Katie Wethman’s Real Estate News – Dec 2018

December 2018

 

Market Update

As expected, the announcement from Amazon caused a a bounce in sales, particularly in 22202 “National Landing.” Typically activity and sales in November is slower, as we ease into the holiday season. This past month, 22 properties in the National Landing area went under contract compared to 3 homes in 2017. This is a substantial increase, driven by buyers trying to purchase so that are not priced out of the area once Amazon arrives. But don’t panic…see our own analysis in November’s Amazon Update and take a look at the George Mason University Conference on HQ2 Imapct Video Here. Despite the hype, have identified some cash flow positive investment opportunities, so contact us if you’re looking to invest!
Other areas outside of “National Landing” saw a increase in activity and sales in November, but not as dramatic of a change. Read more details here.
The country’s real estate market is predicted to enter a downtown in the coming 2-3 years, and Amazon may help buoy this area in an otherwise turbulent economic time. Follow our ongoing analysis and updates on ourInstagram and our National Landing Real Estate page. 
In other market news, home sale appraisal rules are changing. Some FNMA and Freddie Mac rules are already in place that eliminate the need for appraisals on certain home types with a sufficient down payment, and the administration has proposed eliminating appraisals on any home valued at under $400,000; instead it would be subject to a ‘evaluation’ by non-appraisers with limited regulation. This is a mixed bag for home buyers and sellers, as many home buyers see the appraisal as a safety net against overpaying for a property. Given that appraisals typically take 1-3 weeks, the elimination of this requirement would likely speed up settlements, and this change will save borrowers about $400-500 in fees. Check out more details here.
New Loan Limits & Interest Rates
The Federal Housing Finance Agency (FHFA) recently announced its new loan limits for 2019. The new (regular) conforming loan amount impacts nearly every part of the US, and was raised to $484,350 in 2019! A 6.8% increase compared to $453,500 in 2018. In higher cost cities, which includes the DC Metro area, the new limit is $726,525.
Current Interest rates (Source: Freddie Mac)
30 Year Fixed: 4.63%
5/1 Arm: 4.04%

Thinking of Selling? Our team is looking to get a jump on the Spring market and is currently setting up consultation appointments for January and February with sellers. We’re offering special financial and staging incentives for sellers who meet and sign with us before the end of February for a Spring 2019 listing—if you or someone you know is thinking of selling next year, please contact us to book an appointment!
As always, if we can ever help with your real estate needs, please don’t hesitate to reach out. Wishing you all very merry holidays and a happy new year!


HOME CARE CORNER
Winter is officially here! If you haven’t turned off your hose bibs, now is the time!
Click here for details: Hose Bib Shutoff Instructions.


CLIENT APPRECIATION EVENTS
THANK YOU to all of our clients that attended Pie Day and Breakfast with Santa! We loved seeing you! thank you for supporting our business all year long with your referrals of friends and family.
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The Wethman Group’s Real Estate News – November 2018

November 2018

 

We’re taking a break from our usual newsletter format to provide an analysis of the Amazon HQ2 announcement. The Washington area and more specifically the newly christened “National Landing” area of Crystal City (comprised of parts of Pentagon City, Potomac Yards, and parts of Alexandria) will be the home of 25,000 new jobs, providing a boost to the local economy and tech ecosystem.
What We Know
  • Amazon has committed to 25,000 jobs over a 10 year period. They chose this area in part because of the extensive talent pool already here (emphasis added). Jobs are expected to be mostly in accounting and tech with incomes of about $150k. Of course, a ‘new’ business with such a significant presence is also expected to create jobs in supporting industries like retail, construction, and service businesses nearby (with lower incomes.)
  • Amazon has made a commitment to STEM education investments, including a new Virginia Tech campus focused on Computer Science as part of National Landing, and investments at George Mason. The idea here is that Amazon is hoping to hire some homegrown (and local) talent years down the road.
  • Incentive payments to Amazon are dependent on the actual number of jobs created.
  • Arlington and Alexandria have committed to investing $570 million in transportation improvements, and Virginia has committed to an additional $195 million. Planned investments are additional entrance(s) to the upcoming Potomac Yard metro station, improvements to Rt 1, pedestrian bridges. Additional funding is available if Amazon creates more than 25,000 jobs.
Much has been said about this number of employees creating havoc in our already strained real estate market. We’re advising our clients to take a wait-and-see approach on the real estate market impacts. Our area is more than capable of absorbing these jobs, but market impacts will be uneven both economically and geographically.

Job Absorption

This area is well positioned to absorb the expected 25,000 jobs to come over the next 10+ years. The region already annually adds 34,000 jobs on average; in 7 of the last 17 years we absorbed one FULL (50,000) Amazon’s worth of jobs! (See graph at left.) This could end up being a ‘blip’ in the greater regional area.

 

Companies whose talent is being poached may or may not backfill hiring, and those companies are scattered throughout the region. Many employees hired locally will not relocate because it just won’t make financial sense and/or the situation will be complicated by a spouse’s commute or kids in school. Consider a hypothetical tech worker making $150k and living in the Reston area. If hired by Amazon (and remember, they’re coming here for the existing talent pool), is this person likely to sell their current home and relocate to Arlington? It’s possible, but it’s more likely this person will just factor in their new commute as an opportunity cost in taking the job. That employee’s current employer will then need to hire someone, who may or may not live in Arlington. See graphic at right for expected distribution of housing for HQ2 employees.

Rising commercial rents in the area may push some existing companies out and/or discourage others from locating there; in fact, other companies that had been considering relocating to Northern Virginia may now choose not to come at all because of the upcoming fight for talent. Similarly, some companies located in the greater metro region may choose to leave because of the expected increase in competition for employees or may choose to locate further out so that their employees will be able to afford more (potentially giving them a recruiting advantage.) Bottom line: the net job increase for the area may not be 25,000, and the jobs-to-household ratio is far from a 1:1 correlation.

Traffic

It’s no surprise that traffic is expected to be worse as workers move to Crystal City and nearby businesses grow. It remains to be seen how much the transportation investments from the County, City, and State will help. Work from home trends may also spread out the hiring and ease commutes–Amazon is one of the top ‘work from home’ companies. Additionally, the high speed (15-minute commute) trains being developed between DC and Baltimore over the next 10 years–the time frame of Amazon’s growth here–could significantly alter the housing landscape of the region.
Housing Inventory – Sales and Rentals
We can certainly expect an inventory shortage for buying, but also a more significant rental shortage in the short term (first few years) of the deal. Speculators will swoop in hoping for to find a cash flow positive deal—they’re unlikely to find one currently. As always, buy and hold is a much safer strategy, and especially now.
Longer term, builders can build condos and/or convert existing apartments and office buildings to condos for quicker delivery. There isn’t much (any??) land left to build developments, so expect prices on townhouses and single-family detached homes to rise disproportionately vs, condos in the immediate vicinity. There is a strong pipeline of multi-family development already planned for the DC area (see graph). Tear-downs will swooped up by builders at breakneck speed.
Once the employees arrive, the segment most likely to see increased competition is the $400-600k range, which is the likely purchasing power of someone in the salary bracket Amazon is hiring.
Certainly, this will speed ongoing gentrification of South Arlington and affect nearby pockets of relative affordability that currently exist. With our current affordability crises, even a small increase in prices may have a disproportionate ‘push out’ effect for lower-income workers and renters, and any increase in property taxes resulting from higher valuations will also hurt longtime homeowners on fixed incomes.
Summary
  • These jobs are coming over time, and our area is easily capable of absorbing them.
  • Expect a short-term psychological bubble – sellers should take advantage of this, buyers need to not panic, and investors should proceed cautiously. Think rationally and don’t get caught up in the hype.
  • Expect dramatic rent increases as a result of the trifecta of this area being the ‘next big thing’, eventual students at the new VT campus, and new hires relocating (who will rent for a least a while before buying, if they buy at all.)
  • Housing impacts will be dispersed throughout the area and gradual. Inventory shortages will be most severe in the segments and locations we already have them: entry level townhouses and detached homes in close-in Arlington and Alexandria.
  • Appreciation in property can only be realized if you’re selling, and is a double-edged sword—expect higher property tax assessments (and remember that deductions for state and local taxes like property taxes are now capped in the new tax law.)
There ARE opportunities here, if we don’t lose sight of the fundamentals.
We’re trying to give you a realistic view of market conditions, and not just trumpet the hype. We’ve seen some excellent opportunities in parts of South Arlington and the northern end of Alexandria. Contact us to discuss your buying or selling strategy.
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JUST LISTED & OPEN HOUSE-3721 Mazewood Lane Fairfax, VA

Excited for our client who listed her lovely townhouse in Fairfax this week.

Well maintained 3 bedroom*, 3 full bath and half bath townhome in Foxfield.
Located in a quiet community, with 1320 sq ft of living space on 3 levels, backing to trees. The woods behind the home are forever wild.
Gleaming maple hardwood floors on main level and upper level hall. Newer carpet in master bedroom.
Kitchen updated with silestone counters, newer lower cabinets and stainless steel appliances (with double oven). Hall bath and coat closet off the front entrance
Formal dining and living room, with sliding glass door to a relaxing deck!
Upper level features two bedrooms and two bathrooms
Master suite with vaulted ceilings, and large closet with custom organizers.
Attached master bath has been updated with newer vanity, shower/tub combo and ceramic tile flooring.
The second bedroom features a larger closet and attached bath with a large vanity and updated shower with glass door. New skylight in hall area installed in 2013.
Spacious lower level with living area for a recreation/media room or den. *Possible 3rd bedroom in lower level with closet & cedar closet.
Walkout to relaxing patio with treed view behind the property.
Major systems and appliances have been updated: Newer HVAC (6 months), windows (with transferable warranty). Home has been impeccably maintained!
Two assigned parking spaces convey with the property.
Community includes jog/walk paths, bike trails, tennis courts, outdoor pool, basketball courts & more.
Convenient location minutes to nearby retail and shopping and ideal for commuters! Minutes to RT 50, 66 and Fairfax County parkway.

Homes in Foxfield sell from $380 up to $425K depending on the size and upgrades. Many renovated homes have sold $399K and higher. Properties backing to parkland are espcially desirable. Given the upgrades and amenities of this home we listed the houe for $415K.

Contact us today for a private showing!

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JUST LISTED & OPEN HOUSE- 4141 N Henderson Rd #1004

Fall is here, but the real estate market is still busy! Check out our newest listing in Arlington, just minutes from Ballston Commons.

Details on this lovely unit:
-Open and inviting 1 bedroom, 1 bath unit with 851 square feet of living space.
-The unit features gleaming wide-plank hardwood floors in the living area and bedroom, along with crown molding and large picture window.
-Updated kitchen offers a breakfast bar, granite counters, and ample cabinet space with a separate pantry for added storage.
-Kitchen opens to open dining and living areas with access to the balcony.
-Spacious master bedroom with hardwood floors, sliding glass door and walk-in closet with organizers.
-Full master bath renovated with newer vanity, flooring and updated tile in the shower.
-Expansive balcony with stunning city views.
-Underground parking space available. Up to 3 garage spaces, $200/yr for 1st car
-Community amenities include a 24-hour front desk attendant, party room, courtyard with grill, laundry room, community garden, and an outdoor pool.
-Condo fee includes all utilities, except cable & internet.
-Hyde Park is an ideal location in Ballston. Close to Harris Teeter, with quick access to shopping, dining at Ballston Quarter and 4 blocks from Ballston Metro.

Property values in Hyde Park, vary depending on the location and upgrades in the unit. Some studios have sold close to $300K, while one-bedroom units typically sell for $320-$365K, depending on how large they are and updates in the kitchen and bathrooms. Other two bedroom units seller for $375K and above. Given the proximity to shopping and retail in Arlington, along with the up and coming Ballston Commons, this is an ideal location!

Contact us at info@wethmangroup.com to schedule a private showing.

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The Wethman Group’s Real Estate News – October 2018

October 2018

Market Update
The October real estate market is holding firm, and not letting up! In the DC Metro area the average sales price is $508K, a 3.3% increase compared to 2017. The average days on market has declined 7% which likely has to do with limited inventory. Popular neighborhoods in Arlington, Falls Church, Fairfax County and Washington DC are all averaging 35 days on market or less. Inventory remains tight and there is roughly 9.3% less inventory compared to the same period in 2017. Despite lower inventory, buyers are still looking for nicely updated homes that are move in ready! Contact us today to find out market specifics in your neighborhood.
Interest Rates
Many people are focused on interest rates and for good reasons. In September, The US Federal Reserve raised short term interest rates for the third time this year. We are on track for one more increase in 2018. While rates are historically low, compared to 6-8% mortgage rates in the early 2000’s, an increase to 4.9% for a 30 year fixed mortgage feels like a pinch to many current buyers. While the hype of low rates from internet lenders may seem attractive, working with a reputable lender is still key to ensuring your contract makes it to settlement.
What are buyers looking for?
Real feedback from our listings and clients:
-Buyers are looking for move in ready homes with updated kitchen and bathrooms.
-Most buyers prefer hardwood floors or light colored carpet.
-When touring a home, if there is sign of wear or lack of maintenance, buyers question the condition of the major systems and appliances.
-While big ticket items are important, most buyers are interested in the cosmetic updates in a property.
-If a home is not updated, buyers are looking for a discounted price.
-Many buyers would rather pay for the upgrades through the sales price/mortgage than handle renovations after closing.
-Even with limited inventory in the fall, buyers are not rushing to purchase right now.
If you need assistance prepping your house for sale, call us!
Thinking of buying? It’s better to start sooner than later, even if your target move date is months away…with a lot of buyers ‘waiting until next Spring’, it’s a great time to find a great home with less competition from other buyers!

       ENTER OUR COLORING CONTEST!         

This month, we’re trying something a little different — a coloring contest! We’ll have 4 age groups, and the winner of each group will win a $25 Target gift card.

Age groups are 5 years and under, 6-10, 11-15, and 16+. Click here for a downloadable PDF of the picture to submit, and be sure to sign the picture and add the participant’s name and age.

 

 

This month, we’re trying something a little different — a coloring contest! We’ll have 4 age groups, and the winner of each group will win a $25 Target gift card.

Age groups are 5 years and under, 6-10, 11-15, and 16+. Click here for a downloadable PDF of the picture to submit, and be sure to sign the picture and add the participant’s name and age.

 

Just post your entry on Facebook, Instagram, or Twitter and tag theWethman Group or your agent. You can also email submissions or drop off at our office. Register by October 25th for your chance to win!


HOME CARE CORNER

Fall is here! That means plenty of leaves and limbs are falling too. Make sure to check out your gutters and clear any leaves or debris to ensure your gutters drain properly!

 

 


CLIENT APPRECIATION EVENTS

Save the Date: Pie Day – Tuesday, November 20th
Our annual pie day open house will take place the Tuesday before Thanksgiving at Katie and Kenny’s house. Clients, save the date on your calendar to stop by for a bite and a drink and bring home an apple or pumpkin pie for your Thanksgiving celebration. It’s one of our favorite events each year, and we look forward to sharing it with you! Clients, check your email or our postcard for the link to reserve your pie!

Also, Save the Date for:

Breakfast at the Movies with Santa – Saturday, December 1st

As always, if you or someone you know has a real estate need, please reach out. We are here to help!
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JUST LISTED & OPEN HOUSE! 12094 Antler Ct

Freshly updated and ready for the market! We’re excited to present our newest property for sale on 12094 Antler Ct – Fairfax, VA.

Details on this property include:

Stately 3 bedroom, 2.55 bath townhouse located in Fairfax Ridge!
This home offers over 2300 sq ft of living space on three levels with an attached one car garage.
Spacious lower level recreation room with fireplace, and walkout to patio and fenced yard. Custom storage area below the stairs. Hall bath and coat closet off the entryway.
The main level features inviting living and dining area with chair an crown molding, and walk out to deck with a serene treed view!
Gleaming Brazilian hardwood floors on all stairs, main and upper level
Updated kitchen with granite counters and breakfast nook near the bay window. Separate laundry room and half bath on kitchen level.
Upper level features three bedrooms and two full bathrooms.
Master suite with expansive walk-in closet complete with custom organizers. Master bath offers a double vanity soaking tub and frameless glass standing shower.
Ideal location, minutes to Fair Oaks Mall, Fairfax Town Centre with plenty of restaurants and retail. Walking distance to Fairfax Government Center, Fairfax Corner, Merrifield Garden Center, Costco and Wegmans. Also, short walk to Eagle View Elementary. Perfect for commuters with quick access to I-66, Lee Hwy, Rt 50, Fairfax County Pkwy, Rt 28 and more!

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Townhouses in Fairfax Ridge range in price from $450-$560K+ depending on size, location and of course condition. Properties that have sold on the higher-end were also end-units, with a two car garage and updates throughout. Our property at 12094 Antler Ct is listed for sale at $519900.

For more details or a private showing, contact the Wethman Group!

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JUST LISTED & OPEN HOUSE 6912 Sharpsburg Dr

The fall real estate market is still going strong! Excited for our client, who just listed her gorgeous home out in Centreville. This home in located in Hanna Estates and sales have ranged from $530K up to $623K for single family homes. Properties on the lower end of sales are smaller, with less updates. Properties at the higher end are nicely updated with gourmet kitchens, renovated bathrooms, and floor plans wth over 3200 sq ft!

Details on our listing:

Stately 4 bedroom 3.5 bath colonial with over 3200 sq ft of living space!
Light filled two story foyer greets you at the front door.
Formal dining room and living room, with gleaming floors with plenty of space to entertain.
Open kitchen with updated cabinets, granite counters, stainless appliances, ceramic tile and an island. Space for eat-in table with access to the screened-in deck.
Inviting family room off the kitchen with a gas fireplace.
Enviable master suite with high ceilings, space for sitting area, large walk-in closet and large master bath with soaking tub separate shower and large vanity.
Spacious bedrooms with plenty of closet space and a hall bathroom complete with tub/shower and large vanity.
Lower level features large rec room area, full bathroom and expansive storage and utility room.
Relaxing screened-in deck, with access to deck and fenced backyard.

Open House this Sunday 12-2pm!

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Email admin@wethmangroup.com for a private showing or more information.

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