C. Metro area showed the lowest levels of unemployment: 3% - compared with a national unemployment average of 4.8%.

*Data from the Metropolitan Regional Information System, Inc (MRIS). Northern Virginia real estate figures include data collected from Fairfax County and Arlington County, and the cities of Alexandria VA, Falls Church VA, Fairfax VA, and the towns of Vienna VA, Herndon VA and Clifton VA. (Sales figures do not include most new home construction sales and For Sale By Owner sales since the data was not entered in the MLS. Only Northern VA Realtors can access the MLS to enter the sales data)

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Since record keeping began in 1963, sales of newly built homes dropped at the steepest pace throughout the country over the course of 2007. New home sales numbers totaled 774,000, which was 26% less than 2006 new home sales according to the Commerce Department. The 9.6-month supply of new home inventory for sale is a record. Since the July 2005 peak, the sales of new construction homes have plummeted 57%, and permits for construction have dropped nearly 50%. New home builders are rapidly cutting production which will help reduce the housing supply throughout the nation.

The DC Metro area is one of top hot spots for new home builders because of the high paying salaries and strong job growth. So what does this mean for home buyers? Well, for starters, the glut of new construction homes in Northern Virginia and Washington DC are breaking builders’ banks. It is a prime opportunity for savvy home buyers to scoop up good real estate at highly incentivized (apparently not a word according to spell checker) prices! Deals that were unheard of for the past 5 years (such as 6% home buyer incentives and 2 BR+den new condos in Arlington VA for $339k) are now available in highly desirable areas of Northern Virginia real estate. Many people remain pessimistic about the current DC real estate market, but the way I see it… how does the saying go- “one man’s loss is another man’s gain”… builders are hurting, so shoot ‘em while their wounded! (sorry builders). Just like foreclosures- if the seller is distressed, the buyer will be blessed (I made that one up ;).

Right now, I am informing my buyer clients that it is a great time to look for new construction homes and foreclosure homes (I’m a Northern Virginia & DC Realtor in case you didn’t know). With the builders’ incentives and highly motivated bank foreclosures, I’ve seen some pretty good deals recently that a lot of resale homes cannot compete with. Unless a seller purchased their home prior to 2003, they most likely won’t be selling their home for a profit (after selling costs) and will have less room to negotiate. That being said, if you are looking to buy a home and would like a professional to help you locate some good new home construction or foreclosure deals, give us a call at 1-888-998-ZILL (9455) or sign up for our free foreclosure list at the top of the page.

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Happy Valentine’s Day!

From all of us at HomeZill.com

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If you’re thinking about selling your home in this buyers market in Northern Virginia, you’re going to have to go the extra mile to make it stand out. Maybe you’re the next Martha Stewart when it comes to interior design or maybe your home consists of a couch, tv, kitchen table, and a bed on the floor. For those that don’t have the interior decorating skills or want to remodel, here are some tricks to staging your home no matter what your budget may be.

Here are the tips and tricks to make your place shine:

1. First impressions are always the most important
Buyers decide in the first eight seconds whether or not they want to buy your home.

• Paint the front door and trim
• Add potted flowers (they bring a smile to your face
• Get the grass looking like Fenway Park with fertilizer
• Spread some fresh mulch around the bushes
• No one like a broken doorbell

2. Let there be light!
After location, light is the second most quoted reason why a buyer chooses the house.

• Clean all the windows
• Replace drapery with sheer curtains or white shades
• Replace lamp shades with sheer white shades
• Replace light bulbs with higher wattage(”natural” light bulbs)
• Trim back shrubs that block window light
• Put up lights in each corner of the major rooms

3. Remove clutter
People can’t visualize themselves living there when they can’t see past your clutter.

• Remove personal objects like family photos and children’s artwork
• Make sure the closet floors are clear
• Put as much unneeded stuff into storage
• Hide all electric cords and wiring
• Make sure your plants are healthy
• Put fresh sheets on beds with four extra pillows

4. Send Mittens and Sparky to Grandma’s House
People buy with their eyes and their noses.

• Remove kitty litter, dog beds and other smelly pet items
• Light some candles or put up air fresheners
• Smoke outside; remove ashtrays
• Open all windows an hour before the buyer arrives
• Keep the trash can clean

5. Freshen the kitchen
The kitchen is everyone’s favorite room in the house.

• Clear all countertops.
• Re-grout the tile.
• Update kitchen knobs.
• Paint or replace cabinet fronts.
• Put in a window; it can increase the value of your home by 10 percent.

6. Clean the bathroom
No one wants to move into your bathroom.

• Scrub the walls and floors.
• Clear off all shelves and put away personal items.
• Re-grout tiles and replace caulking.
• Hang a new shower curtain.
• Buy fresh hand towels and rug.
• Replace old soap.

7. Add color
Touches of yellow and other warm colors say ‘welcome home.’

• Buy new throw pillows for the sofa and bed.
• Using neutral colors lets buyers us their imagination

8. Don’t empty out the house
An empty house makes the seller look desperate. Buyers generally don’t pay full price for an empty house. In addition empty rooms look smaller.

• Rent or borrow furniture if you need to in order to make the home look lived in and give the buyer a sense of space.

I know some of these tips seem like they’re impossible to do. You’re probably thinking you won’t have time to do any of these things. You can also prevent from having to do any of this by preserving your home. However, you have to think of selling your home as an investment. Just by putting in some extra elbow grease, your home will stand out above the rest of the crowd. Make it look like you took care of your home, even if it was a last minute fix up. Buyers will appreciate how clean and fresh your home is.

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As most of you have heard, right now we are in a buyer’s market. With interest rates being so low and so much inventory to browse, buyers have a lot to choose from. What does this mean? Seller’s are becoming desperate. You walk into their home and they tell you it’s the next best thing to sliced bread. However, who wouldn’t tell you their home is the best? If their noses grew like Pinocchio’s, they might poke your eye out.

Here is a list of misleading fibs you should look out for:

“My neighbors are wonderful!”
You’re going to have to find out for yourself. Go knock on their door and tell them you’re thinking of moving in. If they slam the door in your face, they probably aren’t as wonderful as you were told. Another source you could use is RottenNeighbor.com.

“The roof leaked once, but we fixed it.”
Does this mean that they got their ladder out and put a patch on the hole? Did they replace the whole entire roof? The seller may think they’re being honest but you need to get to the bottom of fix. People’s definitions are different when it comes to things like this. Get a professional home inspection.

“I’ve only seen one termite on the deck.”
If they even mention the fact that there were signs of termites, then they probably are concerned you might come across one. These pesky little creatures can ruin a home and are typically not checked for when you get a home inspection. These little guys usually don’t roll solo, they’ve got lots of friends. If there is any hint that there are pests, get an insect inspection.

“I didn’t know I should have told you about the foreclosure.”
Get title insurance. Judgments, tax and mechanical liens are covered by title insurance.

“The planes from the airport don’t fly over this house.”
You will probably be able to tell if this is an issue. Just because they say planes don’t fly over this house, doesn’t mean that they don’t fly over your neighbors house.

“There’s never been any flooding.”
Most older homes do have some flooding in the basement when there is excessive rain, so it is quite possible a seller could lie to you about this. One thing you can do to find out if the area is susceptible to flooding is to check the water tables at the town hall.

“Our schools are great!”
This school is great(except for the 40% graduation rate I failed to mention to you). For an objective view, get a free school report from HomeFair.com or GreatSchools.net.

Here’s a list of important things you should do:

Get a professional home inspection.
Many thing are overlooked when just walking around a house. A home inspector will catch problems with plumbing, cooling and heating systems, leaky roofs, and cracked foundations.

Spring for extra inspections.
These include insects, radon, leaky underground tanks and bad well-water.

Get title insurance.
If you’re financing, you can’t close without it. It protects you from forgery, fraud, encumbrances, judgments and permit violations. You pay for insurance once only when you buy and the policy is good forever.

Do a final walk-through inspection.
Revisiting the property before closing ensures that it’s in the condition you required in your offer and that any stipulated repairs have been completed. Make the final walk-through no sooner than five days before you intend to close, and make sure the right to do so is included in your offer to purchase.

Now I know it seems like a lot but these are typical procedures when you’re going to buy a home. This is more important when you’re buying an older home, but you still want to go through this checklist.

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President Bush and Congress have agreed to raise the conforming loan limit until the end of the year as part of the $160 billion Economic Stimulus Package. The increase in loan limits could also tighten lending standards for borrowers by increasing down payment amounts or credit history screening. The details will be interesting to see once they are released. Fannie and Freddie will now be able to guarantee loans of up to 125 percent of the median home price of each region. According to the Stanford Group of the National Association of Realtors, the estimated conforming loan limit for the Washington DC real estate region will increase from $417,000 to $547,500. For the official amount, the Department of Housing and Urban Development (HUD) will have 30 days in which to publish the median price of each region after President Bush signs the stimulus package.

The new conforming loan amounts will help struggling home owners refinance their jumbo loans into a safer, conventional mortgage with more favorable interest rates. This will also make housing much more affordable in higher-cost areas like Northern Virginia and the DC Metro area, and give first time home buyers looking for a 2 bedroom condo in North Arlington or townhouse in Fairfax VA a little more cash flow!

Estimated conforming loan limit increases by region:

Source- National Association of Realtors, Stanford Group

***Update - since this article was written, the Conforming loan limit in the Washington DC region has increased more than expected to $729,750!… read more

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