Posted on February 08, 2013 by Chris
Feb

08

2013

Children love snow days because they mean hours of sledding instead of school. But heavy snowfall can also cause home sales to slow. If we get the heavy snow that some have predicted for February, we could see a temporary drop in sales.

Today, heavy snow is falling in New England. Folks up there might be under two feet of snow by tomorrow.

“There will be a dropoff in buyer activity,” Nancy Klopfer said on Thursday night. She’s a broker with Coldwell Banker in Albany, NY. “I’ve already had showings for the weekend that have cancelled. Other agents don’t want to be out selling houses in this weather.”

Posted on February 07, 2013 by Corey Hart
Feb

07

2013

The real estate market in the DC Metro, Baltimore Metro, Northern Virginia and Greater DC area continued to strengthen in 2012.  We decided to take a closer look at the year-over-year trends for a variety of metrics and identify some Top Fives per region.  Most Expensive, Most Affordable, Biggest Price Increase, Biggest Increase in Sales, Shortest DOM, Longest DOM, and which ZIP codes had the lowest or highest sales to list price ratio per region. 

Of all ZIP codes analyzed, 22206 in Great Falls had the highest median sale price at $961,250. Baltimore's 21223 had the lowest median price at $18,000. 22205 in Arlington had the lowest Median DOM, where half the homes sold were on the market 10 days or less!

Posted on January 10, 2013 by Corey Hart
Jan

10

2013

Lowest level of new listings for any month on record

OVERVIEW

As the year concludes, most indicators point to a healthier market than last year, but several clues reveal a possible softening of demand in the near-term.  Sales numbers and the median price are up from this time last year, but new contracts have declined slightly for the 2nd straight month. Additionally, unseasonable declines in sales and median price from November could be an early sign of weakening demand.  The market is experiencing historically low inventory, with active listings at their lowest December-level in nearly a decade, and new listings at their lowest level for any month on record. While intuitively low supply would put upward pressure on prices, it could be that many buyers are deciding to delay their home purchase until more options become available on the market, which is loosening the pressure on pricing as evidenced by the $11,000 drop in the median sale price from November.  Many potential sellers could be hesitant to enter the market during the winter months, so an increase in the spring inventory would likely entice buyers back into the market, and push median prices back up.

Posted on December 10, 2012 by Corey Hart
Dec

10

2012

Demand for Townhomes remains strong causing the median sale price to jump $54K

OVERVIEW

The surge in new contract activity last month translated into a rise in sales for November. Sales are higher than last year, but new contracts are down slightly compared to November 2011. This could be an early indication of tempered demand in the market. The inventory of homes for sale continues to shrink, and new listings remain at their lowest level in over a decade. The low supply is putting upward pressure on median sales prices around the region. Price gains have been most pronounced in the townhome segment, which has led in year-over-year growth for 3 consecutive months. Townhomes also lead all segments in sales growth, and active inventory declines, which indicates strong demand for these properties. As the year-end approaches, the market tends to slow down, which will likely equate to an even lower supply of homes for sale in the coming months. Buyer demand has been consistent, but seller participation in the market remains low. This is due to both economic uncertainty and potential equity losses in many areas. With the Federal Reserve’s September announcement of continued low interest rates through 2015, it is feasible that many buyers will wait it out until more options become available in the market. This could mean slower sales and stable prices in the near-term.

Click here to view PDF version of this report

Posted on December 06, 2012 by Corey Hart
Dec

06

2012

Like most companies (and residents) of the DC Metro area, we're paying close attention to the fun-filled negotiations between the White House and the Republican majority in the house. Sequestration would obviously have a huge impact on the local economy, but our housing market is also extremely vulnerable to any mortgage interest deduction limits, even if relatively high caps are put on itemizers. For background, the always interesting (and concise) blog Econ70.com summarizes the new revenue options being considered (see their post):

"If all 1040-Schedule A deductions, including the mortgage interest deduction are capped at about $35,000, then homeowners with houses priced north of $500,000 would be the ones primarily affected, and their homes would fall in value. Interestingly, they might respond by reducing charitable giving. If, however, the deductible amount is limited to 80% of total deductions, then all itemizers would be hurt, and many more houses would decline in price."

How many of the homes sold (year-to-date) in key DC Metro areas would have been impacted by a $35,000 mortgage interest deduction cap?

Might be a good time for area homeowners to give their local congressman a ring!

 

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