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FAAR Hosts Meeting on Opportunity Zones
On Thursday, November 14, 2019, FAAR hosted a meeting on Qualified Opportunity Zones (QOZ) at the Germanna Community College Center for Advanced Technology. So what are Opportunity Zones and why should Realtors® care about them? Great question! Opportunity Zones were created as part of the 2017 Tax Cut and Jobs Act with the aim of funneling significant financial resources into low income and distressed communities.
Opportunity Zones aim to tap into trillions of dollars of passive wealth in the form of unrealized capital gains.
This new tax incentive program allows people to invest their capital gains in projects and programs in the Opportunity Zone without limits along with deferring paying the tax on that initial investment until 2026 along with the possibility of reducing that initial tax liability AND completely eliminating the tax liability on any capital gains realized from that investment. It can be a complicated program but very attractive to investors and those looking to fund real estate and business ventures. Want to learn more? Click here (requires Adobe Flash Player) to see the boundaries of the zones in our region and then look through the presentations by the Virginia Department of Housing and Community Development (DHCD) and Opportunity Virginia.
A special thanks to speakers Kristen Dahlman and Adam Northup and FAAR moderator, Carl Braun. More in-depth analysis of this meeting and Opportunity Zones will appear in the next edition of the FAARSide.
NAR Releases 2019 Profile of Home Buyers and Sellers
NAR has just released its 2019 Profile of Home Buyers and Sellers. So why should you check it out? Because it’s chock full of great information like this….
- 20% of recent home buyers were veterans
- 29% of buyers primary reason for purchasing a home was the desire to own something of their own
- 83% of homes sold were single family
- There was a median of only 15 miles between the homes that recent buyers purchased and the home that they moved from
- 44% of buyers started their home search online
- 87% of buyers found their real estate agent to be a very useful source of information
- Home sellers cited that they sold their homes for a median of $60,000 more than they purchased it
Want more?? Access the highlights of the report for free or purchase the full report through the buttons below.
Local Real Estate Market Remains Strong in October
The October real estate market posted a large increase in sold volume fueled by double digit rise in number of units sold. Total sold dollar volume increased from $138 million in October of 2018 to $178.1 million in October of 2019, representing a 29% year-over-year increase. That rise was powered by 535 homes sold in the month, a more than 100 home increase from the October 2018 total of 419, a nearly 28% increase. Median sold priced increased 5% going from $295,000 in October of last year and increasing to $310,000 in October of this year.
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, decreased over 11% with houses averaging just 40 days on the market in October of 2019 compared to 45 days in October of 2018.
Conventional loans continue to lead the way in transaction financing with 198 loans for the month October. VA was just behind with 123 and FHA came in at 99.
Overall active listings were down nearly 3% this October compared to last year, but the month posted a nearly 8% increase in new listings coming on the market. Prospective buyers have 1,610 homes to choose from right now, with 791 new listings coming onto the market. Commenting on the market for October, FAAR Board Member Carol Sondrini observes, “Inventory was low and it’s harder for buyers to find what they’re looking for. Overall sentiment is that it’s a good strong market and a good time to buy and sell, but there are not enough options out there.”
Median house price up $20K across Fred region
The local economy remained healthy throughout the 3rd quarter of 2019. Unemployment remains very low along with interest rates with no indication of either situation changing in the near future. Sales continued to grow throughout the FAAR footprint, with 5% more sales than a year ago. Median price rose sharply in the 3rd quarter, climbing $20,000 to $310,000 region-wide. All jurisdictions saw price gains, led by King George County, which saw an 11% increase in median sales price.
Want more??? Check out all the great information, charts, graphs, and narrative explanations. You can use any and all of this data in your communications with clients. So look super sharp at your next listing or buying presentation and take some of this expert data with you!
FAAR Cereal Drive Success
Each year, the Fredericksburg Area Association of Realtors® (FAAR) collects cereal to donate to area food banks. This year, FAAR members collected over 17,000 boxes of cereal. FAAR would like to recognize the members and volunteers who worked so hard to collect so much cereal for those in need.
Affiliate collecting the most boxes: Sandra and Phillip Blake with MBH Settlement with 156 boxes
Grand Prize: 1st Choice Better Homes and Land with 5,214 boxes
Most Improved: Long and Foster, Fredericksburg with 3,861 boxes
Participants: 1st Choice Better Homes and Land, Century 21 New Millennium, Long and Foster Fredericksburg, Coldwell Banker Elite Stafford, United Real Estate Premier, Century 21 Redwood-Locust Grove, Lake Anna Realty, Coldwell Banker Elite Massaponax, Nest Realty, Coldwell Banker Elite Spotsylvania, MBH Settlement, The Gillies Team with RE/MAX Real Estate Connections, Century 21 Redwood Fredericksburg, Keller Williams Fredericksburg, Coldwell Banker Elite Fredericksburg, Spring Arbor, RE/MAX Legacy, FAAR, The Title Professionals, Century 21 Redwood Stafford, Virginia CU Realty, Exit Elite Realty, Exit Realty Group, Weichert Realtors, Atlantic Coast Mortgage, RE/MAX Supercenter, Coldwell Banker Elite King George, Keller Williams Capital Properites, CTI Real Estate, and Holt for Homes.
FAAR would like thank everyone who participated and all of those who donated cereal. According to estimates from the Food Bank, we have stocked their shelves and those of other food pantries for nearly three weeks.
FAAR Members, get out and VOTE!
November 5th is Election Day in Virginia and it’s less than 2 weeks away! Your vote is important and truly does make a difference. In 2017, one of the seats on the ballot was decided by just 84 votes so plan to get out there and make your voice heard! Not sure where your polling station is located? Click the button below to find out.
Not sure who to vote for? If your business is important to you and something you consider when heading to the ballot box, take a look at FAAR’s list of endorsed candidates. The FAAR Public Policy Committee interviews folks running for elected office and focuses on issues related to real estate like taxes, transportation, affordable housing, and land use. These endorsed candidates have an open door policy for our members and our issues.
FAAR is proud to support the following candidates:
Virginia State Senate
Bryce Reeves (District 17)
Richard Stuart (District 28)
Virginia House of Delegates
Jennifer Carroll Foy (District 2)
Bobby Orrock (District 54)
Buddy Fowler (District 55)
Mark Cole (District 88)
Margaret Ransone (District 99)
Caroline County
Mark Bissoon (Commissioner of the Revenue)
Jeff Sili (Caroline County Board of Supervisors, Bowling Green District)
Spotsylvania County
Dr. Raymond A. Bell, Jr. (Spotsylvania County Board of Supervisors, Livingston District)
Stafford County
Scott Mayausky (Commissioner of the Revenue)
Jack Cavalier (Stafford County Board of Supervisors, Griffis-Widewater District)
Summer Isn’t Over in the Real Estate Market
September proved another active month in the local real estate market with double digit increases in total sold dollar volume and units sold and a modest increase in median price compared to last September. Total sold dollar volume came in at approximately $184.5 million compared to $130.8 million in September of 2018, representing a nearly 42% year-over-year increase. That increase was fueled by a more than 36% uptick in units sold, with 560 properties changing hands in September of this year compared to 411 last year. A modest 3.8% increase in median sold price also helped things along, with September coming in at $305,000 compared to $293,000 last year.
“September was a period where many sellers experienced decent or strong showing activity on their homes. Inventory remains tight in the $200,000 to $300,000 price range,” comments FAAR Board of Director Chip Taylor.
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, decreased nearly 26% with houses averaging just 49 days on the market in September of 2019 compared to 66 days in September of 2018.
Inventory numbers remain tight, with the second straight month of decreased active listings after nearly a year of increasing inventory. Active listings posted a more than 8% decrease with 1,637 properties on the market in September of 2019 compared to 1,782 in September of 2018. There was a modest increase in new listings with 755 new homes coming on the market in September compared to 715 in September of last year, representing a 5.6 % increase. There was a notable increase in new under contracts with 213 in September of last year and 390 this year, representing a more than 83% year-over-year surge. “The end of the month did witness an uptick in new ratified contract activity with interest rates remaining at historic low levels,” continued Taylor.
Congratulations to these local agents and staff selected to volunteer on NAR committees
Congratulations and thank you for representing local REALTORS® at the national level.
Suzanne Brady – Consumer Communications Committee
Barbara Castillo – AEC-RCE Certification Advisory Board
Drew Fristoe – Sustainability Advisory Group
Kim McClellan – State and Local Issues Policy Committee
Sarah Stelmok – Data Strategies Committee
Michael Straley – Real Property Valuation Committee
2020 Board of Directors Election Results
2020 FAAR Leadership Team
President Drew Fristoe, Coldwell Banker Elite, Massaponax
President-Elect Carrie Danko, 1st Choice Better Homes & Land
Vice President Pam Kuper, Century 21 New Millennium
Secretary Carol Sondrini, Coldwell Banker Elite, Massaponax
Treasurer Deb Ellis, Coldwell Banker Elite, Two-year term
Immediate Past President- To be filled by appointment
Clay Murray, Pathway Realty
Randy Walther, Nest Realty
Kelly Bradshaw Walker, Coldwell Banker Elite, Stafford
Lynn Lenahan, 1st Choice Better Homes & Land
Sandy Pearce, Pathway Realty
Affiliate position
Donna Schmidt, American Home Shield
Returning Director:
Cindy LeBrun, Exit Realty Group
FAAR to host Opportunity Zone Meeting
FAAR was able to secure a grant through the National Association of Realtors® to host a meeting on Qualified Opportunity Zones and how our region might best be able to utilize this new tool for redevelopment. Anyone who works with investors or has an interest in economic development is encouraged to attend and be part of the discussion.
So what is an “Opportunity Zone”?
The Qualified Opportunity Zone (“QOZ”) program was created by the 2017 Tax Cuts and Jobs Act to encourage economic growth in underserved communities through tax incentives for investors who utilize “Opportunity Funds” to invest in the Zones. Along with tax benefits, it presents opportunities for real estate investment and development in those communities. U.S states and territories, including Washington, D.C., nominated areas to be designated as QOZs in 2018, and the IRS and Treasury finalized the designations that year.
What are the benefits for my clients?
There are multiple tax benefits available to investors who invest in a QOZ, if all the requirements are met. First, capital gains reinvested within 180 days into a QOZ are tax-free for up to nine years, through 2026. If that initial investment is held for five years, the tax ultimately paid on it is reduced by 10%; if held for seven years, it is reduced by 15%. In addition, gains accrued on deferred-gains funds while invested in a QOZ are tax-free if they are held for at least ten years. These investments must be processed through an “Opportunity Fund,” which is a partnership or a corporation organized for the purpose of investing in QOZ property; these funds self-certified, and must hold at least 90% of their assets in QOZ property (which includes stock, partnership interests, and/or tangible property used in a trade or business in a QOZ, such as real estate).
Press Releases
FAAR Supports Passage of Stafford Sign Ordinance
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FAAR Releases 2016 Year End Housing Report
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