If we put 10 economists in a room to discuss the current real estate climate and the forecast for the future, we would likely hear 10 different opinions. And if we believe everything we read and hear from the media to be true, we might wonder why we even get out of bed in the morning. Certainly the economy is still suffering and we are living in difficult times, but there is always a bright side, a silver lining to rely on.
Springfield is a microcosim of typical America and while there are an abundance of distressed properties, there is also hope for the future outlook of this area. The dog days of summer couldn’t have been more evident this year as we suffered through record numbers of 90 degree + temperatures but the intrepid souls in search of opportunity found what they were looking for .
While the number of homes that went to settlement in August was down by 40% from last August, the number of properties that went under contract last month was up by 65% over the previous year. The issue is not the lack of inventory. There were 22% more homes available in August than in August of 2009.
Of all the homes available and under contract, nearly 1 in 3 are foreclosures or short sales. This reflects a sad but real situation; banks are selling more homes than builders. Homeowners opting to rent rather than sell found a lot of competition in August, but there seems to be an abundance of folks preferring to or only able to enter into a lease situation. There were 103 properties of individual owners for rent in August. By the end of the month, 61 had rented and another 14 had applications registered.
There are people in the Springfield marketplace buying and selling property. Many owners are waiting for the prices to go back up and many buyers are waiting to see if they’ll keep falling. Hopefully, with wise counsel, they won’t miss out on opportunity when it is standing right in front of them.
Market data and commentary by Charles J. Carroll, Managing Broker at Avery-Hess, Realtors.
Search for homes in the Springfield, and the rest of the DC Metro: www.averyhess.com