Are we there yet?

"Have we reached the bottom of housing prices?" Being in my profession as you can imagine I get that question alot. In the past two years the answer has always been no, but I'm happy to report that I feel we are getting very close.

I base my conclusion on a number of factors.

1. Word of mouth. A number of my referral partners are reporting an increase in buying activity.
2. Availability of listings in the $140K - 160K range. Right now there 40 such properties in Stafford County. This range almost directly ties to what people are paying in rent right now.
3. Personal experience. In my subdivision (Park Ridge in Stafford) there are currently about 12 listings. 5 of them have sold signs on them. 42% sales rate might not sound like much but it is significantly better then the 10% I had been seeing.

So where do we go from here? I think by the end of 2008 we will have stopped the bleeding and will begin the long climb back up. It will take a number of years to get back to 2005 levels, but I'm confident it will happen.