The Wethman Group’s Real Estate News – July 2019

July 2019
Hard to believe 2019 is more than half over, but we’re in the dog days of summer already! Read on for our take on the summer real estate market, but first…we need your help!
Please help us keep our streak going, and vote for us in Northern Virginia Magazine’s “Best Agent” Poll now through August 5!
The temperatures are up, but we’re seeing some *pockets* of reasonableness now in the housing market. Even a *tiny* bit of breathing room for buyers has come as a relief as “months of supply” held steady in June (see chart.) That means we’re seeing sales continue into July and August, which is usually a very slow time in the market. Buyers who were outbid over and over in the Spring are still out looking, buoyed by continued low interest rates (which are expected to stay low and even fall further in the second half of 2019, according to Fannie Mae.) If you’re thinking of buying, reach out to us!
Amazon’s getting press again, including this article in the NYT about the pressure our market is feeling. We stand by our initial assessment published last year though–our area already had an inventory ‘crises’ and correlation does not equal causation. (Contact us for a copy of our earlier analysis.)
Be wary of alarmist articles like this one in the Washington Post with crazy stats and learn to dig deeper (we can help!) For example, in the article, which touts 121% year-over-year appreciation in 22202, their sample of 31 homes is just not big enough to be meaningful, and looking just at that small zipcode is also misleading. They’re also looking at sales closed in November (when Amazon announced), but that represents homes that were under contract in October pre-announcement. Increases in prices are due to ongoing low inventory and low cost of borrowing, not the Amazon announcement per se. And sometimes a monthly average price will go up because of inventory bought by builders buying off market tear downs (not reflected in MLS stats) and then listing $1.5M homes. November is a terrible time to do a year over year comparison because of the low inventory; June to June is better–several months before the announcement vs this year well past the announcement, and you need to look at trends anyway, not a single month. We can find you months where year-over-year there were *declines* in prices in this zipcode in general and/or for certain property types. There’s lies, damn lies, and statistics. The answer is to work with an agent who knows the inventory, and has the tools to run the analysis you need on the type of home you want, in the location you’re looking (THAT’S US!)
We’re still advising both buyers and sellers in the Amazon HQ2 corridor to make their decisions on the fundamentals, not the news cycle. One idea to lessen the housing crises in our area is to consider zoning changes, similar to what Minneapolis has recently done. Arlington is already getting creative with their recent relaxation of Accessory Dwelling Unit rules. Look for more changes like this in the future for our area.
As always, thanks for your business and referrals — we’re never too busy for your referrals!
Wethman Group Client Appreciation Event:
Nats Game – A Home Run!
Thanks to all our clients and friends who joined us for our annual Nats outing! We look forward to hosting this annual event with help from our sponsors Southern Trust Mortgage, Ekko Title, and Atlantic Insurance.
Interest Rate Update
30-Year Fixed Conventional 3.86%
5/1 ARM 4.01%
30-Year Jumbo 4.16%
Rates per Bankrate.com as of 7/15/19. Graph Freddie Mac, 30-Year Fixed Rate Mortgage Average in the United States [MORTGAGE30US], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/MORTGAGE30US
WETHMAN GROUP LISTINGS
For Sale:
Coming Soon:
12154 Captiva Ct Reston, VA 20191
$325K/TBD
Under Contract
1219 N Taylor St Arlington, VA
3813 36th Rd N Arlington, VA
SOLD
12811 Caldwell St Rockville, MD $280K
4422 Hunt Place NE, Washington, DC – $435K
HOME CARE CORNER:
Check for Storm Damage
Of course we were inundated with an epic storm and flash floods just a few weeks ago. Now’s the time to prepare for upcoming storms (don’t forget it’s almost hurricane season) by doing the following:
1) Check roof for any damaged shingles (also check from inside the attic for any signs of water penetration.) Also check caulking around windows.
2) Clean gutters and extend downspouts away from the foundation.
3) Check that grading didn’t wash away in the last storm!
4) Test your sump pump if you have one, and consider adding a battery back up in case of power outage.
You may want to consider purchasing a dehumidifier, box fan, and shop vac if you have previously had water infiltration–these items are a must anytime there’s water in the basement!
Check our Maintenance Checklist for other items to inspect. Routine maintenance throughout the year helps avoid large expensive repairs or replacements down the road!
CLIENT PERKS: PROJECTOR & SCREEN
Clients, you can host a backyard movie night! We have a retractable screen (or just use a plain bedsheet or side of your house) and a projector for backyard fun! Just contact us to borrow.
Have something you’d like to see us add to our collection of client items available to borrow? Just email us!
We’re happy to help with all your residential and commercial real estate needs throughout the DC metro area. Remember to Like us on Facebook for market updates and real estate tips!
We have a nationwide network of quality agents–let us know if you or someone you know needs a referral to another city.
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