Our very own Albert Crider and Judy Radvanyi (aka The MatchMasters®) will be holding an event this Saturday, October 3, 2009 to bring together members
Inventory continues to decline while buyer interest is growing, which is a dilemma that confronting the entire region. Traditionally this would be encouraging news to sellers, but private sellers seem to be reluctant to enter the market because home values have declined. The number of bank properties have diminished so buyers are competing for the few good homes that are available. This truly is a great time for both buyers and sellers.
As with most area localities, the City of Fredericksburg is showing a year-to-date increase in pending sales due to the number of short sales in various stages of negotiation. Though not reflected in the data above, there has been a year-to-date drop in sale price of about 28% that can be attributed to the number of foreclosure sales. However, sale prices in the historic district have decreased at a lesser rate.
At Avery-Hess, our people are our most important asset. Learn more about two of our best, Mark Holyfield and Kristie Zimmerman of The Holyfield Team from our Lake Ridge, VA Regional Office.
There are two things that are definitely driving the market in both Reston and Herndon, and that is a shrinking inventory of active listings and the $8,000 federal tax credit available to people who have not owned a home in the last 3 years. The statistics in these two areas are very impressive, especially given the market conditions that we read everyday in the newspaper. Can you believe average sales prices are up significantly in both areas from the same time last year? The lower priced inventory in both areas are driving a number of the statistics we see here. In fact, since there is now a shortage of foreclosures on the market, we should continue to see some impressive numbers for the rest of the year.
August statistics for 2009 are consistent with those of the previous year. The average sales price is down by 6.5%, but the median sold price is up 3.25% reflecting a little more activity in the higher end properties. Meanwhile, the average days on market (DOM) dropped only 2%. There were 179 contracts approved, but 241 new listings replaced them in the active inventory. Condo sales accounted for half of the sales for the month.
Ashburn is a popular community of newer homes with many community amenities. It is located near many growing employment corridors, including the Dulles Technology corridor, as well as Route 28, Tysons Corner, and Leesburg. Low interest rates combined with the lower median sales prices in Ashburn has made this a very popular community, especially with buyers seeking to settle before the November 30 deadline to take advantage of the Federal Housing Tax Credit for first-time home buyers.
With more buyers deciding to enter the market and with the clock ticking on the $8,000 federal tax credit for first-time buyers, we can probably expect to see that percent of list price move upward. Also expect the beginning of a stabilization or even reversal of the downward trend in sales price.
What the stats don’t show is the increase in multiple offers on well-priced properties. We are finding that if a property is priced right, in almost all price ranges, a buyer will probably be found within 90 days or less.
As previously noted, Arlington County has not suffered the same declines in the market as most of Northern Virginia. Comparing August 2009 to August 2008 the numbers are not dramatically different. While the average sales price is down by 7.5%, the median sold price is up by 7.5% indicating that despite a drop of 10% in units sold, the higher end homes showed an increase in sales activity. Condo sales still represent nearly half of all sold properties for the month.
Inventory is increasing and prices seem to be slowly creeping down. This opens the door for a great investment opportunity. Rents are holding steady and therefore cash flow is available when you buy and rent. As prices drop, so does the percentage of sale price versus listing price, meaning further discounts. Year to date, listings are selling for 87.4% of their list price–down 2.4% from the same time in 2008.