State of the Market Seminar. Sponsored by: Northwest Federal Credit Union & Arturo Cruz, Realtor Keller Williams Realty Loudoun Gateway

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1 State of the Market Seminar Sponsored by: Northwest Federal Credit Union & Arturo Cruz, Realtor Keller Williams Realty Loudoun Gateway

2 Introduction Agenda About Northwest Federal Credit Union Budget & Rebate State of the Market Working with a Realtor Questions/Answers

3 Northwest Federal Credit Union Direct Lender based in Herndon, VA All loan origination, processing, underwriting, and closing in one location Easy Online Loan Application at: Salaried Loan Officers Not Commission based CU Realty Rebate Program for Members

4 Your Buying Budget PITI= Principal + Interest + Taxes + Insurance = your monthly payment Taxes and insurance vary by property and county Condo owners insurance is now also required for the purchase of a condo Mortgage Insurance would be additional HOA (Homeowners Association) fees or Condominium Association fees are not included in the monthly payment

5 CU Realty Sample Rebates Rebate is 20% of the Realtor Commission Sales Price $300,000 $1,800 $400,000 $2,400 $500,000 $3,000 $600,000 $3,600 *Based on 3% commission offered to your Realtor, commissions are not standard and may vary. Average Rebate* 5

6 State of the Market Key Facts for the DC Metro Area Local Economy What is a short sale? Foreclosures and Bank Owned Properties Statistics for 2012

7 Key Facts Lowest Active Inventory since August 2005 Stability & increase in pricing Upward pressure on prices through 2013 Reduction in closed short sales & foreclosures As a percentage of 2012 vs 2011 Closed Sales: Short Sales increased 10% Foreclosures decreased 59%

8 Current Market Conditions Inventory is very low Causes -Decrease in new listings -Fewer Owners looking to increase house size -Reduction in bank owned listings -Investors are purchasing affordable homes Homes Selling the fastest -Entry level homes more affordable -Homes that are priced right and show the best No longer a Buyer s Market -Multiple offers are being received on affordable homes -Educated sellers are not as flexible Lending requirements have eased for potential purchasers

9 What is a short sale? Owner/Seller has a higher loan balance than what the property will sell for in today s market After owner agrees to accept the offer, any bank with a loan against the property has to also accept the terms of the offer Banks do not prioritize these offers, as the homes are still individually owned Responses take between days

10 Foreclosures Stats Nationwide, foreclosures activity decreased in 25 states in 2012 Florida posted the highest foreclosure rate in 2012 New foreclosures listings Feb 2012 vs. Feb 2013 down 50% (DC Metro Area) Multiple offers on new foreclosure listings

11 Bank Owned/Foreclosure Properties Listed in the MLS like all other resale properties Most homes are sold AS-IS Home Inspections are possible Condition varies from home to home Prices are close to market as banks are attempting to recover losses Larger banks may respond more quickly

12 Statistics Average Sold Price Single Family Detached Dec-12 Dec-11 % Change Arlington County 1 $777,608 $747, % Fairfax County 1 $641,066 $624, % Loudoun County 1 $533,641 $523, % Prince William Co 1 $361,305 $342, % Washington D.C. 1 $834,683 $755, % Montgomery Co. 1 $594,676 $598, % 1

13 Statistics Average Sold Price Single Family Attached Dec-12 Dec-11 % Change Arlington County 1 $442,473 $436, % Fairfax County 1 $332,435 $ 313, % Loudoun County 1 $319,680 $295, % Prince William Co 1 $ 218,510 $201, % Washington D.C. 1 $494,864 $465, % Montgomery Co. 1 $290,072 $272, % 1

14 Statistics Average Days on Market Dec-12 Dec-11 % Change Arlington County % Fairfax County % Loudoun County % Prince William Co % Washington D.C % Montgomery Co % 1

15 Statistics Inventory 12-Dec 11-Dec % Change Arlington County % Fairfax County 1 1, % Loudoun County 1 1,029 1, % Prince William Co , % Washington D.C. 1 1,560 1, % Montgomery Co. 1 1,010 2, % 1-

16 Statistics Homes Sold 12-Dec 11-Dec % Change Arlington County 1 2,788 2, % Fairfax County 1 13,817 12, % Loudoun County 1 5,543 4, % Prince William Co 1 6,091 5, % Washington D.C. 1 6,905 6, % Montgomery Co. 1 10,094 9, % 1

17 Statistics Listing to Sold Price Ratios 12-Dec 11-Dec % Change Arlington County % 96.10% 0.94% Fairfax County % 96.10% 0.94% Loudoun County % 96.00% 1.04% Prince William Co % 96.90% 0.52% Washington D.C % 94.00% 2.66% Montgomery Co % 93.60% 1.71% 1

18 Inventory* Number of months Detached Attached Arlington Fairfax Co Loudoun County Prince William County DC Montgomery County Properties sell faster as inventory drops below 6 months, prices will increase as inventory decreases * - As of December, 2012

19 Historical Annual Average Sold Price Year Avg. SP 2012 $504, $483, $469, $431, $460, $540, $539, $538, $440, $365, $323, $285, $252,374 Year Avg. SP 1999 $238, $229, $220, $214, $211, $210, $209, $202, $204, $174, $174, $162, $142,163 Year Avg. SP 1986 $121, $113, $109, $105, $103, $100, $90, $79,838 Source: MRIS by NVAR, Figures include data from Fairfax and Arlington counties, and Alexandria, Falls Church, Fairfax cities, and the towns 19of Vienna, Herndon and Clifton.

20 Working with a Realtor

21 Why use a Buyer Agent? Advocate for the BUYER Save you money Save you time Help avoid pitfalls Provide Advice Typically a FREE service for Buyers

22 Finding a Buyer Agent How do you find a good Buyers Agent? Ask your Loan Officer for their recommendation Recommendation from a Friend or Co-worker -Ask if they would use their agent again Conduct an introductory meeting with the prospective agent Evaluate how well you can work with this agent Evaluate agent s resources Does the agent work full time? Does the agent have experience? How responsive is the agent?

23 Preparing to buy your plan Finances: Get your financial picture in place PRE-APPROVAL is the most important step Understand closing costs and expected monthly payments Identify Three Key Search Criteria - Location - Price - Type of Home/Features

24 Preparing to buy your plan The Buyer Chooses Two Wants or Pie Pieces The Market Dictates the 3rd

25 Preparing to buy your plan Research market information become an educated consumer Neighborhood, School, and Crime reports Review contracts and home buying process become comfortable so you can act at the right time Start looking at homes!

26 Preparing to buy the costs Funds which will be necessary when you are ready to Purchase a Home: 1. Down Payment - Plan on 5% of the Sales Price 2. Deposit 1% of the Sales Price(included in DP) 3. Closing Costs * Good average is 3%-3.5% of the sales price 4. Appraisal Fee - $400 (included in Closing Costs) 5. Inspections - $300 to $650 (Home and or Radon)

27 Questions? Arturo Cruz, Realtor Approved CU Realty Agent Licensed in DC, Virginia and Maryland Northwest Federal Credit Union Mortgage Department For a copy of the slides from the presentation, please ksoller@nwfcu.org. Please note: the $350 home appraisal coupon offer is only available for webinar attendees on the day of the presentation. Viewing the presentation once it is posted on does not make you eligible for the coupon. Other restrictions may apply please visit our website for more details on coupon restrictions and parameters. We thank you for attending