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The Arlington Real Estate Market seems to be insuppressible. In the neighborhoods surrounding Tuckahoe and beyond, the rapid pace at which properties are being built, bought, and sold continues, seemingly unrestrained by recent interest rate increases and economic uncertainty. The Tuckahoe Home & Garden Tour Team (THGT) spoke with David Howell of McEnearney Associates, Inc. to discuss the state of Arlington’s real estate market. A recognized real estate industry leader, David is the Executive Vice President and Chief Information Officer at McEnearney Associates, Inc.

THGT:  What is the most important factor in the market today?
DH: The lack of inventory of available homes. As we head into the spring, there is only about a two-month supply of homes on the market. And that shortage is even more acute for detached and attached homes priced under $1,000,000, where there is less than a one-month supply.

THGT:  After a prolonged period with mortgage interest rates under 4%, rates have headed up. Will that hurt the market?
DH: It may sound surprising, but in the short term, rising rates actually energize the market. Buyers who may have been sitting on the fence are motivated to act before rates climb too high. And there is a fundamental reason that rates are climbing: the national economy is improving. That brings growth in household income, to a large extent offsetting the higher mortgage costs. In the longer run, rising rates will make homes less affordable, and that will ease the significant upward pressure we have seen over the last three years.

THGT:  How does Arlington compare to the rest of the DC metro area?
DH: Really well. While Washington, DC itself continues to have the stronger market in the region, Arlington is a pretty close second. Today’s buyers are looking for livable, walkable communities with lots of amenities. Arlington offers those in abundance, and there is easy access to Metro and major transportation corridors as well. All of those factors contribute to making this such an exceptional place to live!

THGT:  What’s ahead for the rest of 2018?
DH: More of the same. We expect 2018 to look a lot like 2017, with continued strong demand for housing in the face of limited inventory. We don’t see anything on the horizon that is likely to change that equation in any significant way this year. We don’t yet know the full effect of the recent tax reform legislation, but we expect that it will have an overall positive impact. However, homes priced over $1,000,000 might be somewhat adversely impacted because of the $10,000 cap on deductibility of property and state taxes. Overall, we expect home prices to continue to rise, but at a more moderate pace.

“Clients First” is the simple motto put forth by Founder John McEnearney in 1980; and that legacy lives on today at McEnearney Associates, Inc. As a consistent Platinum sponsor of the Tuckahoe Home and Garden Tour, we want to offer our deepest thanks for their continued support. For more information, and to read David Howell’s MarketWatch newsletter, visit www.mcenearney.com.

After an unusually warm winter here in Arlington, spring is upon us with a vengeance. And, along with the roses and rhododendrons, we all wait to see what homes will be sporting a FOR SALE sign outside their polished exteriors. But more and more, those signs seem to be fewer and farther between. Conventional wisdom would point to the perennial discussion around inventory levels but there might be something else at work in our community – so called “off market” sales.

Coral Gundlach, a CRS top producing real estate consultant and Tuckahoe parent, is starting to notice that this is more than just one or two homes being sold amongst friends, it is developing into a trend. Assisted by the ability to do virtual tours at the tap of a finger, buying a home has never been more immediate.

“Many buyers and sellers are connecting only via their agents and skipping the Multiple Listing Service (MLS) process. We’ve almost gone back in time where real estate is all about who you know,” explains Gundlach. Her latest listing in the Tuckahoe district didn’t even get past the “Coming Soon” sign. A neighbor renting one street over had her agent contact Gundlach, got early access, and made the sellers a compelling offer that kept it out of the broader market.

Gundlach cautions that when buying a “coming soon” listing the sellers are in the driver’s seat.  Don’t think that an off market deal is a bargain. While you might not have to deal with the drama of a bidding war, sellers know there isn’t much inventory and it’s a calculated risk to sell without full exposure via the MLS. As a buyer, you need to make them an offer they cannot refuse. Your offer might have to be over asking price, have short or no contingencies and accept the property in as-is condition. 

One might think this would make agents step out of the picture but quite the opposite says Gundlach, “It’s not about having any agent, it’s about having the right agent. Reputations and relationships within the real estate community can make or break a client’s ability to buy right now.”

More than ever, developing a relationship with a trusted realtor is becoming critical to finding the property that will fit your wish list. While online tools can give a snapshot of comparable properties, the real steals are often never listed – it has become a bit of a mystery about what is even up for the taking.

So, how does a potential buyer get ahead of that game? If you’re not local yet, spend some time looking for the right agent for the neighborhood(s) in which you are interested. Interview agents and ask them specifically about their local networks and experience with “off market” sales. An agent’s local experience and “ear to the ground” knowledge of not just the neighborhood, but positive relationships with neighbors, the community at large, and other agents can be critical to helping you find the right home. 

Gundlach suggests, “If you know you are moving this way or have always wanted to live in a specific neighborhood, reach out and start establishing connections now. Visit the neighborhoods, libraries, schools and local businesses so that you have a good frame of reference. That way, when you are advised that a home is available, you will have a better understanding if the location will meet your needs.”

The Tuckahoe Home and Garden Tour is one of the best opportunities to start familiarizing a buyer with the area. Come and see new unique properties and talk to the people who live here for insights on everything from the pizza and playgrounds to school programs and community centers! Tickets are on sale now at www.tuckahoe.org/tickets

Coral Gundlach is a Platinum Sponsor for the 2017 Tuckahoe Home and Garden Tour. She has become a top producer by helping clients define their goals and look at the big picture to buy, sell, rent or refinance to reach their goals. She also spends time uniquely packaging the home and neighborhood’s best features to buyers through a variety of media channels—YouTube, Facebook, Instagram. A premier agent on Zillow and Trulia, she ensures that her sellers’ listings rank at the top of buyers’ home searches. Working extensively with all kinds of buyers—from first time to repeat, Gundlach navigates through the confusing process from finding the right neighborhood to negotiating price, inspections, mortgage options and make the experience exciting and enjoyable. For more information, check out www.coralgundlach.com

Tucked away in unexpected places there are unique historic properties throughout Arlington and Falls Church. So when WINN Design + Build received a call from the owners of The Birch House, a stop on the Virginia Civil War Trail, it was a once in a lifetime chance to enhance a piece of the American story.

The project was to create a stand-alone in-law suite which would honor the historic traditions of the original home while adding a beautiful structure with touches of old and new. Every contingency was addressed as the team set out to work with the family and the Historical Architectural Review Board to create what they came to call the Pool House.

“The principal goal was to not detract from the historic structure,” explained Michael Winn, Owner and General Manager. “We knew the scale and proportion was critical as it would sit closer to the road and have an impact on the overall visual impact of the property.”

Another important part of the process was to address the needs of the future inhabitants—the parents of the property owners. The father is a retired industrial arts teacher and has an extensive collection of professional tools—creating a suitable work space was an important part of the process. As the design came together, the final product became a three level structure with a full basement and a loft. The main level has a bedroom suite, kitchen and family room. Gorgeous wrought iron details throughout are both structural and decorative and add a slight industrial feel to the bright open spaces.

So, if you want to see a site that once served as a make-shift civil war hospital and has now been given new life, make sure to get your tickets now for the 2017 Tuckahoe Home and Garden Tour at www.tuckahoetour.org. And, take a few minutes to check out other WINN design homes at www.winndesign.com—a Platinum Sponsor for this year’s tour as well as Arlington Magazine’s best remodeler in 2014.

If you take a quick look around Arlington it seems there is a bit of a housing boom going on. Despite an undercurrent of economic uncertainty, real estate activity across our city is consistent and dynamic. To understand some of trends buoying the market, the Tuckahoe Home and Garden Tour team sat down with David Howell, Executive Vice President and Chief Information Officer from McEnearney Associates. Having worked in Northern Virginia and Maryland real estate for over 33 years he has seen remarkable change. Coming off of a four month stint as the head of the firm’s Arlington office Howell has a fresh perspective on exactly what is happening in an around our community.

Right at the top of our conversation, Howell explains that there are a couple of forces that are having a direct impact on property pricing and availability. Interest rates are the headline of the story these days. With recent increases of a half to three-quarters of a point there is no denying that buyers now have 7-8% less buying power than just a few months ago. At the same time, you have incredibly low inventory.

“The initial reaction should seem to be a slower market,” David points out. “But what we have seen is counterintuitive. Contact activity (from potential buyers) has been up 10% compared to the same period last year.”

He ascribes this behavior to the fact that it often takes buyers a few months to catch up to the trend and proffers that, “you never know for sure when interest rates have hit the bottom until about six months after the fact.”

In this case, there were likely a lot of first-time buyers waiting for the right time to buy and it is now abundantly clear that if they want to get into the market – now is the time. After over two years of sub 4% rates there is a general acceptance that the cost of a home in the area will only go up. So, despite overarching concerns about a potential reduction in the federal workforce or other macro changes, the desirability of the area and the lack of inventory have created a sellers’ market with abundant demand. This is especially true of homes in the 500,000 to 750,000 range. Howell pointed out that in Arlington 700,000 is right at the heart of the market. It is not uncommon for the absorption rates in this price range to be as high as 60%&emdash;or in laymen’s terms&emdash;when these houses come on the market, they fly off the shelf.

The second trend is a fundamental change in lifestyle driven by families in urban and inner suburban areas. Property that is located in a “walkable” community is now a requirement for prospective buyers when 10 and 15 years ago it was much more about square footage and open lawns. We all live among large new builds going up all across Arlington. With smaller lots and significant square footage&emdash;yet access to restaurants and other amenities&emdash;they are competing well against larger properties across Great Falls and other areas that are more secluded.

Lastly, we touched on the value that Arlington County Public Schools bring to the equation. With 10 of the best elementary schools in the state being located in our county (Tuckahoe at #9), according to a recent ranking on niche.com it is unlikely that we will see a break in demand from young families any time soon.

Founded in 1980, McEnearney Associates prides itself on putting the customer first. As a regular Platinum sponsor of the Tuckahoe Home and Garden Tour, we extend them a heartfelt thanks for their support. For more information, check out www.mcenearney.com.

Whether you’re upgrading the home you intend to live in for the long term or you’re putting your house on the market, knowing which renovation projects make the most impact can save you a lot time and money. The Tuckahoe Home & Garden Tour Team (THGT) spoke with David Howell, Executive Vice President and Chief Information Officer at McEnearney Associates, Inc., to find out which renovations pack the biggest punch.

THGT: If you’re planning to sell your home in the near future, what are the best quick renovation projections to get the best return on investment?

DH: A fresh cost of paint is a quick, inexpensive way to make your interior shine. If you have a yard, make it look great! Clean up any “untamed” areas and plant inexpensive flowers to give your home curb appeal.

THGT: Thinking bigger, are kitchens and bathrooms truly the best investments when it comes to doing a larger remodel or update?

DH: According to the Cost vs. Value Survey done by the National Association of Homebuilders, major kitchen and bath remodels only return 70 percent of their cost in the first year. If you’re staying in your home, these big investments certainly add to the enjoyment of your home and pay off over the long term. But if you’re selling, a kitchen or bath remodel probably has more impact on the marketability of your home than on your return, making it more appealing than the competition.

TGHT: If you don’t currently have the resources for a renovation but want to upgrade your current home, what are some inexpensive fixes that make a big impact? 

DH: The same National Association of Homebuilders study shows, surprisingly, that replacing a shabby entry door has the highest rate of return of any home improvement project. Upgrading your house, especially when you’re putting it on the market, is about taking care of deferred maintenance issues and making the house look clean and fresh. The things that fall under those categories—like replacing an old door, cleaning the gutters, or repainting trimwork—usually don’t take a lot of money, but when they’re not done, it really turns buyers off.

TGHT: Are there renovation projects that homeowners routinely overlook that make a surprisingly big difference?

DH: Fresh paint, replacing worn out carpet or refinishing hardwood floors always make an immediate, visual impact. Ditto for replacing old, leaky windows. Bigger jobs, like moving walls or major room renovations, may make sense if they can fundamentally impact the use of your home. For instance, adding a second bathroom to a one-bath home can make a big difference, but adding a fourth bath to a three-bath home probably won’t. Talk with your REALTOR® before making any of those big decisions.

TGHT: Finally, curb appeal! Why is it so important for homeowners to pay as much attention to the outside of their home as the inside?

DH: The outside of your home is the first thing that people see, whether it’s from the curb or online. It is your first—and sometimes last—opportunity to communicate the condition of your home to potential buyers. If it doesn’t look good on the outside, they may not look past that to see the inside. A freshly cut lawn free of weeds, freshly mulched and planted flowerbeds, and trimmed bushes and hedges all make a big difference. If you have an overgrown tree too close to the house, consider major pruning or taking it down. Cracked walkways and driveways should also be fixed. Put yourself in a buyer’s shoes: What would you hope to see when taking a first look at a home?