With home prices continuing to deliver double-digit increases, some are concerned we’re in a housing bubble like the one in 2006. However, a closer look at the market data indicates this is nothing like 2006 for three major reasons.
1. The housing market isn’t driven by risky mortgage loans.
Back in 2006, nearly everyone could qualify for a loan. The Mortgage Credit Availability Index (MCAI) from the Mortgage Bankers’ Association is an indicator of the availability of mortgage money. The higher the index, the easier it is to obtain a mortgage. The MCAI more than doubled from 2004 (378) to 2006 (869). Today, the index stands at 130. As an example of the difference between today and 2006, let’s look at the volume of mortgages that originated when a buyer had less than a 620 credit score.
Dr. Frank Nothaft, Chief Economist for CoreLogic, reiterates this point:
“There are marked differences in today’s run up in prices compared to 2005, which was a bubble fueled by risky loans and lenient underwriting. Today, loans with high-risk features are absent and mortgage underwriting is prudent.”
2. Homeowners aren’t using their homes as ATMs this time.
During the housing bubble, as prices skyrocketed, people were refinancing their homes and pulling out large sums of cash. As prices began to fall, that caused many to spiral into a negative equity situation (where their mortgage was higher than the value of the house).
Today, homeowners are letting their equity build. Tappable equity is the amount available for homeowners to access before hitting a maximum 80% combined loan-to-value ratio (thus still leaving them with at least 20% equity). In 2006, that number was $4.6 billion. Today, that number stands at over $8 billion.
Yet, the percentage of cash-out refinances (where the homeowner takes out at least 5% more than their original mortgage amount) is half of what it was in 2006.
3. This time, it’s simply a matter of supply and demand.
FOMO (the Fear Of Missing Out) dominated the housing market leading up to the 2006 housing bubble and drove up buyer demand. Back then, housing supply more than kept up as many homeowners put their houses on the market, as evidenced by the over seven months’ supply of existing housing inventory available for sale in 2006. Today, that number is barely two months.
Builders also overbuilt during the bubble but pulled back significantly over the next decade. Sam Khater, VP and Chief Economist, Economic & Housing Research at Freddie Mac, explains that pullback is the major factor in the lack of available inventory today:
“The main driver of the housing shortfall has been the long-term decline in the construction of single-family homes.”
Here’s a chart that quantifies Khater’s remarks:
Today, there are simply not enough homes to keep up with current demand.
Bottom Line
This market is nothing like the run-up to 2006. Bill McBride, the author of the prestigious Calculated Risk blog, predicted the last housing bubble and crash. This is what he has to say about today’s housing market:
“It’s not clear at all to me that things are going to slow down significantly in the near future. In 2005, I had a strong sense that the hot market would turn and that, when it turned, things would get very ugly. Today, I don’t have that sense at all, because all of the fundamentals are there. Demand will be high for a while because Millennials need houses. Prices will keep rising for a while because inventory is so low.”
Whether you’re looking for homes for sale in Lake of the Woods VA or Waterfront property in Virginia we are your Real Estate Advisors for Stafford, Fredericksburg, Spotsylvania, Locust Grove, Central Virginia, and Greater Virginia. Thinking of selling? In any market condition, “what is my home worth?” is the #1 question asked by homeowners. If you wish to sell your home, it needs to be sold for top dollar and in a timely manner. Pricing your home accurately, Pat will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata.
To see available Lake of the Woods properties, please visit our site.
Our real estate expertise goes far beyond just buying or selling your home—you can rely on us for quality resources before and after you’ve moved.
Whether you’re searching for the best local handyman, a notary, or something else entirely, you can trust our vetted providers to get the job done.
If you ever need a real estate recommendation—today or years down the road—just give us a call for personalized advice!
Unlock Our Exclusive Real Estate Recommendations
We like to consider ourselves real estate experts, and we love being able to share our knowledge with you! Throughout our years of working in the housing market, we’ve formed deep relationships with not only our clients, but with local trusted businesses, too. We’ve vetted these vendors ourselves so that you don’t have to play the costly game of trial and error.
Need some personalized recommendations or strategic advice? Here’s how your agent can serve you even after you’ve moved.
Sellers, we don’t stop at “SOLD”
When we say we’re by your side every step of the way, we mean it—which means our services never stop at “SOLD!” Whether we’ve just listed your home or already sold it, we know there’s always more work to be done. Seemingly small details go a long way in making a house a home. We’ve worked with the best professional landscapers, painters, and cleaners in the area—all contacts you need to put the finishing touches on your space.
We consider our clients to be one of our own, which means our exclusive buying and selling resources are always available to you. At any time, you can see if your home value has increased using our free estimator or jumpstart the buying process after you sell with our advanced search tool. Our real estate professionals have gained invaluable experience in working with our clients, so we try to return the favor whenever possible by providing in-depth insight.
New homeowners, you’re not done with us yet
We loved helping you find your dream home so much that we want to keep working with you—and honestly, we think we’re going to need each other! Homeownership is a huge investment, so you want your new place to be in tip-top shape at all times.
First things first, it’s important to change your locks when you move into your home, since you don’t know who might have a copy of your keys. Don’t know of a local locksmith? Don’t worry, we’ll open some doors for you! Don’t let a household repair linger just because you don’t know a trusted provider who can get the job done. Whether you’re looking for a handyman to lend a helping hand on a home project or need repairs for your HVAC, you can count on our personalized recommendations for the most reliable providers in the area!
And for when you’ve been watching (maybe too much) HGTV…
We get it, watching Fixer Upper makes you want to DIY your entire home, especially if you’re thinking about listing soon or just moved in. But for when you’re not in the mood to do it all yourself, we’ve got contacts for everything from new light fixtures to full-on home renovations. Our desire for you to live in your dream home doesn’t stop when you sign the closing documents, and we will always be available to help with any home improvements.
Want Access to Our Preferred Vendors?
Working with a top-notch real estate agent means you’ve gained a partner for life. So when anything comes up in your buying, selling, or homeownership journey, just give us a call!
Whether you’re at the beginning of the selling process or have already bought your dream home, you can always rely on us to connect you with the area’s best vendors. Contact us today for any recommendations you may need—and don’t forget, we’re locals too, and we love to catch up with our clients!
Whether you’re looking for homes for sale in Lake of the Woods VA or Waterfront property in Virginia we are your Real Estate Advisors for Stafford, Fredericksburg, Spotsylvania, Locust Grove, Central Virginia, and Greater Virginia. Thinking of selling? In any market condition, “what is my home worth?” is the #1 question asked by homeowners. If you wish to sell your home, it needs to be sold for top dollar and in a timely manner. Pricing your home accurately, Pat will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata.
To see available Lake of the Woods properties, please visit our site.
As more of us become aware of the fact that we might have too much stuff laying around, decluttering has gone from an occasional chore to a lifestyle trend. This is a positive shift, especially given the global problems caused by waste, but it can be difficult to know how to go about it.
The facts are, a less cluttered house can reduce your stress and lead to a happier life according to clinical psychologist Jaime Zuckerman. Not only is it good for your mental health, it can also be good for your wallet as decluttering and taking care of cleaning and tidying projects can actually increase your home appraisal.
Some people call in “decluttering experts,” but the truth is that unless you have a hoarding situation on your hands, you don’t need this service. Courtesy of The Licata Group, here are some tips for how you can minimize and declutter on your own.
Thinking of purchasing or selling a property? The Licata Group can help you navigate the Lake of the Woods housing market. Call us today at (540) 388-2541.
Pick a Decluttering Strategy
If you don’t know where to start with decluttering, there are many existing strategies you can use. These range from the now-famous KonMari method of sorting and decluttering possessions to the Minimalist Game, where you get rid of an increasing number of things based on the day of the month. Pick one that seems doable for you, and you may find the structure of a defined method helps you actually follow through.
Make Plans for Getting Rid of Stuff
What do you do with the bags of stuff you’ve decided to get rid of? Whether you’re going to the recycling center or a charity, know exactly when, where, and how you’ll tackle things. Alternatively, arrange a pick-up from an organization that offers that service.
Additionally, if you have any large, bulky items you no longer need, consider hiring junk haulers to properly dispose of them. In addition to appliances, professional removal services will handle things like mattresses, carpeting, and furniture. What’s more, they’ll make sure these items end up where they belong, whether it’s a junkyard or a local recycling center.
Hack Your Storage Space
Some of us aren’t blessed with a lot of storage space, even post-declutter. Luckily, there are organization hacks to help you with every room in the house. Use under-bed space in the bedroom, invest in furniture and decor that doubles as storage (such as trunks and ottomans), and use narrow spaces (like the one between your fridge and cabinet) to install vertical storage. And if you want to spruce up those shelves and drawers, use removable wallpaper, which you can find in a number of modern looks. This is also a good solution since it’s easy to swap out designs whenever the mood strikes you.
Set Up a Cleaning Schedule
Now that your home is looking tidy and clutter-free, it’s time to keep it clean. Set a regular cleaning schedule — and then stick to it. For some, this could mean setting aside Sunday mornings for cleaning; for others, a weekly schedule with a couple of small daily tasks is easier. Just make sure it fits with your routine and you can actually picture yourself doing it.
Control Your Buying
According to the Atlantic, Americans bought an average of 66 garments in 2017. Are spending habits like these part of why you had to declutter in the first place? If so, you need to re-evaluate this, or you will end up with a cluttered closet again in a matter of months.
You don’t have to go full minimalist or swear to never buy anything again, but you can learn to buy less stuff. Buy good-quality items that last longer, remove temptations like email mailing lists and free delivery subscriptions, and buy only items that you have a planned, concrete use for.
The act of decluttering itself can be fun and exhilarating. It feels great to see a home that feels cleaner, tidier, and more relaxing. Realistically, the hardest part is keeping things that way. The secret to effective decluttering is not to approach it as a one-time exercise, but as a gradual change in your consumer and home maintenance habits. Over time, you will start to value the long-term comfort and ease of a clutter-free home over the intense (but brief) rush of buying and acquiring new stuff.
Whether you’re looking for homes for sale in Fredericksburg, Stafford, Orange, Locust Grove, Northern Virginia, or even Maryland or DC, we are your Real Estate team committed to finding the perfect home for you! Thinking of selling? In any market condition, “what is my home worth?” is the #1 question asked by homeowners. If you wish to sell your home, it needs to be sold for top dollar, and in a timely manner. Pricing your home accurately, one of our area expert advisors will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata.
To see available properties, please visit our website licatagroup.com
Why moving from DC to Orange County, VA, after retirement is a good idea?
Are you planning to move out of Washington DC? If you are, we recommend you consider moving to Orange County, Virginia. If you are looking for an active area filled with beautiful landscapes, this is the place for you. Orange county is, without a doubt, one of the most beautiful spots in the entire United States of America. The majority of Orange County inhabitants own their houses. It is home to many families, young professionals, and retirees. This area is excellent for retirees because it is very peaceful, yet it offers an abundance of fun activities, making it one of the most desired places to move to. This article will show you why moving from DC to Orange County, VA, after retirement is a good idea!
There is a lot to do in Orange County
The county is full of period cottages you can rent or buy. These cottages carry the rustic spirit of Orange County and its history. They date back to the 19th century but were renovated to accommodate the modern lifestyle requirements. Experts from Allstate Moving and Storage have had many clients who either rent or have bought these cottages. Living in them will give you a feeling that you moved back into the past, which can be great for history lovers!
The area has numerous small breweries and wineries
Since the area has beautiful plains and hillsides, it is no surprise that it is rich in agricultural goods. Also, beer and wine lovers will have an opportunity to try to produce their favorite beverages. If you like experiencing new things, Orange County is the right place for you. There are plenty of breweries and wineries for you to explore. Moreover, many of them organize events and wine or beer tastings. This is just one of the many things to do in Orange County.
Orange County is full of terrific small wineries.
Orange County has beautiful historical sights
Orange County and its surroundings are great for history lovers. The area is scattered with lots of historical places and sights. If you like the historical sites in DC, you will love Orange County since it offers a different side of history to explore.
Barboursville Ruins
A great place to visit after you move to Orange County is the ruins of Governor Barbour’s mansion. In 1884, the house was wrecked by a big fire, so it’s just a historical site today. The estate is a great place to visit and get a feel of how the Governor lived back in the day.
James Madison’s Montpelier
James Madison’s home is also in Orange County. The father of the Constitution and the Bill of Rights enjoyed the beautiful sights of this place. You can visit this fantastic estate and go on a guided tour of the property, which we highly recommend.
Outdoor activities
The area is filled with magical scenery and beautiful places to hike through and enjoy what nature gave us! There are many spots perfect for picnics. You can combine multiple activities and go for a hike through the Lake of the Woods, searching for the best place to have a picnic and enjoy some of the local wines. It’s a lovely place to live in, and it is excellent for retirement because of the variety of outdoor activities.
There are plenty of different outdoor activities to do in Orange County.
Farmer’s Markets
If you like cooking, you will love farmer’s markets in Orange County. In the spring, you can forget about canned goods in your pantry and replace them with fresh ones. Since the area is rich with fields, most of the products you find on farmer’s markets are locally produced. Moreover, the products are as fresh as they can be. These markets are also a great place to meet new people that share your passion. You can exchange some recipes or ideas with them! If you arent into cooking, but you love gardening, you will think that you are in heaven when you visit the farmer’s markets. Many people sell a wide variety of different plants and beautiful flowers for you to enjoy. Gardening is a great hobby to take up when you move to Orange County.
Moving to Orange County VA after you retire
Orange County has a lot of very popular and high-quality places for retirees. It’s not only due to the slow pace of life but also nature and the fantastic weather. The county also offers excellent healthcare availability and affordability. The most desirable places for retirees are the ones that are near the amenities of big cities and with the best medical facilities. If you seek good value for your money, Orange County offers some of the most affordable property prices in the state, including the properties in senior communities. When moving as a retiree, you must get the assistance you can completely rely on and trust. The movers you hire will handle all of your belongings and take care of the complete process. This will make your move less stressful, and you will be able to enjoy Orange County right away!
Moving from DC to Orange County, VA, after retirement is an excellent idea if you like peaceful places!
In conclusion
The county is an amazing place to move to after retirement. With this many activities and incredible scenery, it is probably one of the best places to move to the USA. Orange County is ideal if you want to live in a small town with a country feel. Moreover, you can find multiple senior communities in Orange County. And if you are still unsure why moving from DC to Orange County, VA, after retirement is a good idea, come for a visit and see for yourself!
Whether you’re looking for homes for sale in Fredericksburg, Stafford, Orange, Locust Grove, Northern Virginia, or even Maryland or DC, we are your Real Estate team committed to finding the perfect home for you! Thinking of selling? In any market condition, “what is my home worth?” is the #1 question asked by homeowners. If you wish to sell your home, it needs to be sold for top dollar, and in a timely manner. Pricing your home accurately, one of our area expert advisors will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata.
To see available properties, please visit our website licatagroup.com
Join us every Tuesday at 11 AM EST on our Facebook page for Licata Live,
where you can ask questions to different members of our team every week!
Whether you’re looking for homes for sale in Fredericksburg, Stafford, Orange, Locust Grove, Northern Virginia, or even Maryland or DC, we are your Real Estate team committed to finding the perfect home for you! Thinking of selling? In any market condition, “what is my home worth?” is the #1 question asked by homeowners. If you wish to sell your home, it needs to be sold for top dollar, and in a timely manner. Pricing your home accurately, one of our area expert advisors will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata.
To see available properties, please visit our website licatagroup.com
As the nation gets ready to celebrate Memorial Day on Monday, May 31, the LOW Veterans Club will provide an impressive outside ceremony honoring those individuals who have died on military active duty during service to their country. The approximately one-hour event starting at noon at the flagpole in front of the Lake of the Woods Clubhouse will feature several ways of recognizing those individuals who paid the ultimate price of their lives for their country.
Memorial Day was originally called Decoration Day on May 5, 1868 because it was a day to decorate the graves of lost loved ones. Subsequently the name was changed to Memorial Day and was declared to be a national holiday honoring the men and women who died while serving in the United States military.
LOW residents and their guests are invited to witness the true meaning of Memorial Day. Some of the patriotic events include proper raising and lowering of the American Flag, reading of the names of the LOW veterans who died in 2020, description of the historic meaning of Memorial Day, and the presentation of the wreath. Also, newly assigned LOW Veterans Club bugler, Tom Ackman, is a member of the “Buglers Across America” will perform taps.
In the spirit and intent of honoring fallen armed forces personnel the LOW Veterans Club recommends the Vietnam Veterans Memorial Fund (VVMF) a nonprofit organization that funded the Vietnam Veterans Memorial Wall located in Washington, DC. VVMF has created an In Memory plaque which contains names of the Vietnam veterans who have lost their lives as a result of their service in Vietnam.
Veterans so honored who have succumbed to: Exposure to Agent Orange; PTSD/Suicide; Cancer; Diabetes; Heart Disease, and Parkinson ’s disease. For more information contact VVMF at InMemory@vvmf.org.
For further information about the LOW Veterans Club and its activities, please contact club president Mike Ferguson at 571-972-5313 or email him at colmferguson@msn.com.
Whether you’re looking for homes for sale in Lake of the Woods VA or Waterfront property in Virginia we are your Real Estate Advisors for Stafford, Fredericksburg, Spotsylvania, Locust Grove, Central Virginia, and Greater Virginia. Thinking of selling? In any market condition, “what is my home worth?” is the #1 question asked by home owners. If you wish to sell your home, it needs to be sold for top dollar and in a timely manner. Pricing your home accurately, Pat will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata.
To see available Lake of the Woods properties, please visit our site.
Returning for its 6th year, the annual Ice Yards event will be happening on Saturday, February 1st from 1PM-5PM in Washington DC! Here you’ll enjoy popular Icy cocktails and local brews as you spend your time at the only adult-friendly winter wonderland in DC! Participate in ice games and interactive ice activities while you enjoy live music, axe throwing, inflatable jousting, live ice carving and an attempt at DC’s largest group Shotski! Tickets are only $10 and include (1) beer or wine upon entry. Guests can also take part in the “Polar Plunge” to help raise money for the Special Olympics DC! For more information about this event, be sure to Click Here!
Whether you’re looking for homes for sale in Fredericksburg, Stafford, Orange, Locust Grove, Norther Virginia or even Maryland or DC, we are your Real Estate team committed to finding the perfect home for you! Thinking of selling? In any market condition, “what is my home worth?” is the #1 question asked by homeowners. If you wish to sell your home, it needs to be sold for top dollar, and in a timely manner. Pricing your home accurately, one of our area expert advisors will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata.
To see available properties, please visit our website licatagroup.com
