2010 March | Avery-Hess, Realtors Blog

Archives March, 2010

Bristow, VA Market Report – 3/16/10

A normal market balance is considered six months of inventory. With 148 houses for sale and 36-40 selling per month, Bristow has less than a balanced supply. If this continues we can expect prices to continue rising in the near term.

Below you’ll find a report of the previous month’s housing market in Bristow, Virginia:

Homes for sale: 148 (largely unchanged from last month, way under the 206 of one year ago)
Closed sales: 36 (largely unchanged over the past two months, up 20% from a year ago)
Average sold price: $338,808 (up from $299,055 one year ago, and $16,000 from just last month)
Average days on market: 42 (has climbed from 21 days in January 2010 due to snow storms, but still way under the 94 days of one year ago)

Bristow’s prices bottomed out around December 2008 and have moved up steadily since that time. At under $350,00 and selling in an average of 42 days, Bristow homes remain underpriced in this marketplace. Bristow remains an affordable and in-demand place to live. With interest rates remaining around 5%, consumer confidence rising, and inventory at such a low level, high buying activity is creating an upward drift in prices.

Keeping in mind the that normal market balance is six months worth of housing inventory, Bristow has a less than balanced supply with only 148 houses for sale while selling 36-40 units per month. If this continues we can expect prices to continue rising in the near term.

Since homes in Bristow in the past year are typically less ten years old, it’s a good place to buy a home and not have to worry about a lot of repairs, as long as the previous owner did their regular maintenance. If you’re unsure about a home, think about getting a home inspection to fully understand the systems of the house you’re buying. Also ask for a warranty so you can be protected from costly, unexpected repairs.

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

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

Silver Spring, MD Market Report – 3/11/10

When we factor in the two records snowfalls in February, it is amazing that anyone sold anything! Effectively a 28 day month got reduced to about ten decent selling days, but motivation is high among buyers presently in the marketplace. They see the price gains of those who bought over the previous 15 months and they realize that the down cycle in real estate has reversed and the next up cycle has begun. Increasing consumer confidence in the DC area, low interest rates, and warmer weather is feeding more urgency into the marketplace.

Here are the market statistics for Silver Spring, Maryland:

Homes for sale: 1,085 (about the same as last month, but down from 1,456 one year ago)
Closed sales: 121 (down from 144 in January, but up from 86 a year ago)
Average sold price: $334,529 (up from $317,926 last month, and up from 330,453 one year ago)
Average days on market: 88 (down from 132 last month and down from 145 one year ago)

Areas with Silver Spring addresses comprise most of the eastern side of Montgomery County, Maryland. Silver Spring is served by four Metro stations: Glenmont, Wheaton, Forest Glen and Silver Spring.

Housing stock in Silver Spring is every size, style, age and lot size imaginable due to the large expanse that Silver Spring covers. From one bedroom starter condos to multi-million dollar mansions, there is something for everyone.

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

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

Centreville, VA Market Report – 3/10/10

Centreville is located in Fairfax County, one of the largest counties in the Commonwealth of Virginia. From Centreville, it’s only a one hour drive to the mountains and three hours to the beach. With reasonably priced houses and a great lifestyle, what’s not to like?

The following statistics reflect the real estate market in Centreville, Virginia:

Homes for sale: 312 ( up from 288 last month, down from 402 at same time last year)
Closed sales: 58 (down from 90 in December)
Average sold price: $293,369 (down from $304,655 in December, but up from $272,000 in January 2009)
Average days on market: 41 (up from 36 in December)

Comparing each month to the previous month’s results has been like driving on a country road: small ups and downs, but the trend is unmistakable, prices are going up again. All the great fears and media reports about how the shadow inventory of foreclosures was going to cause a depression have so far been a bunch of hype. The real winners have been the buyers who have braved the media reports and jumped in and bought a house. With or without a tax credit, these folks are already looking very smart for taking action.

Prices in Centreville are rising and there is a trend toward declining inventory from which to select. As this trend continues, home prices should continue to rise as a result.

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

To Protect and Serve

Avery-Hess recently posted on our Facebook Fan Page an article that explored the idea that 80% of our results are generated from 20% of our activities. The post in essence gave a Real Estate twist to the Pareto Principle. There were a lot of good tidbits in the post, and certainly some good takeaways for folks in any industry, not just real estate. That said, there was something about the post that just didn’t sit well with me. The headline. And theme of the post. The assertion of:

Realtors, Do Less and Accomplish More.

That statement makes my skin crawl. It makes me bristle and fume at its very notion. It is wrong, on so many levels, and certainly sends the wrong message to a lot of constituencies, not just Realtors.

Real Estate is a demanding profession, of that there is no doubt. It is not easy. In my opinion, it is crazy to even consider the notion that Real Estate professionals can “Do Less and Accomplish More.” That sounds like a catchy hook used by vendors who hope to entice the casual reader with catchy buzzwords and marketing jargon in order to have them sign up for a subscription for their platinum services or consulting package. I contend if your Broker was providing support and assistance, helping you navigate the Real Estate waters teeming with vendors, self-appointed experts and peddlers of unsavory and useless wares, you would not need these “Platinum Membership” subscriptions. But that’s a different topic for a different post…

So Why’d you Post the Article on Facebook?

This one’s easy. Because it was a good article, other than the headline that soured my disposition. There’s a lot of good information in the article, and many points are valid and should be taken under consideration. That said…

Real Life ain’t Easy, and Real Estate is Hard Work

There I said it. Why folks in Real Estate seem to gloss over this fact is beyond me. Real Estate is a challenging profession. It takes expertise, and know how, and determination, and passion, and about 4,000 other things to be successful in this business. Most of all, it takes an unwavering commitment to be hyper-focused on servicing the needs of the Consumer. Your client(s). Your clients are making the BIGGEST financial decision of their lives. Be dogged in your representation of them and their interests. Understand and anticipate problems and issues before there are problems and issues. Make sure, doubly sure, that your clients are protected.

Real Estate is not about you, and how you can do less and accomplish more.

It’s about your clients. And how you can do more, way more. Way more than is necessary to ensure that they have an unbelievable Real Estate experience. I think the post that served as the inspiration for my dialogue certainly has a lot of valid points about how Realtors and professionals can increase business efficiencies. I think the post also has a lot of good information on effective usage of time, and skirts around the issue of time management (which the post really should have been about). There is no shame in wanting to manage time better in order to increase business efficiencies, but to me that is a LOT different that doing less and accomplishing more.

-Amit

Search for Homes and find a Real Estate Professional to Protect and Serve Your Interests: www.averyhess.com

A Brighter Outlook for Commercial Real Estate? It is up to the Regulators!

Last week Federal Reserve Chairman Ben Bernanke said:

…commercial real estate loans should not be marked down because the collateral value has declined. It depends on the income from the property, not the collateral value.

Why he didn’t come out and say this in 2008 will always be a mystery. If he had said it then, the world and particularly the US might have avoided this financial crisis.

In November 2007, FASB (Financial Accounting Standards Board) reinstated mark-to-market accounting for the first time since 1938. This rule uses the last price of a similar asset sale to value assets. This caused the market for asset-backed securities to dry up. The prices of bonds and mortgages that were still current in their payments fell by 1/3 to 1/2. In a roundabout way, this had the effect of wiping out regulatory capital, causing bankruptcies and creating a vicious downward spiral in the economy.

Last April, FASB told banks they could use asset cash flow to value bonds and mortgages. This fixed the immediate problems in the system, and the economy and financial markets have been on a tear since.

However, now we read that bank regulators are enforcing their own version of mark-to-market accounting by using the appraisal process. Regulators are forcing banks to write down loan values and increase loan-loss reserves by using appraiser-driven valuations. Appraisers? Aren’t they the same people that over-valued properties five years ago?

To the bank regulators, it does not matter if the loan is still being paid on time. Additionally, it does not matter to them if the lower valuation of the collateral will make the bank require that the borrower put up additional cash. The result is decreased bank lending that is hurting small business and making it more difficult to reduce unemployment, which is not necessary. Most banks are well capitalized today, better in fact than they were in the 1980s when banking losses were very high. In the 1980s we did not have mark-to-market rules, so if a loan was being paid on time, the bank did not have to set aside much in the way of reserves for it.

We need bank regulators to get on the same page with the Chairman of the Federal Reserve.

Post written by David Hess, Executive Vice President and Managing Broker

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

Judy Radvanyi Featured in The Washington Times

Last week, Avery-Hess’ very own Judy Radvanyi was profiled in a piece in The Washington Times. Judy appeared in the paper’s “Realtor Profile,” which features local real estate professionals. She’s been with Avery-Hess, Realtors since 1999 and is currently teamed with Albert Crider. Together, the duo is known as The Match Masters–matching people with their homes. To learn more about Judy, check out the video interview we did with her a few months ago and follow the link to her profile in the Times.