Matt's Real Estate Corner

Change in the Wings for FHA loans.

It was announced this week that changes are in store for FHA loans sometime this year.

• The initial Mortgage Insurance Premium will be increased from the current 1.75% to 2.25%
• Borrowers with a crdit score of less than 580 will be required a down payment of 10% instead of the now required 3.5%.
• Seller concession (amount a seller can contribute towards closing costs) will be decreased from 6% to 3%.

Since many buyers are choosing to use FHA financing in the purchase of thie homes, this along with the end (unless extended) of the federal housing tax credit may have an impact on the future market.

Is Your Home Comparable to Other Investments?

What Happened to the “Bad” Market?

Over the past few months and especially in the past 30 days the Real Estate market in Prince William County at  has risen at levels not seen since the hot market of 2004-2006.  Some facts/observations:

• According to MRIS, the average sales price in the county rose $9,000 from June 2009 to July 2009 and is now at $233,202.
• Inventory is LOW with some subdivisions currently having no fully available listings.
• Especially in lower-priced and well-positioned homes, many listings are receiving multiple offers hours after they hit the Multiple Listing Service.
• Demand from buyers (especially investors and first time buyers) is leading to homes sometimes selling for at and many times 10-20% above asking price
• The under $100k price point is quickly disappearing as cash investors acquire these property as flips or rentals.

Even with this surge many areas are still at price levels equal to that of roughly 2001-2003.  The next 6-12 months will be a time to see if this trend continues or if the end of the federal tax credit and the rumored “next wave” of short sales and foreclosures will help to balance out supply/demand.

August Newsletter Now Available

The August edition of "Matt's Real Estate Corner" newsletter is now available.  Click here to view.

If you would like to receive my monthly newsletter directly via email please feel free to email me or text me (either directly using my Office phone number or using the widget on this page) your name and email address.  I will be more than happy to add your to the list.

Why FHA and the Current Market May NOT Mix (Right Now)

As we all the know market changes everyday and right now in Prince Williams County that is no exception.  Inventory is low (especially in lower price brackets) and demand is high due to both investors and first time buyers.  The introduction of the VHDA Tax Credit Plus Program has probably brought many potential homeowners off the fence at least for this year.  Since the VHDA programs uses an FHA loan it may be noteworthy to point out some current market features that may prevent those using an FHA loan to snag the “incredible deals” everyone thinks exist for them.

REO properties – the inventory of foreclosure properties in the county has dropped with a slower trickle of new properties.  the issue here is twofold.  First, many of these properties have had appliances/fixtures removed or have other damage that will disqualify it for normal FHA financing.  Also in some price ranges investors are in the marketplace with many submitting cash offers at and even well over list price in order to win the deal.

Flip properties – right now we are seeing a growing number of flip properties from investor who just bought properties as distress sales and have renovated them to sell for profit.  Yes this gives you the opportunity to buy a home that has been updated without having to deal with a bank, FHA will not allow you to close a purchase on a home until it ahs been owned by the previous owner for 90 days.  This may not seem like a long time but many flippers want a quick sale and to avoid extra carrying costs they are specifically stating the listing “no FHA contracts”.

What to take away from this: be patient when you decide to buy a home.  Some lead time to research/view properties and even submit offers on them can go a long way in learning what type of home you want and also your comfort when entering the ring of making purchase offers.

One note is that I did not mention short sales. They can run into issue with FHA financing depending on the condition of the property but usually have not had items purposely removed like can happen in foreclosures.

Market Statistics for June 2009

Below are Market Statistics for June 2009.  Click Here to see stats from last month.  If you would like more detailed information or analysis and how it relates to your specific real estate needs, please feel free to contact me.

 

Regional Snapshot

 

Prince William County, Manassas City, and Manassas Park City

 

	2009	2008	% Change
Total Sold Dollar Volume:	$178,297,076	$265,448,204	-32.83%
Average Sold Price:	$224,273	$271,976	-17.54%
Median Sold Price:	$195,000	$232,250	-16.04%
Total Units Sold:	795	976	-18.55%
Average Days on Market:	78	122	-36.07%
Average List Price for Solds:	$240,764	$305,368	-21.16%
Avg Sale Price as a percentage of Avg List Price:	93.15%	89.06%
Source: Metropolitan Regional Information Systems, Inc. - MLS Resale Data
Copyright 2009 - Information deemed reliable, but is not guaranteed.

 

 

Local Snapshots

 

Woodbridge, VA 22192

 

	2009	2008	% Change
Total Sold Dollar Volume:	$21,978,743	$24,350,975	-9.74%
Average Sold Price:	$213,386	$279,896	-23.76%
Median Sold Price:	$190,000	$260,000	-26.92%
Total Units Sold:	103	87	18.39%
Average Days on Market:	75	123	-39.02%
Average List Price for Solds:	$232,724	$313,913	-25.86%
Avg Sale Price as a	91.69%	89.16%
percentage of Avg List Price:
Source: Metropolitan Regional Information Systems, Inc. - MLS Resale Data
Copyright 2009 - Information deemed reliable, but is not guaranteed.

 

 

Woodbridge, VA 22193

 

	2009	2008	% Change
Total Sold Dollar Volume:	$25,877,929	$40,579,113	-36.23%
Average Sold Price:	$180,965	$234,561	-22.85%
Median Sold Price:	$159,900	$210,000	-23.86%
Total Units Sold:	143	173	-17.34%
Average Days on Market:	71	110	-35.45%
Average List Price for Solds:	$187,990	$261,005	-27.97%
Avg Sale Price as a	96.26%	89.87%
percentage of Avg List Price:
Source: Metropolitan Regional Information Systems, Inc. - MLS Resale Data
Copyright 2009 - Information deemed reliable, but is not guaranteed.

 

 

Woodbridge, VA 22191

 

	2009	2008	% Change
Total Sold Dollar Volume:	$22,109,430	$29,005,007	-23.77%
Average Sold Price:	$193,942	$261,306	-25.78%
Median Sold Price:	$150,000	$238,500	-37.11%
Total Units Sold:	114	111	2.70%
Average Days on Market:	69	112	-38.39%
Average List Price for Solds:	$206,733	$291,111	-28.98%
Avg Sale Price as a	93.81%	89.76%
percentage of Avg List Price:
Source: Metropolitan Regional Information Systems, Inc. - MLS Resale Data
Copyright 2009 - Information deemed reliable, but is not guaranteed.

 

 

Dumfries, VA 22025

 

	2009	2008	% Change
Total Sold Dollar Volume:	$7,853,776	$8,939,205	-12.14%
Average Sold Price:	$302,068	$288,361	4.75%
Median Sold Price:	$319,263	$260,000	22.79%
Total Units Sold:	26	31	-16.13%
Average Days on Market:	56	146	-61.64%
Average List Price for Solds:	$311,766	$319,874	-2.53%
Avg Sale Price as a	96.89%	90.15%
percentage of Avg List Price:
Source: Metropolitan Regional Information Systems, Inc. - MLS Resale Data
Copyright 2009 - Information deemed reliable, but is not guaranteed.

 

 

Dumfries, VA 22026

 

	2009	2008	% Change
Total Sold Dollar Volume:	$5,183,275	$8,170,092	-36.56%
Average Sold Price:	$161,977	$247,579	-34.58%
Median Sold Price:	$99,500	$230,000	-56.74%
Total Units Sold:	32	33	-3.03%
Average Days on Market:	91	144	-36.81%
Average List Price for Solds:	$189,030	$284,353	-33.52%
Avg Sale Price as a	85.69%	87.07%
percentage of Avg List Price:
Source: Metropolitan Regional Information Systems, Inc. - MLS Resale Data
Copyright 2009 - Information deemed reliable, but is not guaranteed.

 

 

Triangle, VA 22172

 

	2009	2008	% Change
Total Sold Dollar Volume:	$3,329,000	$3,120,032	6.70%
Average Sold Price:	$237,786	$312,003	-23.79%
Median Sold Price:	$228,500	$327,500	-30.23%
Total Units Sold:	14	10	40.00%
Average Days on Market:	211	103	104.85%
Average List Price for Solds:	$258,779	$319,450	-18.99%
Avg Sale Price as a	91.89%	97.67%
percentage of Avg List Price:
Source: Metropolitan Regional Information Systems, Inc. - MLS Resale Data
Copyright 2009 - Information deemed reliable, but is not guaranteed.

 

 

Manassas, VA 20112

 

	2009	2008	% Change
Total Sold Dollar Volume:	$15,328,959	$18,093,999	-15.28%
Average Sold Price:	$348,385	$430,810	-19.13%
Median Sold Price:	$333,250	$426,500	-21.86%
Total Units Sold:	44	42	4.76%
Average Days on Market:	105	164	-35.98%
Average List Price for Solds:	$382,471	$492,013	-22.26%
Avg Sale Price as a	91.09%	87.56%
percentage of Avg List Price:
Source: Metropolitan Regional Information Systems, Inc. - MLS Resale Data
Copyright 2009 - Information deemed reliable, but is not guaranteed.

 

 

Manassas, VA 20111

 

	2009	2008	% Change
Total Sold Dollar Volume:	$12,113,200	$15,130,785	-19.94%
Average Sold Price:	$195,374	$213,110	-8.32%
Median Sold Price:	$169,000	$175,000	-3.43%
Total Units Sold:	62	71	-12.68%
Average Days on Market:	76	127	-40.16%
Average List Price for Solds:	$210,063	$243,494	-13.73%
Avg Sale Price as a	93.01%	87.52%
percentage of Avg List Price:
Source: Metropolitan Regional Information Systems, Inc. - MLS Resale Data
Copyright 2009 - Information deemed reliable, but is not guaranteed.

 

 

Manassas, VA 20110

 

	2009	2008	% Change
Total Sold Dollar Volume:	$11,735,500	$21,738,002	-46.01%
Average Sold Price:	$156,473	$185,795	-15.78%
Median Sold Price:	$130,000	$161,000	-19.25%
Total Units Sold:	75	117	-35.90%
Average Days on Market:	72	127	-43.31%
Average List Price for Solds:	$171,140	$228,163	-24.99%
Avg Sale Price as a	91.43%	81.43%
percentage of Avg List Price:
Source: Metropolitan Regional Information Systems, Inc. - MLS Resale Data
Copyright 2009 - Information deemed reliable, but is not guaranteed.

 

 

Manassas, VA 20109

 

	2009	2008	% Change
Total Sold Dollar Volume:	$8,503,910	$20,374,817	-58.26%
Average Sold Price:	$149,191	$165,649	-9.94%
Median Sold Price:	$138,000	$167,000	-17.37%
Total Units Sold:	57	123	-53.66%
Average Days on Market:	54	116	-53.45%
Average List Price for Solds:	$154,776	$190,999	-18.97%
Avg Sale Price as a	96.39%	86.73%
percentage of Avg List Price:
Source: Metropolitan Regional Information Systems, Inc. - MLS Resale Data
Copyright 2009 - Information deemed reliable, but is not guaranteed.

July Newsletter Now Available

The July edition of "Matt's Real Estate Corner" newsletter is now available.  Click here to view.

If you would like to receive my monthly newsletter directly via email please feel free to email me or text me (either directly using my Office phone number or using the widget on this page) your name and email address.  I will be more than happy to add your to the list.

DNRP: A Relocation Resource for DoD Employees

The Department of Defense National Relocation Program provides assistance to DoD employees (both military and civilian) who are transferred and need housing assistance on either end.  A variety of Program both ones that have existed for years and new programs to address the recent housing market shift, provide help to those who qualify.

DNRP Handbook

Looks over Safety?

When looking at the home you want to purchase or even when making upgrades to your current property, keep in mind possible safety hazards that may affect you or others that live in or visit the home.

Open stairs like the ones picture from a tract home built in the 1980s were a popular way to make dark stairwells feel more light and open.  However, I have heard from many sources about how they they can be even more dangerous than regular stairs for small children.  Step-down room are another feature that although dramatic may be a hazard for children and anyone with mobility issues.

What’s my point?  As glitzy and cool as some home features are, you need to step back and evaluate them based on objective criteria.  This is especially true if the needs of you or a family member require specific  accommodations.

Market Statistics for May 2009

Below are Market Statistics for May 2009.  Click Here to see stats from last month.  If you would like more detailed information or analysis and how it relates to your specific real estate needs, please feel free to contact me.

 

Regional Snapshot

 

Prince William County, Manassas City, and Manassas Park City

 

	2009	2008	% Change
Total Sold Dollar Volume:	$198,361,135	$226,166,579	-12.29%
Average Sold Price:	$226,698	$273,148	-17.01%
Median Sold Price:	$190,000	$244,400	-22.26%
Total Units Sold:	875	828	5.68%
Average Days on Market:	78	127	-38.58%
Average List Price for Solds:	$242,551	$309,223	-21.56%
Avg Sale Price as a percentage of Avg List Price:	93.46%	88.33%
Source: Metropolitan Regional Information Systems, Inc. - MLS Resale Data
Copyright 2009 - Information deemed reliable, but is not guaranteed.

 

 

Local Snapshots

 

Woodbridge, VA 22192

 

	2009	2008	% Change
Total Sold Dollar Volume:	$25,300,445	$25,043,032	1.03%
Average Sold Price:	$223,898	$305,403	-26.69%
Median Sold Price:	$178,750	$259,750	-31.18%
Total Units Sold:	113	82	37.80%
Average Days on Market:	59	131	-54.96%
Average List Price for Solds:	$238,024	$335,773	-29.11%
Avg Sale Price as a	94.07%	90.96%
percentage of Avg List Price:
Source: Metropolitan Regional Information Systems, Inc. - MLS Resale Data
Copyright 2009 - Information deemed reliable, but is not guaranteed.

 

 

Woodbridge, VA 22193

 

	2009	2008	% Change
Total Sold Dollar Volume:	$30,637,404	$39,949,225	-23.31%
Average Sold Price:	$181,286	$256,085	-29.21%
Median Sold Price:	$160,000	$221,000	-27.60%
Total Units Sold:	169	156	8.33%
Average Days on Market:	71	139	-48.92%
Average List Price for Solds:	$192,848	$290,376	-33.59%
Avg Sale Price as a	94.00%	88.19%
percentage of Avg List Price:
Source: Metropolitan Regional Information Systems, Inc. - MLS Resale Data
Copyright 2009 - Information deemed reliable, but is not guaranteed.

 

 

Woodbridge, VA 22191

 

	2009	2008	% Change
Total Sold Dollar Volume:	$24,909,227	$26,703,850	-6.72%
Average Sold Price:	$200,881	$251,923	-20.26%
Median Sold Price:	$167,452	$213,950	-21.73%
Total Units Sold:	124	106	16.98%
Average Days on Market:	80	117	-31.62%
Average List Price for Solds:	$217,959	$293,099	-25.64%
Avg Sale Price as a	92.16%	85.95%
percentage of Avg List Price:
Source: Metropolitan Regional Information Systems, Inc. - MLS Resale Data
Copyright 2009 - Information deemed reliable, but is not guaranteed.

 

 

Dumfries, VA 22025

 

	2009	2008	% Change
Total Sold Dollar Volume:	$10,695,800	$9,611,842	11.28%
Average Sold Price:	$267,395	$282,701	-5.41%
Median Sold Price:	$282,500	$271,250	4.15%
Total Units Sold:	40	34	17.65%
Average Days on Market:	63	138	-54.35%
Average List Price for Solds:	$276,469	$318,326	-13.15%
Avg Sale Price as a	96.72%	88.81%
percentage of Avg List Price:
Source: Metropolitan Regional Information Systems, Inc. - MLS Resale Data
Copyright 2009 - Information deemed reliable, but is not guaranteed.

 

 

Dumfries, VA 22026

 

	2009	2008	% Change
Total Sold Dollar Volume:	$4,325,411	$5,827,871	-25.78%
Average Sold Price:	$205,972	$253,386	-18.71%
Median Sold Price:	$230,000	$289,900	-20.66%
Total Units Sold:	21	23	-8.70%
Average Days on Market:	86	196	-56.12%
Average List Price for Solds:	$223,618	$312,919	-28.54%
Avg Sale Price as a	92.11%	80.97%
percentage of Avg List Price:
Source: Metropolitan Regional Information Systems, Inc. - MLS Resale Data
Copyright 2009 - Information deemed reliable, but is not guaranteed.

 

 

Triangle, VA 22172

 

	2009	2008	% Change
Total Sold Dollar Volume:	$2,825,650	$2,530,319	11.67%
Average Sold Price:	$217,358	$361,474	-39.87%
Median Sold Price:	$146,850	$405,000	-63.74%
Total Units Sold:	13	7	85.71%
Average Days on Market:	115	100	15.00%
Average List Price for Solds:	$229,042	$379,646	-39.67%
Avg Sale Price as a	94.90%	95.21%
percentage of Avg List Price:
Source: Metropolitan Regional Information Systems, Inc. - MLS Resale Data
Copyright 2009 - Information deemed reliable, but is not guaranteed.

 

 

Manassas, VA 20112

 

	2009	2008	% Change
Total Sold Dollar Volume:	$12,969,710	$9,880,889	31.26%
Average Sold Price:	$370,563	$380,034	-2.49%
Median Sold Price:	$332,000	$332,500	-0.15%
Total Units Sold:	35	26	34.62%
Average Days on Market:	73	154	-52.60%
Average List Price for Solds:	$404,993	$445,487	-9.09%
Avg Sale Price as a	91.50%	85.31%
percentage of Avg List Price:
Source: Metropolitan Regional Information Systems, Inc. - MLS Resale Data
Copyright 2009 - Information deemed reliable, but is not guaranteed.

 

 

Manassas, VA 20111

 

	2009	2008	% Change
Total Sold Dollar Volume:	$13,516,941	$13,727,110	-1.53%
Average Sold Price:	$187,735	$211,186	-11.10%
Median Sold Price:	$147,451	$187,000	-21.15%
Total Units Sold:	72	65	10.77%
Average Days on Market:	85	124	-31.45%
Average List Price for Solds:	$196,703	$233,306	-15.69%
Avg Sale Price as a	95.44%	90.52%
percentage of Avg List Price:
Source: Metropolitan Regional Information Systems, Inc. - MLS Resale Data
Copyright 2009 - Information deemed reliable, but is not guaranteed.

 

 

Manassas, VA 20110

 

	2009	2008	% Change
Total Sold Dollar Volume:	$17,020,215	$15,617,120	8.98%
Average Sold Price:	$171,921	$197,685	-13.03%
Median Sold Price:	$155,000	$180,000	-13.89%
Total Units Sold:	99	79	25.32%
Average Days on Market:	85	112	-24.11%
Average List Price for Solds:	$184,876	$229,349	-19.39%
Avg Sale Price as a	92.99%	86.19%
percentage of Avg List Price:
Source: Metropolitan Regional Information Systems, Inc. - MLS Resale Data
Copyright 2009 - Information deemed reliable, but is not guaranteed.

 

 

Manassas, VA 20109

 

	2009	2008	% Change
Total Sold Dollar Volume:	$8,429,699	$14,588,285	-42.22%
Average Sold Price:	$153,267	$169,631	-9.65%
Median Sold Price:	$145,000	$160,000	-9.38%
Total Units Sold:	55	86	-36.05%
Average Days on Market:	96	122	-21.31%
Average List Price for Solds:	$170,072	$200,659	-15.24%
Avg Sale Price as a	90.12%	84.54%
percentage of Avg List Price:
Source: Metropolitan Regional Information Systems, Inc. - MLS Resale Data
Copyright 2009 - Information deemed reliable, but is not guaranteed.