The housing market is recovering nicely. Prices have increased nationally by double digits over the last twelve months. Competition from the shadow inventory of lower priced distressed properties (foreclosures and short sales) is diminishing rapidly. Now may be the perfect time to sell your home and move to the dream house or beautiful location your family has always talked about.

The one suggestion we would definitely offer: DON’T OVERPRICE IT!!

Even though prices have increased by more than 10% over the last year, the acceleration of appreciation has slowed dramatically over the last few months. As an example, in their April Home Price Index Report, CoreLogic revealed that home prices actually depreciated by .08% this month as compared to last month’s report. What concerns us is that Trulia just reported that asking prices are still continuing to increase.

Because investor purchases are declining and there are more listings coming onto the market, we believe that sellers should be very cautious when they price their house. The alternative might be that you could lose money by overpricing your home at the start as explained in a research study on the matter.

Bottom Line

Though it is a great time to sell your house, pricing it right is crucial. Get guidance from a real estate professional in your marketplace to ensure you get the best deal possible.

Source: KeepingCurrentMatters.com

Summary:  The trend as shown in the statistics this month is that there has been a little turmoil in the buyer activity as compared to the annual numbers.   There has been a lot of speculation that the weather over the last couple of months has impeded buyer activity, and I tend to believe that has some validity.

The absorption rate as of April 2014 in Spotsylvania County overall is 6.2  months.  This means that if no other homes came on the market, it would take 6 months to sell all the current inventory.  6 months of inventory is considered to be a balancedmarket.  Of course, as always, it is important to know the trends and statistics for relative price points and communities to make solid buying and selling decisions.

If you would like more information about what this report means to you, feel free to contact us at (540) 538-7222.

Click the graphic below to see the most current and relevant Stafford County Virginia Real Estate Market Statistics

Click this graphic to see current Stafford County Virginia Market Stats

With interest rates lower than they’ve been in over 40 years, it may be difficult to think of a “window of opportunity” closing. However, it isn’t difficult to understand that it may very probably cost more to live in a home in the near future due to rising interest rates and prices.

Zillow recently reported results from a nationwide study that home values are expected to appreciate by 4.5% through the end of the year. Coupled with Freddie Mac’s projection that rates are going up, the cost of housing for buyers by the end of the year will be higher than it is now.

While uncertainty of the future can stagnate some people, the fear of loss can be much more devastating when a person realizes that the amount they pay to live and enjoy a home could have been considerably lower had they acted when prices and mortgage rates were lower.

The following example considers a $250,000 purchase today with a FHA mortgage compared to what it might be at the end of the year with a higher price and interest rate as discussed earlier. The net effect is that it will cost $191.87 to live in the very same home based on the cost of waiting to buy.

To see what the cost might be for your price range, use this Cost of Waiting to Buy spreadsheet.

Summary:  The trend as shown in the statistics this month is that there is a relatively sharp decline in buyer activity on homes priced $275,000 and above.  The market activity in prices at $250,000 and under is relatively unchanged over the course of the year.

The absorption rate as of April 2014 in Spotsylvania County overall is 4.9 months.  This means that if no other homes came on the market, it would take 4.9 months to sell all the current inventory.  4.9 months of inventory is just slightly into what would be considered a seller’s market.  Of course, as always, it is important to know the trends and statistics for relative price points and communities to make solid buying and selling decisions.

If you would like more information about what this report means to you, feel free to contact us at (540) 538-7222.

Spotsylvania Price Band 4-14

Click this graphic to see current Spotsylvania Market Stats

Summary:  The trend as shown in the statistics this month is that there is a relatively sharp decline in buyer activity on homes priced $275,000 and above.  The market activity in prices at $250,000 and under is relatively unchanged over the course of the year.

The absorption rate as of April 2014 in Spotsylvania County overall is 4.9 months.  This means that if no other homes came on the market, it would take 4.9 months to sell all the current inventory.  4.9 months of inventory is just slightly into what would be considered a seller’s market.  Of course, as always, it is important to know the trends and statistics for relative price points and communities to make solid buying and selling decisions.

If you would like more information about what this report means to you, feel free to contact us at (540) 538-7222.

Spotsylvania Price Band 4-14

Click this graphic to see current Spotsylvania Market Stats

Summary of this month’s market overview:

The Total Market Overview includes detached properties in Stafford, Spotsylvania, and Fredericksburg City.  This month the report shows us that we have about 5.5 months worth of inventory (includes all price points) which is considered a balanced market.  We consider 5-7 months worth of inventory to be a balanced market.

The average sales price over the last 30 days was about $308,000, and we averaged about 75 days on the market.

Click the graphic below to see the full report

Total Market Overview April 2014

IRS allows taxpayers the option to take the standard deduction or the itemized deduction.  The astute taxpayer will compare to see which one will result in the greatest deduction and the election can be made each year.

The 2013 standard deduction for a married couple filing jointly is $12,200 and $6,100 for a single taxpayer.  It doesn’t require any proof of actual expense and has no requirement for home ownership.

Items that can be included on Schedule A for itemized deductions include:

• Certain taxes paid for state and local income tax, general sales tax, real estate property taxes, personal property taxes or other taxes paid
• Qualified home mortgage interest, investment interest or possibly, mortgage insurance premiums
• Charitable contributions
• Casualty or theft losses
• Medical and dental expenses that exceed 7.5% of adjusted gross income if born before 1/2/49 or 10% if born after 1/2/49
• Job expenses and other miscellaneous deductions that exceed 2% of adjusted gross income

A non-homeowner taxpayer who has been taking the standard deduction needs to consider that it isn’t just the ability to deduct the mortgage interest and property taxes.

While the standard deduction might be the obvious choice for a non-homeowner, the combination of the mortgage interest and the property taxes plus other allowable deductions not recognized previously such as charitable contributions, now makes taking the itemized deductions significantly more advantageous.

The coveted Spring Home Buyers Guide is here!  This 12 page guide is packed full of fantastic information designed to help buyers today.  This is not information for last year or the last decade it is relevant to right now.  Get your free copy today!

Spring Home Buyers Guide 2014

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