May 2006 Article History

There are 21 articles published in May 2006. Here are the first 20:

The Vintner's Pick | May 20, 2006 Debating the Effectiveness of the Open House Gooooooogle Trends The Vintner's Pick | May 13, 2006 Loudoun Market Update-April 2006 Signs in the United Kingdom... Giving Up Big Deposits on New Homes More Subtle Blog Changes A Bubble in Assessment Appeals Leesburg Leads in Homes For Sale

Value Range Pricing: Is it the future? May 2006 will be over soon... Take a Memorial Break Do Commission Rates Drive Showings? Summers Grove | Alexandria, VA Potomac Crossing | Leesburg, VA The Vintner's Pick | May 27, 2006 What's style got to do with it...? Loudoun County Baby Bubble Loudoun County May MTD Market Activity

You will find a complete Index of Articles by Category in the History Archives.

May 30, 2006

I've had this article on the back burner for nearly two months. Always looking for something new (or not so new but, different) I ran across this thing called Value Range Pricing (VRP), originally developed in Australia and imported to the US by Prudential Real Estate.

Background:
As a new agent entering listings into the MLS I often wondered what a field called "Value Range Pricing" was all about. The selection options were "yes" and "no." I did what most people do and just set it to "no." Curiosity got the best of me and I called MLS customer support with the question: what is this? Their simple answer was

...just a range that people can search on...if you set to 'yes' then another box appears that requests a 'Low Price' that one can enter and then those searching will receive your listing even though the 'Listing Price' is outside the range but inside 'Low Price'."

Satisfied for the time being I always set "VRP" to "no."

About three months ago:
Surfing the web for real estate related stuff I ran across this article buried deep in the Realty Times archives Range Pricing: Headache or the Future of Real Estate? by Blanche Evans. Googling (or is it Google-ing?) VRP brought a wealth of resources and article by those that swear by it and those that think it is just a marketing "gimmick." VRP is being used by agents and sellers in a big way in the San Diego area with over 55% of all listings marketed this way. This website touts it's effectiveness: North San Diego Real Estate Online. Even USA Today had a feature article on this subject: Sellers put their homes on the 'range' in November of last year (2005).

How it works:

Setting a price 'range'

Some real-estate sellers are trying to drive traffic and spur bids by listing homes in a price range. Here's an example of a home that closed in mid-November in Duluth, Minn., using a range-based pricing system. Price range: $109,999-$129,876 Buyer's 1st bid: $109,999 Seller's 1st counter:$128,000 Buyer's 2nd bid: $115,000 Final sales price: $125,000 Sources: USA TODAY research; Prudential Truscott Realtors, Duluth, Minn.

As the Internet became integrated into the real estate process, properties-for-sale moved from phone book sized collections, updated bi-weekly, to an easily accessible online database called the Multiple Listing Service (MLS). Several years later, the general public was given access and consumers had more power to search and research property. Then and now, consumers and professionals will use price as a basis for their search. For example: A value range property that is priced between $500,000-$550,000 will show up in a search of a buyer who searches between $475,000-$520,000. If a the seller prices their home at a fixed price at $535,000, the property would not come up in the buyers search. As more buyers view and preview the value range properties, the added attention will generate more exposure to that property in comparison to comparable fixed priced listings.

Supporters of the technique say that the additional exposure has the potential to generate more offers, allowing more room to negotiate, which will ultimately lead a higher market price. Since competing buyers legally cannot know the price of competing offers, the presence of an offer, even a low one, may act as the catalyst in achieving a price above the prevailing rate. The Seller benefits by generating offers he may not have received due to the limitations of fixed pricing.

by The Lund Team from North San Diego Real Estate Online

Use in our area:
In the greater DC Metro area if it is not well understood, I suppose it won't work. Doing a spot check on all active listings in the MLS reveals only 436 have VRP set to "Yes." Checking a few of these I found one of three different uses:

• Low Price blank
• Low Price set to listing price
• Low Price set $1,000 lower than List Price

Not a big sample but I conclude that agents don't understand it for the most part. I would like to try it. Which client wants to be the guinea pig? I didn't think so...

Anybody reading this that has experience with VRP, share your experience with us...good or bad. Even better if it is someone from the MRIS coverage area. Agent or client.

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Two more days remain in May to get closings done. The end of the month is typically very busy for title companies. A quick sample of activity for Loudoun County reveals the following:

• Over 4,500 active listings
• Over 1,400 listings went on the market so far this month
• 386 homes went under contract so far this month
• 328 homes sold (settled) so far
• 158 homes are scheduled to close on or before 5/31/2006
• Average sale price is about $551,000 (96% of the original list price)
• Over 60% of the homes sold have seller subsidies averaging about $12,000. One was as high as $100,000 on a $850,000 transaction. Investigating further, the seller appears to be giving up equity to make the buyer's down payment on their loan.

There is no surge this spring. All the data appears to indicate another flat month for Loudoun County. We will take another sample June 2nd (time to get settlements updated in the MLS).

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May 27, 2006

Remembering the brave men and women who died so we can live free. Many gave up their lives for this noble purpose, some at the hands of cowards.

Click here for Veteran Affairs Memorial Day Website.

Enjoy the holidays. Back in 3 days (or maybe sooner).

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May 26, 2006

I remember writing an article about calls I received from buyer agents questioning the seller's offer of co-op sales commissions and my thoughts on agent "bonuses." You can find them here and here. The following excerpt is from the latest issue of REALTOR® Magazine:

This article was published on: 06/01/2006

ETHICS: Q & A
BY BRUCE AYDT
In whose interest?

Co-op offer shouldn’t dictate showings.

Q: I recently received a call from a salesperson who wanted to show one of my listings. During the call, she asked if the cooperative compensation percentage offered in the MLS was a mistake. When I said no, the agent said that she wasn’t sure she was willing to show her client the property unless I offered her one-half a percentage point more than the cooperative commission offered in the MLS. Is this salesperson violating the Code of Ethics by putting her own concerns about how much commission she might receive before her client’s best interest?

A: If the salesperson is indeed putting her own interests before the legitimate interests of her buyer client in finding a property, then she has violated Article 1 of the Code of Ethics. Article 1 requires that "Realtors® pledge themselves to protect and promote the interests of their client."

Aydt, ABR®, CRB, is senior vice president and general counsel of Prudential Alliance, REALTORS®, in St. Louis, and a former chair of NAR’s Professional Standards Committee.

Read the full article here.

Read the full article. There are circumstances when a buyer agent might warrant asking the question acting in the best interest of their client. That is when a buyer agreement is signed requiring the buyer to pay any difference between the seller co-op fee and the fee (commission) required in the buyer agreement.

Our buyer agreements always denote the compensation as "the buyer broker co-op commission as stated in the MLS listing." We show every property our buyer wants to see. It is never an issue. And, if there is a "bonus" offered we always disclose it to our buyer and offer to rebate the bonus to them at closing. This is an interesting topic and invite your comments and/or experiences.

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WITHDRAWN | $569,000
Immaculate Georgetown style townhouse in Summers Grove. An NVR built home with fine fit and finish. 4 bedroom, 3 full baths plus half bath, 2-car rear entry garage. 9 foot ceilings main and second floor, 5 ceiling fans, great kitchen/dining layout with breakfast bar, fireplace in living room, hardwoods on first floor, rear balcony off kitchen, MBR with walk-in closets and so much more. Van Dorn Metro station across the street makes for a commuters dream location. Close to shopping and 495. If you have a client who commutes to DC, show them this gem:
   It's inside the beltway
   It's right on the metro Van Dorn Station
   It's an easy 12 minute commute to DC
   It's priced $20,000 below appraised value
It shows well & will go (aka put money in your pocket) quick!

Map It | Click for Viaual Tour | MLS# AX5581894BG

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PRICE REDUCED FOR QUICK SALE: $589,000 $599,000 $629,000 SOLD!
Immaculate 5 bedroom, 3 1/2 bath Arcadia Bluemont model on a quiet cul-de-sac close in to Leesburg. Popular Potomac Crossing subdivision. Walking distance to school. All the amenities! Custom kitchen with cherry cabinets and upgraded appliances. Hardwood floors, tile and upgraded carpet makes this home absolutely stunning. Two fireplaces, 11 foot family room ceilings and vaulted ceilings in master bedroom. Luxury master bath with Jacuzzi tub. Fully finished basement has built in surround sound speaker system. All closets decked out with custom built ins by Closets by Design. ADT security. Double staircase, beautiful first floor moldings, wired for in-home networking and much more. A steal at this price. Call on this one soon!
Map It | Click for Visual Tour | MLS# LO5569229BG

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The weekly wine pick from the Leesburg Vintner.

WINES OF THE WEEK

A Great value from Australia and a killer Chateauneuf du Pape. When was the last time you had a good bottle of 10 year old French wine under 30.00 a bottle? Act fast as supplies are very limited. And...

Looking for something different to do next weekend?

About the wines:

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2004 Ironberry Cabernet Sauvignon, Shiraz, Merlot
Ironberry originates from the renowned Margaret River region of Western Australia. This wine shows bright berry fruit on the nose with suggestions of plum and spice. The fruit and spice follows through to the palate and fills the mouth, finishing soft and velvety. Region: Margaret River, Australia

Suggested food pairing: Pair this wine with grilled meats.

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Bosquet des Papes 1996 Cuvee Tradition
Bosquet des Pape is a classic Chateauneuf du Pape. However, there is one drawback with their wines and that is that they need time before they're ready to drink. Here's a solution.

Wine Spectator: "A polished and refined Châteauneuf, with wet earth, game, leather, plum and roasted nut character. Full-bodied, with refined tannins and a ripe, rich texture. Delicious now, but the massive tannins could use time. Drink now through 2008. 4,165 cases made. (PM)" When was the last time you had a good bottle of 10 year old French wine under 30.00 a bottle? Act fast as supplies are very limited.

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Vintage Virginia Wine Festival!

June 3 and 4 at Bull Run Special Events Center in Centerville, VA. A great weekend featuring Virginia wines, fabulous food, fine arts and crafts and tons of family fun. There will be performers, activities like face painting, food and of course - many different Virginia wineries will be present. Tickets on sale now at The Leesburg Vintner. Visit us or call 703-777-3322.


Have a great weekend. Mike, Peter, Claire

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May 21, 2006

Blogs are the most explosive phenomena on the planet! Politics, personals, diaries, merchants, products, real estate services (yes!) and much more. Blogs are free expression. Blogs have personality. Blogs make statements. Blogs entertain. Blogs have style!

In search of the ultimate blog style...

Check out these samples:

• A List Apart: clean, organized and refreshing
• To Real: Minimal at its best!
• Style Gala: Teaches how to do it
• Rain City Guide: Informative, interactive, sometimes controversial. Good use of screen real estate
• Real Central VA: Clean and very organized, promotes conversation
• RealEstateJournal-WSJ: Lots of content, headlines pop out, you can find what you want
• Web Designer Ramblings: The epitome of brilliance in minimization
• The Daily Pundit: Great San Fransisco style. Where have you been?
• Matrix: Nice style. Content can be controversial.
• Zillow Blog: I hate cartoonish logos and icons. How juvenile.
• Curbed: Makes me dizzy but very popular.

Style can be subjectively measured in many ways; from the first visual impression to the depth of content. I didn't care for IMUS at first but after staying tuned for more than a minute, he grew on me. Those mentioned above are in our Favorites list for reasons of style; albeit visual and/or cerebral.

I prefer the more subtle, organized, clean style and clear organized thought. I am also visual. Give me pictures and diagrams.

Our style is evolving. Ultimately it may never be static. I think that is a good thing. We would gladly entertain your comments, suggestions and/or criticisms.

The long search of the Holy Grail of Blogging!

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A Washington Post article this morning discusses the "Baby Boom" in the suburbs of Loudoun County. Here is an excerpt:

As Loudoun Grows, So Do Its Families

By Stephanie McCrummen
Washington Post Staff Writer
Sunday, May 21, 2006; Page A01

If suburbia has always been for child rearing, to enter the quaint and shaded 10-year-old neighborhood off Route 50 is to find the fertile epicenter of a county with one of the highest birthrates in the nation. Loudoun County rivals parts of suburban Utah, where the Mormon faith encourages large families, and areas such as Hidalgo, Tex., and Manassas Park, where large numbers of recent immigrants from Mexico and other Latin American countries account for the growth.

For the last several years, Loudoun County is noted for one of the fastest growing counties in the nation. Not only are families moving here for the high quality of life but, they find it so good, they are expanding rapidly. It must be something in the water.

Ed Hatrick, the superintendent of schools, has a tough job. Planning for the explosive growth. Expanding families are creating somewhat of a dilemma for our county leaders. What to do with all these children? Twenty three plus (23+) new schools are on the drawing boards and it is becoming difficult to find appropriate land in the right place to build them.

A case in point: the school board is having an uphill battle with the towns of Hamilton and Purcellville to locate a much needed new high school in their communities. On the other hand, Round Hill and Lovettsville are saying "build it here." Let the spinning wheel turn. Where it stops...nobody knows!

The strain on our county is tremendous. What our elected officials will do with this? Who knows. What I do know, it will cost us.

Read the full article here.

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It appears May is headed toward another slow month in real estate activity. Here are the May 20^th MTD numbers:

• 4,432 Active Listings (averaging 91 days on the market)
• 1,114 New Listings
•   301 Contracts Ratified (averaging 77 days on the market)
•   196 Settlements (averaging 68 days on the market)
•   151 Expired Listings (averaging 111 days on the market)
• $553,577 Average Price (96.3% of list price)
•   27% New Listing Absorption Rate (NewContracts/New Listings)
•   10% Total Listing Absorption Rate (New Contracts/Total Listings)

The table below (right) contain projections to the end of the month (31/20 times the MTD data for inventory items). A couple of facts to keep in mind:
(1) There is usually a surge of closings toward the last week of the month.
(2) New construction sales MLS postings are notoriously late.

Data Points

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May 20, 2006

Hello everyone,
The 2004 Lytton Springs Zinfandel is exceptional! This is one of the few Zinfandels that will age beautifully over the next 10 years. But who can resist the pure drinking pleasure of this spicy, rich blackberry flavored wine right now? Well deserving of the 95 rating, it won't be around for long. If you've never tried a bottle of Ridge wine, this one will not disappoint you. And if you have, then we're preaching to the choir.


  About the wine:

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Ridge 2004 Lytton Springs Zinfandel This is a classic, uniquely American bottle of red wine. Ridge Vineyards and its winemaker Paul Draper are legendary among wine connoisseurs for creating complex, flavorful Zinfandel and Cabernet from old vine vineyards. This particular wine is made using 100+ year-old Zinfandel vines from the famous Lytton Springs vineyard, one of the oldest in California.

Notes: In 1972, Ridge made its first Lytton Springs from vines planted here at the turn of the century, and purchased both the eastern and western portions of the vineyard in the early 1990s. (In the 1870s, under "Captain" William Litton's ownership, the two were part of one property; spelling evolved into "Lytton" by 1903.) The vineyard is planted to zinfandel and its principal complementary varietals: petite sirah, carignane, grenache, and a small amount of mataro (mourvèdre).

Rated 95 points by Connoisseur's Guide
Do not miss this one! Supplies are limited. Mike, Peter, Claire

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May 17, 2006

A recent article in the Washington Post explores the merits of public open houses hosted by real estate agents. On average, public opens generate less than 2% in sales. In other words, less than 2% of the time a public open house sells the home to an open house visitor. So, why do we do it? A couple of reasons; (1) It's part of the standard marketing program listing agents use to win listings, and (2) it is a way for listing agents to get leads to potential buyers, aka: new clients.

On the other hand, broker open houses can be very effective. A brokers open is essentially an invitation for real estate agents to view/review a relatively new listing. The objective is also two fold; (1) present the property to as many agents as possible that may have buyers, and (2) solicit feedback from other agents on how the property shows, recommendations on what might be spruced up and opinions on how it is priced compared to what else might be on the market that is comparable. To those of us attending broker opens, previewing homes provides us more information on what is going on in the local market for a potential buying or listing client. It broadens our market perspective.

Another opinion on open houses is given by Ardell DellaLoggia who writes for the Rain City Guide (RCG). She appears to have found some "magic" in making public open houses successful. Her article can be found in the RCG Archive.

The conclusion: It all depends.

Public Opens:
In a sellers market, in a popular neighborhood, in the right price range, a public open house will attract a high number of potential buyers (along with their agents) and may produce a contract (or several). In a buyers market, my experience is that the "nosy neighbors" come to satisfy some curiosity but no real interested, qualified buyers. A case in point: at a recent open house Pam hosted of a $1.2M listing a family visited, spent considerable time touring the home, asked many questions and in the end, Pam got a "not in my price range" parting comment. Go figure. We are in an extreme buyers market in our area and public opens attract few, if any, visitors.

Broker Opens:
The same analysis holds true with one exception. Food. I reviewed several broker opens this past Tuesday between 11:00 am and 2:00 pm and found that the most popular (had upwards of 30+ agents attend) was one that had a gourmet caterer serving sliced fillet Mignon, shrimp and lobster on skewers, a myriad of salads and exotic deserts. Agents are attracted to food. The runner up was an agent giving away a $50 restaurant gift certificate (more food) in a drawing held after every fifth visitor. I am pleased to say I won one of these! Both properties were spectacular in their own right and will make wonderful homes for a potential buyer. Pam and I have had broker opens recently that attracted as few as two to three agents. We always have a light lunch available, maybe not spectacular. Will upgrading our lunch offering bring more agents? Maybe. Will it give us quality feedback? I'm wondering.

I am sure of one thing. The debate will continue.

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May 12, 2006

Thanks to Jim Duncan over at Real Central VA for pointing us to Google Trends Beta. Very interesting! Put in a series of search terms and Google will show you the trend and relative frequency of their use.

Here's our test (Try to guess which comes out on top for each series):

• Real Estate, Stocks, Bonds, Gold
• Politics, Religion, Sex, Music
• Website, Blog, Newspaper, TV

I tried some other terms but Google told me there was not enough volume to graph them. Oh well. I suspect we will be able to find good use for this capability. Leave it to Google to innovate. Lets see...how do we use this for the benefit of our clients...?

Guess what these results are...

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May 11, 2006

Note: This is the first of weekly announcements from the Leesburg Vintner covering "what's in" the shop that represent good buys on great wine.

Hello everyone,
Remember Sunday is Mother's Day. Treat Mom to two great wines this weekend. The Pinot Noir to go with lamb or ham and the Sauvignon Blanc to complement your fish dishes. Both of these wines and others will be open for tasting on Saturday from 12-4.



  About the wines:

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Ferrari Carano 2005 Fume Blanc is 100% Sauvignon Blanc, from Dry Creek Valley, Alexander Valley and Russian River Valley. Lots were aged separately, 45% in stainless steel and 55% in older French oak barrels.

Tasting Notes: Color: Pale straw. Aromas: Apricot, citrus, grass, cold blossoms, plus a whiff of smoke. On the tongue, this wine is light-bodied with tart acidity and a smooth round texture. Apricot, citrus, green apple and mineral flavors lead to a refreshing finish.

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Oreana 2004 Santa Barbara Pinot Noir Wine Spectator: Dark in hue, rich and fleshy, with deep, concentrated plum, pomegranate and wild berry fruit, with a long, intense persistent finish that repeats the red fruit themes. Drink now through 2009. Only 298 cases produced.

Have a great weekend. Mike, Peter, Claire

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May 10, 2006

[Links to updated Market Trends can be found in the sidebar under INSIDE THE GUIDE]

The Fed raised interest rates again and Loudoun County homes for sale went up dramatically in April! Homes on the market went up a whopping 600 units. New listings are outpacing new contracts by a 3 to 1 margin. Average days on the market remained about the same at 73 days. Average days on the market nearly doubled to 136 days from 76 days last month. Some say its not over until its over. I say it is over. This spring is absolutely dismal for sellers. Sellers are capitulating. Prices are coming down and it is taking incentives to attract buyers.

I call it the buyer vulture mentality, circling overhead waiting for the prey to die and then moving in to feast. There has not been a better time in the last five years for buyers. You are in the drivers seat. You have complete control. Well...almost complete control.

Here is the dilemma: there are buyers wanting to buy. They are not only watching prices come down, they are also worried that they can't sell their own home in a reasonable time and/or can't get the price they want. Almost every discussion I have with a buyer agent inquiring on one of our listings the question is asked: "Will your sellers consider a home sale contingency?" The answer is almost always no. A home sale contingency in this market is the "kiss of death." There is just to much uncertainty.

Buyers! Go make a deal. There is no better time like the present.

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May 7, 2006

A change of pace from the usual real estate stuff. Here's a collection of signs from the UK from our journeys. These are just plain funky.

OK. Who's watching?	No what at any time?	That's a long walk to what lot?
I do this often while blogging (HTML).	I am one of those. Thanks for the sign.	I love all things naked. Hmmm...maybe not.

Watch the Google search terms for these! And, I have more.

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May 6, 2006

On the front page of the Washington Post business section this morning is an article about new home buyers walking away from their deposits to get out of this market. In the Metro region cancellations are up over 100% from this time last year (5% to nearly 13%). Deposits can be tens of thousands of dollars plus 50% of the price for upgrades. On a million dollar home with a 7.5% deposit and $100,000 in upgrades, the loss to walk away is on the order of $125,000. It appears the two biggest issues as reported are:

• Builders are lowering their prices and buyers who wrote contracts several months ago see values declining, and
• Rising interest rates are causing some buyers to wonder if they can really afford a new home.

I can agree with the analysis but they leave another important fact out of the article: new home buyers usually have a home to sell to extract equity for the purchase. Homes just aren't selling for what they did several months ago and are sitting on the market much longer. If you can't sell, you can't buy. New construction contracts always favor the builder and they rarely, if ever, consent to a home sale contingency.

Builders are less than sympathetic and will take a buyer to court to force the sale. Angry buyers are seeking legal help to get some or all of their money back. Nobody wins.

Read the full article here.

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May 4, 2006

After toying with names for our Northern Virginia market index we finally came to the conclusion that calling it what it really means is the most understandable. The MARKET^pulse Index is now simply the Buyer Intensity Index.

The index is an indicator of home buyer intensity at any point in time (in our case monthly). Positive index values means more property is being sold than there are active listings. Negative index values means fewer properties are being sold when compared to total active listings. Values close to zero indicates a relatively balanced market; number sold is close to number active. An out of balance condition exists when the difference between sold and active is greater than 25% of the number of actives or when the difference is less than 20% of the number of total actives.

All references in the blog are changed to Buyer Intensity.

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May 3, 2006

It is interesting that two articles on real estate in Loudoun County ran in the same issue. One dealing with homes sitting on the market in the Leesburg's 20176 zip code with asking prices declining and this one about the wave of inquiries and tax assessment appeals where average assessments increased 28%. The reality is 2005 was the last "hot" year for real estate appreciation in the region and assessments look backward at data to arrive at January 1, 2006 values. It is understandable property owners are in shock especially when their homes are declining in value in the current market.

A statement by the Loudoun County assessor "The fact that the market is softening will be reflected in next year's assessments" is puzzling. I cannot ever remember assessments going down. Or, for that matter, real estate taxes declining in general. There are two variables involved in the ultimate tax we pay: assessment and tax rate. The Board of Supervisors just lowered the tax rate 14% ($0.89, down from $1.04 last year) so the average tax bill will still increase 14% (28% minus 14%). Still a bitter pill to swallow.

Here are excerpts from the post article:

Loudoun Leads in Assessment Appeals

County Among Several in N.Va. Fielding More Complaints Over Home Values

By Amy Gardner
Washington Post Staff Writer
Tuesday, May 2, 2006; Page B01

The number of Loudoun County residents appealing their property tax assessments has tripled this year, a sign of a backlash throughout Northern Virginia to another year of double-digit percentage increases -- and higher tax bills.

E-mails, phone calls and formal appeals over property assessments are up this spring in several localities. Fairfax County officials reported an increase in appeals over last year, from 1,700 to 2,100. The 5,000 appeals in Loudoun were the most in Northern Virginia.
. . .
Many homeowners believed their assessments were wrong because the market has begun to cool. "My house would never sell for that now," Kaufman (county assessor) recalled hearing from many. But assessors use sales data from 2005 to establish assessments, which are required by state law to reflect 100 percent of the market value as of Jan. 1 of the tax year in question. The fact that the market is softening will be reflected in next year's assessments, Kaufman said.

McKenna (homeowner) never questioned the accuracy of her assessment; her home in Lansdowne rose in value from $619,600 to $830,400. What bothers her, she said, is that the Board of Supervisors didn't lower the tax rate enough to keep her tax bill even. And that is what she and so many property owners across Northern Virginia are upset about.

Read the full article here.

Note: we inserted picture above.

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May 2, 2006

Leesburg's 20176 leads the region in homes on the market. Reported by The Washington Post this morning:

Blink and They're Still There

Houses and Condos Are Staying on the Market Longer

By Tomoeh Murakami Tse
Washington Post Staff Writer
Tuesday, May 2, 2006; Page A01

Misty and Steven DiPietro have had a for-sale sign in front of their house for 83 days now. A neighbor's has been there seven months. Down the street, there are two more houses for sale, and around the corner, four more.

If it seems as if a lot of people are trying to sell houses in the DiPietros' suburban Leesburg neighborhood these days, that's because they are. The 20176 Zip code area, where their two-year-old house stands, has the highest number of homes for sale in the region, according to a Washington Post analysis of statistics from Metropolitan Regional Information Systems Inc., the region's multiple listing service. More than 600 houses, townhouses and condos are on the market in that Zip code, which includes the northern portion of Leesburg and extends to the northern edge of Loudoun County.

Read the entire article here.

The Post does a masterful job of analysis and provides an interactive tool for finding your zip code on a Google Map and clicking on the zip code flag to see how many homes are on the market.

Their analysis concludes the GLUT is due to builders over building and buyers waiting to see how far prices will decline before buying. Sound familiar?

The majority of our listing clients are in this zip code and are struggling with having to lower their price to attract buyers. Unfortunately, at this point it is the only strategy to get a contract coming in. I'll have a case study to report in a few days on one such situation and what happens when the price "sweet spot" is achieved.

Good article...a must read!

Comment on Leesburg Leads in Homes For Sale. Follow this article is off. More articles like this one filed in: Loudoun County Market News , Market Conditions (with charts)

May 1, 2006

Here are the top stories of interest from Inman News on May 1, 2006:
About blogging...
Old habits are hard to break.

Blogs spell future for real estate journalism

Print media struggles to find way
Monday, May 01, 2006
By Jessica Swesey
Inman News

About Virginia home sales...
This is news?

Virginia real estate sales fall 12%

Market turns in buyers' favor
Monday, May 01, 2006
Inman News

And finally...from last week (full article only available to Inman News members)...
With local anecdotal evidence of the incentives being offered, this one is not a surprise.

Forecast calls for 12% dip in new-home sales

Home construction is also expected to drop in 2006
Friday, April 28, 2006
Inman News

According to David Seiders, chief economist for the National Association of Home Builders: "After topping out in the third quarter of last year, it is pretty clear that the housing sector is in a period of transition. Sales and starts are trending lower toward more sustainable levels," Seiders said. "Hopefully, most of this decline will be due to investors and speculators stepping out of the market. What we don't want to see is investors dumping homes on the market."

What we do think is part of the current sluggishness IS investors dumping homes on the market! I know of one small, up scale development that had three $1,000,000 plus homes fail to close because of an investor that could not come to the table with the funds. In a local townhouse development, investors were buying entire buildings as soon as the lots were released by the builder. There are more townhouses on the local market than ever before and they are not selling very quickly. We think it is good that the speculators are going somewhere else.

Comment on Top Real Estate Stories. Follow this article is off. More articles like this one filed in: Buying & Selling Real Estate , In the News