A look back at July...It was hot!

DC Residential Market Overview

Every month the Greater Capital Area Association of Realtors (GCAAR) releases area home sales data.  Let’s take a look at the Washington, DC housing market trends from July 2015.

The DC market continues to perform well, as we are seeing low inventory and record prices. There are fewer active listings than the same time last year, and with just 1.95 months of supply, it’s a very strong seller’s market. This means seller’s are getting what they are asking for, and they are getting it quickly, with half the homes selling in 11 days or less at 100% of list price.

If you’re a property geek like me, or just love data, check out the full report by RealEstate Business Intelligence, LLC (RBI).   

What's happening with condos & coops?

Listings

There were 469 new listings in July 2015, compared to 441 new listings a year ago this time, which is a strong 6.3% increase. We saw a total of 664 total active listings, a decline of 0.7% compared to July 2014. The majority of the listings fell within the $200,000 - $699,999 price range, with condos & coops in the $400,000 - $999,999 range seeing the greatest increase in inventory year-over-year.

Contracts

In July 2015, 385 homes went under contract, which was an increase of 12.9% compared to July 2014.  Similar to what we saw with the month’s listings, the bulk of the contracts were placed on homes in the $200,000 - $699,999 range.  However, the market is heating up for condos in the $600,000 - $899,999 range, going from 38 total contracts in July 2014 to 64 this year.

So what's this mean?

Buyers

If all of this talk about a seller’s market makes you cringe, just remember, you’re not alone. However, home prices continue to rise year-after-year, so hesitating to buy now could cost you in the long-run. In addition, interest rates have been historically low for historically long, and the Fed has already indicated an increase is in sight. A good agent can map out a sound strategy as you enter the process, which will save you time, money and stress. Your agent should have the resources you will need to make your offer appealing, while also ensuring you don’t buy that dream home with the cracked foundation!

Sellers

As you may have heard, it’s a strong seller’s market, and condo/coop sale prices continue to increase year-over-year. However, all good things must come to an end, but when exactly will that happen??? There are three things that contribute to how quickly your home sells: 1) Price; 2) Access; and 3) Marketing. As a homeowner, you determine the Price to list your home, as well as how Accessible it will be to prospective buyers. Your agent should handle the Marketing, and most importantly, negotiate a smooth transaction from start to finish.  When considering a listing agent, be sure to work with one who understands these concepts and can assist you in making informed decisions throughout the process.  

DC Condo and Coop Stats

Every month, the Greater Capital Area Association of Realtors (GCAAR) releases Washington, DC and Montgomery County, MD home sales statistics.  The DC condo and cooperative market has been hot, so let’s take a look at the numbers from June 2015.

Listings

There were 531 new listings this month, compared to 557 new listings a year ago, showing a 4.7% decrease. There were 664 total active listings in June, a decline of 3.3% compared to June 2014. The majority of the listings fell within the $200,000 - $699,999 price range, with condos & coops in the $400,000 - $799,999 range seeing the greatest increase in inventory year-over-year.

Contracts

In June 2015, 435 homes went under contract, which was an increase of 6.1% compared to June 2014.  Similar to what we saw with the month’s listings, the bulk of the contracts were placed on homes in the $200,000 - $699,999 range.  However, the market is heating up for condos in the $600,000 - $799,999 range, where we saw a greater than 150% increase in units going under contract year-over-year.

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Courtesy of the Greater Capital Area Association of REALTORS®

Settlements

More homes were sold in June 2015 compared to June 2014, but not by a lot.  To date, 1907 condos & coops have sold in 2015, whereas 1891 were sold during the same period in 2014. 

Absorption Rate

Ever heard of the Absorption Rate? This is simply the rate at which available homes are sold in a specific real estate market during a given period of time. It is calculated by dividing the total number of available homes by the number of sales per month. In June 2015, there were 664 total active listings, while 435 condos & coops went under contract during the same time, making the Absorption Rate just 1.53.  This means the DC condo & coop market strongly favors sellers, and buyer’s are finding themselves in bidding wars. 

To make sense of this, let’s say no additional homes came on the market in the foreseeable future. After just 1.5 months, all of these condos/coops would be sold! Historically, a balanced market would have an Absorption Rate of 4, with anything higher indicating a stronger buyer’s market and anything lower indicating a stronger seller’s market. At 1.5, it is a very, very strong seller’s market, and buyers have less leverage at the negotiation table.  

What does this mean to me?

Buyers

If all of this talk about a seller’s market makes you cringe, just remember, you’re not alone. However, home prices continue to rise year-after-year, so hesitating to buy now could cost you in the long-run. In addition, interest rates have been historically low for historically long, and the Fed has already indicated an increase is in sight. A good agent can map out a sound strategy as you enter the process, which will save you time, money and stress. Your agent should have the resources you will need to make your offer appealing, while also ensuring you don’t buy that dream home with the cracked foundation!

Sellers

As you may have heard, it’s a strong seller’s market, and condo/coop sale prices continue to increase year-over-year. However, all good things must come to an end, but when exactly does that happen??? There are three things that contribute to how quickly your home sells: 1) Price; 2) Access; and 3) Marketing. As a homeowner, you determine the Price to list your home, as well as how Accessible it will be to prospective buyers. Your agent should handle the bulk of the Marketing. When considering a listing agent, be sure you work with one who understands these concepts and can assist you in making informed decisions throughout the process.  

Open House Sunday - Chevy Chase, MD

4006 Underwood Street
Chevy Chase, MD 20815
Offered at $1,650,000

Open House this Sunday (8/16/15) from 1-3 pm at 4006 Underwood Street, Chevy Chase, MD 20815. 

The modest facade of this property belies a spacious, totally renovated and expanded house. From the moment you walk into the generous formal foyer, you know you've found home. Touting hardwood floors throughout, crown moldings and an open plan with exceptional flow, this home is ideal for modern living.

White Shaker-style cabinets and granite counters blend seamlessly with the high-end stainless appliances in the gourmet, table-space kitchen. Adjacent to the kitchen are a formal dining room and a large family room, the latter of which features French doors to the rear yard and opens to the formal living room.

A wood-burning fireplace with decorative mantel anchors the living room, which leads to a charming screened side-porch via elegant French doors. A powder room cleverly tucked out of the way completes the main level.

Upstairs, the master suite enjoys its own private wing. The spa-like en-suite "Diana Royale" marble bathroom boasts double vanities and a luxurious shower with massaging shower heads and bench. A spacious walk-in closet with built-in organizers and a second large closet are perfect for two or the most demanding fashionista. The bedroom itself features three exposures overlooking the rear garden and is large enough to accommodate a private seating area.

The beauty of this home is more than meets the eye! The systems throughout have been replaced and upgraded. From new plumbing, electrical and HVAC systems to a new roof this home combines the best historic touches with the peace of mind of a newly built home.

Situated in the Town of Chevy Chase, this home is ideally located on a quiet side street. It's but a short walk to the Bethesda Metro stop, all the shops and restaurants of downtown Bethesda, and it's just minutes to DC or the Beltway.

Open House on Sunday - One Bedroom NoMa/Mt. Vernon Rental

66 New York Ave, NW #206
Offered at $1,495/month

Main Entrance

Spacious 1-bed/1-bath with huge eat-in kitchen, open floor plan, wood floors, CAC, & 9 southern-facing windows in the heart of the city. Just a 5 min walk to NoMa Metro and only 5-15 min walk to everywhere - Union Market, Convention Cntr, Mt. Vernon Sq, Union Station, Harris Teeter, Safeway. You won't find a better deal in NW...and did we mention it comes w/ parking access!! Open House Sunday 1-3PM!

As you enter this quiet condo, you’ll be greeted with a welcoming foyer that has enough space (12’ x 10’) to set-up that home office you’ve always wanted. Head into the spacious living room and you’ll find 8’+ ceilings, a wall of windows with southern exposure, and hardwood floors that provide that “home sweet home” touch.  

Living Room

Like to cook or entertain?  You can do both in this roomy apartment, as you’ll find one of the largest kitchen/dining rooms (22’ x 14’) in town, as well as the openness you will need to still chat with your guests in the living room. You’ll also have plenty of fresh sunlight, as the kitchen/dining room has three large windows with southeastern exposure.  When it’s time to clean-up, just toss those dishes into the dishwasher and take a short 15 minute stroll to Union Market for a sweet treat at Dolcezza Gelato.

Dining Room

When it’s time to wake up and get the day started, you’ll have plenty of options when it comes to commuting.  The community has a gated parking lot, with parking on a first come, first served basis. There’s plenty of space for your bike or scooter, with a recently expanded bike rack on the secured property grounds.

Secure Parking Available for Residents

If you’re walking to the Metro, it’s 5 minutes to the Red Line (NoMa-Gallaudet U) and just 10 minutes to the Yellow and Green Lines (Mt. Vernon Square – Convention Center). The Metrobus is even closer, with the P6 Line just a block away to take you downtown.  Union Station is a 15-minute walk and a five minute Uber, so the Megabus/BoltBus trip to New York City is a breeze.    

Metro is 5 Minute Walk

With the convenience and space needed to live comfortably in the city, make 66 New York Avenue, NW #206 your next home.

 

Ever heard of TRID?

...or maybe you've heard about the Consumer Protection Financial Bureau's (CFPB) "Know Before You Owe" campaign.  I wrote about mortgage docs being simplified a few months ago, and as expected, things have changed. The rulemaking is a good thing overall, but as with all regulatory changes, there may be a few kinks to work out during the implementation period.  

History

Back in the day borrowers had no idea how much cash they would have to bring to settlement? Folks were really walking into the room to sign their final loan docs, and not knowing whether they'd receive a $1500 check or have to write a $10,000 check...pretty ridiculous. Then we had the financial crisis, thus the passage of Wall Street Reform in 2010, which created this new government consumer watchdog called the CFPB. The CFPB is implementing the "Know Before You Owe"  or TILA-RESPA Integrated Disclosures Rule (TRID), which will soon give borrowers three days to review their final loan docs before going to settlement.  This will take away the uncertainty of the past. The CFPB also revamped the forms you'll receive, so loan information will be simple and easy to understand. 

Unfortunately, this change kind of caught the lending industry by surprise, and the logistical changes for many lenders will take some time to perfect. The good news is that the CFPB is now allowing a grace period for lenders to work out the kinks, particularly since they had originally planned to fine lenders for violations (even minor clerical errors) from day one of implementation.

What does this mean to me?

Some lenders have been preparing for these changes for years, and some lenders are just now implementing the changes. Therefore, if you're going to purchase or sell a home after October 3, 2015, your settlement dates may bump from 30 days to 45 days. Therefore, working with a lender who is prepared for TRID can make the difference between getting your dream home or losing it because the seller needs to be out of the place in 30 days. Be sure to work with the right lender, and an agent who can help you ask the right questions during the lending process.   

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