Choice Mortgage Moment -Tips to Consider When Loan Shopping [video]

Don Metcalf of Choice Mortgage offers some helpful tips to consider when looking to find the right loan for you.  Choice Mortgage Servicing, LLC is an affiliate of Wells Fargo Home Mortgage (Equal Housing Lender).

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

Leesburg, VA Market Report – 5/13/10

With a great variety of retail and restaurants, plus houses of every size, age and type imaginable, a buyer can certainly find what they want at a price of their choosing in Leesburg, Virginia. The report below represents the market conditions in Leesburg, Virginia.

• Homes for sale: 646 (up from 586 in March, and very close to the 662 one year ago)
• Homes sold: 108 (double the 54 of snowy February and up from 93 in March and up from 79 same time last year.)
• Average sold price: $420,963 (up from $380,889 last month and up from $382,406 same time last year.)
• Average days on market: 55 (down from 79 last month and way down from 93 one year ago.)

As we have been saying over the past year, prices in Leesburg have been rising steadily since December 2008 and are still trending up. For the first time in years, we are seeing a trade up market by those homeowners who did not over finance their property during the boom. With low rates, low prices and rising confidence, healthy housing consumers have decided to come back into the market.

We do not expect the expiration of the housing tax credit to have much effect on the housing market now that the recession is ending.

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

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

Local Real Estate and our Economic Recovery

Are we having an economic recovery? How about a recovery in Residential Real Estate?

The great debate among economists and TV commentators is what kind of recovery it will be. Typically recoveries look like a “V” when Gross Domestic Product (GDP) is tracked. Because of the high unemployment rate, many are saying we will not have a “V” recovery, but more of a slow and gradual rise. But don’t be fooled. Indicators for employment can be the last thing to pick up. It is considered a lagging indicator because employers do not start hiring until they are secure that they have growing demand for their product and a growing cash flow to pay for additional employees.

Let’s look at the evidence: Consumer spending is growing. This has a multiplier effect throughout the economy as each sale creates sales throughout the supply chain. Business investment is rising, at a whopping 18% annual rate. So the people who currently have jobs, just like the business owner, start to feel more secure and start to take more risk (buying things).

New unemployment claims are falling which reinforces what I have written above. So we are having a recovery, how about a recovery in real estate? Let’s go back to the 93-94% of the people in the DC Metro area that have jobs (the unemployment rate here is under 7%). If they do not own a house, they are prospects to be in the market to buy a house under today’s favorable conditions, low prices and low interest rates. If they own a house that was bought before 2005 or they made a large down payment when they bought, they are candidates to sell their house and buy a larger one. The people who are not in the market to buy are those who bought from 2005 through 2007. But normally people who have only owned their home for only three to five years are not selling anyway. The average is about seven years.

Steve Murray of Real Trends has consistently reported that about 5% of the population moves each year. During the boom that number swelled way above the 5% norm. So as the economic recovery continues, it will spillover into the Real Estate market here in the DC Metro area. Already those who had the courage to buy since December 2008, when prices bottomed, have been rewarded with increased equity both from mortgage principle pay down as well as some price appreciation.

So are we having a Real Estate recovery? The evidence says we have already started or are about to start. So buckle up your seat belt and get ready for the ride!

Commentary provided by David Hess, Executive Vice President.

Choice Mortgage Moment – How Much do I Need for a Down Payment? [video]

Don Metcalf of Choice Mortgage answers the a question that puzzles many prospective home purchasers – “How Much do I Need for a Down Payment?”

Choice Mortgage Moment: How Much do I Need for a Down Payment?

Choice Mortgage Servicing, LLC is an affiliate of Wells Fargo Home Mortgage (Equal Housing Lender). Click here to get started on the application process and learn about which down payment option is best for you.

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

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