Sub-$300K Loudoun Housing Market Remains Hot

The $300K or less housing market in Loudoun County continues to be hot. Properties in this price point are often selling within days and buyers are rushing to see the properties and put an offer in before they’re gone. For sellers, this a good thing. For home buyers, not so much.

Buyers

Just ask any of my first time home buyers or investors looking to pick up a property in that price point and you’ll see their facial expression change instantly. Why? Becuase the process usually goes something like this…

• The property is typically a short-sale or foreclosure
• The asking price is below market value so that the seller/bank will get an offer as quickly as possible
• Multiple offers are received on the property within 48 to 72 hours – sometimes up to 10+ offers
• Many of these offers are cash offers from investors with no contingencies and able to settle within 2 weeks
• Many of the offers are for more than the asking price because the seller/bank has purposefully priced the property below what’s it’s really worth
• Even though your offer (with financing) may be higher in price, the seller may go with a lower priced, all-cash offer because it’s less hassle with a higher chance of closing

Does this mean that first time home buyers in Loudoun County can’t compete with investors?

No. It means that road will be tough and you will need to have a lot patience. You will most likely write several offers on several different properties before your offer gets chosen. Despite the road being tough, every first time home buyer and investor I have worked with in this price point, both in Loudoun County and the rest of Northern VA has eventually found and bought a home that they love and that works for them.

Does this mean that investors will drive first time home buyers with financing out of the market?

Yes and no. Yes because I have heard from other agents that their first time home buyers have either given up from frustration or are waiting for the market to become less hot and cut throat before getting into it. But there are still plenty of first time home buyers out there that are patient and have prepared themselves well for this market through research and/or through their Buyer’s Agent.

Sellers

• There is a lot of demand for properties in the sub-$300K price range (aka lots of buyers looking at your house)
• Even if you’re house needs work, if you price it accordingly, buyers and investors will buy it in its’ current condition
• If you price and market your property correctly, you will have an offer, if not several offers in your hands within days
• If you have multiple offers, you are able to pick the best one that fits your specific situation and needs rather than picking the first one that comes through

Does this mean that sellers can price their property for more than market value and get away with it?

No. Sellers should be confident and smart, not greedy. Buyers are smart – they know what market values are like whether it be from their own research or their Buyer’s Agent providing them with comps (aka the sales price of similar homes that have sold in the same community within the past 90 days). Buyers would rather pass on an over priced property and wait for a properly priced property than spend more on a property than what its’ worth.

Does this mean that sellers should accept an all-cash offer rather than one with financing?

Not necessarily. Seller should always look at the big picture and the small details of every offer. In most situations, an all-cash offer is most desirable. But not every situation nor every all-cash offer is the same. Sellers and their Listing Agent should discuss the pros and cons of each and every offer before making a final decision on which one to accept.

Need more info or a list of homes for sale in the sub-$300K market? Contact me via email or on my cell and I’ll be glad to help.

Loudoun County Housing Inventory and Days On Market

Let’s take a look at Loudoun County’s housing inventory and average days on market (DOM). This is important to know because it gives you a sense of how to negotiate as a buyer and how to position your property as a seller.

Loudoun County inventory – new and active listings

There are just under 1500 active listings in Loudoun County, which is on the low side. To give you some comparison points…active listings hit a decade-low 1087 in December 2009 (seller’s market and values went up). And active listings hit an all time high of 4659 in the summer of 2006 (that’s when everything really hit the fan, prices started tanking and it was a buyer’s market).

Note: Yes, inventory has risen in the recent weeks. But that’s a yearly/seasonal thing called the “Spring market” when sellers believe they can get the most for their homes and put their home on the market.

Loudoun County average Days On Market (DOM)

The general rule of thumb in this area has been that when DOM goes above 4 months (120+ days), it signals a buyer’s market. If DOM is below 3 months (<90 days), it signals a a seller’s market. Right in between 90 and 120 days typically signals a balanced market. As you can see, DOM is below 80 and was even as low as 40 for a while there.

What does all of this mean?

For home owners that are able to sell their home at its’ present value, the market is on your side. DOM and inventory are low, two things that bode well for sellers.

For buyers, it means that your choice of homes is limited. In addition, you’ll see a lot of competition on the current homes on the market and even stiffer competition (aka multiple offers) on the homes that are priced very well and a great value.

Even though the signs point to a sellers’ market (and recovery), don’t get overly excited. Among other things, there is a lot of shadow foreclosure inventory to still get through and lending guidelines are making it harder and more expensive for consumers to get financing.

If you would like statistics about a specific town or community within Loudoun County, don’t hesitate to contact me.

Loudoun County, Brambleton; Record Level New Home Sales

Despite new home sales being way down as a whole across the U.S., Loudoun County, particularly Brambleton is seeing record level new home sales. In fact, Brambleton is the 8th top-selling community in the U.S.

Yes, you read that correctly (and no, this is not an April Fool’s joke).

Brambleton sold 352 new homes in 2010, the most new homes sold in one year in its’ 10 year history. On top of that, Brambleton is on pace to break that record in 2011 – and that’s without the first-time home buyer tax credit being available.

What’s so special about Loudoun County and Brambleton in particular?

- This area has always been ahead of the curve and leads the country by about 6 to 9 months. We were the first to see prices going up during the boom, the first to see them starting to come down and the first to see signs of stabilization and possible recovery.

- A large local presence of national and semi-custom builders who survived the market downturn and had money to start building once the local market showed signs of life in the second half of 2009 and into 2010.

- A shift in builders’ product lines. Builders are building more affordable and attractive products. This is drawing buyers in that were once priced out of the market and/or weren’t fans of the “same ol’” style of homes or huge McMansions. Yes, you can still find new traditional Virginia colonials/town homes throughout the area. But you can see and feel an urban touch to some of the new product lines and community amenities especially in Brambleton – one example is the Boulevard at Brambleton, by Camberley Homes.

- The local economy is one of the strongest in the U.S. This includes employment rates, new jobs being created and incomes. This helps create a strong housing demand and one that is stronger than most other parts of the U.S.

- Brambleton is a really cool, well thought-out and well built community (and their staff is dedicated and hard working). It has won GALA’s Community of the Year and countless other awards over the years. If you haven’t been to Brambleton in person, you should check it out sometime. (Contact me for a free tour of the Brambleton including the eight different builders within the community)

The rest of Loudoun County is in similar shoes. Other communities and builders are also selling new homes at a pace not seen for years, if ever. In speaking with builders’ sales staff and selling new homes throughout Loudoun County last year, I noticed that the sales staff had a smile on their face and positive attitude about them not seen since the boom market back in 2003, 2004 and 2005.

If you’re considering a new home but think that it’s out of your price range, you may be pleasantly surprised. As I mentioned, builders have revamped their product lines and price points. Give me a call or shoot me an email and I’d be glad to tell you what’s available in your price range throughout Loudoun County and show you around.

Related Reading

General information on Brambleton, LoudounScene.com

Camberley Homes, Boulevard at Brambleton Starts Selling This Weekend

Camberley Homes, Boulevard at Brambleton will officially open their sales office this Saturday, September 18, 2010. I stopped by last Saturday while giving home buyers a tour of Brambleton. We had a chance to spend some time with Mike, the sales manager and get more of the latest details.

To go into detail would be a looooooong blog post so I’ll give you the short “in a nutshell” version here – email or call me for the details.

Camberley Homes, Boulevard at Brambleton

- Base prices range from $370K to $403K depending on the model
- There are four different models to choose from
- Two car garages are standard
- Much different layout than typical town home buildings
- Camberley Homes is more willing to customize than most builders
- Delivery of the first building and town homes in Spring 2011 (April/May)
- Some 3 bedroom models can be made into 2 master bedroom models
- One model has a rooftop terrace (they may offer the terrace on other models in the future)

There’s a lot of information about Camberley Homes, Boulevard at Brambleton’s models and features online on their site and blog. But that’s only the tip of the iceberg.

If you would like more information or to set up a time to check out the sales center or get a tour of Brambleton, click here to contact me.

And if you haven’t read this blog post about buying a new construction home, click here to do so now.

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.”

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