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D.C. homebuyers face hyper competitive market

Sellers in driver’s seat as region faces record low inventory

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housing market, gay news, Washington Blade

With job growth rising during a period of aggressive government spending and historically low mortgage rates, the spring 2021 market sits at the lowest level of inventory since 1983.

Homebuyers in the D.C. area continue to face an incredibly competitive market. This is truly a seller’s market.

Lack of Inventory: Washington, D.C. has been in a gradually worsening housing shortage since the Great Recession. The area hasn’t had a six-month supply of homes for sale for almost 12 years. Now, we add a global pandemic that seriously altered what homeowners want out of their home, Wall Street on fire, and insanely low interest rates and we get a surge in motivated homebuyers.

According to the National Association of Realtors (NAR), the number of homes nationwide reached a record low in December 2020, with just 1.07 million properties on the market. The DC metro area is even worse off than the national average with only one month’s supply of homes. That means if new listings were completely dried up, there would be no homes available in four weeks. On average, D.C. homes have been selling within 11 days, which is 15 days faster than this time in 2020.

Seller’s Market: The time is now for Washington, D.C. homeowners to seriously consider selling their homes if they have played with the idea. Experts predict 2021 will be another strong housing market with an increase in demand from existing homebuyers in search of larger homes and buyers who delayed purchasing a home due to the uncertainty of the pandemic.

Zillow forecasts a nearly 30 percent annual growth in homes for sale in 2021. This would be the largest home sales growth since 1983. Zillow’s annual report stated, “Home price appreciation will reach its fastest pace since the Great Recession, as the inventory crunch continues to pit buyers against each other, competing for a scarce number of homes for sale.”

D.C.’s Current Market: According to the NAR, in March of 2021, D.C. home prices had increased 4.1% compared to March 2020, for a median price of $635,000. There were 1,004 homes sold in March 2021, an increase from 842 at this time last year.

We are seeing many homes receive multiple offers within just a few days in the D.C. area. The average home is selling a little above 1% of the listing price and many hot homes are seeing large bidding wars and selling for 3% or more above the listing price; 42.7% of D.C. homes sold above list price in March of 2021. That is a 13.4% increase from last year at this time. Active inventory for March of 2021 was 1,457 homes, down 9% from March 2020. March 2021 also saw 991 homes sell in the D.C. area, an increase of 31% from February of 2021. March 2021’s total homes sold had a 19% increase from March 2020.

Buying a Home: In the current seller’s market, buying a home can be like playing a chess match. You need to know the rules and be strategic. It can seem more like winning than purchasing a home right now. If you find a home you want to buy, chances are you won’t be the only one making an offer. It is a seller’s market everywhere in the country right now and D.C. is no different. Be sure you know what you qualify for and what you can afford.

Conclusion: The NAR and the Mortgage Bankers Association both project prices of existing homes to increase 5.9% in 2021. This may mean buyers will have to be more flexible than in the past. For example, making an offer contingent upon the sale of a current home may be harder than before. It’s also possible you will pay more than the list price. The D.C. real estate market is on fire and many homes are off the market within 24 hours of listing. For sellers, if you have been thinking of selling your home there is no better time than the present.

 

Khalil El-Ghoul is Principal Broker for Glass House Real Estate. Reach him at [email protected] or 571-235-4821. Glass House Real Estate is a modern, more affordable way to buy and sell a home in the D.C. Metro area. Learn more about what makes us different at glassshousere.com.

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Miscellaneous

The evolution of the open house

The more sophisticated the advertising, the more the events flourished

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From car giveaways in the 1950s to today’s QR codes and virtual events, agents have used diverse strategies to draw buyers to open houses.

In the early 20th century, there were no exclusive agreements between a seller and a real estate agent. Any broker who knew of someone wanting to sell could participate in an “open listing” by planting his sign in the yard of that person and competing with agents from other brokerages who did the same. To the victor who obtained a buyer went the spoils of commission.

The rules began to change in 1919, when being a real estate broker now required a license. An agent might handle only one property at a time exclusively, but an “open for inspection” period could be used to introduce a model home or new community to the buying population. 

According to the National Association of Realtors, Dallas homebuilder, Howdy Howard, hosted one of the most successful open houses of all time in the 1950s. During the first 12 days of the event, an estimated 100,000 people attended, drawn by free sodas and the ultimate prize for the buyer – a new Cadillac.

Soon, brokers began hiring additional agents who could handle multiple properties. Unlike Howard’s marathon open house, agents would now host them for a few hours at a time, usually on a Sunday, to whet the appetite of the buyer pool. 

Classified advertisements with a description of a property would be placed in a local newspaper and potential buyers would review them with their morning coffee to decide which houses to visit later in the day. 

Marketing in newspapers went from a few lines of black and white text to a photo of a home’s exterior, to a multi-page spread that included both photos of houses and the agents who represented them.

The more sophisticated the advertising became, the more the open house flourished as a marketing tool, not only for the home itself, but also for the agent and the brokerage. It allowed agents to prospect for buyers for that home and others, and converse with neighbors who might want to sell their homes as well. 

Soon, the sign-in sheet was born, used by the agent to capture the contact information of a potential client or customer and to let the seller know who had visited his home. While sign-in sheets or cards are still used, some agents have gravitated to electronic applications, using a tablet computer instead of paper for the same purpose.

Fast forward to the early 2000s in D.C., when open houses became the primary source of showing property. An agent would enter a property into the multiple listing service (MLS) on a Thursday, entertain no showings until Saturday, host an open house on Sunday afternoon, and call for offers either Sunday night or Monday. The open house allowed agents to send their buyers rather than accompany them and serve multiple clients at once.  

The delayed showing day strategy referenced above has since been supplanted by the MLS’s Coming Soon status. Agents can now email or text links to upcoming properties to their clients in advance of showing availability and the clients can view photos, read property descriptions and disclosures, and schedule future visits accordingly.

Enter COVID-19. Due to the proliferation of the virus and the subsequent lockdown, the real estate world had to accommodate new public health requirements. 

One of the first things to go was the open house. Even agent showings were constrained, with visitors limited to an agent plus two people and additional requirements for wearing masks and disposable shoe covers and gloves. 

Overlapping appointments were not allowed, showings were limited to 15 to 30 minutes, and bottles of hand sanitizer sprung up on kitchen counters everywhere.

Ultimately, technology and ingenuity provided new marketing avenues for agents that included 3-D virtual open houses, Facetime and Duo viewings, videos, property websites and QR codes. Many of these marketing techniques remain, even though traditional open houses are coming back post-lockdown.

But are they really necessary? Certainly not for all types of properties. 

I believe the days of using a public open house to procure a buyer are limited. Agent security has become a concern and the desire for in-person viewings during a specific day or time has waned. 

On the other hand, Internet marketing and social media have a much wider reach, so much so that some people now feel comfortable buying a home – probably the most expensive item they will ever purchase – without even stepping into it until after closing.

After all, if we can work in sweatpants or pajamas while Zooming corporate meetings, how can naked virtual reality house hunting be far behind?

Valerie M. Blake is a licensed Associate Broker in D.C., Maryland, and Virginia with RLAH Real Estate. Call or text her at 202-246-8602, email her via DCHomeQuest.com, or follow her on Facebook at TheRealst8ofAffairs.

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Miscellaneous

Kick-ass crossovers

Still the hottest vehicles in dealer showrooms

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crossovers, gay news, Washington Blade

Dodge Durango SRT Hellcat

Crossovers keep wending their way into our driveways—and our hearts. After overtaking sedans, station wagons and minivans as the hottest vehicles in dealer showrooms, crossovers are now taking aim at the most quintessential of American rides: the muscle car. With naughty looks and hepped-up engines, the two dynamite crossovers below are sure to blow your mind—and just maybe your budget.

DODGE DURANGO SRT HELLCAT
$81,000
Mpg: 12 city/17 highway
0 to 60 mph: 3.5 seconds

For more than 20 years, the Dodge Durango has been a solid if nondescript family hauler. But this year the automaker jazzed up its midsize crossover with brawnier styling and the latest tech toys. And for the first time, Dodge is offering a limited-edition Durango SRT Hellcat—a high-test model with the same hellacious Hemi V8 engine in the Challenger super coupe and Charger sport sedan. With 710 horsepower, this blazingly fast crossover can kick some serious ass, outrunning many a Ferrari and Lamborghini.

The upgraded suspension provides more dynamic handling and cornering, as well as selectable steering for better grip. For straight-line acceleration and to prevent nasty fish-tailing, I simply flipped the “launch control” toggle switch. The massive Brembo brakes also were stellar, with stop-on-a-dime performance and flaming red calipers on each wheel. Another plus: the iconic Hellcat exhaust rumble could be heard blocks away—music to the ears of any auto aficionado. As with all Durangos, this bruiser has best-in-class towing capacity of 8,700 pounds.

Inside, there’s plenty of space, including more room than expected for third-row passengers. The steering wheel, dash, and trim accents now have trendy Euro styling, though it’s more VW than upscale Audi. And you can opt for flashy seatbelts and premium seats in a color Dodge calls Demonic Red, along with black velour floor mats and a soft-touch headliner. Other features include heated/ventilated seats, a large 10.1-inch touchscreen, wireless smartphone integration and the ability to pair two Bluetooth devices at once. Options include a 19-speaker Harman Kardon stereo and rear-seat entertainment with Blue-Ray player. Alas, this is a limited-edition model and all 2,000 of these speed demons quickly sold out months ago. But there’s still hope: Dodge allocated some of the racy Durangos to select dealerships, so you can call around to see if any are still available. And you can always try social media to find a lucky Durango Hellcat owner who just might be willing to sell this rollicking ride, if the price is right.

LAND ROVER DEFENDER X
$85,000
Mpg: 17 city/22 highway
0 to 60 mph: 5.7 seconds

For decades, both the Land Rover Discovery and Range Rover have been ubiquitous in the United States. Not so the smaller and less ostentatious Defender, often seen as a work-horse vehicle in BritBox reruns or action flicks like Lara Croft: Tomb Raider. But last year the Defender returned to these shores after nearly a quarter-century hiatus.

Available in two- or four-door models, both Defenders start around $50,000. My test vehicle was the new top-of-the-line Defender X, which added—yikes!—another $35,000 to the sticker price. The look on these crossovers is boxy chic, which allows for a ginormous amount of headroom, legroom and cargo space. Land Rover also added extra stowage areas and cubby holes, as well as transom windows and a sliding panoramic sunroof to keep things airy. While the cabin may be sparse and full of solid plastics, the walnut trim on the center console and door panels is quite elegant.

Land Rovers have a somewhat infamous reputation for less-than-stellar electronics, but the 10-inch touchscreen was crystal clear and synced up seamlessly with the infotainment system. Tricked out with a jet-black roof, hood, and side cladding, the press vehicle I test drove was painted a haughty Eiger Gray Metallic. It also came with thick all-terrain tires, adding to a slightly menacing vibe. A full-size spare is conveniently mounted on the vertical tailgate, which swings completely open like a refrigerator door for easy access. The Defender X may not be as lightning quick as a Dodge Durango SRT Hellcat, but it’s still plenty fast. And this brute can tackle the toughest of terrains, thanks to locking differentials, hill-descent control and a standard air suspension that can raise the chassis 11.5 inches above the ground. Overall, the Defender X can’t quite hide its refined roots as a tony Land Rover. But as with the Dodge Durango SRT Hellcat, this burly crossover flexes some serious muscle.

Land Rover Defender X

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Miscellaneous

A closer look at the houses in our fave holiday films

The role of architecture in Christmas storytelling

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Christmas house, gay news, Washington Blade
Ralphie’s house in ‘A Christmas Story’ is available for special events and even weddings. (Photo courtesy AChristmasStoryHouse.com)

We’re in the midst of the Hallmark season. Their movies are available 24/7 and they can serve as both light entertainment and as background noise.

The formula is simple: boy meets girl, boy loses girl, boy gets girl, and she moves to some rural place with plenty of snow rather than live in the city where she is harried, overworked, and financially successful. Thankfully, Hallmark is finally branching out to boy meets boy and girl meets girl like Dashing in December and The Happiest Season, but the formula remains pretty much the same except that someone is still in the closet.

As a real estate agent, I tend to focus on things like architecture and décor when I watch the original classics and those that have become traditional in more recent years.

There are extreme exteriors like the Griswold house in National Lampoon’s Christmas Vacation and Deck the Halls, where the Halls and the Finches argue over how many exterior lights are too many.

One of my favorite movies is The Holiday, where Iris and Amanda exchange homes for Christmas vacation. Iris’s house is the quintessential stone cottage in a quaint English village. You can just feel how cold the house is until the fire is lit.

Amanda’s house, on the other hand, is a gorgeous Mediterranean built in the late 1920s, with a barrel tiled roof, located in San Marino, Calif. There are lots of contemporary touches inside, including automatic window shades and a kitchen to die for. While the house’s exterior is real, the interior was specifically constructed on a separate soundstage to transform it from traditional to contemporary.

The kitchen in A Christmas Story reminds me of my maternal grandparents’ home in Maine. It was a three-bedroom, one-bath upstairs apartment over my grandfather’s general store. We would sit around the table chatting while my Nana uncovered the dough that she would use to bake bread.

She would peel off little bits of dough to deep fry and we would eat them with locally made butter for breakfast (think hush puppies with dough instead of cornmeal). The whistle from the nearby, malodorous paper mill called us to lunch at that same table. At one, the whistle would blow again to call the townsmen back to work.

The incredibly large Georgian Colonial home in Home Alone, also from the 1920s, always made me wonder what Mr. McCallister did for a living that he could afford the mortgage. Today, that house in the Chicago suburban village of Winnetka, Ill., would command roughly $3 million.

The Victorian Four Square showcased in The Family Stone reminds me of the homes in 16th Street Heights, with large wrap-around porches, wide moldings, wainscotting and what looks to be William Morris wallpaper. And who could forget the Smith’s family home in Meet Me in St. Louis, an impressive Victorian Second Empire, where the songbird, Judy Garland, wooed us with her rendition of Merry Little Christmas.

The Columbia Inn with its adjacent ski lodge became the set for White Christmas. Bing Crosby and Danny Kaye sang and danced their way into our hearts. The lodge had floor to ceiling atrium windows and held about three dozen tables for dinner. It was beautifully decorated for the holiday, with the red of poinsettias and the green of World War II uniforms.

Also lovely were the Christmas tree and arched doorways in the 1947 Cary Grant film, The Bishop’s Wife (not to be confused with Denzel Washington’s 1996 remake, The Preacher’s Wife, which seems to take place as much outdoors as indoors).

How can we possibly talk about Christmas movies without mentioning the drafty, old house of It’s a Wonderful Life? The Old Granville House is another example of Second Empire Victorian (1860s to 1880s). In the beginning of the movie, it’s what we would call a fixer upper, without the shiplap and open floorplan favored by Chip and Joanna Gaines. Mary Bailey, wife of George, does an excellent job of cleaning and wallpapering (and, we hope, replacing windows) to transform an ugly duckling into the swan that is the family home.

Finally, Miracle on 34th Street is still one of my favorite Christmas movies, as much for the independence of the single mother and trial of Santa Claus as for the yellow Cape Cod that a young Natalie Wood is presented with once she learns to believe in Santa. Perhaps if you believe in Santa again, someone will bring you a house next year too.

Wishing you happiness and good health this holiday season.

Valerie M. Blake is a licensed Associate Broker in D.C., Maryland, and Virginia with RLAH Real Estate. Call or text her at 202-246-8602, email her via DCHomeQuest.com, or follow her on Facebook at TheRealst8ofAffairs.

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