Update on the Market: Washington DC Area (VA/MD/WV/DC)

Delta Associates is a well respected authority within the housing market, but their reports are rarely public, until now. MRIS (The Metropolitan Regional Information System), which is the local multiple listing service, now offers reports to the public through their web site each quarter. The video below explains how to view some of the information, offering highlights from the 2nd quarter reports for 2009. The Washington DC metropolitan area includes Northern Virginia, most of Maryland, and the panhandle of West Virginia, and (of course) DC.

For more specific information or assistance interpretting what this data means to you - as a potential home buyer, home seller, renter or property owner - please don't hesitate to contact me. I am happy to be a resource for you!

Also, you can run an automated report showing sales information for YOUR NEIGHBORHOOD, by clicking this link.

First Time Home Buyers

First time home buyers are starting to learn about the new tax credit of up to $8,000, and it is exciting them! It's evident in the online chats and at the water coolers across the nation. Combining that incentive with the incredible interest rates available today (many are under 5%), and the supply of available homes, it's a combination difficult to resist. Homes are more affordable today than they have been in a very, very long time.

And, first time home buyers are doing more than just chat. Here in Loudoun, they are taking action. In March, approximately 45% of the home purchases in the market were done with FHA and VA loans, most of which are first time home buyers.

Sales activity is up, again, in the region. In a year over year comparison, Loudoun's activity level has exceeded the prior year's activity for 10 straight months.

The result is that in the lower price points, inventory is declining. Buyers are finding that there are far less homes available than they anticipate, and the purchasing process can be very competitive, with contract prices often exceeding the list price.

Once they enter the market, first time home buyers are sometimes surprised at the amount of time it can take to find the right home and then successfully negotiate a deal. Short sales and REOs make for a complicated and turbulent process, and competent representation from a strong knowledgeable real estate consultant is required. With the tax credit set to expire December 1^st, home buyers interested in taking advantage of this credit should start talking to real estate professionals and lenders very soon.

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Buyers interested in learning more about the local real estate market in Loudoun and the Dulles area can contact me at vchrisner@kw.com.

First Quarter, Washington DC Region: Market Activity Remains High

MRIS, the local MLS company servicing the Washington DC Metropolitan area, is reporting high activity levels again in March 2009, for the 4^th consecutive month, in year over year comparisons. This area includes most of Maryland, Northern Virginia, all of Washington DC and the panhandle of West Virginia.

The Affordability Index is now at 156, nearly 50% higher than two years ago. This means that the median family income is now 156% of the required qualifying income for the median home price. In simple terms, this indicates that most area households more than qualify to purchase a home in the area where they live and work.

Continuing fallout from the foreclosure mess is holding prices down in most areas of the region, but there are many indicators that the local market has reached a level of stabilization.

The first time home buyer credit of up to $8,000 is coaxing first time home buyers off the fence…and even trade up buyers are braving the market because of the amazing prices and interest rates, now putting the cost of their dream homes within reach – even considering the reduction in the value of their current homes.

Despite reports that show high numbers of days of marketing activity, actual experience in the market indicates something very different. In fact, at some price points, there is very little inventory, despite the appearance of available homes when searching the MLS. This is a direct result of how distress sales are being handled. REOs (bank owned/post foreclosure properties) often have active listings for several days, perhaps a week or longer, after they've verbally accepted an offer. Short sales often have multiple offers submitted to the bank awaiting approval for several weeks or months, all the while showing as available listings in the MLS system. So, buyers entering the market, after investigating via online searches, are very shocked to find that much of what they saw online was actually phantom inventory.

While regional reports give some insight, real estate remains a very local business. Within the DC Area are many submarkets and even mini- or micro-markets defined by geography and price points.

Many reports are available to the general public at MRIS.com – click on News and then on Market Statistics – reports here can be run by county or zip code for each month. However, as pointed out in this post, remember that statistics don't always present a thorough picture of the market… contact a local REALTOR today.

I service the Dulles region – a suburb of Washington DC, which includes Fairfax and Loudoun counties and part of Prince William County. Contact me now for information about these markets, or for a referral to a knowledgeable professional in your market.