March 2021 Market Update

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Read the March 2021 Market Update transcript below. 

The real estate market is ever changing, and it’s our teams mission to help you achieve YOUR financial goals through the use of real estate so you can get into your next home and enjoy your life. The “busy season” is here. Interest rates are rising, inventory is still low, and demand for single family homes is still high… Let’s take a look at what this all means for you and for the market. We begin with a look at some national economic data, focus on DC area statistics, and then discuss what it means if you want to buy or sell a home. <br /><br />As your trusted real estate advisors, we are always looking at what’s happening globally, nationally, and locally. Here are some headlines that you may not be aware of.</em></p><p> </p><p><em> </em></p><em><ol><em><li>Mortgage Rates – During the pandemic, mortgage rates have been on a downward trend, drastically increasing housing affordability. We are seeing that trend reverse now as we move towards a recovery <br /><br /><img src=”” style=”max-width:100%;” /><br /><br /></li><li>These low interest rates pushed prices higher throughout the US. Check out this graphic showing the year over price changes by region throughout the US<br /><br /><img src=”” style=”max-width:100%;” /><br /><br /></li><li>The final numbers showed that nationally, home prices increased by an average of about 10% throughout the US in 2020.<br /><br /></li><li>So what do economists predict for 2021? Well somewhere between 3.3% and 10.3% based on who you ask, but when averaged, the group of top real estate related organizations forecast appreciate of around 5.9%. <br /><br /><img src=”” style=”max-width:100%;” /></li></em></ol><em><p>Now lets take a look at what’s happening locally. First, the number of listing for single family homes for sale throughout the DC Metro is historically low. You can see here that we are well below the lowest numbers we have had for the past 10 years. <br /><br /><img src=”” style=”max-width:100%;” /></p><p>Now let’s take a look now at how “low inventory” is affecting sales prices…. For the past 10 years, DC has seen solid appreciation, but this past year we jumped from an average sales price of $681,000 in February 2020 to $766,000 in February 2021 – and increase of 12% in one year!</p><p><img src=”” style=”max-width:100%;” /></p><p>Fairfax county saw $829,000 to $929,000 – a 9.8% gain. Loudoun saw $722,000 to $820,000 – an 18% gain. Now keep in mind this is for single family homes. When you look at condos, it’s a different story. While still stable, we are seeing some depreciation in condos as people remain cautious of moving back into small spaces. </p><p><img src=”” style=”max-width:100%;” /></p><p><span><ins cite=”mailto:Tim” datetime=”2021-02-16T09:38″> </ins></span></p><p>The demand for single family homes is exceptionally strong. Here is some anecdotal evidence.<span>  </span>The last few buyers we have worked with have been force to compete with other offers, sometimes up to 15! A single family home in Haymarket escalated to $75,000 above the asking price as did one in Ashburn. Both are beautiful homes. <br /><br />Our sellers have also seen great escalations: a townhouse we listed in Vienna escalated to $50,000 above the asking price and a single family in Falls Church escalated to $51,000 above the asking price. We have 10 houses under contract right now (March 2021) and all but one of them had multiple offers. It is still very competitive, but the market is beginning to shift. </p><p>The next four weeks will be critical in determining what happens in real estate this year. We need more homes on the market to to meet the buyer demand. Ten percent appreciation in a year is too much, but if we don’t get the inventory, we could see this again.<br /><br /><img src=”” style=”max-width:100%;” /><br /><br />Yes, interest rates are rising but they are still around 3% which is still really good [. The major lenders are predicting that they will stay between 3-3.25% in the next year.<br /><br />If you are a buyer right now, it is tough but not impossible–we are getting a lot of buyers great homes. If you have to sell to buy, then you need to have a very good plan to make sure all the details are coordinated. In selling and buying, we have identified over 250 steps that our team goes through to protect our clients and exhaust every option to either make you money or save you money—whatever the opportunity may be. We are also working with lenders to give our clients creative options for financing to help ease the transition.  If you are a seller moving away. It’s a great time to capitalize on high prices and cash out. We are looking for more homes to sell and can show you how to get top dollar.<br /></p><p>Whether you are a buyer or a seller, we are here to help YOU make the best financial decision with what is likely the biggest financial transaction of your life—trust it with someone that care about you and you can trust. Call us today to set up a no cost consultation to discuss your circumstances and we’ll help you create a plan to help you achieve your personal and financial goals through the use of real estate. Until then, Happy spring. Happy Easter – and we will see you in April.</p></em></em>