I thought it might be fun to throw in some comments from previous clients.  Please feel free to send my your thoughts.

I recently wrote a quick note to some folks who bought a Deck House in Reston.  I had said I wanted to stop by and see what they had done to their new home.  I knew from the moment we walked in the door that it was the perfect home for them.  Here is what Gene wrote back to me.

Bob. Come by anytime. We have done a lot. It has been fun. Thanks for helping us get it. I have never lived in a house I love more. You are the man Bob. See you soon.

Needless to say, I can’t wait to get by and see the home again.
A young couple (who are soon to have their first baby) bought their first home in Reston earlier this year.  We had looked at several homes together, but this particular townhome was an excellent value and in great shape.  Here is what Megan recently sent me.

Hi Bob, we’re really enjoying the house.  Of course you can stop by.
We’re out of the house until the evening most weekdays, so would over
the weekend work for you?

We’re sorry we haven’t been in touch, and we really appreciate all
you’ve done to help us get it.

I look forward to getting by and see it soon.  It will be even more exciting next fall after the baby is born.  I know they have to be extremely excited.

The Fairfax County Economic Development Authority just announced that Fortune Magazine has released its annual list of the 500 companies in the country with the largest revenue.  A total of  eight (up from seven in 2009) Fairfax County-based companies grace the list. Tysons Corner-based mortgage behemoth Freddie Mac comes in at 54, and defense-industry giant Merrifield-based General Dynamics is 69. Other Fairfax County firms on the list are Merrifield-based CSC (138), Tysons Corner-based Capital One Financial (144), Tysons Corner-based Science Applications International Corporation (SAIC) (215), Reston-based NII Holdings (468), Reston-based SLM (Sallie Mae) (354), and Tysons Corner-based Gannett (370). Fortunately, you can get the rest of the story from the Washington Business Journal’s Jeff Clabaugh.

Join us for dinner at

The Old Brogue in Great Falls

Monday, March 29th

Seatings at 5:30 PM and 7:30 PM

Reservations Highly Recommended

(703) 759-3309

Approximately 90% of your dinner bill

will be matched and donated to this month’s charity.

Lift Me Up! Therapeutic Riding

Door Prize Drawings will be held

Also Ask About Our Buy a Vet Dinner Donations

Hosted by

The Bob Nelson Team

Previous Co-sponsors Include:

Bob Nelson

Knight Point Systems

Terry Nelson – Mercury LLC.

Kevin Shiner – Shiner Roofing and Siding

James Gaudiosi – Wells Fargo Home Mortgage

Danny Ott – Wells Fargo Home Mortgage

Chris Melnick – LSA Title Services

Gary Kaihara, DDS

The Old Brogue

Previous Door Prize Donors include:

Golds Gym

Dominion Title

Adeler Jewelers

Casa Noble Tequila

Elite Fitness Concepts

Campbell Mechanical

PF Chang’s Restaurant

Great Falls Design Build

Lodgecliffe Bed and Breakfast

According to data from the National Association of Realtors, pending home sales were up 3.7 percent in October, compared to September, and up 32 percent when compared to October 2008.  This was the biggest annual increase in history.  Keep in mind that October 2008 was a historic low so we should not be surprised by the huge increase.

Pending home sales — which equates to the number of contracts signed but have yet to close — rose in all sections of the country except the West.  They were up 20 percent in the Northeast, 11.6 percent in the Midwest and 5.4 percent in the South, but down 11.2 percent in the West.

Part of the surge is probably attributable to buyers rushing to take advantage of the government-subsidized first-time home buyer’s credit, which was set to expire at the end of November but now has been extended through April.  Also, the bulk of sales still are coming from cheaper houses, with little movement in houses costing more than $250,000.

As you may know, one of my recent events went towards supporting the group Our Military Kids.  My son just sent me a link to the video below. (Return from Iraq).   I will be sending out an e-mail in the next few weeks with OMK’s Christmas gift wish list.  Please think about what this young girl and all the other kids have been dealing with while their moms and dads are serving our country.

The Return from Iraq

Existing-home sales bounced back strongly in September with first-time buyers driving much of the activity, marking five gains in the past six months, according to the National Association of REALTORS®.

Existing-home sales—including single-family, townhomes, condominiums, and co-ops—jumped 9.4 percent to a seasonally adjusted annual rate of 5.57 million units in September from a level of 5.10 million in August, and are 9.2 percent higher than the 5.10 million-unit pace in September 2008. Sales activity is at the highest level in more than two years, since it hit 5.73 million in July 2007.

Lawrence Yun, NAR chief economist, said favorable conditions matched with a tax credit are boosting home sales. “Much of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home,” he said. “We are hopeful the tax credit will be extended and possibly expanded to more buyers, at least through the middle of next year, because the rising sales momentum needs to continue for a few additional quarters until we reach a point of a self-sustaining recovery.”

Even with the improvement, Yun said the market is underperforming. “Despite spectacular gains in the stock market, principally from the financial sector recovery, most of the 75 million home-owning families have more wealth tied to their homes. Home values could soon turn consistently positive and help the broad base of middle-class families, but we are not there yet,” he said.

Conditions for First-Time Buyers
Early information from a large annual consumer study to be released on Nov. 13, the 2009 National Association of REALTORS® Profile of Home Buyers and Sellers,shows that first-time home buyers accounted for more than 45 percent of home sales during the past year. A separate practitioner survey shows that distressed homes accounted for 29 percent of transactions in September.

NAR President Charles McMillan said affordability conditions remain historically high. “Potential first-time buyers can take heart in that affordability conditions this year are the highest on record dating back to 1970, but with the first-time buyer tax credit scheduled to expire at the end of next month, people could hold back from entering the market,” he said. “Our read is that housing overshot on the downside because homes are selling for less than replacement construction costs in much of the country, and the home price-to-income ratio has fallen below the historical average.”

Inventory Falls
Total housing inventory at the end of September fell 7.5 percent to 3.63 million existing homes available for sale, which represents an 7.8-month supply at the current sales pace, down from an 9.3-month supply in August. Unsold inventory totals are 15.0 percent below a year ago.

“The current housing supply is the lowest we’ve seen in two and a half years,” Yun said. “If we could continue to absorb inventory at this pace, home prices would return to normal, modest appreciation patterns next year.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 5.06 percent in September from 5.19 percent in August; the rate was 6.04 percent in September 2008.

Home Sales Breakdown
The national median existing-home price for all housing types was $174,900 in September, which is 8.5 percent lower than September 2008. Distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes in the same area.

Single-family home sales rose 9.4 percent to a seasonally adjusted annual rate of 4.89 million in September from a pace of 4.47 million in August, and are 7.7 percent above the 4.54 million-unit level in September 2008. The median existing single-family home price was $174,900 in September, which is 8.1 percent below a year ago.

Existing condominium and co-op sales jumped 9.7 percent to a seasonally adjusted annual rate of 680,000 units in September from 620,000 in August, and are 9.7 percent above the 561,000-unit pace a year ago. The median existing condo price was $175,100 in September, down 11.7 percent from September 2008.

Here’s the region-by-region picture:

• Northeast: Existing-home sales increased 4.4 percent to an annual level of 950,000 in September, and are 11.8 percent higher than September 2008. The median price was $234,700, down 7.0 percent from a year ago.
• Midwest: Existing-home sales jumped 9.6 percent in September to a pace of 1.25 million and are 7.8 percent above a year ago. The median price was $147,600, which is 1.0 percent below September 2008.
• South: Existing-home sales rose 9.0 percent to an annual level of 2.06 million in September and are 10.8 percent higher than September 2008. The median price was $153,500, down 7.6 percent from a year ago.
• West: Existing-home sales surged 13.0 percent to an annual rate of 1.30 million in September and are 5.7 percent above a year ago. The median price in the West was $219,000, which is 15.0 percent below September 2008.

 As you have likely been reading, the First-time Homebuyer Credit program will expire on November 30′th.  What many people have not understood, this means you must settle on your new home by that date.  Having just purchased a new car, I encountered the flurry of activity that occurred on the last few days of the Cash for Clunkers program.  For those who purchased a new car, it was feasible (although not advisable) to wait to the last minute.    WARNING:  This is not the way the homebuying process works.  We are quickly approaching what is the last minute for you to make your purchase.  Unlike picking out a new car, finding the right home can take a week, two weeks or in some cases several months.  Even once you have found the perfect place to call home, you will then need to start the actual buying process.  This has quickly become challenging in our local market since the more affordable homes are disappearing from the inventory.  A simple understanding of the law of supply and demand will tell you that this will create upward pressure on prices and competition for the same properties.  Remember that what you find appealing will also appeal to a great many others.  I just sold my used car to “Joe C.” who has been trying to buy a home in Woodbridge.  He said that he and his fiance have made offers on three homes, only to be out bid either by higher offers or all cash offers.  There are several things that Joe and his Realtor can do to insure that this doesn’t happen which we can easily cover in person. 

Once a contract is ratified, the process will then take a minimum of three weeks to four weeks to get to the settlement table.  And this only if everything lines up perfectly.  With that said, you will need between six and eight weeks to find the right home and settle on it.  We have only 11 weeks until the program expires.  The reality is that three weeks to spare in the homebuying process is equivalent to three hours in the auto purchase world.

If you are reading this post, you probably already decided to purchase a home, but I would suggest reading the about the Proven Path to Home Ownership since it provides a very succint discussion o fthe home buying process.  We can always discuss this in more detail once we get together. 

At the risk of sounding like a high pressure sales person, you really can’t wait much longer to take advantage of the First Time Homebuyer Credit.  Depending on you income, this credit can mean an actual dollar savings of anywhere from $10,000 – 16,000 in pre-income tax money. 

I will be holding an open house today from 1-4 at 11742 Great Owl Circle.  You’ll love the convenience offered by North Reston’s highly desirable Ridgewood Cluster.  With approximately 2,700 square feet of living space, this four level, three bedroom, 3.5 bath home provides ready access to the Metro Bus and the inumerable amenities offered by Reston.  Recent upgrades in this move-in ready townhome include: granite countertops and tile backsplash; hardwood floors on the main level; new carpet in the three upper level bedrooms and the fourth level loft; a fully renovated master bath; and much more.   The completely finished lower level includes an oversized recreation room/family room with fireplace and a walkout to Reston’s extensive hiking trails.  Take the short walk to North Point Shopping Center and visit Starbucks, Baskin Robbins, or Mama Lucia’s Italian restaurant.  Reston Town Center is also just a short bike ride away.  This townhome is priced below comparables at $475,000.

The first time homebuyer tax credit appears to be having the desired effect on our local housing market.  Home sales in the under $500,000 range have been quite robust since the inception of the tax credit.  Inventory in Reston’s 20194 zip code is down to less than three months with the 20190 zip code inventory standing at about 3.5 months.  While there have been no specific studies showing that this increased activity level is a result of the credit, one must surmise that it and the near record level interest rates are key contributors.  One would have to surmise that this pace will gain additional momentum as the December 1, 2009 deadline grows closer.  The Internal Revenue Service has provided a superb review on its website including the necessary form to apply for this credit.

The Great Falls Market which for the most part is out of reach for first time homebuyers is showing inventory of nearly 10 months.  The inventories for the two Mclean Zip Codes (22101 and 22101) are six months and 10 months, respectively.  Finally, the Vienna Zip Codes of 22180 and 22182) currently have inventories of four months and five months.

Below is a guest blog from Nikki Ryan who will be holding an Open House this Sunday at my son’s townhouse in Reston.  Come on by to meet Nikki and enjoy the home.

I am holding open a beautifully decorated townhouse at 11742 Great Owl Circle in North Reston this Sunday April 26th from 1-4pm.  Please stop by.  This townhouse has so many updates and shows beautifully!  Main level updates include: new hardwood floors, new appliances, ceiling fan and granite in the kitchen, and new light fixtures. the master bath has been updated.  You will find brand new carpet on the upper two levels, a fully updated master bathroom, new light fixtures and ceiling fan. 

I have previewed all of the competition and this townhouse shows the best of the currently listed properties in this price range.  Come by and have a look on Sunday.  Call me for more information 703-615-2663 or visit www.greatowlcircle.com

This property is listed for sale with Keller Williams Realty, by Bob Nelson.

 

Keller Williams Realty

703-615-2663 cell

703-542-0914 fax

www.nikkiryan.com

 oh, by the way… if you know of someone who would appreciate the level of service I provide, please call with their business number and I’ll be happy to follow up and take great care of them.