Suzanne Leedy, CRS, epro500

"Market in a Minute"

A Summary of Market Conditions

CONTRACTS:

October 2009 contract activity was up 23.8% from October 2008 in

the immediate Northern Virginia area; was also up 23.8% in Loudoun County, but

was down 31.3% in Prince William County. The number of available homes on the

market is down significantly in all three greater Northern Virginia jurisdictions.

PRICES:

The average sales price was essentially unchanged in Northern Virginia

and Loudoun County from October 2008 and was up 9.7% in Prince William. Prince

William's increase is entirely a reflection in a change of what's selling - the lowest

end of their market has seen a significant drop in contract activity, so the arithmetic

average of what is selling is higher.

INTEREST RATES:

While rates are well below the rates of this time last year, they

did tick up just a bit from September. The Fed has given very clear signals that it

intends to keep low the rates that are within its control, but the market will ultimately

determine mortgage rates. We still believe that the need to finance the enormous

federal budget deficits will result in higher mortgage interest rates over the next

year, so it is highly unlikely that rates will get much better than they are right now.

AFFORDABILITY:

Homes are significantly more affordable today than this time

last year - or at any time in the past three years because of lower interest rates and

continuing lower home prices. However, since prices, especially at the lower end,

are showing signs of heading up, affordability will vary greatly depending on price

range and geography.

DIRECTION OF THE MARKET:

As we stated last month in this space, we're not

out of the woods yet; this is not a housing market that has "recovered." We're a lot

better off than we were at this time last year, but there is likely to be another wave -

not a tsunami - of short sales and foreclosures as interest rates reset on ARMs

originated 4-5 years ago at the peak of the market. Nonetheless, we're keeping the

arrow pointed "up" for now, in large measure because of the extension and

expansion of the homebuyer's tax credit.

For the full report go to my website http://www.suzanneleedy.com

We live in the Washington, DC metropolitan area, and if there ever was a 'good thing' about the future, the election of Barack Obama as the 44th President of the United States will not only add more consumer confidence...but that alone is adding 18,000 jobs to our neighborhoods! That doesn't mean 18,000 new people will be coming in with the Democrats....but it is job growth...and when most of the country is loosing jobs, this can only be good for our market.

The most important job right now is getting back to the basics of real estate....getting your listing presentation finely tuned, keeping in contact with past clients and giving them information they need and can actually use. Go to educational classes given by lenders to keep current with the new loan programs...learn new technology.

Just a note about the local market...we are seeing real signs of change....the closer you are to DC, the better. We are still seeing multiple contracts and homes are selling! If you go farther out, but still in commuting distance to DC, the market is WILD! Prince William county, full of foreclosures and short sales, the increases are in the triple digits over last year. Learn to do short sales and actually go back to why you went into Real Estate in the first place, to help people!

Go to my website http://www.suzanneleedy.com and click on the "market watch" section to read all about the local market in the October Stat Pack.

Realtors tend to be optomistic people in their genes...we need to be the cheerleaders for people in this tough economic climate! Be happy and think positively.... and remember "Thoughts become things, choose the good ones"!

Hi, this is new for me...so give me a break! I am a full-time real estate professional working with buyers and sellers in the "close to DC" counties of Fairfax, Arlington, cities of Alexandria and Falls Church. I live in the Kingstowne area and my office is in Arlington, so I get around!

Regardless of what we see and hear from the media, the Northern Virginia area is less affected by the declining home market than a lot of areas of the country. If the home is well priced and in good condition, it is selling. The price declines of the past year have begun to creep back up....and based on the latest numbers from the Northern Virginia Board of Realtors...I honestly think we have hit the bottom. While this may not be true for condos (depending on the building/community) they too are beginning to show some activity.

If you are considering going after a bargain (foreclosures and short sales), there are some great opportunities out there. This could be the best time to snag an investment property in the last five years. As a buyer, if the property is listed as a "short sale", you will need to have the fortitude to wait for an answer from the bank...now taking about 4 weeks. But, in the end you will come out ahead, usually paying 10-20% below market.

Just let me know what questions/concerns you may have and I will answer them, or find the expert who will.

Honestly and promptly to allay your hesitation!

It's a beautiful day in Alexandria, spring has sprung, finally!