The past year has been challenging for the real estate market in Northern Virginia. We went from a flurry of foreclosure properties to a very limited inventory. As home prices fell and many found themselves underwater, it became difficult if not impossible to sell their homes. A large majority of the homes in Prince William County were found to be short sales. A short sale occurs when the seller's lender, due to some sort of hardship, allows him to sell for less than the full amount owed. Buyers hurried to compete on these homes, only to wait for up to 6 months to find out whether the lenders would approve the sale. These buyers were encouraged by the federal tax credit giving a break of $8000 to any purchaser who had not owned a home in the past 3 years.
2010 is now here! There is still very little inventory. The tax credit was expanded to include many current homeowners as well as first time buyers, yet it expires on April 30th. There has been little success in loan modifications. Most owners that qualify to modify, find that in three to six months they are right back where they started. The federal government had been buying up some of these "toxic" assets, or defaulting loans but that is also set to expire soon. This should certainly have an adverse impact on interest rates. Although prices are extremely good right now, what will a 7 or 8% home loan rate mean? We are not talking about in a couple of years. We are talking about in the next 4 or 5 months!
Anyone on the fence should beware! If this doesn't give you an incentive to get your DREAM HOME now, I don't know what to say. Why wait for that investment property?
It is true, short selling will continue well into 2010. Foreclosures will continue to come on the market as well. Question is: Will anyone be able to afford them?
Northern Virginia
Home sales in Northern Virginia have remained on pretty much a flat line the past few months. With inventory dwindling and prices returning, the spring market should bring much more robust activity. From November 2008 - November 2009, in Prince William County the average sold price increased $30,000 or 14.4%. Fairfax County had no measurable change. Of course, prices are 56% less in Prince William as a result of soaring foreclosures the past few years. This current trend of price improvements should help be aided by the tax credits that are due to expire in April 2010. Affordabilty is at an all time high. That is, if you can find a home that does not have multiple offers immediately after being listed.
Graphs are courtesy of MRIS.
NORTHERN VIRGINIA ASSOCIATION OF REALTORS
June listings compared to May: Decreased 5% to 7,617.
June sales units compared to May: Increased 20% to 2,169.
June 2009 Sales Units compared to June 2008 Sales Units: Up 14%.
The average sold price for all homes in June was $451,354, Down 7% compared to 2008
Absorption Rate* comparing January thru June 2009:
|
|
JAN |
FEB |
MAR |
APR |
MAY |
JUN |
|
Under 249,999 |
180 days |
177 days |
151 days |
133 days |
130 days |
117 days |
|
250,000 - 299,999 |
177 days |
165 days |
138 days |
125 days |
97 days |
85 days |
|
300,000 - 399,999 |
165 days |
170 days |
114 days |
113 days |
100 days |
80 days |
|
400,000 - 499,999 |
196 days |
179 days |
157 days |
110 days |
101 days |
78 days |
|
Over 500,000 |
402 days |
409 days |
298 days |
276 days |
197 days |
135 days |
DULLES ASSOCIATION OF REALTORS (LOUDOUN COUNTY)
June listings compared to May: Decreased 3% to 2,272.
June sales units compared to May: Increased 19% to 523.
June 2009 Sales Units compared to June 2008 Sales Units: Decreased 5%.
The average sold price for all homes for June was $384,036, Down 8% compared to 2008.
Absorption Rate* comparing January thru June 2009:
|
|
JAN |
FEB |
MAR |
APR |
MAY |
JUN |
|
Under 249,999 |
158 days |
163 days |
124 days |
101 days |
110 days |
113 days |
|
250,000 - 299,999 |
192 days |
156 days |
153 days |
137 days |
167 days |
92 days |
|
300,000 - 399,999 |
197 days |
145 days |
153 days |
150 days |
118 days |
99 days |
|
400,000 - 499,999 |
267 days |
343 days |
168 days |
157 days |
154 days |
118 days |
|
Over 500,000 |
491 days |
570 days |
435 days |
395 days |
268 days |
201 days |
PRINCE WILLIAM ASSOCIATION OF REALTORS
June listings compared to May: Unchanged at 3,135.
June sales units compared to May: Decreased 9% to 795.
June 2009 Sales Units compared to June 2008 Sales Units: Decreased 19%
The average sold price for all homes for June was $224,273, Down 18% compared to 2008.
Absorption Rate* comparing January thru June 2009
|
|
JAN |
FEB |
MAR |
APR |
MAY |
JUN |
|
Under 249,999 |
140 days |
130 days |
105 days |
109 days |
92 days |
102 days |
|
250,000 - 299,999 |
169 days |
156 days |
146 days |
131 days |
110 days |
123 days |
|
300,000 - 399,999 |
169 days |
233 days |
152 days |
137 days |
110 days |
140 days |
|
400,000 - 499,999 |
359 days |
312 days |
197 days |
186 days |
154 days |
162 days |
|
Over 500,000 |
470 days |
608 days |
416 days |
476 days |
303 days |
241 days |
Prices crept a little back in May. The tight inventory is being felt. Data provided by Metropolitan Regional Information Systems.
Can someone explain to me why real estate agents are all over Facebook, but yet they hide their personal infiormation that may actually get someone to connect with them. Why would you add me to your circle without knowing anything about me? What would provoke you to pick up the phone or email me? You can hide individuals from your wall and control what contents different people see. It seems silly that even the basic contact info is hidden for most professionals. I believe that they are missing the boat.
Maybe one of you that is smarter than me can give me the missing clue? I must be missing something.
Let me know your thoughts.
Laura Evans
Prudential Carruthers Realtors
With over 35+ years combined experience, we offer you the confidence you need in your next transcation. A Team of Professionals dedicated to helping homeowners, current and future.
The Evans Team is dedicated to a smooth and seamless transaction. We work tirelessly to turn over every stone and get the job done. As Top Producers, we have worked through the different market cycles. We are currently helping many individuals with Short Selling their homes and protecting their financial futures.
As Realtors with Prudential Carruthers REALTORS, we bring 35+ years of combined experience to your transaction. Please feel free to use this website as a resource for all your Northern Virginia Real Estate needs, and if you have any additional questions, don't hesitate to contact us today! In today's real estate market, there is simply no substitute for a good REALTOR®. Whether you're aiming to buy or sell property, a REALTOR® can spell the difference between a smooth transaction and an unsuccessful one. We look forward to hearing from you soon.
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