The Latest Loudoun County Housing Inventory Statistics

The number of homes for sale in Loudoun County (and the entire DC metro area) is definitely either down or trending down. Let’s look at the following charts showing inventory levels of single family homes and town homes in the Sterling, Ashburn, Leesburg and South Riding/Chantilly areas:

(Note: These are new interactive flash charts - feel free to play around with them, move the slider around, etc., and let me know what you think)

Sterling

Ashburn

Leesburg

South Riding/Chantilly

Celebrating 3 Years!

Wow, how time flies! Three years ago this month, I started blogging about Loudoun County real estate and the area in general. Back in 2006, there were very few Realtors blogging across the U.S. let alone Loudoun County (there were less than a few dozen across the entire U.S. at the time).

Today, that number is much higher yet, LoudounScene.com and LoudounForeclosures.com continue to be one of the best and most up to date sources of local information and resources for home buyers, sellers, investors, residents and the mass media.

Thank you to all of you who have commented on and been loyal readers of LoudounScene.com and LoudounForeclosures.com. Without you, there would be no Loudoun Scene or Loudoun Foreclosures and I would not be able to say, “Celebrating 3 years!”

Home Buyer Demand, Sales Up Across Loudoun and Fairfax County

Home buyer demand/sales in Loudoun County were up 11 percent in the 3rd quarter of 2009 over the 3rd quarter 2008. And it’s up 53 percent over 2007. (Buyer demand is defined by the number of homes that go under contract during a set time period)

Fairfax County had an 18 percent increase in home buyer demand/sales in the 3rd quarter 2009 over 2008. And it’s up 62 percent over 2007.

Why the increase?

1. Lower prices - prices have come down considerably since the peak making it more affordable and appealing for home buyers. And the less expensive something is, the more people can afford it
2. Low interest rates - interest rates hit historical lows and are still very low. Lower interest rate = greater purchasing power
3. Programs/benefits - Programs such as the $8000 first-time home buyer federal tax credit has helped spark demand (click here for more info on first-time home buyer tax credit). I’ve worked with more first-time home buyers this year than in any of the last 6 years (and it’s only October). Other programs such as the Freddie Mac HomeSteps SmartBuy program have also helped increased demand (click here for more info on Smartbuy program)

Will it continue?

Maybe. If rates remain steady and/or the tax credit get renewed or a similar program come out, then we’ll probably see home buyer demand steady or continue increasing (though I don’t think there’s room for too much more increase in buyer demand).

Maybe not. If rates creep up and/or the first-time home buyer federal tax credit not be renewed and/or (more) bad economic news come out, we may see buyer demand taper off or even decrease.

Who wins?

The buyers that purchased a home at a much lower price than years prior and at a low interest rate while taking advantage of the first-time home buyer federal tax credit made out the best.

Sellers came in at a close second - increased demand and very low inventory make for a winning combination when selling your home.

Loudoun Community Spotlight: Pulte Homes, Hamlets at Red Cedar

This Loudoun County Community Spotlight falls on the Hamlets at Red Cedar community by Pulte Homes. The community is located off of Evergreen Mills Rd in Leesburg, VA (click here for map). Once the community is complete, there will be a total of 350 homes situated on 1300 rolling acres.

Personally, I think that the Hamlets at Red Cedar community is ideal for those looking for that “private and quaint” community feel yet, be close to amenities and things to do.

The majority of single family homes in the Hamlets at Red Cedar community are located on 1/2 acre lots and the entire community is surrounded by conservancy lots ranging from 10 to 100 acres. This gives you privacy from surrounding development for up to 100 years (based on current zoning laws regarding conservancy lots).

Even though being inside of the community give you a feel of being away from the hustle and bustle of daily life, you are only 5 to 10 minutes from Brambleton Town Center, 10 to 15 minutes away from downtown Leesburg and about 10 to 15 minutes from the Dulles Greenway and the future Moorefield Station, which will include commercial, residential, retail and a Silver Line metro rail stop (coming 2016).

The Hamlets at Red Cedar is made up of town homes and single family homes. The town homes along with the Ambassador and Manor single family home collections have all been sold, but there are still some Stoneridge collection single family homes and home sites available.

The Stoneridge Collection offers 8 different models ranging from 2510 square feet on the upper two levels to 4589 square feet on the upper two levels. Base prices range from $539K to $739K. Delivery times are about 6 to 9 months though there are some quick delivery “spec” homes with move-in dates as early as November.

Lot sizes on the Stoneridge Collection are 1/2 an acre giving you more land than 90+ percent of the rest of Ashburn and Leesburg. One nice thing about these lots is that the majority of them still have trees in the back of them rather than just a flat piece of land where you can still see the house behind you.

Amenities include a club house with pool tables, a community living room, gym and pool. There are several parks, tot lots and trails throughout the community as well.

If you are interested in knowing more about the community, home models, available lots/home sites, spec homes, incentives, etc., email or call me - danilo.bogdanovic (at) gmail (dot) com - 703.582.6900.

Related Articles

Pulte Homes King of Customer Satisfaction in Loudoun County

Slideshow of Hamlets at Red Cedar community

Because Now is Much Better Than Later

An increasing number of blog readers, sellers and buyers have been contacting me for real estate help and advice. I’m glad to help whenever I can, but many contact me after the problem has already occurred. Contacting me after the fact is often times too late - the damage has already been done. Here are two examples…

My parents just relocated from Delaware and bought a house in [city removed for privacy reasons], VA. On their 2nd look at the house they noticed the stove was different than what was pictured on the online listing.

It was at that time their agent then told them the house was “as is”, however, come to discover after the purchase and moving in and comparing the online pictures to the actual home, all of the kitchen appliances were switched, ceiling fans were removed, the replaced dishwasher wasn’t properly attached and hooked up - it leaked and damaged the hardwood flooring, and the upper air unit had serious problems (due to the “fix” the selling agents inspector supposedly made).

They only had limited time to preview homes and were basing their decision largely by the online pics. Anyway, just seems the out of town “old folks” were taken advantage of.

Your wise thoughts are appreciated. Seriously, I value your input. Thx!

“T”

I have a question that I hope you can  answer.

We just purchased a home in Loudon county…we are actually from out of state & were not familliar with any inspectors. Our agent recommended an inspector that she uses all the time. Well, he missed some obvious things such as rotten plywood for the roof & a rotten water damaged  huge window that is totally shot.

Now these are basic things for the envelope of the  house…how could he have missed them?

To top it off I had asked our agent if he was licensed,insured & bonded she said that he wass. I have since found out that he doesn’t carry any liability insurance for  what he misses–he only carries workmens comp for himself. I also have not been able to find his license# & have asked my agent to get it for me  & she has not responded to my request.

What would your recommendation be at this point? Should we file a claim with the Real Estate firm for sending us to someone who quite possibly is unlicensed & definitely not insured properly? I do not feel properly represented by our agent.

“A“

Though I would love to help “T” and “A” as well as everyone else who has contacted me, I can’t always do so. In “T’s” parents’ situation,  the problem could have been avoided had I been involved in the process in the beginning. But now, they have to battle it out with the real estate broker, lawyers, etc. The same holds true for “A” and her situation.

In many other similar situations, many folks are already working with a real estate agent and/or they are too far into the process and can’t go back and fix the issues that are costing them money and grief now.

Avoid getting yourself into the same situation as these and other sellers and buyers have. And avoid paying the price that they now are (literally and figuratively).

If you’re considering selling your house or purchasing a home in today’s market, allow me to help you now - because now is much better than later.

Click here to contact me now.

This Month’s Special: 58% Off Greenvest Land in Loudoun

Vienna-based Greenvest LC used to own 4100 acres in the Dulles South area of Loudoun County. That all changed two days ago when the land, valued by some at $165 million, was auctioned for $69 million.

iStar Financial, the company that originally lent Greentvest $130 million for the land, foreclosed on the land. The land was auctioned off this past Tuesday at the Leesburg courthouse steps.

The winning bidder?

iStar Financial (they sure love spending money, don’t they?)

What led to the foreclosure auction?

Greenvest was hoping to have the land subdivided into four communities — Greenfields, Lena, Broad Run Village and Arcola. But the public outcry against further intercounty development and the congestion that would come along with it led to the county denying requests to rezone the land. And that left the development dead in its tracks.

Last year, Greenvest tried to sell 100 of those acres to the Loudoun County school system, which wanted the land for future schools. The Loudoun School Board rejected the idea over concerns that the $20 million price tage was too high.

With no chance of moving forward with the development, Greenvest defaulted on its $130 million loan. That led to foreclosure proceedings, Tuesday’s auction and iStar Financial, the company that originally lent Greenvest the $130 million, buying the land back for $69 million.

What now?

iStar Financial will try to sell the land in order to recoup some of the money lost (and spent) throughout this whole ordeal. But they face some serious hurdles:

• previous requests to rezone the land have been denied
• tightened lending/financing guidelines
• a weak local and national economy
• increased proffers (click here for more on that)

On a related note, the $165 million valuation seems to have come from Loudoun County itself - probably for tax revenue purposes - and is most likely not the land’s true market value (just look how much it actually sold for at the auction).

At $16,829 per acre, it may seem like quite a bargain. But it may be a while before iStar sees a return on their purchase. As one real estate developer who attended the auction said, “I don’t buy green bananas.”

Loudoun Increases Cost of New Homes for Builders and Buyers

While neighboring counties and their officials are trying to help developers, builders and consumers weather the recession, Loudoun County is doing the opposite. In doing the opposite, Loudoun is taking money right out of the pockets of buyers, sellers and homeowners.

Here is what neighboring counties are doing:

• The Montgomery County Council is considering delaying a proposed 3.5 percent increase in impact fees
• In Prince George’s, the County Council has lengthened the life of development approvals and held off increasing impact taxes
• Fairfax County has reduced the amount a developer must put up in surety bonds to guarantee a project’s completion
• In the District of Columbia, lawmakers are allowing regulators to lengthen from two to five years the time developers have to begin work on projects in southwest Washington

What is Loudoun County doing?

• Loudoun just raised proffers (the amount of money a builder must the county to build a home) by as much as 22 percent - $59,470 per single family home. The increases per type of property are $5,000 per apartment/condo; $11,000 per town home; $13,000 per single family home)

Who bears the brunt of these decreases and increases?

In the end, it’s consumers.

Here’s why…

If it becomes less expensive for a builder to build a home, the builder may offer greater incentives and/or lower base prices to create increased demand for their homes. The consumer wins and sales pick up.

If it becomes more expensive for a builder to build a home, the builder will most likely increase the base price and/or decrease incentives to make up for the additional cost. The consumer loses and sales slow down.

Sales picking up is better for homeowners and sellers. Sales slowing down is bad for homeowners and sellers.

Loudoun claims that the increase in proffers in necessary to pay for schools and public facilities. Ok…I get it. You need to pay for those things.

But why must those costs fall solely on the shoulders of home buyers? And why would Loudoun “OK” an increase in proffers (aka increase in the cost of buying a home) at a time when everyone and their mother is trying to lower the cost of buying and selling a home in order to stimulate the housing market?

Seems a bit backwards to me…

P.S. Supervisor Eugene Delgaudio (R-Sterling) was the only board member to oppose the motion.

On a side note, the increase in proffers is only for Eastern Loudoun. The proffers in Western Loudoun remained relatively unchanged. Hmmm…interesting.

Loudoun County - Where the Jobs Are

Congratulations to Loudoun County for coming in fourth on CNNMoney.com’s top 25 list of counties that have experienced the greatest job growth in the last 8 years. Loudoun’s job growth rate went up over 75 percent from 2000 to 2008.

Interesting fact: Over half of the Loudoun’s residents work within county lines. (As the Dulles Greenway and Toll Road tolls increase, we’ll probably see even more people working within Loudoun County lines)

This makes it two years in a row that Loudoun has come in fourth on the list.

Home Buyers: Are You Worth $17.50?

Here’s a question for Loudoun and Fairfax County home buyers: “Are you worth $17.50?”

“Duh!” Of course you are!

So why would I ask such an obvious question?

Because you may be shocked to hear who doesn’t think you’re worth it.

Let me explain…

Background

To make a long story short… The majority of homes being sold through a Realtor in the Fairfax County area will have one type of electronic lock box known as a SentriLock while the majority of homes being sold through a Realtor in Loudoun County will have another type of electronic lock box known as a Supra.

Because there are quite a few Realtors that do business in both jurisdictions (Fairfax and Loudoun), both local Realtor Associations (NVAR and DAAR) have agreed to sell SentriLock and Supra lock box keys to the other association’s members for a nominal fee of no more than $175.00 per year.

If you’re wondering why this is so, drop me a line and I’ll email you the details.

Now back to, “Are you worth $17.50?”…

So let’s say you’re a buyer looking in Reston, Herndon, Sterling and Ashburn or… Fairfax, Centreville and South Riding or…(you get the picture). You will most likely run across both types of lock boxes on homes in those areas. Logic dictates that your buyer’s agent would/should have both sets of keys, right?

Wrong. Some Realtors do not have both lock box keys.

The ones that don’t have both keys have to call the listing agent and/or seller to ask them to let you into the home. This means that you have to work around the listing agent’s and seller’s schedule, not yours. This may also make you a bit uncomfortable considering that the listing agent and/or sellers will be hanging around the house while you’re going through it (aka zero privacy and sales pitches).

Why would an agent not have both lock box keys?

It’s not because it’s hard or expensive. To obtain a GE Supra Key, all you have to do is go to the DAAR offices in Leesburg (45 minutes from the furthest point in Fairfax County) and shell out a measly $175.00 per year. With 10 buyer deals per year (not hard to do), the cost of the key amounts to $17.50 per buyer. If a Buyer’s Agent is even a slight bit concerned about their buyer clients, they should have both sets of keys (as I and other quality agents do). Personally, if I didn’t have both keys, I would feel as though I was not giving my clients the service they deserve.

In my opinion, there is no excuse for not having both keys (except for laziness, lack of caring or too broke working as a Realtor to spend $17.50 per buyer client). Even if a Realtor has never done a deal in Loudoun before, the second they get a new buyer client that’s looking in Loudoun, they should go get a key. The longest they’ll ever have to wait to get a key is three days and that’s only if it’s a holiday weekend.

So, home buyers looking in Loudoun… Are you worth $17.50?

If someone doesn’t think so, contact someone who does - me.

I think you’re worth at least $18.00 if not $18.50

“On The Streets” of the Loudoun County Housing Market

You read the news and see the statistics. You hear what you’re neighbors and friends are saying. But what is really happening “on the streets” of the Loudoun County housing market?

Here you go…

Buyers looking to get a great deal on a property are seeing well priced properties sell within weeks if not days of coming on the market. Many very well priced properties are seeing multiple offers and bidding wars - 2, 5 even 10+ offers. Many buyers are bidding on 2, 3 even 5 properties before finally having the winning offer and buying a house.

Sellers who price and market their property correctly are seeing lots of buyers coming through their property almost immediately after coming on the market. An offer within the first few weeks on the market is common for properly priced properties. On the other hand, no activity and no offers is the norm for overpriced properties. In a nutshell, Value is King.

We’re also seeing an up-tick in median prices in some areas of Loudoun County (as well as some areas of Fairfax County) - though this does not necessarily reflect an increase in any one specific property’s value. Take a look at the latest statistics regarding median prices and inventory levels in different parts of Loudoun County to see for yourself.

The local market is such because inventory levels (number of homes on the market) have decreased an average of 50 percent since 2007 and an average of 20 percent since this time last year. At the same time, buyer demand (aka number of homes being sold) has increased by an average of 50 percent thanks to historically low interest rates and the $8,000 first-time home buyer credit. This translates to more buyers trying to buy the same type of property, but there are less homes to choose from. But even though more buyers are fighting over fewer properties, buyers are not being suckered into or getting frustrated to the point of overpaying for a property.

Note: Despite the majority of the Loudoun housing market showing signs of stabilization, the $1M+ home sector is not fairing as well. Inventory is stagnant as is buyer demand. This is bad for sellers of $1M+ properties, but good for home buyers in that price point.

Another trend we’re seeing is a substantial decrease in foreclosure/bank-owned inventory on the market (thanks to the foreclosure moratoriums of late 2008/early 2009) and a significant increase in short-sale inventory. This has led to increased frustration on the part of buyers and agents some of whom are not familiar with the nuances of short-sale transactions and don’t know how to properly navigate through such a transaction. Getting a response from the bank(s) on a short-sale can take as little as 45 days and as long as 6 months with the average being about 90 days (more on this in a future post over at LoudounForeclosures.com).

Up until this year, many real estate investors were sitting on the sidelines as median prices continued their downward trend and good investment opportunities were rare. But that has changed. We’re seeing investors getting back into the market buying up distressed properties, doing rehab on them and then either flipping them for a 10 to 30 percent profit or renting them out as part of their long-term investment plan. Investors are especially prevelant in parts of Sterling and Leesburg.

And that folks, is the reality of the Loudoun (and Northern Virginia) housing market.

If you would like me to go into more detail or need information about a specific town, neighborhood or subdivision in Loudoun (or north/east Fairfax County), feel free to contact me.