Peak Selling Prices and Low Interest Rates Mean a Great Market for Everyone

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In 2007, the U.S. stock market peaked before the economy headed into recession. Today, the stock market is at about the same level. But this time, experts say, it’s different. Most companies have more cash and are more profitable in 2013 than 2007.

I think there are parallels between the stock market and the real estate market. Home prices are right around 2007 levels, but the market is healthier because of low interest rates. Just like the stock market, you are getting a better product for the same price. You can get more home for less money than in 2007 with a big difference in your monthly mortgage payment.

That’s the advantage for sellers. For buyers, the low rates mean you can return to the market at a peak price that’s still a better deal to sellers because of interest rates.

With interest rates right around the 4 percent mark, about one-third of your mortgage goes toward principal. That’s amazing compared to the days when between 5-8 percent of each payment applied toward principal.

Peak pricing for sellers and record-low interest rates for buyers means it’s a great time for both to enter today’s real estate market.

D.C. Condo Market: Great Time to Buy & Sell!

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Real estate statistics in our marketplace confirm what we’ve suspected – condo sales are hot! There is a lack of supply and high demand for condominiums throughout the metro D.C., Maryland and Virginia areas.

Stats show that condo sales in the region are up by 10 percent in 2012 over 2011 figures. And 10 percent is significant because it coincidentally matches the rate of real estate appreciation year over year.

Condos are selling quickly, too. Condo units sold in an average of 59 days in 2012, down from 76 days in 2011. Often, they sell even quicker. We sold our last four condos in 2013 in an average of just 7.5 days. That should give you a sense of the quick pace in the metro’s condominium market.

We at Eng Garcia Properties are obsessed with this type of invaluable data that helps us translate what the market is doing into outstanding marketing strategies that help when you are buying or selling real estate.

Are you ready to take advantage of D.C.’s red-hot condo market? Give us a call or drop me a line to learn more.

Keller Williams Named Tops in Customer Satisfaction for 2012

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In today’s shifting real estate market, it’s important to make sure your Realtor is devoted to your satisfaction as a customer.

And as a Keller Williams agency, we at Eng Garcia Properties are proud to announce that Keller Williams has been named the best in customer satisfaction for home buyers and sellers for 2012 by J.D. Power and Associates®. In addition, Keller Williams is the top real estate brand in terms of number of agents.

What does this mean for you as a client? It means that Eng Garcia is well-connected with our colleagues nationwide, making more real estate resources available to clients like you. And since we are a high-volume real estate firm, we have many of the best listings that attract buyers to our homes in Washington, Maryland and Virginia.

Overall, according to the report, customer satisfaction is down for both clients and sellers. Part of the reason, I think, is that markets are shifting and that makes it difficult to manage client expectations. Buyers and sellers simply don’t know what to accurately expect. And home buyers and sellers report that managing client expectations is important to them.

The good news is that we at Eng Garcia Properties do this well. The report states that sellers nationwide are getting an average of 89 percent of their asking price for their homes. In 2012, we were able to obtain an average of 95 percent. This indicates we’re doing a good job of monitoring the market and matching people with the homes that best suits their needs and lifestyle.

A big part of our success is our outstanding marketing processes that expose sellers’ homes to a wide audience. We also sift through the market data to help us effectively market and sell properties.

We hope you will drop us a line or call us so we can discuss the significance of this Number 1 ranking to you as a client.

Eng Garcia Properties (202) 290-1313 carlos@enggarcia.com

A Lack of Homes for Sale – Not Sequestration – Key to Health of Our Real Estate Market

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A funny thing happened here in the Washington, D.C., area while the rest of the nation went through our years-long economic downturn. Our local economy grew.

Earlier this year, The New York Times Magazine reported that our regional economy has expanded three times as much as the nation’s economy. In fact, three of the top 10 richest counties in the United States are around D.C. in Virginia and Maryland. 

With 40 percent of D.C.’s economy tied to federal spending, there has been much speculation about how the budget sequestration will affect us locally. Any change in federal spending, according to one source cited in the article, might soften the market, but certainly not cause a crash.

Of course, we at Eng Garcia Properties are most concerned with the effects on our real estate market. From my perspective, the low levels of real estate inventory – not the federal budget cuts – have the most potential for dampening our local economy.

I’ve talked a lot recently about the lack of homes on the market in D.C. and nearby in Virginia and Maryland. Locally and in nearby counties, we are looking at two straight years of 25-to-35 percent inventory reductions. Just 24 to 36 months ago, we had twice as much available housing stock as we have in early 2013.

We at Eng Garcia Properties are here to help you navigate this tight real estate market, whether you are a buyer or seller. Please call or email us, and we’ll be happy to answer your questions and get started.

DIY Home Buyers Beware: It’s a Competitive Jungle in D.C.

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We come across sophisticated buyers in the Washington, D.C., area who are capable of handling many aspects of a real estate transaction without a Realtor.

But there is a hidden danger for do-it-yourself real estate buyers: the inability to locate hard-to-find properties.

Even if you are skilled at real estate transactions, a plugged-in Realtor can be a terrific advocate to locate homes you could not otherwise find. This is particularly important in today’s competitive D.C.-area marketplace.

Home inventories have been slashed by more than 30 percent two years in a row! This is a fundamental sea change in our real estate market, and it makes locating great properties increasingly difficult without the aid of a Realtor.

You need a good Realtor to find properties and, most importantly, help you submit the winning bid over other potential buyers.

At Eng Garcia Properties, we are experienced at competing in this environment. We are your advocate to navigate the real estate market and network with other agents to find these little-publicized homes.

We have a proven, demonstrated track record at winning deals. Call or email us today, and we’ll get started fighting on your behalf to find you the perfect home in 2013’s ultra-competitive market.

We Need Sellers! Why it’s a Great Time in D.C. to List Your Home

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Now is the perfect time to sell your Washington, D.C.-area home. That’s because the real estate market has a profound lack of sellers. Inventory is down – way down.

And we’re seeking to engage you in an intelligent conversation about your options.

If the news was not good the last time you talked to a Realtor, the story for you has likely changed. Buyers and plentiful and numbers of sellers are low. It’s a great time to get a premium price for your real estate.

In 2011, real estate inventory in D.C. dropped by more than 30 percent.  And in 2012, it happened again – another year of a more than 30 percent decline in inventory.

Meanwhile, the sales market has been relatively flat, meaning that the number of real estate transactions has been stable. In 2011, transactions dropped by 3 percent. In 2012, the final figures will be down 1 percent or so.

Considering the profound lack of inventory, these statistics are remarkable. This signals that buyers are out there, and if you’re looking to sell, now is a great time to do so.

Our own experience backs these statistics. The buyer appetite to buy properties is there; what are missing are the properties themselves.

So if you’re looking to sell, we want to talk with you and explore your options in this awesome buyers’ market.

We are very good at marketing properties, and we’re plugged into a strong buyer audience through Internet marketing and other means. We have a solid reputation in the business and more than 100 transactions each year.

Why Interest Rates Should Pique Your Interest

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We wanted to remind you how important it is to take a good hard look at where interest rates are right now and consider whether that changes the real estate equation for you.  When I started buying properties in the nineties, interest rates were in the 8s, but today they are in the 3s to 4s.   Now you can get a 30-year fixed rate for 3.5% or less with some getting nearly 3% rates recently.  These rates have helped made home-buying affordable.

The interest rate makes a big difference.  Consider buying a $300,000 property with a typical 8% interest rate from the nineties, and your monthly mortgage payment will be $2,201.29.  Ouch!  But if you bought the same property today and took advantage of the rates, such as 3%, your monthly payment would drop by nearly $1,000 to $1,264.81.  If you’re on the fence about whether the real estate market is a good idea for you, think about those rates creeping up to say 5% and what that does to the same payment—it would go up by almost $400 from the 3% example.    

Keep in mind what the lower interest rate does for building up equity in your home.  With the high interest rates in the nineties, only about 7 or 8% of each mortgage payment covered principal versus interest. But with a 3 to 4% interest rate, about one-third of your payment goes to principal.   Imagine that!  Also, your total payment would be only 70% of what it would have been back in the nineties, and in absolute terms, your payments to principal are much greater, so you can accumulate equity much more quickly.  The rate at which you do so today in comparison to other times in history is remarkable.   

If you’re thinking about buying, now is the time to take advantage of the low interest rates.  A 30-year fixed-rate mortgage hovered at a record-low rate during 2012, but the rates won’t last forever, so there’s not a better time to buy than now. 

If you’d like to talk about getting into the market, call us today at 202-290-1313 or email us at carlos@enggarcia.com.