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New Year, more of the same D.C. housing trends

Sales remain robust in first quarter of 2019

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homeownership, gay news, Washington Blade
Sellers are optimistic that Amazon will bring a boost to the D.C.-area market.

New year, hot market! After a weaker than usual fall market of 2018, the 2019 market came in with a bang. Sales are robust, buyers are entering the market at a rapid pace (more on this later), days on market are short, and off-market activity has increased. So will this fast pace of the market continue throughout the year? What else do we anticipate for real estate in 2019? As I reviewed my 2018 real estate market predictions, I realized that although much has changed since early 2018, much more has stayed the same. So without further ado, here are my predictions for the 2019 real estate market.

AMAZON – HOW REAL IS THE HYPE?

Everyone is asking how much impact Amazon’s HQ2 will have on our area. While it is too early to tell exactly what the HQ2 future holds, we can tell you what we’ve seen so far. A few Amazon executives have already relocated to our area. We are working and have worked with several buyers from Seattle and have seen a couple of others bring offers on our listings. However, this first round of relocations has been limited and hasn’t impacted the market on a large scale.

We have also seen the Amazon effect in two other areas. First, renters (mostly millennials living in D.C., Arlington, and Alexandria) have decided they want to buy before the large relocations begin, causing a buyer influx in the market. The second effect is a significant increase in consumer confidence locally. While the political climate (which we will talk about later) is a bit more unpredictable with furloughs and unstable interest rates, the news of Amazon’s HQ2 has given both buyers and sellers confidence about our local real estate market — always a good thing. With the news of the New York location possibly being reconsidered, this means only good things for our area. You can read more about our predictions for Amazon’s HQ2 at thegoodhartgroup.com. 

FEBRUARY 2019 UPDATE  

This week, Amazon announced it’s halting plans for its other HQ2 site in Queens, N.Y., due to a lack of support from local government officials and the community. Amazon officials insist that pulling out of the Long Island City location does NOT mean they’re searching for a new HQ2 site. Its expansion plans will proceed focused on the National Landing site outside D.C. and Nashville hub locations. Amazon’s 17 other hubs will absorb the remaining jobs. However, local officials are not ruling out the possibility of more jobs at Amazon’s Crystal City location. Stephanie Landrum, president and CEO of the Alexandria Economic Development Partnership, said the state’s package was structured to allow for the possibility of up to 37,500 local Amazon jobs, an additional 50% on top of the planned 25,000. Of course, more area jobs means only good news for home values in our region.

MILLENNIALS: HIGH EXPECTATIONS

This resurgence of high-end millennial buyers who entered the market in 2018 also created demand for new construction and renovated homes. Why are these younger luxury buyers so interested in newer renovated properties, especially in our historic town? Many are dual-income families who do not have the time, vision, or cash to update an older home. But, these buyers still want their home to look good. We millennials have come of age in a visual society (thank you, Instagram and Pinterest) where we expect everything to look good, all the time.

This desire for new and improved homes has meant intense competition over the few available lots and small homes on lots over 5,000 square feet that could be expanded and renovated.

Unfortunately for many buyers looking for starter homes in our market, most single-family homes in close-in neighborhoods listed under $800,000 were scooped up in multiple offer situations by builders making all cash, no contingencies offers. As a result, many first and second time buyers were edged out of the running.

THE POLITICAL CLIMATE: IT’S ALL ABOUT POTRUXI

So, what in the heck is PoTruXi? ProTruXi is an abbreviation for the three people who will shape the course of the national economy this year.

Po = Jerome Powell, Chair of the Federal Reserve. What the Fed does over the next year will matter, big time. Interest rates have been especially volatile and quite a bit higher than they were at this time last year. It’s been predicted that rates would continue to rise throughout 2019, but we have seen the Fed pump the brakes a bit on their plans to raise rates. Rising interest rates play a huge role in the health of the real estate market as they can dramatically impact affordability. We anticipate rates to rise only subtly this year – versus the expectation at the end of 2018 that they would continue to rise aggressively. This is good news!

Tru = President Trump – and actually, Congress too. What happens here in D.C. has major ramifications for our economy and our real estate market, both nationally and locally. With a Democratic House of Representatives and a Republican Senate, the balance of power could provide to be a positive for the market. Why? Often it means that extremist policy on either side of the aisle is unlikely to be passed which improves consumer confidence. The big unknown locally is how we will weather another possible government shutdown. The January shutdown didn’t have a large impact on our market as a whole. However, if Trump and Congress continue their stalemate, it may cause more of a problem in the future.

Xi = China’s President Xi. The ability to strike a trade deal between the U.S. and China will also matter. The current turbulence around trade is fueling a lack of confidence and stock market volatility. Many U.S. companies are reliant on growth in China and tariffs on construction materials have made both renovating and building less affordable. We already have a chronic shortage of housing, especially affordable housing, so I would anticipate trade becoming more of a hot button issue as we get closer to elections.

THE FUTURE OF TECHNOLOGY 

Last year, I predicted biometrics and artificial intelligence would make their appearance as new trends in the industry. Biometrics has become more mainstream in our everyday world as consumers embraced the iPhone X and Clear security at the airport. However, we still haven’t seen it become mainstream in the real estate world but the whispers continue that it is coming.

I also predicted artificial intelligence would become a part of the real estate space and there were significant strides in this arena in 2018, both inside and outside of real estate. On the real estate front, last year I referenced a futuristic sign that could interact with consumers that was “teased” at a conference I attended. In 2018, this sign was unveiled by Compass! In fact, the moment Robert Reffkin, the CEO of Compass, introduced the idea of the sign, a spark of interest about this growing company was ignited for our team. Of course, in June of 2018, we officially joined Compass and are so proud to be a part of a company that is advancing the world of real estate forward. With the hiring of Microsoft’s former Chief of Technology, Compass is also rolling out an artificial intelligence program that will improve both the consumer and agent experiences.

THE REAL STORY OF 2019

While all of these factors will play a role, the real story of 2019 market in the DC Metro areais historically low inventory which is impacting buyers and sellers of all agents in all price points. While our market has experienced low inventory for the last two or three years, we are seeing even more fierce competition and bidding wars already in 2019. After being strategically staged and marketed with a coming soon campaign, one of our listings in Rosemont recently had 13 offers and sold well over asking with no contingencies. This is great news for sellers and not-so-great news for buyers. It will be critical for buyers to work with an agent plugged into the market.

Because of this low inventory, we are seeing more off-market activity, with fewer homes going on the active market.

As a result, most active buyers aren’t even hearing about available homes until they are already under contract.

THE BOTTOM LINE – OUR MARKET IS STRONG

So, what does all of this mean when taken together? More buyers in the market and fewer sellers mean that we are likely going to be in a sellers’ market in 2019. That being said, sellers still need to stage and price their homes appropriately to generate interest in today’s highly visual world. When they do, they are being rewarded with excellent contracts. Sellers can capitalize on the stalemated interest rates and excitement over Amazon. Buyers can lock in still low rates before they rise.

All in all, the first half of 2019 is shaping up to be a strong market. We will be closely watching the political climate and the plans for Amazon’s expansion to see how things look for the second half of the year. In the meantime, if we can help you with your real estate goals in any way, please don’t hesitate to reach out. We are always here to help!

Allison Goodhart DuShuttle is with Compass Real Estate. Led by Sue & Allison Goodhart, they have been named a Top Agent by both Washingtonian and Northern Virginia magazines. Allison can be reached at 703-362-3221 or [email protected]

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Real Estate

The rise of virtual home tours

Adapting to changing consumer preferences in spring real estate

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Looking for a home? Virtual tours hold special benefits for queer buyers.

In today’s dynamic real estate market, the spring season brings not only blooming flowers but also a surge of activity as buyers and sellers alike prepare to make their moves. However, in recent years, there’s been a notable shift in how consumers prefer to explore potential homes: the rise of virtual tours. 

For the LGBTQ community, these virtual experiences offer more than just convenience; they provide accessibility, safety, and inclusivity in the home buying process. 

Gone are the days of spending weekends driving from one open house to another – unless that’s your thing of course, only to find that the property doesn’t quite match expectations. With virtual tours, you can explore every corner of a home from the comfort of your own space – find something interesting? Schedule a showing with any LGBTQ Realtor at GayRealEstate.com.

This is particularly significant for LGBTQ individuals, who may face unique challenges or concerns when attending in-person showings. Whether it’s the ability to discreetly view properties without fear of discrimination or the convenience of touring homes located in LGBTQ-friendly neighborhoods across the country, virtual tours offer a sense of empowerment and control in the home buying process.

Moreover, virtual tours cater to the diverse needs of the LGBTQ community. For couples or families with busy schedules or those living in different cities or states, these digital walkthroughs provide a convenient way to view properties together without the need for extensive travel. Additionally, for individuals who may be exploring their gender identity or transitioning, virtual tours offer a low-pressure environment to explore potential living spaces without the added stress of in-person interactions.

At GayRealEstate.com, we understand the importance of adapting to changing consumer preferences and leveraging technology to better serve our community. That’s why our agents offer an extensive selection of virtual tours for LGBTQ individuals and allies alike – visit our website, choose an agent and within minutes you’ll have access to the Multiple Listing Service (MLS) via their website.

From cozy condominiums in bustling urban centers to sprawling estates in picturesque suburbs, virtual tours showcase a wide range of properties tailored to diverse tastes and lifestyles.

In addition to virtual tours, GayRealEstate.com provides comprehensive resources and support to guide LGBTQ buyers and sellers through every step of the real estate journey. Our network of LGBTQ-friendly agents is committed to providing personalized service, advocacy, and representation to ensure that all individuals feel respected, valued, and empowered throughout the process. Plus, we are happy to provide a free relocation kit to any city in the USA or Canada if you are a home buyer.

As we embrace the spring season and all the opportunities it brings in the real estate market, let’s also celebrate the power of virtual tours to revolutionize the way we find and experience our future homes. Whether you’re searching for your first apartment, forever home, or investment property, GayRealEstate.com is here to help you navigate the exciting world of real estate with confidence, pride, and inclusivity.

Jeff Hammerberg is founding CEO of Hammerberg & Associates, Inc. Reach him at [email protected].

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Real Estate

Boosting your rental property’s curb appeal

Affordable upgrades to attract and keep tenants happy

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Spruce up your curb appeal with new plants and trees.

In the District of Columbia, the rental market tends to open up significantly during the springtime for several reasons. First, spring brings about a sense of renewal and change, prompting many individuals and families to seek new living arrangements or embark on relocations. Additionally, the warmer weather and longer daylight hours make it more conducive for people to explore housing options, attend viewings, and make decisions about moving. Furthermore, spring often coincides with the end of academic terms, leading to an influx of students and young professionals entering the rental market. 

Landlords and property managers also tend to schedule lease renewals or list new vacancies during this time, capitalizing on the increased demand and ensuring a steady turnover of tenants. In the competitive world of rental properties, attracting and retaining quality tenants can be challenging. However, with some strategic upgrades, property owners can significantly enhance their units’ appeal without breaking the bank. From enhancing curb appeal to interior upgrades, here are some practical and cost-effective ideas to make your rental property stand out in the market.

Curb appeal

First impressions matter, and curb appeal plays a crucial role in attracting potential tenants. Simple enhancements like freshening up the exterior paint, adding potted plants or flowers, and ensuring a well-maintained lawn can instantly elevate the property’s appearance. Installing outdoor lighting not only adds charm but also enhances safety and security.

Interior upgrades

Upgrade the kitchen and bathroom fixtures to modern, energy-efficient options. Consider replacing outdated appliances with newer models, which not only appeal to tenants but also contribute to energy savings. Fresh paint and updated flooring can transform the look of a space without a hefty investment. Additionally, replacing worn-out carpets with hardwood or laminate flooring can make the unit more attractive and easier to maintain.

Enhance storage

Maximize storage options by installing built-in shelves, cabinets, or closet organizers. Tenants appreciate ample storage space to keep their belongings organized, contributing to a clutter-free living environment.

Improve lighting

Brighten up the interiors by adding more lighting fixtures or replacing old bulbs with energy-efficient LED lights. Well-lit spaces appear more inviting and spacious, enhancing the overall ambiance of the rental unit.

Upgrade window treatments

Replace outdated curtains or blinds with modern window treatments that allow natural light to filter in while offering privacy. Opt for neutral colors and versatile styles that appeal to a wide range of tastes.

Focus on security

Invest in security features such as deadbolts, window locks, and a reliable alarm system to ensure the safety of your tenants. Feeling secure in their home is a top priority for renters, and these upgrades can provide meaningful, genuine peace of mind.

Enhance outdoor spaces

If your rental property includes outdoor areas like a patio or balcony, consider sprucing them up with comfortable seating, outdoor rugs, and potted plants. Creating inviting outdoor spaces expands the living area and adds value to the rental property.

As landlords, investing in the enhancement of your rental properties is not merely about improving aesthetics; it’s about investing in the satisfaction and well-being of your tenants, and ultimately, in the success of your investment. By implementing these practical and affordable upgrades, you’re not only increasing the desirability of your units but also demonstrating your commitment to providing a high-quality living experience. 

These efforts translate into higher tenant retention rates, reduced vacancy periods, and ultimately, a healthier bottom line. Moreover, by prioritizing the comfort, safety, and happiness of your tenants, you’re fostering a sense of community and trust that can lead to long-term relationships and positive referrals. So, let’s embark on this journey of transformation together, turning rental properties into cherished homes and landlords into valued partners in creating exceptional living spaces.

Scott Bloom is owner and Senior Property Manager of Columbia Property Management. For more information and resources, visit ColumbiaPM.com.

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Real Estate

Real estate agents work hard for that commission

Despite recent headlines, buyers and sellers benefit from our expertise

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Realtors work hard for that rare six percent commission.

With there being a lot of noise in the media lately as I am sure you have read and heard headlines like “Gone are the days of the 6% commission” and “End of the good days of Realtors,” etc., I wanted to re-run a very short article of the long laundry list of things that well versed real estate agents bring to the table to earn that seldom 6% commission. It’s typically split in half and it has always been negotiable).

As a real estate professional you will go on listing appointments and buyer meetings to not only attempt to gain business but in doing so you also educate the general public on what it is that we as real estate professionals do. I know what you’re thinking – and if you’ve seen my photo before you wouldn’t be wrong to assume that I am cast in “Selling DC” as the lead villain. I am just waiting for that phone call! But in all seriousness, when I sit down to come up with a list of things to prove to prospective clients the value in working with me as their real estate professional, I am pretty blown away at the items and qualities that a trusted professional representing you in a real estate transaction is responsible for managing a myriad of tasks, including but not limiting to the following:

• Have a pulse on the marketplace to truly understand exactly what is happening from a buying and selling standpoint while also understanding the economic side of things – not just looking at interest rates. Why are rates where they are? What employers are laying off and could cause an influx of inventory? What are the trends for individuals moving IN or OUT of an area looking like? Forecasting the marketplace of all things that truly affect real estate is vital.

• Soft Skills – these are the skills often considered as customer service skills. The ability to be approachable by all types of people and ensure that you are open to receive information. Also – when telling you bad news – it’s important to ensure that it is done in a manner in which you, the receiver, will be pleasantly receptive.

• Pre-market vendors – not only are real estate professionals expected to market your home for sale or locate a home for you to purchase, we are also expected to have a list of pre-market vendors to which you can use for your lending needs, home inspection, title work, any fluffing and buffing needed pre market for the sale of your home such as a contractor, painter, landscaper etc. We have a book of extremely well vetted vendors that either I personally have used or past clients have used that can assist with your needs. This beats Googling for hours and accidentally choosing the wrong contractor. Section A of the pre-market vendor list includes those in which we real estate professionals use for marketing materials for your property – we will use the best photographers, have floor plans drawn for your property, video, staging, catering for brokers opens and the list goes on. Again – this is a well vetted list that we have worked on for years and done all of the heavy lifting and had those uncomfortable conversations when things are not properly executed – so you don’t have to.

• On Market Tasks – these are the tasks that most clients are unaware that we do. Oftentimes when a listing is on market – folks think that I am just cruising around in my convertible buying nice things. However I am in fact going around checking each listing on market to ensure that they are clean, the booties are replaced, marketing materials are stocked, light bulbs are all working, staging looks crisp and the list truly goes on. That of course, doesn’t include the tasks we do to properly market the property such as weekly email blasts, reaching out several times to follow up with showing agents to get their feedback, check the market to see what our competition looks like, what’s under contract and why, and again…..I could go on. Needless to say the most important and time consuming tasks are those that are done when the property is on market.

• “Contract to close” management – the term contract to close is pretty much what it sounds like – it’s what happens from the time we go under contract until we reach the closing finish line and you have those keys. Once a trusted real estate professional has fiercely negotiated on your behalf as a buyer, the fun starts. Again pops up this vendor list – helping guide you though selection of a home inspector, termite inspector, etc. for the inspections. A title attorney is needed (depending on your jurisdiction) and any other vendors for quotes like renovations, etc., that you might want done to the property. Once the inspection is completed and we go through possible re-negotiations then we must ensure that the lender has the documents needed from you completed in order to have the appraisal done to prove the value of the home you are under contract for. Now we are getting into the weeds – but once we are on the other side of things and the appraisal comes back at value and the loan is clear to close then we are at the finish line to your new home.

A similar story can be told if you are selling your home. The appraisal is a very important part of the checklist as that is the value in which your home is worth. The appraiser is a third party that neither the buyer, seller, lender or myself have any allegiance to. I do, however, have the duty to educate said appraiser on why I chose the listing price and how I came up with that value. 

• Post-market vendors. As mentioned before, a real estate professional should have a book of well vetted vendors from which to choose. Looking at the list of vendors now that we are on the other side of the table – I can provide a cleaning person, HVAC contractor, someone to repair the sprinkler system, a dog walker, the best caterers and bakery in town. Further down the road I am able to provide a wonderful wealth manager who can tell you what to do with that piece of real estate you purchased some time ago and we could go on for days.

While you are fully entitled to not use a real estate agent during your real estate transaction, I do believe that it is well within the realm of possibilities to say that without one there would be loose ends not completely tied up, things mismanaged and possible delays that could cost real cash. All of that aside, it is also such a truly wonderful experience to work alongside a trusted professional that at the end of the transaction becomes a new friend and family member. Real estate professionals love what they do, they love real estate and people and sheepherding you through the home buying or selling process is what it’s all about to us.

Justin Noble is a Realtor with Sotheby’s international Realty licensed in D.C., Maryland, and Delaware for your DMV and Delaware Beach needs. Specializing in first-time homebuyers, development and new construction as well as estate sales, Justin is a well-versed agent, highly regarded, and provides white glove service at every price point. Reach him at 202-503-4243,  [email protected] or BurnsandNoble.com.

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