News
Recent news, business resources and press releases.New Real Estate Podcasts
Listen to hot topics in real estate whether you’re on the go or lounging at home!
Stats, Signs, Stafford…oh, my!
*No kid Zoom-bombs on any of these videos, but it always feels like a distinct possibility, right!?
FAAR hosted a series of recent virtual meetings, get caught up on all that you missed right here!
Real Estate Roundtable: Spotlight on Stafford County
In this recording, you will get a great update on what’s happening in Stafford County, including the vision for “Downtown Stafford”. This event featured Stafford County Economic Development John Holden. His presentation included this slide deck and this promotional video for the County.
FAAR Sign Summit
Have you ever wondered what happened to that directional you put out before an open house? Well, it might have been placed illegally in the right-of-way and removed by the local jurisdiction. Check out this recording of the FAAR Sign Summit to learn the rules in each jurisdiction so you can keep your signs and stay compliant.
What happens next? Real estate in the wake of a pandemic featuring Dr. List Sturtevant, Chief Economist for the Virginia Realtors®
It’s been a wild ride in the local real estate market! Check out where we’ve been and why Dr. Sturtevant thinks we’re poised for a busy and possibly bumpy fall market.
Membership Survey for Member Feedback
We need your feedback!
Share your thoughts!
Every 3 years, FAAR undergoes Strategic Planning for the next 3 years with the help of member feedback. Your response is critical especially this year!
PLUS! You could win $100!
Complete the short survey by Friday, July 17th to be entered into the prize drawing!
Congress Grants PPP Extension
In a surprise move Wednesday the U.S. Congress cleared legislation extending the Paycheck Protection Program (PPP), popular with REALTORS®, through August 8.
The measure now goes to President Trump, who is expected to sign it.
Created by the CARES Act in March, PPP offers forgivable loans for small businesses to pay expenses and keep workers on the payroll. Loans are also available to independent contractors. Although the program quickly ran out of money, it was injected with new funding a month later. The application period for the program ended on Tuesday with $130 billion still unallocated.
“This extension is great news. Congress heard our concerns that small businesses still need help, and this program should remain available as long as there are funds,” says Shannon McGahn, senior vice president of government affairs at NAR. “We have been working with lawmakers to make both the application and forgiveness process easier, and we are helping our members through both with guides and instructional videos.”
Just last week, a new shorter EZ application loan forgiveness form was released by the Small Business Administration, and full forgiveness was granted to independent contractors and sole proprietors who meet certain guidelines.
NAR has also called on Congress to automatically forgive all loans under $150,000.
“Congress is expected to pass a new Coronavirus relief bill by the end of July. McGhan says. “Negotiations really heated up this week on what form it will take as the pandemic continues to evolve. Small business aid will be restructured and live on in some form, and NAR is working with Congress to make sure the self-employed and independent contractors are included,” she continues. “It’s critical the real estate industry stays strong and continues to lead our national recovery.”
To-date the PPP has paid out more than a half-trillion dollars to around five million businesses.
Resources:
Family Fun Coloring
Let’s show them Who We R!
- Color our “That’s Who We R” coloring page
- Email a photo to mrathbun@faarmembers.com
- Be entered to win one of four Downtown Fredericksburg gift cards!
- Share your artwork online and tag us with #faarmembers to show the world Who We R!
Read the full rules and entry directions below!
Show the world Who We R! Agents and their children are invited to submit their colorful creations for a chance to win a Downtown Fredericksburg gift card! Children ages 0-17 will be entered into a drawing for one of three gift cards for $25, $15, or $5! Adults will be entered for a drawing for one $10 gift card.
When you have finished your drawing, email a photo of it to mrathbun@faarmembers.com to be posted on our website and to be entered into the drawing! For the children’s category please include the child’s first name, their age, and their parent’s company. For the adults, please include your first name and your company. To spread the fun, share your creation on social media and tag #faarmembers #thatswhoweare!
Accepting entries today through August 31, 2020! Winners will be announced September 1, 2020.
Ages 0-17
Jackson 7, Holt for Homes
Evie 4, Coldwell Banker Elite
Ellie 5, FAAR
Jack 8, FAAR
Ethan 5, Holt for Homes
Morgan 9, Coldwell Banker Elite
Logan 2, Coldwell Banker Elite
Amelia 4, Century 21 Redwood
Kaylee 7, Prime Realty LLC
Jane 6, Pathway Realty
Penny 5, Pathway Realty
Adults
Kim, FAAR
Drew, Coldwell Banker Elite
City of Fredericksburg Small Business Assistance Program Information
Thanks to our friends at the Chamber for sharing this great information!
The City of Fredericksburg has launched another round of CARES Act Small Business Assistance Program.
Small businesses located in the City and interested in the program should head to the webpage (https://www.fredericksburgva.com/304/CARES-Act-Small-Business-Assistance-Prog) for the criteria and application.
Questions may be directed to the City’s Economic Development office at: https://fredericksburgva.com/276/Contact-Us
Please note that the deadline for submission is Monday, July 6 at 5:00 PM.
The City of Fredericksburg on June 1, 2020, received $2,533,279 from the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020. This Act provides funding for a number of different programs to address the COVID-19 pandemic. A primary component of the CARES Act is $150 billion in assistance to state, local, territorial and tribal governments for the direct impact of the COVID-19 pandemic through the establishment of the Coronavirus Relief Fund.
The CARES Act provides that payments from the Fund can be used to cover costs including “expenses associated with the provision of economic support in connection with the COVID-19 public health emergency … such as expenditures related to the provision of grants to small businesses to reimburse the costs of business interruption caused by required closures.”
Fredericksburg City Council on June 23, 2020, expressed support for using a portion of the City’s CARES Act funds for a Small Business Assistance Program that will culminate in three random public drawings to determine grant recipients. All businesses interested in a grant need to submit the below application. Businesses that meet the eligibility criteria (see below) will be divided into three separate buckets for the three drawings based on their annual gross revenue (businesses should use 2019 revenue). These three below categories are consistent with how the City divides businesses when calculating business license taxes.
- Businesses with annual gross revenue of less than $100,000
- Businesses with annual gross revenue between $100,000 and $350,000
- Businesses with annual gross revenue of more than $350,000, but not more than $2.5 million
The City Council and Business Assistance Committee will determine the total amount of funding to allocate to the grant program after the application period ends. Grant amounts for individual businesses within each of the three categories will be in equal amounts, regardless of how much total money is allocated for the program.
To be eligible for one of the three grant random drawings, businesses are expected to meet each of the following criteria. Those that don’t meet one or more criteria are still eligible to apply.
- Have one or more physical locations in the City of Fredericksburg (22401), including the principal place of business. Home-based businesses qualify.
- Be current on all City tax obligations prior to March 1, 2020, and be fully permitted.
- Have been in business in the City of Fredericksburg with all appropriate permits and licenses since at least July 1, 2019.
- Annual gross revenue cannot exceed $2.5 million.
- Have documented costs of business interruption caused by COVID-19 required closures (not already funded in the City of Fredericksburg’s first round of small business grants). Grant amounts will not exceed documented costs of business interruption caused by COVID-19 required closures.
- Be a for-profit business.
- Complete an application form, certify that all answers are true and accurate, and agree to the application’s terms and conditions.
If approved, applicants may be required to submit additional information for verification. All information submitted by application or in addition is subject to the Freedom of Information Act (FOIA).
The June FAARside Newsletter is ready for you!
Your copy of the February Newsletter, the FAARside is here! Crack open a copy to learn about what’s going on at the Association including a letter from the President, how REALTORS are giving back, our 2019 award winners, and more!
This edition includes
- FAAR activities in the height of Covid-19
- How you can override bias in your business
- New laws going into effect
- Covid & Real Estate: Where have we been and where are we going?
- Our affiliate marketing partners (AMPs)
and more!
Right click here or the cover image to the right and click “Save as” to download
VAR Chief Economist Checks Her Crystal Ball for FAAR
Despite the fears of many that the real estate industry would see swift and severe impacts from COVID-19, the last three months all posted strong numbers by any account, but especially in this time of upheaval. March saw sold dollar volume up 30%, units sold up 20%, and median sold price up 9%. April saw similar increases, with sold volume up 12%, units sold up 4%, and median price up 6%. May saw slight declines in total sold dollar volume and units sold, but an increase in median price to the highest level the market has seen. Low inventory was already something this area was grappling with and that issue intensified during this time, with active listings down 26% in April and a whopping 45% in May compared to the prior year. Even with low inventory plaguing the market, the fundamentals seem solid, but what does the future have in store?
A recent survey of FAAR members indicates that over 66% are more optimistic about their real estate business now compared to last quarter with just 16% saying there were less optimistic and 16% saying there was no change in their feelings.
What’s next is the question on everyone’s mind so FAAR brought in Virginia Realtors® Chief Economist, Dr. Lisa Sturtevant, to share what she’s seeing in the market.
- Inventory issues are causing some disruptions to the market as buyers cannot find what they are looking for or are seeing stiff competition with multiple contracts.
- Even so, pending home sales were up between April and May, indicating strong buyer demand.
- Current trends suggest no major impacts to home prices going forward.
- 2020 will overall be a slower market with stable prices, but no major impact from short sales or foreclosures.
- Right now, 8% of mortgage holders are in forbearance but 70% didn’t truly need it, indicating that there is not a coming foreclosure crisis.
- Apartments buildings are seeing approximately 90% of tenants paying. Even though unemployment is high, people are largely still able to pay their bills.
- The housing market will most likely see a crazy start to the year in 2021.
- Big question is will COVID-19 change preferences for home features like dedicated home office spaces or more outdoor space and amenities?
- Will location decisions be impacted with more buyers looking for suburban or rural properties?
Fredericksburg REALTORS Foundation donates $2,500 to Mary’s Shelter
COVID is keeping us from doing in-person check presentations, but this blast from the past shows that we have a long history of support!
The Foundation approved a $2,500 grant for an emergency bathroom renovation at Mary’s Shelter. At any given time, Mary’s Shelter provides housing for up to 18 women and their children in need of safe refuge. In addition to the homes they own, they also offer financial assistance to women in our community so that they can avoid homelessness. The shelter has been in operation for 14 years.
Mary’s Shelter has expanded their services because the needs are so great, while their donations have shrunk due to the pandemic. One of their homes experienced a very ill-timed bathroom leak, necessitating the move out of two families from units that were impacted. It is vital that Mary’s Shelter repairs the water damage and the leaky bathroom to get folks back into these units, and that’s where the Foundation’s money comes in.
While the Foundation was so pleased to give the $2,500 in funding, it falls far short of the $7,000 needed to repair the bathroom. If you are interested in learning more about Mary’s Shelter or donating to their operation, please visit http://marysshelterva.org/.
FAAR Louder Ep. 3: Caroline County Habitat for Humanity
In this session, Government Affairs Director Kim McClellan talks to the Caroline County Habitat for Humanity. They discuss their accomplishments thus far and how they plan to move forward in the future. Finally, learn how you can support this great organization.
Real Estate Market Holds Steady in Wake of Continued Pandemic Impact
Numbers hold steady, but inventory challenges hamper sales
The big story coming out of May real estate numbers is the dire situation the market is facing in terms of seriously constricted supply. At the end of May, there were just 964 homes on the market for buyers to choose from, almost half of what was for sale at the same time last year. That represents a less than 2-month supply of homes on the market at the current buying pace. A healthy, balanced market is generally considered to have a 5-month supply of homes. In May 2014, we had a 5.6-month supply of homes on the market which translates into just over 2,000 homes for sale. This area has been experiencing supply shortages for a long time now as the last time there was a 5-month or more supply of homes on the market was September of 2015. While the COVID-19 crisis did not start the inventory issues, it has certainly exacerbated it as prospective sellers are holding back due to concerns about transmitting and contracting the virus.
“Although the state is using a three-step phased approach to reopen, it appears the real estate market was one phase and BOOM,” comments FAAR Board of Director Kelly Bradshaw Walker. “We had a slight slow period and now we seem to have busted wide open! Inventory is low, making it quite an impressive seller’s market despite the current pandemic. Agents are continuing to use existing and new technologies to market, sell, and keep transactions going with agent and client health in mind.”
The market held steady in May, with some localities reporting slight declines in median price and units sold. Sold dollar volume was down nearly 3% in May, decreasing from approximately $224.5 million last May to just over $218 million this year. The decrease is reflected in nearly 7% less homes sold in May of 2020 versus May of 2019, with 661 last year compared to 621 this year. Median sold price was up across the region as a whole to the highest level the region has ever seen, coming in at $339,000. That represents a year-over-year increase of nearly 7% and was fueled by price increases in Stafford and Spotsylvania counties. The City of Fredericksburg and the counties of King George, Caroline and Orange all saw price declines in May.
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 9% with houses averaging just 29 days on the market in May 2020 compared to 32 days in May 2019. That 29 days has held steady from last month and the market has been experiencing a quick turnaround on well-priced properties for a long time now.
Overall active listings were down a whopping 45% this May compared to last year and new listings coming on to the market were down nearly 29%. New pendings were up over 14% indicating that there are ready and willing buyers in the marketplace.
Press Releases
FAAR Adds Orange County to its Jurisdiction
The Fredericksburg Area Association of REALTORS® (FAAR) added Orange County to its jurisdiction. The County was previously assigned to Greater Piedmont REALTORS® (GPR). A majority of agents who live and/or work in Orange County are already members of FAAR...
September Posts Disappointing Total Volume Numbers
September posted disappointing year-over-year decreases in total sold dollar volume and units sold while posting a median price increase, indicating that the local real estate market may be slowing down heading into the cooler months. Total sold dollar...
July Posts Modest Gains in Local Real Estate Market
Rain continued to be the story of our region throughout July with severe weather potentially impacting the pace of home sales. “July was a challenging month,” states FAAR Board Member Mark Geslock. “The rains slowed open houses and some showings were...
May Sees Impact from Inventory Shortage
Fredericksburg, VA – (June 14, 2018) – The following analysis of the Fredericksburg, Virginia area housing market has been prepared by the Fredericksburg Area Association of REALTORS® based on analysis of brightMLS multiple listing data. The inventory...