According to the MRIS (Multiple regional information Service), the following real estate transactions have taken place in Georgetown during the week of 3/24-30:
11 new listings: 5 Single Family ($715,000-$7,900,000) and 6 condo/co-ops ($336,500 - $3,200,000)
4 properties came under contract: 2 SF ($1,575,000 to $1,699,000) and 2 C/C ($399,000 - $1,099,000)
0 properties went to closing.
3/30/2010
Inventory is low?
Given all the news about the glut of homes on the market as a result of foreclosures and short sales, there is a surprising dearth of houses for sale in our area, including Georgetown. The Greater Capital Area Association of Realtors reports that, compared to a year ago, inventory is down in all but one price range...from $150,000 into the millions. That seems counter-intuitive and is especially surprising in that we are going headlong into the Spring Market. Georgetown real estate is no different. I expect that to change in the next couple of weeks as both buyers and sellers gain more confidence.
3/29/2010
Georgetown Realtors finding a more active market
We are seeing more activity in all phases of the Spring market...open house attendance is up, there are some properties with competing offers, and maybe prices while not going up, are stabilizing. Still, the properties which are priced in line with comparable sales of the recent past, are the ones which are getting the best attention. Properties which are priced at "a reach" are taking a while to sell, and often at a price lower than they might have garnered had they been priced more realistically to begin with.
3/26/2010
Rise in DC population outpaces other regions
In an article by Carol Morello, in the Washington Post, it is noted that our DC region has lost fewer jobs, and has had a greater surge in population than other metropolitan regions of the US. "It's got to be people moving here for jobs," said John McClain, deputy director of the Center for Regional Analysis at George Mason University. "We are the healthiest economy of the whole country, in terms of how we have fared during the recession, relative to jobs." DC has an increase of 5% over the previous decade.
These are good signs for our real estate market, and should be percolating into Georgetown real estate as it progresses.
To read the entire article: http://www.washingtonpost.com/wp-dyn/content/article/2010/03/23/AR2010032301808.html?referrer=emailarticle
These are good signs for our real estate market, and should be percolating into Georgetown real estate as it progresses.
To read the entire article: http://www.washingtonpost.com/wp-dyn/content/article/2010/03/23/AR2010032301808.html?referrer=emailarticle
3/25/2010
Georgetown Stats - week of March 15-23
According to the MRIS (Multiple regional information Service), the following real estate transactions have taken place in Georgetown during the week of 3/15-23:
12 new listings: 6 Single Family ($799,000-$2,750,000) and 6 condo/co-ops ($369,000 - $699,000)
6 properties came under contract: 2 SF ($1,295,000 and $1,425,000) and
4 C/C ($499,000 - $1,295,000)
6 properties went to closing: 3 SF ($1,425,000 - $6,350,000) and 3 C/C ($995,000 - $4,200,000)
12 new listings: 6 Single Family ($799,000-$2,750,000) and 6 condo/co-ops ($369,000 - $699,000)
6 properties came under contract: 2 SF ($1,295,000 and $1,425,000) and
4 C/C ($499,000 - $1,295,000)
6 properties went to closing: 3 SF ($1,425,000 - $6,350,000) and 3 C/C ($995,000 - $4,200,000)
3/24/2010
‘Affordability’ index is at or near record levels.
This is an excerpt from an article written by Jeff Detwiler, President of Long & Foster Companies.
Housing Affordability – Whichever Index You Look at, The Value Story is Great for Buyers
First, there are actually several indexes out there from various sources. For example, the NAHB (National Association of Home Builders) has one they call the Housing Opportunity Index or HOI and the NAR (National Association of Realtors) publishes the Housing Affordability Index or HAI.
While both indicate we are at or near record levels, I want to focus on the NAR index as the topic of today’s note.
The NAR Housing Affordability Index – What is It?
Essentially, the index is a measure of the financial ability of U.S. families to buy a house.
In the simplest terms, an index value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home.
An index above 100 signifies that a family earning the median income has more than enough income to qualify for a mortgage loan on a median-priced home, assuming a 20 percent down payment.
The NAR Housing Affordability Index – Trending Higher
The current index at the end of 2009 stood at 171.6, 56 points above where it was at the end of 2007!
What this shows is that the relationship between home prices, mortgage interest rates and family income is very favorable right now.
The NAR has said that it is the most favorable since tracking began in 1970!
The Impact of Mortgage Rates
While pricing is obviously important, mortgage rates drive a significant piece of the affordability puzzle. It’s important to keep in mind that for every increase of 100 basis points (or 1% in rate); the monthly payment goes up about $63 per month for each $100,000 borrowed. Over the life of a 30-year loan, that can add up quickly - to $22,680 for each $100k borrowed.
If you would like the actual reports, please let me know and I will forward a link. darrell@lnf.com
Housing Affordability – Whichever Index You Look at, The Value Story is Great for Buyers
First, there are actually several indexes out there from various sources. For example, the NAHB (National Association of Home Builders) has one they call the Housing Opportunity Index or HOI and the NAR (National Association of Realtors) publishes the Housing Affordability Index or HAI.
While both indicate we are at or near record levels, I want to focus on the NAR index as the topic of today’s note.
The NAR Housing Affordability Index – What is It?
Essentially, the index is a measure of the financial ability of U.S. families to buy a house.
In the simplest terms, an index value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home.
An index above 100 signifies that a family earning the median income has more than enough income to qualify for a mortgage loan on a median-priced home, assuming a 20 percent down payment.
The NAR Housing Affordability Index – Trending Higher
The current index at the end of 2009 stood at 171.6, 56 points above where it was at the end of 2007!
What this shows is that the relationship between home prices, mortgage interest rates and family income is very favorable right now.
The NAR has said that it is the most favorable since tracking began in 1970!
The Impact of Mortgage Rates
While pricing is obviously important, mortgage rates drive a significant piece of the affordability puzzle. It’s important to keep in mind that for every increase of 100 basis points (or 1% in rate); the monthly payment goes up about $63 per month for each $100,000 borrowed. Over the life of a 30-year loan, that can add up quickly - to $22,680 for each $100k borrowed.
If you would like the actual reports, please let me know and I will forward a link. darrell@lnf.com
3/23/2010
Changes coming to FHA financing
In about a month or so, FHA is changing its financing guidelines, increasing the amount of the upfront mortgage insurance and reducing the amount allowed for sellers to credit buyers. If one is considering buying a property priced up to $800,000, now would be the time to act. With the home buyer's credit, and the more relaxed terms of the current FHA financing, there isn't likely going to be a better time in the near future.
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