RACHAEL

What words in our language have come to the fore over the last year? Here are the words that dominate our headlines, talk shows, and our own personal discussions: recession, depression, bailout, bonus, ponzi scam, scandal, housing slump, foreclosure, short sale, stimulus plan, toxic assets, AIG, Dow Jones, Bernie Madoff , rising unemployment, weak global economy, and on and on and on. It’s exhausting just writing these words.

Last night Vickie and I went to Stacie’s for dinner and to see our grandchildren. Chase is crawling like crazy, Lexie is the cutest little 2 ½ year old, and well, anyone who knows 4 year old Rachael knows how she thrills us. And last night was no exception. Dinner was great and later the 2 little ones were playing, but Rachael was sitting at the dining room table coloring (she stays in the lines, too). The following conversation ensued.

Vickie, from the next room:  Rachael, what are you doing?    Rachael: I’m coloring a bird Nana.     Vickie: Do you think I could get a kiss or are you too busy?      Rachael: I’m never too busy for you Nana.      Nana & Boppa look at each other and smile. When all those other negative words keep popping into my consciousness I think about the words that come from the mouth of Rachael.  When you’re busy coloring your birds today, don’t forget to make time for the people in your life who love you.

Good News About Today’s Market (that you never hear)

“For most folks, no news is good news; for the press, good news is not news”…..Gloria Borger.

It seems like every time we turn on the TV news or read a newspaper headline, the bad news deepens our fear and concern about the economy. Hearing terms like “meltdown” and “crisis”, it’s easy to understand why there’s a lack of confidence in buying and selling a home. The media reports negative news. Their objective is to attract audiences and advertisers, not to make us feel good. We hear bad news everywhere we turn. They have no reason to report the upside of today’s real estate market, so let me give you some good news.

According to the Mortgage Bankers Association, approximately 30% of all U.S. homes are owned free and clear and have no mortgage. Of the 70% of households that do have a mortgage, 96.7% are not in foreclosure. The U.S. Gross Domestic Product is more than the next three countries combined.  When they announce a rising unemployment rate, they don’t mention that millions of people are still working, making money, eating at restaurants, and yes buying and selling homes. Are we really spinning out of control? I don’t think so.

We’ve previously discussed the incredible opportunity that the current market affords. First time buyers, move-up buyers, and investors can all benefit from low home prices and historically low interest rates. Instead of internalizing the negativity the headlines can cause, choose to be optimistic and focus on the opportunities around you.

Fairfax County Sales Heat Up!

The market this Spring is off in full force! Agents holding open houses in Fairfax are reporting large numbers of people through their listings on a regular basis. Mortgage pre-approvals are up. And one of the greatest indicators of a stabilization of the market is the lowest inventory levels in 3 years!

The numbers speak for themselves: (February 2009 to February 2008 in Fairfax County)

Total Homes Sold: UP 21.16%
Average Days On Market: DOWN 8.13%
Average Sold Price: DOWN 19.90%
Active Listings: DOWN 20.85%

While I certainly have no crystal ball, indications to me say we may be at or have already reached the bottom of the market! With record low interest rates, an $8,000 tax credit for first time homebuyers, affordable homes, and a decreasing inventory, I can think of no reason to wait to buy a home if you’re in the market! It’s a perfect convergence of the ideal factors for home ownership!

The Luck of the Irish

Lately we’ve been discussing that now is really the very best time for purchasers to buy a home. Being of Irish descent I thought I’d give you some old Irish proverbs on this St. Patrick’s day to encourage you to get off the fence and make that important decision. Let’s start with a riddle. There are 5 frogs on a log. Four decide to jump off. How many are left? The answer is five. There’s a difference between deciding and doing. So you’ve decided you want to buy a house…..well do it. This really is the best time. You know, there’s this window of opportunity that will eventually be gone. “He is always in the field when luck is in the road”. The luck is in the road now, get out of the field. Prices are low, interest rates are historically low, there are incentives for 1st time buyers. Remember the laws of supply and demand. It’s time to act before it shifts.

“You can never plough a field in your mind”. If you’ve been thinking about, dreaming about, wishing for your new home, you must stop dreaming and make it a reality. Your dream home is out there. Start picturing your furniture in it and call the moving company. Today’s consumers are so much more informed because of all the information available to you on the internet. A few years ago I had by-pass surgery. I read up about the procedure and learned a whole lot about how the heart functions, but I never gave any thought to attempting the surgery myself. “Beware of false knowledge. It is worse than ignorance”. A Realtor will guide you through the process and insure that your home buying experience is a happy one (even if the Realtor is not Irish).

If you’re thinking you’ll wait a little longer to see if the market drops a little more you’ll run the risk of missing out on a wonderful opportunity. It was reported in the news today the housing starts (new homes) were up 22% last month, the largest increase in the last 19 years. When the media begins to report an upswing like this it is usually way after the fact. The tide has been turning for some time now so you must be ready to act. “Never iron a 4-leaf clover. You don’t want to press your luck”.

And finally, for those of you who will experience the joys of homeownership….”May your home always be too small to hold all your friends”.

Search for Homes: www.averyhess.com

There is a Tunnel and it has Light!

Are we starting to see light at the end of the tunnel in the housing market?  In a report issued this morning the Commerce Department reported housing construction starts jumped 22% in February to a seasonally adjusted annual rate of 583,000.  While far from last February’s rate of 1.1 million, this jump is the largest in 19 years and begins to offer hope that we’re either in the bottom of the housing market or darn close to it.  Another pleasing sign was the 3% rise in the issuance of building permits in February.  This is another good indicator of continued growth in construction starts.    Residential real estate has repriced itself as an asset class, interest rates remain low and the tax credit for housing purchasers all combine to make this a powerful time to buy a home.  I can see the light.

Spring Has Sprung, The Grass has Riz, Wonder Where all the Inventory Is?

What a difference six months makes. After months of steadily increasing inventory, the number of townhouses, condos and single family homes available for sale in the market areas around our Dulles Office has dropped by more than half!

In the $300,000and under price range, it is tough to have much to show. Our agents report that at almost every single family home and town house they showed this weekend they ran into other agents who were also showing these same properties their clients.

Why is this happening? Where did all the inventory go?

Everyone has their own reasons for why, but what really matters is that the time to wait while prices keep falling is coming to a close. When demand picks up like this (and demand has picked up), price stabilization and increases are not far behind…

Search for Homes: www.averyhess.com