Author: Atlas Home Group

Low Inventory and Increased Demand Lead to Hot Seller’s Market in D.C. Metro Area

Posted by Atlas Home Group on

On the outside looking in, you may not have thought that 2020 would be a strong year for the real estate market. But despite social distancing and stay at home orders as a global pandemic presided over the year, the real estate market continued to produce ever-increasing sales prices.

As we enter 2021, both Prince Georges County and Montgomery County continue to experience red-hot sellers’ markets.  This creates a big opportunity for underwater sellers who need to choose a short sale to escape the burden of their current mortgage payment, maintenance issues or delinquency.

What Is Driving the D.C. Metro Real Estate Market?

There are various reasons for the sizzling markets in Prince Georges County and Montgomery County. But primarily, the market is being driven by two factors: low inventory and low interest rates.

Buyer demand increased throughout 2020 due to record-low mortgage rates, which have dipped below 3% at times. When an increase in demand combines with minuscule inventory levels, the result is a market that heavily favors sellers. No statistic bears that out more than “Sales Price to Original List Price,” which in December was 101.2% in Prince Georges County and was 100.2% in Montgomery County.

When homes are selling for above original listing price, that is a market you want to enter as soon as possible as a seller.

To illustrate how little inventory is available, we can compare the active listings in December 2020 to the 5-year December average:

Prince Georges County Active Listings

December 2020: 663

5-year December Avg: 1,475

Montgomery County Active Listings

December 2020: 906

5-year December Avg: 1,463

Prince Georges County Market Snapshot

The real estate market in Prince Georges County continues to reach new heights, as closed sales finished 23.1% higher in December than they were a year ago.

The median sales price of $355,000 is up 12.7% from a year ago.

The average number of days on market was 15, down from the year-to-date average of 25.

Overall, the median sales price in 2020 was $345,00, up 11.3% from 2019 ($310,000). Continued momentum has carried over in 2021, and the selling market will only grow hotter as the spring season approaches. With an average market time of just 15 days, make sure your bags are packed when the listing goes live.

Montgomery County Market Snapshot

The market continues to stay hot in Montgomery County, where closed sales were up 26.4% compared to December 2019 and were up 9% over November’s numbers.

The median sales price of $480,000 is up 6.7% from a year ago.

The average number of days on market was 22, down from the year-to-date average of 27 days.

Compared to the 5-year December average of 40 days on market (DOM), the December 2020 DOM nearly cut that in half at 22. While the Montgomery County market does not seem quite as on-fire as Prince Georges, that is most likely due to the higher price point of Montgomery County.

Selling your Home Has Never Been More Lucrative in the D.C. Metro Area

You might be thinking, “sell my home during a pandemic, are you crazy?” Besides being a hot market for sellers, it has also never been simpler to sell your home. With innovations such as virtual walkthroughs and digital signatures, selling your home is much easier than you may be imagining.

With no catalyst in sight for a rapid increase of inventory, prices should continue to rise at a higher-than-average rate as the market matures in 2021.

The competition among buyers is already fierce and will continue to intensify, especially at lower price points that attract more offers. As a seller, this is music to your ears. If you’re considering selling an underwater property or need to sell a home with some equity quickly, it’s time to reach out to Atlas Home Group to understand the options.

military relocation and short sales

Short Sale Due to Military Relocation or Deployment

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Short sales are never easy, given the overall complexity of the transaction.  So when a member of US Armed Forces is suddenly deployed or receives Permanent Change of Station (PCS) orders, the complexity and the urgency increases.

When this happens, the short sale listing agent and short sale loss mitigation company must not only understand the ins and outs of the short sale process; they also have to understand the potential emotional and personal complications that stem from this type of short sale.

On one hand, the potential short sale seller has a duty to follow the orders of his/her commanding officers and on the other hand, there is an obligation to repay the loan to the mortgage company.  When a property is worth less than the outstanding loan balance – about one in 6 homeowners (guess) around the country are under water – and traditional sale is not possible, these duties and obligations collide and serve as an element of additional stress for our service men and women.

At Atlas Home Group and Atlas Loss Mitigation, we understand what our military clients are going through.  After helping hundreds of sellers escape foreclosure, we know what it takes to prepare our clients for the best possible outcome given the circumstances.  Whether it’s advice on the timing, deciphering the intricacies of the personalized short sale roadmap, or connections with local professionals regarding taxes, credit, or legal, our team is always protecting the best interests of our clients.  After all, our military clients are protecting our freedom!

When you combine the above factors, with our in-depth knowledge of the short sale process, it is clear why more military short sale sellers trust our short sale team than any other in Maryland.  We are intimately familiar with lenders’ and investors’ guidelines as they relate to military personnel and PCS orders.  We know how to prepare the short sale package to minimize the short sale timeline; we know what buttons to push with lenders and their short sale negotiators; and we know how to keep the buyers and their agents in the transaction when difficulties arise.

We know that when deployment or PCS orders are given, our military clients do not have time to worry about the details of a short sale.  

Our expert short sale knowledge and understanding of lender guidelines as they pertain to military personnel puts us in a leading position to support those who protect us!

If you are a member of the armed forces and are facing a financial hardship related to your home, contact us today – we can help!

 

divorce and short sale

Divorce and Short Sales

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Our clients undergoing the difficult process of a divorce understand, that a successful short sale will help alleviate a major financial pain point – so they can focus on healing their emotional pain, and on creating a new beginning.

As short sale experts, we are accustomed to working with clients whose both personal and financial situation is in distress.

Although no two short sales are the same given the difference in servicers, investors, mortgage insurance companies, types of properties, etc – we are able to help our clients navigate the turbulent waters of the short sale process with confidence.  This is especially needed in situations where divorce is the primary factor for seeking short sale services.

What we’ve discovered in working with hundreds of homeowners going through separation or divorce is that this particular hardship adds an emotional element that must be acknowledged and dealt with as a part of the short sale.  

We understand the emotional and financial nature of a marriage break up.

On one hand, there could be negative feelings between the homeowners that prevent clear and timely communication.  On the other hand, there are financial and often parental considerations that must be worked through as the household unwinds.  

Needless to say, such circumstances present a new set of challenges that must be overcome, or at least mitigated, in order for a short sale to be successful.  We also understand that in many cases, short sale of the property is the last thing that holds the divorcing couple together from moving on with their lives.

Our approach is simple: apply empathy and experience to help our clients close this chapter of their lives!

We establish straight lines of communication with all parties involved including divorce attorneys if needed.

We prequalify both sellers for the short sale and explain to each what the process will look like – and it can be different for each.

We answer all the questions based on our experiences dealing with similar situations and we often play a conduit of information between all involved.

Most importantly, we focus on the end result – getting the short sale to settlement while neutralizing the effects of deficiencies – by moving the short sale forward with each communication.

Our divorcing clients understand that a successful short sale will help alleviate a major financial pain point of a marriage breaking up, so they can focus more on healing their emotional pains to create a new beginning.

If you are facing the hardship of a divorce and need to find out whether a short sale is right for you, contact us today – our team of short sale experts can help.