My clients are standouts every day. Each helping to provide for and serve their community. Most recently, one runs a community farmers market, one is a federal law enforcement officer and another is a social media guru, community advocate and owner of a small business. Real estate is a people business and I get to work with some outstanding ones.
“Laurel is an amazing professional and one of the best in the business. She is well plugged in DMV real estate network – something that comes extremely handy when you are selling your home. She came prepared with a plan to market our home and got us the price we were comfortable with in 3 days. We could not recommend her enough especially for sales in north Chevy Chase neighborhood.” – read more LMRE reviews
First Time Home Buyers
Shout out to @taylorxpatrick for recognizing me on Instagram to her thousands of followers. I feel like this is the beginning of a long standing friendship. Not only in helping you and Asia close on your first home but also working together on some custom client closing gifts.
Experts Say Home Prices Will Continue to Appreciate
It’s clear that consumers are concerned about how quickly home values are rising. Many people fear the speed of appreciation may lead to a crash in prices later this year. In fact, Google reports that the search for “When is the housing market going to crash?” has actually spiked 2450% over the past month.
“One of the most noteworthy things that came up in Inman’s conversations with agents was that every single one said they’ve had conversations with clients about whether or not the market is heading into a bubble.”
To alleviate some of these concerns, let’s look at what several financial analysts are saying about the current residential real estate market. Within the last thirty days, four of the major financial services giants came to the same conclusion: the housing market is strong, and price appreciation will continue. Here are their statements on the issue:
“Strong demand for housing looks sustainable. Even before the pandemic, demographic tailwinds and historically-low mortgage rates had pushed demand to high levels. … consumer surveys indicate that household buying intentions are now the highest in 20 years. … As a result, the model projects double-digit price gains both this year and next.”
“Homebuyers—interest rates are still historically low, though they are inching up. Housing prices have spiked during the last six-to-nine months, but we don’t expect them to fall soon, and we believe they are more likely to keep rising. If you are looking to purchase a new home, conditions now may be better than 12 months hence.”
“Unlike 15 years ago, the euphoria in today’s home prices comes down to the simple logic of supply and demand. And we at Morgan Stanley conclude that this time the sector is on a sustainably, sturdy foundation . . . . This robust demand and highly challenged supply, along with tight mortgage lending standards, may continue to bode well for home prices. Higher interest rates and post pandemic moves could likely slow the pace of appreciation, but the upward trajectory remains very much on course.”
“There are reasons to believe that this is likely to be an unusually long and strong housing expansion. Demand is very strong because the biggest demographic cohort in history is moving through the household-formation and peak home-buying stages of its life cycle. Coronavirus-related preference changes have also sharply boosted home buying demand. At the same time, supply is unusually tight, with available homes for sale at record-low levels. Double-digit price gains are rationing the supply.”
If you’re concerned about making the decision to buy or sell right now, let’s connect to discuss what’s happening in our local market.
According to the CoreLogic Loan Application Database, prior to 2020, while millennial home purchase applications comprised less than half of all purchase applications, their share grew from 33% in 2014 to 47% in 2019, rising about 2 to 4 percentage points per year. This annual increase is consistent with the cohort of millennials reaching 33 years of age, the peak homebuying age.
But in 2020, the share of millennials in the homebuying market soared 7 percentage points in 2020, reaching 54% of all purchase applications (Figure 1). And while half of the increase is consistent with the natural growth rate seen since 2014, the additional half of the 2020 jump was likely driven by the pandemic. In other words, the increase was accelerated by record low mortgage interest rate and flexibility to work remotely.
Figure 2 shows U.S. population distribution by age, highlighting the largest demographic cohort reaching the peak age of FTHB on the left axis. The right axis of the chart, displayed by the green line, represents first-time home-purchase loan applications per 1,000 persons in 2020.
Younger millennials below 30 have yet to enter homeownership, so demand from millennials is likely to remain strong over the coming years. At the same time, more older millennials are likely to transition to repeat homebuyers. The share of millennial repeat buyer home-purchase applications was already 35% in 2020, just 4 percentage points lower than Gen X’ share.
That’s roughly half of overall global savings during the pandemic, and the same as South Korea’s GDP.
It’s also greater than the output gap, or economic hole created by Covid-19, signaling a coming economic boom.
Experts are currently projecting 4.6% growth for US GDP this year, per Bloomberg. If Americans spend all the money they saved in the past year, that could jump to 9%; whereas if they don’t, the GDP forecast could drop to 2.2%.
Congratulations Kevin and Danielle! Happy Anniversary to my clients who closed on this day March 4th, 2016 in Springfield, VA.
Located in the Glenwood Manor development, the couple purchased a 1700 sqft., 3 bedroom, 2.5 bath townhome for $379,000. 5 years later, for similar properties (any three bedrooms sold in the last 365 days), the median Close Price was $478,500 and the median Days On Market was 5.
The decision to purchase instead of renting positioned them nicely to build equity that they now can utilize for their next move.
If you have been debating owning versus renting, understanding the market and how either decision could effect you in 3-5 years is worth discussing.
This information is not meant to be used as an appraisal. This is a snapshot of the Glenwood Manor development listings sold in the last 365 days as of March 4, 2021.
No it’s not the pandemic; there we can only follow safety precautions and hope.
Rather it’s one of my clients’ timeline to Sell and Buy during 2020. How did they go from a home of 9 yrs, with three school-aged children and two full time working parents into a new build that will suit their family for the next 20+ years during an unimaginable world wide pandemic? One step at a time.
Then it was time to list their home of 9 years.
Despite being three months behind our original timeline, we referred back to the step by stepplan we had created. Without skipping a beat, my clients stuck to the plan and completed everything we had discussed to get the house ready for market. We listed on a Thursday, ratified 5 days later on that Monday and closed in 21 days on November 30, 2020.
One referral turned into two resulting in two happy clients. Now we are all connected.
It started with a reciprocal referral from a California agent whose son’s best friend wanted a bigger home for his expanding family. As a recent grad from the United States Naval Academy, becoming a parent to a son and adopted dog Lucky, with mom planning to go back to work and what looked like, job wise a longer stint in Maryland it was time to move, Covid-19 and all. We are currently operating in a highly competitive market with historically low interest rates. After 27+ house tours, interviewing 2 lenders, investing in a pre-home inspection, 3 written and submitted yet rejected offers, they closed on the house that was meant to be. 10,000 lower than list price, plus a seller credit. Well worth the effort. Congratulations! #BestClientsEver
Congratulations Dave and Gulmira! After 14 years in Cleveland Park, DC it was time for more space and a sprawling yard. Despite the challenges of Covid-19, three rejected offers, a rent back and a short time rental they ended up with the perfect house and location for them. Thank you for trusting me to facilitate listing one home and buying the next.
There has been much talk around the possibility that Americans are feeling less enamored with the benefits of living in a large city and now may be longing for the open spaces that suburban and rural areas provide.
In a recent Realtor Magazinearticle, they discussed the issue and addressed comments made by Lawrence Yun, Chief Economist for the National Association of Realtors (NAR):
“While migration trends were toward urban centers before the pandemic, real estate thought leaders have predicted a suburban resurgence as home buyers seek more space for social distancing. Now the data is supporting that theory. Coronavirus and work-from-home flexibility is sparking the trend reversal, Yun said. More first-time home buyers and minorities have also been looking to the suburbs for affordability, he added.”
NAR surveyed agents across the country asking them to best describe the locations where their clients are looking for homes (they could check multiple answers). Here are the results of the survey:
39% rural area
25% small town
14% urban area/central city
13% resort community/recreational area
According to real estate agents, there’s a strong preference for less populated locations such as suburban and rural areas.
Real Estate Brokers and Owners Agree
Zelman & Associates surveys brokers and owners of real estate firms for their monthly Real Estate Brokers Report. The last report revealed that 68% see either a ‘moderate’ or ‘significant’ shift to more suburban locations. Here are the results of the survey:
No one knows if this will be a short-term trend or an industry game-changer. For now, there appears to be a migration to more open environments.
It’s our goal as agents but we don’t always get too many opportunities to work with people more than once. I am so glad that Sam and Ben were some of those clients. It’s been so rewarding watching their progress and their success come to fruition.
One of the best benefits of working with first time home buyers is that I get to watch how their lives unfold. I first met Sam and Ben in 2016. What a great starter home!
Four years later, plus one little one, a masters degree and a whole lot of hard work and success, they bought their forever home.