I am currently down at Keller Williams International’s annual Family Reunion conference in Orlando, Fl.  I finished up talking with someone who has encouraged me to get back into the habit of blogging.  As the subject line denotes, I will start with the current level of activity for the Great Falls Market.

Whenever doing a search for homes in Great Falls, it is extremely important to differentiate between that part of Great Falls located in Fairfax County and that in Loudoun County.  While both in the 22066 zip code, the difference in price is typically at least $200,000 – $300,000 with the Fairfax side of the border costing more.  For the purposes of this particular entry, I will be focused on the Fairfax side.

A quick run of homes on the market will bring up a total of 112 listings.  Of this number, 10 are rentals ranging in price between $2,800 to $6,800.  Since my primary purpose here is to discuss sales, I will eliminate these from the total number of homes.  This in turn puts us a 102 active listings which will need further refinement.  I normally subtract those listings that are “to be built” homes.   My objective here is to determine how many properties are currently available for sale and are ready to move in.  A total of 24 listings show up as “to be built”.  One more property is really nothing more than a land listing.  The to be built properties range in price from $833,714 on a 1.2 acre lot on Thomas Ave. to my listing at 119 Clarks Run Rd. which is priced at $3.95 million and will be built on an 8.9 acre property.

Now with these 25 listing removed, we end up with a total of 77 homes actually move in ready.  Twenty-three of these properties are priced under $1.0 million.  Twenty-four between $1.0 – $1.5 million.  Ten between $1.5  – $2.0 million.  The remaining homes range in price from $2.199,888 (not too sure why) to an incredible home on Innsbruck priced at $8.75 million.  My whole purpose behind providing this is to show the real diversity of homes and price points available in the Great Falls market.

During the last 30 days, a total of 20 homes sold in Great Falls ranging in price from $440,000 – $3.650 million.  As of today, there are a total of 25 homes under contract ranging in price from $425,000 to $4.5 million.  With 77 homes available and 20 sold during the past month, that puts our Great Falls inventory at slightly under four months.  In normal times, anything under a four month inventory would be termed a sellers’ market!

Sold

$1,150,000

Experience what Great Falls is all about in this dream home with approximately 7,000 square feet of living space.  The tranquil 2.9 acre setting includes a private pond with its own waterfall and sand beach.  The home features a recently updated kitchen, a fabulous sunroom overlooking the pond, wrap around porch, oversized deck with Gazebo, large family room, carriage house with private apartment and much more.  All this and just a short walk to River Bend Park and all the amenities offered by the Potomac River.

For the past 2+ years, we have been hearing that housing starts are down. In the shallow way in which our media reports things, this has been presented as something less than desirable. Although not an economist, for the same 2+ years, I have been saying that this is actually a very good thing for the long term health of both our housing market and the U.S. economy in general. Builders and investors got carried away with home construction during 2004 and 2005. They ended up putting way to much inventory into the market place than was needed. We are just now entering into a period where there is beginning to be housing shortages (in certain markets). This in turn has caused rents to increase. This is very much the case in parts of Fairfax and Arlington Counties.

The June 20th issue of the Economist contains an article entitled: “Will housing save America’s economy?” that is discussing the fact that there is a large pent up demand for new housing. To read the full Article, click on the link: Economist Article. Hope you find this of interest.

Sold

Beautifully Upgraded 4 Bedroom Townhouse withing walking distance of Metro.

Priced at $445,000

Link to photos should be available by 4/25.

Offered at $1,900,000

This fabulous Craftsman style home is located within minutes of DC. The elegant dining room is perfect for those formal occasions. The main level kitchen/family room and the lower level club room with bar and fabulous home theater provide a more casual venue. The kitchen features granite countertops and maple cabinetry with Subzero refrigerator, Viking range, Thermador wall oven and microwave, and Bosch dishwasher. The lower level bar area includes a refrigerator, ice-maker, oversized wine chiller and Bosch dishwasher.

Please join Nancy and me for the March 28th Military Appreciation Mondays dinner.  We are taking a little license by hosting this month’s event in support of the CIA Officer Memorial Foundation.  Having raised over $100,000 during the past two years, we determined that it was time to support an organization that is very close to home.  As I said at last month’s dinner, this one is personal.  Do come out and show your support for the families of those CIA officers who have given their lives in support of our nation.  Because of operational security reasons, many of these individuals will never get the recognition they deserve and their families can never say how they died.  They will forever be remembered as stars on the wall.  We are asking everyone to make a reservation sooner rather than later since we would like to fill the Old Brogue to capacity.

For those of you unfamiliar with how MAM works, you simply come out and enjoy a great dinner at the Old Brogue in Great Falls.  We and our co-sponsors will each make a 10% match of your dinner tab.  (We are always seeking new sponsors.) Last month we had a 110% match of the total restaurant receipts at the Old Brogue.  We will be doing two seatings at the Old Brogue, so make your reservation for either 5:30 or 7:30.  To make a reservation call the Brogue at (703) 759-3309.

I can assure you that it will mean a great deal to myself and my former colleagues to see a room full of faces who recognize the risks they take each and every day.  Do come join us in sending the message that we truly care.   All you need to do is pick up the phone, make a reservation and come enjoy a great dinner.  Please share the attached flyer with anyone who may be interested in attending.

Five Reasons You Should Sell Your House TODAY!

Selling your house in today’s market can be extremely difficult.  It is for that reason that every seller should take advantage of each and every opportunity that appears.  Each fall, such an opportunity presents itself.  This fall, that opportunity may be just too good to pass up.

Below are five reasons you should consider pricing your house to sell in the next 90 days.  Meet with your real estate agent and mortgage professional today and see whether it is the right move for you and your family.

1. Entering this time of year, the buyers are more serious.

We all realize that buyers are not quick to pull the trigger on the purchase of a home today.  There is no sense of urgency with the supply of eligible properties at all time highs.  However, at this time of year, the ‘lookers’ are at the stores doing their holiday shopping.  The home buyers left in the market are serious and are more apt to make a purchasing decision.  Less showings – but to more motivated purchasers.

2. If you are moving up, you can save thousands.

The Chicago Tribune stated in an article last week that sellers who want to ‘trade up’ should act now:

It could be a bigger house, different neighborhood or a better school district, but it comes with a higher price tag. Do the math; this might be the right time.

A home that was once worth $300,000 may now be worth $240,000 in a market where prices have fallen 20 percent.  Wow, you think, the seller is taking a bath.  But that seller may also be a prospective buyer who wants a house that once was valued at $400,000. With an equivalent market drop and a realistic listing price, that house may now sell for $320,000.  So, in effect, the person is losing $60,000 on the sale of one home but coming out ahead $20,000 on the purchase of another.

Keep in mind the spread may be even greater.  There’s a smaller pool of potential buyers for more expensive homes, so sellers may be more willing to cut their price to get a deal done.

3. Interest rates just fell again – to 4.19%.

Professor Karl E. Case, the founder of the Case Shiller Pricing Index in an article in the New York Times last month actually did the math for us:

Four years ago, the monthly payment on a $300,000 house with 20 percent down and a mortgage rate of about 6.6 percent was $1,533. Today that $300,000 house would sell for $213,000 and a 30-year fixed-rate mortgage with 20 percent down would carry a rate of about 4.2 percent and a monthly payment of $833 … housing has perhaps never been a better bargain.

4. You beat the rush of inventory that is coming next year.

Every year there is an increase of inventory which comes to market from January through April as homeowners put their houses up for sale in preparation for the spring market. As an example, here is the number of listings available for sale in each of those months in 2010.

-  January – 3,277,000

-  February – 3,531,000

-  March – 3,626,000

-  April – 4,029,000

You won’t have to worry about this increasing competition if you sell now.

5. You have less ‘discounted’ inventory with which to compete.

This year, sellers of non-distressed properties have been given an early holiday present. With banks declaring a suspension on the sale of many distressed properties (foreclosures), there has been a large supply of discounted properties removed from competition.  No one knows how long this self imposed moratorium will last.  However, while it does, every homeowner has a better chance of selling their property.

Bottom Line

If you are looking to sell in the near future, there may not be a more opportune time than this fall. Serious buyers, great move-up deals and less competition from foreclosures creates the perfect selling situation. Don’t miss it!

Thanks to all our great supporters, the Military Appreciation Monday event raised nearly $4,000 for Operation Second Chance.  We had nearly 100 people turn out for the dinner to include several servicemen and women currently stationed at Walter Reed Army Medical Center.  One of the greatest parts about the evening was that two of the most desirable door prizes were won by one of our visiting vets.  He walked away with a two day stay at the Lodgecliffe on the Choptank Bed and Breakfast and a fabulous apple pie from B. Sweet.  The four star lodging is donated each month by Dawson Richardson at Merrill Lynch.  B Sweet has donated two pies for each of our last two events. The wife of another vet won the biggest prize of the evening, a beautiful pendant donated by Adeler Jewelers.

If you have a chance, please be sure to give a big thanks to our co-sponsors and door prize donors.

Co-sponsors include:

The Old Brogue
LSA Title Services
Gary Kaihara, DDS
The Grossman Family
Julius Fleischman
The Norman Family
The Nelson Family
James Gaudiosi – Wells Fargo Home Mortgage
Taylor Allgyer – First Savings Mortgage
Carrillon Capital

Door Prizes for this month were donated by:

Adeler Jewelers

Lodgecliffe Bed and Breakfast

Dominion Title

PF Chang’s

Maison Du Vin

Great Falls Design Build

State Farm Insurance

Great Falls Exxon

B. Sweet Pies

As I have been saying (and writing about) during the past two years, our local real estate market will likely be the first to return to normalcy.  This is based on the fact that our local economy continues to be a fairly strong once.  A recent Washington Post Article entitled, “In Throes of Recession, D.C. Stands Apart”.  I have also been warning that we may well see a spike up in prices for both first time home buyers and move up buyers.  This due to what I believe will be a severe lack of new homes coming into the local inventory.  Many first time buyers have been looking at foreclosures as a means of getting into the market.  This is beginning to wane as those opportunities become less and less.  While the number of foreclosures currently at 179 for Fairfax County may seem high, a total of  225 sold in October alone in 2009 compared to only 113 for September 2010.  If you or someone you know is contemplating a purchase in the near term, I would suggest they consider doing so during the next three to four months.  I fully believe that once our spring market kicks in, we may well see a spike in prices as the inventory gets eaten up quickly.  This has already begun to happen with homes located inside the beltway in Virginia with homes receiving multiple offers and in some cases offers that include escalation addenda.   We also have record level interest rates for 30 fixed mortgages.