Germantown, MD Market Report – 11/16/09

Germantown sits near the north end of Montgomery County, and part of its popularity is due to its proximity to many major north-south commuting routes into Washington, DC and Northern Virginia. The 6-year-old Germantown Town Center and surrounding retail areas are a huge draw for everyone in the area, and Germantown has a high number of movie theater seats per resident.

The following conditions reflect the market in Germantown, Maryland:

• Homes for sale: 405
• Closed sales: 116
• Average sales price: $256,487
• Average days on market: 65

The average sales price of $256,487 is still down almost $100,000 from the same period one year ago. Many of the houses sold are in the lower price ranges, which is part of the reason why this figure is much lower this year, pulling the average price down. First-time buyers constituted the majority of the purchasers in Germantown during the last quarter.

Also, available inventory is down 50% from the same period one year ago and the time it takes to sell a house has been cut nearly in half. This combined with today’s low interest rates has created a buyer frenzy on some of the lower priced listings on the market.

Market data and commentary provided by David Hess, Executive Vice President and Managing Broker.

Search for homes in Germantown, and all of the DC Metro: www.averyhess.com

Springfield, VA Market Report – 11/13/09

The past month showed encouraging signs in the real estate market for Springfield, Virginia. The following figures reflect the upturn in activity:

• New listings: 111
• Sold listings: 80
• Pending sales: 116
• Average sales price: $358,024
• Average DOM: 42

As October drew to a close there was some uncertainty regarding whether the First-Time Homebuyer Tax Credit would be extended. This may account for the increase in pending sales as buyers were hurrying to get under contract. On another positive note, the average sales price increased by nearly 5% to $358,024, and the average days on market (DOM) decreased 50% to just 42 days. One of the most telling signs was the list price to sales price ratio. This figure also increased by 5% to over 97%. Last week the President signed the bill extending the tax credit until April 30, 2010. Buyers now have until then to be under contract and an additional 2 months to settle. The bill also provides for a tax credit for step-up buyers who have been in their homes for five consecutive years and are ready to move up to another home. Contact me or any Avery-Hess agent for all the information you need for your next real estate transaction.

Market data and commentary by Charles J. Carroll, Managing Broker at Avery-Hess, Realtors.

Search for homes in the Springfield, and the rest of the DC Metro: www.averyhess.com

City of Falls Church, VA Market Report – 11/12/09

The following table represents the housing market in the City of Falls Church, Virginia:

The market in the City of Falls Church continues to show great signs of improvement.  With active listings down over 22%, homes sold up almost 89%, and days on market (DOM) down 15%, all indications are that the market is stabilizing.  The average sales price is down 20% over the same time period as last year, but this reduced price has obviously sparked buyers to get out and buy the inventory on the market.

With Congress and President Obama extending the homebuyer tax credits through April 1, I believe we will continue to see an improvement.  One of the provisions in the bill is to give people who have already been in their homes 5 of the last 8 years a tax credit of up to $6,500 to purchase a new home as well.  This should spur people who have been thinking about moving up to do so, creating more inventory for first time home buyers and helping to reduce more expensive inventory.  It is a fantastic opportunity to get your home on the market now.  However, another one of the stipulations is that you have to be under contract by April 30, 2010 and close by July 1, 2010.

Market data and commentary provided by Tom Conner, Managing Broker, Avery-Hess, Realtors.

Search for homes in Falls Church, and all of the DC Metro: www.averyhess.com

Centreville, VA Market Report – 11/11/09

Centreville, Virginia is a very popular place to live due to the numerous retail opportunities, a plethora of restaurants in all price ranges, and its close proximity to historical sites within 30 minutes drive time. The moderate average sales price puts Centreville within range of the majority of home buyers.

The data below represents the current market in Centreville:

• Homes for sale: 351
• Closed sales: 98
• Average sales price: $301,899
• Average days on market: 20

Statistically there is very little change in the average sales price from the same time period one year ago. This is a big change from what we wrote last month when we reported that compared to one year ago, house prices were down 10%. In comparison, the statistical differences are not as dramatic as they have been.

Compared to last month the average price is up a little over 3%. Here, the big difference is in the number of houses available to choose from, which is down 25% from the same time in 2008.

Growing consumer confidence, coupled with investors looking for alternatives to the low rates being paid on savings, is moving more buyers into the market.

Market data, commentary and statistics provided by David Hess, Executive Vice President and Managing Broker.

Search for homes in Centreville, and all of the DC Metro: www.averyhess.com

Bethesda, MD Market Report – 11/9/09

With its diverse mix of condos, townhouses and single family houses all within walking distance to retail, restaurants and Metro stations, the housing market in Bethesda, Maryland is hot! First-time buyers and current homeowners wanting to get away from driving and cutting grass gravitate to Bethesda. Bethesda is also very close to downtown Washington, DC and all of the employment and cultural opportunities that the city offers.

The following statistics reflect the market conditions in Bethesda, Maryland:

• Homes for sale: 299
• Closed sales: 56
• Average sales price: $695,753
• Average days on market: 78

Prices in Bethesda have drifted down a little bit over the past two years but have not seen the radical declines of other outlying areas. The number of properties for sale is down 15% from one year ago. Meanwhile, over the past twelve months median and average price figures in Bethesda have tended to jump up and down dramatically from month to month depending on the product mix sold. So while the statistics for this market are equivocal, local real estate professionals know that this is a balanced market with an effective supply of about 4-5 months based on the present absorption rate.

A notable spot in the area is Bethesda Row. Bethesda row is a popular mixed-use development where you can do your shopping, have dinner, sit on outdoor benches or just stroll and people watch. All this and within walking distance of the Bethesda Metro Station, too.

Market data and  commentary provided by David Hess, Executive Vice President and Managing Broker.

Search for homes in Bethesda, and all of the DC Metro: www.averyhess.com

Tax Credit Officially Extended

It’s official – President Obama has signed off on the bill, and the Tax Credit for home buyers has been extended into 2010. However, this tax credit does have some key differences from its predecessor, the main difference being that the eligibility for the credit has now been extended to move up buyers as well. The bill is outlined as follows:

Eligibility Requirements

• First time buyers, defined as purchasers who have not owned a principal residence during a three year period prior to their home purchase. The first-time buyer credit limit is capped at $8,000.
• Move-up buyers (existing homeowners) who have lived in their principal residence for 5 out of the last 8 years (consecutive years). The move-up buyer tax credit is capped at $6,500.

Income Limitations

• Single taxpayers or taxpayers claiming head-of-household status can claim the full tax credit amount ($8,000 first-time, $6,500 move-up) if their adjusted gross income (AGI) is under $125,000.
• Married couples filing jointly can claim the full credit amounts if their AGI is under $225,000.
• Partial credit amounts are avaliable to single taxpayers (or head-of-household filers) with a reported AGI between $125,000 and $145,000 and married filing jointly taxpayers whose AGI is between $225,000 and $245,000.
• Single or head-of-household filers whose AGI exceeds $145,000 are not eligible for the credit. Additionally, married filing jointly taxpayers whose AGI exceeds $245,000 are not eligible for the credit.

The new Tax Credit is available for homes purchased after November 6, 2009 and before May 1, 2010. Home purchases that are ratified by April 30, 2010 are also eligible ofr the tax credit if they settle prior to July 1, 2010. The tax credit is eligible on principal residence purchases under $800,000 only. Vacation and rental homes do not qualify for the tax credit.

** Payback: The tax credit does not have to be paid back unless the homeowner either stops using their purchased home as their principal residence or sells their home withing a three year window after purchase.

To learn more, or to search for homes, visit us on-line: www.averyhess.com