Tom & Cindy’s 2008 Spring Market Update

 

As we look forward to the spring market, Cindy and I wanted to give homeowners an update on market conditions and our insight as to where we are headed.

 

Current conditions still favor buyers, as they have since early 2006. With the benefit of hindsight, we know that the height of the market was April, May, and June of 2005. Since then, the inventory of available homes has gone up and buyers have been able to negotiate purchase prices, ask for closing cost assistance and often both. Sellers, if they’ve been unable or unwilling to price their homes correctly, have seen their properties sit for months.

 

Let’s look at absorption rates. I am writing this on February 3rd. Right now, according to MRIS (the Multi-Regional Information System---our MLS) in the Kingstowne area there are 320 homes for sale. There are 76 under contract. That means that 24% of the current inventory is under contract. We have a little over a 4 month supply of homes available. In Lorton that absorption rate is 16%. In Springfield it is 18%.

 

 As many of you know we are also being affected by foreclosures and short sales in the marketplace.

 

What does this all mean? It’s not all gloom and doom like a lot of the media would have you think. It’s easy with the help of MRIS to see that homes are selling every day. Just in the month of December 249 homes sold in Alexandria, Lorton and Springfield. We have sold over 440 homes since the beginning of 2006. Buyers are doing their homework, seeing a lot of houses, and making their offer on the one that represents the best value in the area and price range they are looking in. If your home is the best value, it WILL sell, and sometimes quickly.

 

In real estate, you always hear the buzz-words location, location, location. Our long experience tells us that just about anywhere in Northern Virginia is a good location for someone. Price and condition is what really sells houses. If your walls are orange, paint them. If your pink carpet is stained, replace it. You’ll be glad you did. Upwards of 80% of buyers are beginning their search on the internet. If they see photos or virtual tours that make a property look unappealing, or like they’ll have to do too much work to make it livable, they just won’t come to see it.

 

Also, price your house correctly, or you risk chasing the market down. It’s sad when we see otherwise smart people that just can’t come to grips with the true market value of their property. One thing about real estate----you always find out the answer in the end. When a house sells, the final price is public knowledge.

 

It is a great time to be a buyer. If you’re selling and buying, this is a good time for you too, as long as you’re not “upside down” on your mortgage. Interest rates are at or near all time lows. Prices of homes are at the levels they were in the fall of 2003. There are great deals out there and often you can get sellers to pay your closing costs for you.

 

 Long-term, we’re very bullish on this area. With the Ft Belvoir BRAC, the renewal project at Springfield Mall, the just-approved 4 office towers at the Kingstowne Town Center, the Lorton Arts Center and so many other positive things going on, we believe that over time property valuations will begin to rise.

 

As the top real estate team in the Alexandria/Springfield/Lorton area, whether you’re selling or buying, give us a call. We’ll put our all into getting you the highest and best offer possible in today’s market for your home, and the best deal possible for the home you want to purchase.