For the eighth straight consecutive month, national foreclosure activity in the U.S. was dominated by a small set of states.
As reported by RealtyTrac.com, more than half of October's foreclosure-related activity came from just 4 states:
1. California
2. Florida
3. Illinois
4. Michigan
The remaining Top 10 states in terms of total foreclosure activity included Arizona, Georgia, Texas, Ohio, New Jersey, and Maryland.
Foreclosures are up 19 percent from last October, but a deeper look at the RealtyTrac report revealed two positive developments for the housing market.
1. Foreclosure activity is down 3 percent from last month
2. Foreclosures per Household decreased in 9 of the 10 most heavily concentrated states
Furthermore, Nevada's foreclosure pace is down 4% from last year. This is a big deal because Nevada has long led the nation in foreclosure-related activity. Until last month, Nevada's year-to-year foreclosure rate hadn't fallen in more than 4 years.

According to an industry trade group, distressed homes account for nearly one-third of home resale activity. Distressed homes range from foreclosures, foreclosure auctions and short sales, etc. We're seeing numerous short sale listings go to closing within 2-5 months now, and for great prices - call me anytime for more info. And if you know someone else who's upside down in the mortgage and needs help...tell them not to wait for their bank to decide their fate - Take Back Control! Call 703-400-6757 today. Thanks to Ken Byrne, Vice President for Residential Lending of First Savings Mortgage Corp (703-883-9582 ) for some of the content in this posting.

On Wednesday afternoon, Senator Ben Cardin introduced S. 1678, extending the $8,000 first time homebuyer tax credit for another 6 months to June 1, 2010.  The current tax credit is set to expire on December 1, 2009.  The bill has 4 co-sponsors: Ensign, Reid, Isakson, and Stabenow.  

This market is unlike any that I have seen over the past 8 years. Buyer activity is SOARING and inventory is down, which has buyers racing to get their contracts noticed and accepted, all while the first-time home buyers tax credit quickly ticks away.  The number of contracts written (offers) versus the number  actually accepted and pushed to closing is the biggest indicator of this shifting market, as that ratio is at its highest level in years.  My team recently sold a property at 13854 Laura Ratcliffe Ct. in Centreville, VA, which was listed for $235,868, but which actually closed on August 28^th for well above asking price.  The terms of the various offers made on that property exemplify these shifting trends:

Buyers were given one week to get their highest and best offers in and 8 were registered. The

highest offer was for 265K w/ FHA financing,  almost $30K above asking price. However, by the

end of the week, the seller had accepted an offer of only 240K, the difference being that that

contract had conventional financing and an EMD of 1% of the offer price.

This is a prime example of what prospective buyers are currently facing in this market, and with the obvious exception of the significantly depressed prices, it actually harkens back to the market we experienced in 2005-2006, at the ‘peak' of the last up-cycle. The obvious difference is the lower prices, but with the $8,000 tax credit expiring soon, frantic buyers are scrambling and multiple contract ‘bidding war' situations are slowly beginning to elevate prices. There are more qualified first-time home buyers now than ever before, and there simply are not enough affordable listings to satisfy that demand. Therefore, so-called "hot properties" (those which show well and which are priced at, or just below, current market value) are creating multiple offer bidding-war situations, and are often commanding premiums above current market value, particularly those priced below the critical $200K price point. Take for example a 3 bed/3.5 bath townhouse listing we currently have in Herndon: it was priced just below current market value at $202K, and we received 18 contracts within 6 days of listing! Although demand is particularly high for properties priced below $200K, due to the overall current low inventory across ALL price ranges, we are seeing similar ‘bidding wars' even for "hot properties" in the luxury home markets.  The low inventory can be attributed to the bank foreclosure moratoriums and a dearth of ‘retail' or regular listings - since prices are lower, many potential sellers are simply holding off, hoping to see the market bounce back up before listing their homes. Thus, current ‘retail' or regular listings consist primarily of only those sellers who really want and need to sell now - those who can afford to wait are generally doing so.  That being said, I highly recommend to those who have to sell their home within the next year to do so NOW so as to take advantage of this enhanced buyer demand caused by the low inventory and the soon-to-expire first time home buyer tax credit. You will get maximum exposure and maximum contracts by listing now, again, the key being to make your property a "hot property" - that is, a property which is reasonably priced (ideally just below current market value), which is aggressively marketed, and which shows well so that it appraises under many different financing scenarios. While I don't think we will find ourselves anywhere close to the 2005-2006 prices anytime in the near future, we are seeing positive signs in the current market, and it will be interesting to see how things shake out over the next year, as additional foreclosures will inevitably hit our market, and after the $8K first-time buyer tax credit expires on December 1^st.

Finally, good luck to those first-time buyers out there. Remember, in order to compete with those cash investors who are swooping in and picking up many of the good deals, be sure to investigate all your funding options, to include 1) conventional whenever possible, 2) as much cash down as possible, 2) higher EMD amounts and 4) low or no concessions whenever possible. Cash buyers simply avoid a lot of the issues that buyers with FHA and other financing options engender, such as appraisal and underwriting requirements.  Therefore, first time buyers should be sure to work with a competent lender and should discuss the multitude of creative ways to make your offer look stronger than the others!

It's always exciting to talk about your investors' successes - we had one this week...we found a great little house for $48,000 at 355 Manassas Dr, Manassas for one of our investors. They paid cash, spent $30,000 fixing it up with repairs like new paint inside and out, new flooring, new kitchen, and more. We listed it for sale 45 days after purchase for $138,000 (priced consistent with current market analysis) and we received 5 strong offers in 3 days. It is now selling for $165,000.

That's a profit of of over $80,000.

  355 Manassas Dr, Manassas, VA BEFORE

 355 Manassas Dr, Manassas, VA AFTER

If you're looking for a great resource for clients to check out on the New $8,000 Tax Credit for First-Timers, tell them to go to www.federalhousingtaxcredit.com. It supports what we're telling our clients. More people are eligible than they think!

Even before the House and the Senate started hashing out this new stimulus package now signed into law, our office was receiving numerous calls from first-time buyers. They've been watching the market prices go down and they're looking to buy. We've done a lot of extra marketing to bring those calls in, but we're going a step farther by getting a mailing address from them and sending out a hardbound first-time home buyers book. This is getting a great deal of response and commitment from these buyers. The books cost about $10 each and shipping is $5, but the pay off has been worth it!

What's everyone else doing to grab those first-time buyers? Also, what do you think the new stimulus package is actually going to do to stimulate those potential clients out there? We've been sharing the following info with our clients: (Interpretation from Justin O'Donell, First Heritage Mortgage)  

1. Eight grand, new buyers: The tax credit included in the economic stimulus legislation is much narrower than the one-time $15,000 proposal. This credit is equivalent to 10 percent of the purchase price of the home--although it's capped at $8,000--and applies only to first-time home buyers and principal residences. But unlike an earlier $7,500 home buyer tax credit, this one does not have to be repaid.

2. First time buyers defined: For the purpose of this legislation, a "first-time home buyer" is someone who hasn't owned a principal residence for three years before buying a house. (The date of purchase is considered the day that the title is transferred.) That means if you've owned a vacation home--but not a principal residence--within the past three years, you would still qualify for the credit.

3. 2009 buyers only: Only those who purchase a home on or after January 1 and before December 1, 2009 are eligible for the credit. Anyone who bought a home last year won't be able to take advantage of it.

4. Income limits: The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that's $150,000 for married couples. Those earning more than these thresholds may be eligible for reduced credits.

5. Refundable: Because the tax credit is "refundable," qualified buyers can take advantage of it even if they don't have much tax liability.

6. Recapture: Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce.)

HAPPY NEW YEAR everyone! With the arrival of 2009, I find it's time to take a look back at what my team and I have accomplished - while also looking forward to the great opportunities ahead, for buyers and sellers who are looking to get BACK IN BLACK in the new year...

First - a look back at an Awesome year. Thanks to the support of many, the Jennifer Young Homes team managed to earn a TOP Ranking for all of MLS - positioning Jennifer Young as the #1 Real Estate Agent (in volume sales) for Keller Williams Realty in the Washington DC Metro Area, including Maryland and Virginia. This was a huge feat! We sold over 276 homes, 116 of which, sold for original list price or within $5,000 of that price. These numbers also ranked me as #8 of ALL Realtors in DC Metro in terms of sales volume.

These are incredible stats, but rather than pat my own back, I've found the need to break down why my team and I were able to make 2008 so successful. And when you work for Keller Williams Realty, your success is determined by whether the deals you make are "Win-Win".  I believe our sales last year were exactly that. Sellers were able to get the asking price they were looking for, while facing a lower number of average Days on Market (DOM). And, buyers were able to find deals they wouldn't normally have had the chance to grasp, thanks to a shift in availability of affordable homes and to unbelievable opportunities in funding sources.

First, let's look at what sellers wanted vs. the bargains buyers were insisting upon each day the phone rang in 2008.  Buyers wanted homes at low prices, and they would not settle for anything higher than their bottom line. That meant that initial pricing was paramount in order to reduce DOM for sellers and it still is as we look to the new year. With each listing I am extremely detailed in setting that Original List price. This brings a sale faster, while also keeping prices down on the concession side of the equation. Here's what I mean. Average concessions (amount of $$ paid back to buyers at closing) in 2008 averaged 2.5% nationally. This percentage rises when a home is listed for more than 149 days. As a seller, regardless of what you plan on receiving for an offer on your home, if you price it right from day one, you pay less in concessions over the long haul.   

Second, lower interest rates are proving to be beneficial concepts for seller and buyers. Sellers are taking advantage of increased buyer activity, while buyers are enjoying average rates as low as 5.42% according to a survey performed by Interest.com on 12/17/08. Some lenders are even offering rates as low as 4.75% with good credit. That means, on a $200, 000 loan, with 10% down, a buyer's principle interest payment would be only $938 per month. At a higher 7% rate, with 10% down, the principal interest payment on $180,000 would still only be $1,197. That monthly amount is almost always lower than what most of our callers who rent are paying their landlords each month.

Thanks everyone for your hard work - and for supporters....thanks for all you do as well. Here's to an even better 2009!

As if the foreclosure market wasn't enough to keep up with, buyers are now playing their hand at taking a chance in the Auction market. This latest event on Saturday, February 7^th was hosted by Hudson & Marshall at the Hilton - McLean Tysons Corner. Buyers looking to bid on a house were given two chances to view it at scheduled open houses the week before. On the day of the auction, buyers were told they would pay the following if participating:

1) $5,000 Cashier's Check - used for Down Payment and

2)  5% Buyer's Premium - to be added to their final bid amount to equal their actual Final Sale Price.

 

In addition, potential buyers needed to bring with them to the auction:

1) Short list of homes you want to bid on (with property numbers)

2) Your pre-qualified price range

3) Picture I.D.

4) Social Security Number

5) Your pre-registered Real Estate Agent (Commission paid for by seller)

6) For those taking title in a company name or trust - bring articles of incorporation, trust 

    documentation or other proof of signing authority.

 

Now, the key to doing this and feeling comfortable with the process, is to come totally prepared. If you have a real estate agent - call them up and ask them to go with you. Just make sure to give them plenty of notice (the next auction is March 14^th). They can run comparables on the homes you like, so you know what your bidding cap should be. To represent you at the auction, they must register 48 hours ahead of time on-line as your representative.  We work with  many investors at these auctions and provide them with comparables, cash flow scenarios,  estimated costs of fix ups, etc.. before the auction date so they can make the best decision.  We would love to work with you on an auction property and can answer all of your questions about the process. Remember it doesn't cost you anything to have representation - you  pay the 5% buyer premium whether or not you have an agent. Go to http://www.ushomeauction.com/faqs.php  for more answers to your questions or give us a call at 703-674-1777.

 

For those of you curious about how much these auction homes are selling for, I wrote a few of the sales prices down on Feb 7^th  and crunched them against the most recent list price and the amount they sold for in the height of the real estate market. It's an interesting break down to check out:

 

Prince William County

2775 Marsala Ct #21C6, Woodbridge, VA 22192

TH - 2bd/2ba

Height of Market: $216,000 in 2006

Current List Price: $104,450

Final Sale Price: $52,500 (50% below list price)

 

16856 Miranda Ln, Woodbridge, VA 22191

TH - 4bd/3.5ba

Height of Market: $360,000 in 2006

Current List Price: $205,000

Final Sale Price: $140,000 (32% below list price)

 

16709 Capon Tree Ln, Woodbridge, VA 22191

TH - 3bd/2ba

Height of Market: $305,000 in 2005

Current List Price: $176,900

Final Sale Price: $112,000 (37% below list price)

 

12687 Greenhall Dr., Woodbridge, VA 22192

SFH - 3bd/1ba

Height of Market: $372,000 in 2005

Current List Price: $149,900

Final Sale Price: $92,000 (39% below list price)

 

14377 Shetland Ct., Woodbridge, VA 22193

SFH - 3bd/2.5ba

Height of Market: $392,000 in 2006

Current List Price: $139,000

Final Sale Price: $96,000 (31% below list price)

 

7915 Manassas Dr, Manassas, VA 20111

SFH - 3bd/1ba

Height of Sale: $232,887 in 2008

Current List Price: $105,900

Final Sale Price: $76,000 (28% below list price)

 

7521 Quail Run Ln., Manassas, VA 20109

TH - 3bd/1ba

Height of Market: $292,000 in 2005

Current List Price: $84,900

Final Sale Price: $68,000 (20% below list price)

 

18415 Woodland Dr, Triangle, VA 22172

SFH - 4bd/2ba

Height of Market: $280,000 in 2004

Current List Price: $110,500

Final Sale Price: $75,000 (32% below list price)

 

12916 Hunting Cove Place, Bristow, VA 20136

SFH - 4bd/ba

Height of Market: $558,000 in 2006

Current List Price: $331,900

Final Sale Price: $222,000 (33% below list price)

 

Fairfax County

1808 Old Meadow Rd #771, McLean, VA 22102

Condo - 1bd/1ba

Height of Market: $285,000 in 2005

Current List Price: $188,000

Final Sale Price: $175,000 (7% below list price)

 

7917 San Leandro Place #119D, Alexandria, VA 22309

TH - 2bd/1.5ba

Height of Market: $215,000 in 2005

Current List Price: $63,900

Final Sale Price: $48,000 (25% below list price)

 

4417 Longworth Square, Alexandria, VA 22309

TH - 4bd/2.5ba

Height of Market: $410,000 in 2005

Current List Price: $265,000

Final Sale Price: $150,000 (43% below list price)

 

4133 Old Columbia Pike, Annandale, VA 22003

SFH - 5bd/2ba

Height of Market: $325,000 in 2004

Current List Price: $269,900

Final Sale Price: $210,000 (22% below list price)

 

5955 Joffa Place, Springfield, VA 22150

SFH - 3bd/2ba

Height of Market: $507,500 in 2006

Current List Price: $315,000

Final Sale Price: $234,000 (26% below list price)

 

7745 Matisse Way, Springfield, VA 22153

TH - 3bd/1ba

Height of Market: $339,900 in 2006

Current List Price: $140,000

Final Sale Price: $94,000 (33% below list price)

 

Washington D.C.

4242 Nash St. SE, Washington, DC 20020

TH - 2bd/1ba

Height of Market: $225,000 in 2005

Current List Price: $129,900

Final Sale Price: $69,000 (47% below list price)

 

1311 Florida Ave. NE, Washington, DC 20002

Semi Detached - 3bd/2ba

Height of Sale: $325,000 in 1999

Current List Price: $214,900

Final Sale Price: $117,500 (45% below list price)

 

Prince George County

5900 Suitland Rd, Suitland, MD 20746

SFH - 4bd/2ba

Height of Market: $345,000 in 2006

Current List Price: $199,000

Final Sale Price: $122,000 (39% below list price)

 

4512 Broad Blvd., Beltsville, MD 20705

SFH - 3bd/2ba

Height of Sale: $266,700 in 2007

Current List Price: $169,900

Final Sale Price: $96,000 (44% below list price)

 

6007 Toby Dr, Temple Hills, MD 20748

SFH - 4bd/2ba

Height of Market: $333,000 in 2005

Current List Price: $149,900

Final Sale Price: $80,000 (47% below list price)

 

Another auction is scheduled for March 14th in DC through REDC and will feature some of our listings that have been listed for some time or had contracts fall through at the last minute. What's everyone else experiencing when it comes to losing listings to auction houses?

 

 

 

 

 

 

When I posted last night, I saw another blog by someone who was noticing it's getting harder and harder to get anyone to volunteer their time, talent or money these days, especially during the holiday season. I'm positive we all have a lot on our plates and it seems eveyone wants a piece of our time. Of course, as real estate agents, we know it's all about WHO you know, so volunteering serves more than one purpose. We can give our time to better our community AND we can also meet new people that might need our expertise in the real estate industry. So, if you are working in or around Fairfax County, I have the resource for you!!

www.volunteerfairfax.org  Volunteer Faxfax has a program called Volunteers for Change. You can read more about it at http://www.volunteerfairfax.org/DesktopDefault.aspx?TabID=16 If you decide to become part of the program, you don't get solicited all the time for help, you can simply log onto the system anytime you want and pick and choose what you'd like to do and for what organization. It's great!! There are programs for all ages and families can even work together.

There's an orientation coming up on Tues. Dec 2nd from 6:30pm-7:30pm and on Sun. Dec 7th from 2pm-3pm at Volunteer Fairfax, 10530 Page Ave, Fairfax, VA 22030. It helps to RSVP...you can do that on their website. Or you can just show up - whatever is easiest.

Check it out - you'll be glad you did....HAPPY VOLUNTEERING! 

Last year our team decided to pump up our marketing and built a website at www.megaagent.com . I crunched our numbers on our website www.jenniferyounghomes.com today and found out that our numbers have doubled just in the last month due to changes in how we market the featured listings. The reason I can do this is because MegaAgent has a Traffic Stats option that shows you where your visitors are coming from and where they're going after they're done. It also shows you visits by day, month, region and so on. This then allows me to see what marketing campaigns are working and why. Here's what I've seen happening with my website:

November 2008      1,864 Visits Total   

                             126 from Craigslist  

                               57 from Google 

                               49 from Realtor.com

                               10 from Postlets.com

                               11 from ActiveRain.com    (These were just the familiar places)

October 2008        683 Visits Total

                            49 from Google

                            38 from Realtor.com

                             8 from REOBroker.com

As you can see, the hits jumped big time and the referring URL's changed as well. Here's what we did different:

1. Included a hyperlink in Craigslist listings (prebuilt in Postlets) that takes viewers straight to my featured listings.
2. Included a website link in all Postlets listings.
3. Started Blogging again on Twitter, Active Rain and Blogger and updated all my info.
4. KEEPING my website - price changes, closings, under contract updates, etc. UPDATED on a daily basis so the return visitors will keep coming as well.

I'm always up for more info if anyone else has more ideas. Good Luck to you in your marketing efforts!