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Real Estate Market Proves Resilient in the Face of COVID-19
Despite significant concern over the impact of COVID-19 on the local real estate market, March numbers show increases in sold volume, median price and units sold. FAAR Board Member Linda Fosdick remarks, “Our Lake Anna market enjoyed a robust spring. Even at the outset of the COVID-19 virus, our clients were still actively looking at properties with our Realtors® being very creative to accommodate them while practicing safe social distancing.”
Sold dollar volume was up in March 30%, jumping from approximately $157 million last March to more than $204 million this year. The increase in volume was fueled by a more than 20% increase in units sold and a nearly 9% increase in median sold price. There were 601 properties sold this year compared to 499 last March with a median price holding steady from February at $316,000 compared to $290,000 in March 2019.
Days on market, the time it takes from when a listing enters the market until it receives a ratified contract and is removed from active status on the multiple listing service, fell more than 25% with houses averaging 41 days on the market in March 2020 compared to 55 days in March 2019.
Overall active listings were down more than 18% this March compared to last year and new listings coming on to the market were down over 6%. Prospective buyers have 1,191 homes to choose from right now, with 998 new listings coming onto the market. “With the stay-at-home order, we are now seeing a relative pause in showing activity,” continues Fosdick. “However, we are actively engaged with our clients and continue to provide them market information. We have numerous homes ready to list as soon as the restrictions are lifted. We are confident that our clients are poised and prepared to take action as soon as they get the all clear.”
The commercial real estate market is also in flux while investors wait and watch for the extent of the virus’ impact on people’s health and the duration of the government-enforced shutdowns. Locally, commercial brokers are reporting closings still taking place and properties still going up on the market. Some contract timelines are now elongated due to market conditions and social distancing, but many businesses are doing their best to keep pushing forward, looking ahead to the light at the end of this pandemic. Comments former FAAR Board Member and commercial Realtor® Ben Keddie, “Admittedly it’s hard to say with much certainty at this point to what extent the Commercial Real Estate market will be effected, as no one has a playbook and truly everyone is impacted by this. The Federal Government seems poised to stop at nothing to get the economy back on track. Exactly how that stimulus takes shape and the expediency with which it hits the streets will help determine the extent of the damage on the business community.“
The Association is encouraged by the continued robust activity in the real estate market and thanks its more than 1,700 members for quickly transitioning a very hands-on business to one done almost exclusively online in the wake of social distancing requirements. 2020 FAAR President Drew Fristoe states, “The Association and its members are doing their part to flatten the curve and beat this virus. The FAAR office is closed and the staff is working remotely to serve our members. Instead of hosting in-person meetings and classes, we have shifted nearly all of our programming to an online format so that we can continue to provide great education and information to our members. Our members are still showing houses, closing deals, and serving clients and doing it all while following social distancing guidelines and employing the latest digital technology. The Fredericksburg-area real estate market is open for business!”
Celebrate Service Month 2020
Fill out the form below to submit your organization for recognition! Throughout the month of May, we will be sharing member charities across social media.
Realtors® Celebrate Service Month 2020
Use this form to share your office and individual community service projects with us so we can curate and share with the world!
We are excited to be able to share all the great charities in our community! Make sure you follow our FaceBook page and Instagram to see the exciting charities that get highlighted.
Did you know FAAR has a charitable organization that helps with housing needs in our area? Check out faarmembers.com/foundation!
How to Disinfect a Lockbox
If you use a SentriLock lockbox, there is a key step you should take to reduce the possibility of viral contamination through the use of the lockbox. That step involves thoroughly cleaning the lockbox. If you are a listing agent, you should clean the lockbox each time you exit the property, as a courtesy to others entering your listing. If you are a showing agent, you should clean the lockbox before entering the property. Regardless of which model of SentriLock lockbox you own or you encounter during a showing, the process is generally the same.
You will need:
- Rubber gloves
- Antibacterial wipes, or antibacterial spray with a clean cloth
Note: During this crisis, you should keep a supply of rubber gloves and antibacterial wipes in your vehicle at all times. This is key to helping to protect yourself, your family and your clients.
Here’s how to properly clean the lockbox:
1. Put on rubber gloves for this process.
2. Remove an antibacterial wipe from its container and use it to thoroughly clean the lockbox keypad, sides, rear, and bottom.
3. Use a second wipe to clean the doorknob, the lockbox shackle, and the keyhole on the entry door.
4. Use your SentriKey® Real Estate mobile app to open the key compartment and thoroughly wipe the door key. While holding the key in one hand, use the wipe to clean the key compartment before placing the key back into the storage bin.
FAAR office open virtually
Hello FAAR Members,
While the FAAR building remains closed, the office is open for business, virtually.
- Contact Lori or Barbra regarding new member applications, purchase of lockboxes, keys (app. not a key card), store purchases and transfers. Purchases have to be prepaid. Drive through pick-up is available by appointment only.
- FAAR now has the virtual meeting feature called ZOOM. Committee chairs can hold their meetings with ZOOM. Contact Lauren for instructions on how that can happen. The April Board of Directors meeting will be held via Zoom.
- Education classes are planned for after June 10 to be compliant with the Governor’s order. CE and PL classes will be offered in the classroom and via ZOOM. The May 21 Town Hall is still on. The event, a discussion of housing options for seniors, is planned as a virtual event. For education matters, contact Barbara Castillo.
- Lauren and MacKenzie are sending out resources that are helpful to members from NAR, VR and other important entities. Contact Lauren or MacKenzie regarding posts, Updates and the website, faarmembers.com.
- Contact Pat Breme for all other matters of concern
In the works-
Locked in with Kim– a virtual, 5 minute chat with FAAR affiliates, area elected officials and community leaders. Public Policy Director Kim McClellan is holding virtual interviews, from her home, on topics related to Doing business/life in a pandemic reality. Kim’s first interview is April 10. Look for Locked in with Kim in emails, social media and the website.
The Board of Directors are the policy makers of FAAR. They are looped in to all the information from our major vendors and NAR and VR. During these very challenging time, the Board continues to make decisions in the best interest of the association members.
A laugh, please…
We all need a bit of humor, so please send Lauren a photo or short video on what you are doing to keep busy while quarantined at home.
While we hear this comment every day, from all areas of business and community, its truth rings clear, We are in this together!
-Pat Breme, RCE, CIPS
Chief Executive Officer
Staff Contacts for Services
For questions regarding Membership or Lockboxes, contact
Lori Hillard-Wehr, Membership Services Director
For questions regarding Education or DPOR credits contact
Barbara Castillo, Professional Development Director
For questions regarding faarmembers.com or Zoom, contact
Lauren Zuza, Communications Director
For other issues or concerns, contact
Pat Breme, CEO
We appreciate your patience during this time and apologize for any inconvenience. Stay healthy, FAAR members!
What’s going on with mortgages?
President Drew Fristoe discusses mortgages with Lender Scott Hine in light of the COVID-19 virus.
Treasury Releases Small Business Paycheck Protection Program Loan Application
The NAR FAQ is now available at the bottom of this post. Please direct any questions regarding this program or any others to FAAR Public Policy Director Kim McClellan.
The Treasury Department released the application for the SBA 7(a) Paycheck Protection Program (PPP) loans, which you can access here. It also released a summary guide of the program for borrowers, here.
Small businesses and sole proprietors can apply beginning this Friday, April 3; independent contractors and the self-employed can apply beginning next Friday, April 10. Applications go directly to SBA lenders, which you can find through the SBA site here.
This is a new program created by the CARES Act to provide small businesses (500 employees or fewer), sole proprietors, and the self-employed/independent contracts who are impacted by COVID-19 with loans of 2.5x their average monthly payroll expenses (up to $10 million) to cover payroll, mortgage interest, rent, and utilities for an 8-week period during the crisis. Employers who maintain payroll levels of at least 75% of their average and the same number of employees are eligible for loan forgiveness. You can learn more about the loan program in NAR’s CARES Act FAQ document and the CARES Act Summary.
There are still some questions as to if a small business should include independent contractors in its employee numbers and payroll costs; what we know for certain is that independent contractors can apply for their own 7(a) PPP loans. We are seeking clarity on that question from the Treasury and the SBA and will have the answer soon.
NAR will be posting a SBA-Program specific FAQ focusing on the 7(a) PPP loans and the Economic Injury Disaster Loans, which you can apply for here. (Businesses can apply for both, but the funds cannot be used for the same purposes, and the $10,000 advance grant is not forgiven if you also receive a forgivable PPP loan.)
Live in the City? Vote by mail!
The City of Fredericksburg will hold elections for City Council on Tuesday, May 5, 2020. Due to COVID-19 and ongoing restrictions, the City is requesting that everyone vote by mail. The deadline for requesting an absentee ballot is April 28. Click the button below to be taken directly to a step-by-step guide on how to electronically request your absentee ballot. You will receive your ballot in just a few days.
FAAR is interviewing all candidates running in the City on Tuesday, April 7 beginning at 9:00am. All interviews will be held electronically. If you would like to virtually attend any or all of these interviews, please click the button below to sign up with Kim McClellan. All FAAR members are welcome to listen to the interviews, but only members of the Public Policy Committee are allowed to ask questions of the candidates. The schedule of interviews is as follows;
9:00am: Kerry Devine
9:30am: Mary Katherine Greenlaw
10:00am: Matt Kelly
10:30am: Anne LIttle
11:30am: Jon Gerlach
FAAR office closed through April. Services available virtually.
FAAR Members,
Due to Gov. Northam’s message today for Virginians to stay home, the FAAR office will remain closed through April. Look for further details on how the staff is operating virtually to serve members.
– President Drew Fristoe & CEO Pat Breme
FEMA Extends Grace Period for Policy Renewal
Here is some good news out of FEMA, the agency is extending the grace period to renew policies from 30 to 120 days in order to help NFIP policyholders experiencing financial hardships.
FEMA continues to take proactive steps to address the COVID-19 pandemic and to help serve its National Flood Insurance Program (NFIP) customers who may be experiencing financial hardships, the agency is extending the grace period to renew flood insurance policies from 30 to 120 days.
To avoid a lapse in coverage, there is typically a 30-day grace period to renew National Flood Insurance Program policies. However, due to the widespread economic disruption arising from this pandemic, FEMA recognizes that policyholders may not meet the standard deadline.
This extension will allow additional time for policyholders who may be struggling financially to pay insurance premiums and ensure their policies are not cancelled for nonpayment of premium due to circumstances beyond their control.
If a policy has an expiration date between February 13, 2020 and June 15, 2020, then the NFIP insurer must receive the appropriate renewal premium within 120 days of the expiration date to avoid a lapse in coverage. Likewise, if a policyholder receives an underpayment notice dated between February 13, 2020, and June 15, 2020, then the NFIP insurer must receive the additional premium amount requested within 120 days of the date of the notice.
Policyholders who need additional time to pay their premiums, beyond the 120-day extension, should contact their agent or insurer to inquire about other options the insurer may offer for premium payment.
If you have any questions, please contact the Office of External Affairs, Congressional and Intergovernmental Affairs Division at (202) 646-3444 or at FEMA-IGA@fema.dhs.gov.
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FEMA’s mission is to help people before, during and after disasters.
Follow FEMA online, on Twitter @FEMA or @FEMAEspanol, on FEMA’s Facebook page or Espanol page and at FEMA’s YouTube account. Also, follow Administrator Pete Gaynor’s activities @FEMA_Pete.
FAAR Louder Ep. 2: Commuters and Real Estate
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Press Releases
FAAR Installs 2018 Leadership Team
The Fredericksburg Area Association of REALTORS® (FAAR) hosted its annual Changing of the Guard Installation Dinner on December 7, 2017 at the Old Silk Mill in downtown Fredericksburg. Incoming President Kevin McGrath and his leadership team were installed by Boomer...
October Healthy for Local Real Estate Market
The weather and the real estate market remained warm in October with gains in total sold dollar volume and a large reduction in days on market compared to October of 2016. An increase in prices buoyed a slight reduction in units sold to keep the market hot well into...
Realtors® Mobilize to Protect Tax Benefits of Homeownership
The Fredericksburg Area Association of REALTORS® (FAAR) joins fellow Realtors® and affiliates from across the country in advocating for the protection of homeownership-related tax provisions during the current tax reform debate. Proposals being discussed on Capitol...
September Market Continues Trend of Consistent Growth in Local Real Estate
The real estate market continued its pattern of consistent growth through September posting increases in sold dollar volume and units sold, and a sizeable decrease in days on market compared to September of 2016. Sold dollar volume was up 7.77% from last September,...