Bristow, VA Market Report – 10/14/09

• Homes for sale: 172
• Closed sales: 40
• Average sale price:  $333,441
• Average days on market: 30

The statistics for Bristow really show a market that is stabilizing after two to three years of decline. The $333,441 average price is up a little over one percent from the previous month and up 8.8% from the same period one year ago. If you find yourself asking “Why?” The answer is supply and demand. Inventory is down 28% from one year ago and most of the people who were worried about their job security have had some kind of resolution. Now, participants in the market are benefiting from all of the risk takers that preceded them that helped stabilize the prices.

Congress is now discussing the prospect of extending and enhancing the federal home buyer tax credit, and talks promise to heat up an already warming market place.

Market data and  commentary provided by David Hess, Executive Vice President and Managing Broker.

Search for homes in Bristow, and all of the DC Metro: www.averyhess.com

Warren County/Front Royal Market Report – 10/13/09

Two very interesting things are happening in the Warren County and Front Royal housing market.  The first is that inventory is getting tighter and  both closed and pending sales are increasing.  The second interesting fact is that properties are staying on the market longer, causing prices to to fall.  Typically, you would not find both instances occurring.  As supply decreases and sales continue to increase, prices would normally rise and days on the market (DOM) would decline.  However, the opposite is happening.  The main reason is this is not a normal market–so buyers are not dealing with traditional sellers.  An added factor is that banks and asset managers are thrown into the recipe by the way of short sales and REO properties on the market. Secondly, the government has gotten involved.  There are now required approaches to keep the defaulting borrower in the property and prolonging eventual foreclosure, which would add to inventory. The following statistics were reported in Warren County for the month of September 2009.

• New listings: 87
• Closed sales: 48
• Average sale price: $161,900
• Average DOM: 125
• Total inventory: 456 units

The number of new listings last month are down by more than 12% from September 2008.  While closed sales and pending sales increased by 33% and 31.4% respectively, the average sale price declined by almost 16%.  Also, the percentage of original list price received at sale only fell by about 2% from last September.

Comparing last year’s totals to this year’s, new listings have dropped 13.7%.  Closed sales have increased by over 29%, and pending sales have also increased, by 44%.  The average sale price in Warren County year to date has dropped almost 27% to a mere $153,000.

The short sale process is lengthy and the cause for increases in pending sales.  The low volume of new listings is due to the try and modify approach before listing as an REO.  Take these factors out and prices would fall, inventory would increase, and buyers would began to gobble up the inventory.  Eventually price levels would hit equilibrium and continue on like business as usual.  But with current trends, this scenario is not so certain. My recommendation is if you want or need to sell, now is the time to do it.  When interest rates go up and prices will fall,  which will be when all of these limbo foreclosures will hit the market–further dropping prices.  I predict another 15% drop in Warren County, but you would be better in the long run buying now and locking into a lower rate than waiting for the price drop and more than offsetting the cost with a higher interest rate–especially if you plan on living in the house for more than five years.

Market data and commentary provided by Steve Mayes, Managing Broker, Avery-Hess, Realtors.

Search for Homes in Warren County, and all the DC Metro: www.averyhess.com

Germantown, MD Market Report – 10/12/09

The figures below reflect the market in Germantown, Maryland:

• Homes for sale: 438
• Closed sales: 98
• Average sale price: $238,361
• Average days on market: 45

With the stabilizing real estate market, the inventory of houses for sale continues to drop each month. One year ago there were 707 houses for sale, meaning a one-year reduction in inventory of 38%. Also, houses in Germantown are selling at almost twice the rate of last year, 45 days this year versus 83 days last year. Affordability keeps getting better with today’s mortgage rates hovering around 5% for a 30 year fixed-rate mortgage.

Germantown has a wide range of house sizes and styles, townhouses and condos. There is something for everyone. Located in the northern part of Montgomery County adjacent to I-270 and a short drive to the Shady Grove Metro Station, Germantown is very popular with first time buyers and repeat buyers. Once they move in, many homeowners in Germantown never leave—they just trade up or down within the Germantown community.

Market data and  commentary provided by David Hess, Executive Vice President and Managing Broker.

Search for homes in Germantown, and all of the DC Metro: www.averyhess.com

City of Falls Church, VA Market Report – 10/12/09

The market in the City of Falls Church is hot!  Compared to the same time last year, there is one-third less inventory. In addition, sales are almost double what they were last year.  However, we do see that average sales price is lower by almost 8%, but this is a far cry from what we have seen over the last couple of years.  It is my opinion that our current market is the bottom of the market–or just off the bottom–at this time.

Though it appears that homes are taking much longer to sell, this is not the case.  With only 20 sales, the numbers can be easily skewed.  Looking at the individual sales, there were three properties on the market for over 300 days each, two of which were over $1 million.  If these three properties are eliminated from the sales, the average days on market (DOM) drops to 48 days.

With sales increasing and inventory dramatically decreasing, we are actually at the point where I would define the current market in the City of Falls Church as a seller’s market!  It’s not a strong seller’s market yet, but it’s neither neutral nor a buyer’s market.  In order to sell, homes must be priced well and be in good condition.  When that is the case, sellers are getting close to their asking price, sometimes with multiple contracts.  It is definitely a great time to put your home on the market if you are thinking of selling.

We continue to see first-time homebuyers scramble to take advantage of the federal tax credit.  With a limited time to do so, I predict another fantastic month!

Market data and commentary provided by Tom Conner, Managing Broker, Avery-Hess, Realtors.

Search for homes in Falls Church, and all of the DC Metro: www.averyhess.com

Centreville, VA Market Report – 10/8/09

Centreville is approximately 20 miles outside of Washington, DC, in Fairfax County, Virginia. In August, the vast majority of the houses in Centreville were sold using conventional and Federal Housing Administration (FHA) financing because the average and median sales prices were all below the conforming loan limit for conventional financing.

These totals represent the market conditions in Centreville, Virginia:

• Homes for sale: 375
• Closed sales: 100
• Average sales price: $326,422
• Average days on market: 61

A continued increase in activity is shown by these numbers as last month only had 94 sold homes and 394 new listings for sale. Each month in Centreville we have seen an increase in sales and a decrease in inventory selection.

Though the average home price is down approximately 10% from same time in 2008, there is a strong demand for homes in the Centreville market as buyers race to get in before the November 30 deadline to get the $8,000 federal tax credit for first-time buyers. And each month the difference in sales price from the previous year keeps getting smaller. These statistics lead me to believe we are approaching price stability.

Market data, commentary and statistics provided by David Hess, Executive Vice President and Managing Broker.

Search for homes in Centreville, and all of the DC Metro: www.averyhess.com

Meet Our People – Seon Kang

At Avery-Hess, our people are our most important asset. Learn more about one of our best, Seon Kang, from our Dulles, Virginia Regional Office.

Meet Avery-Hess – Seon Kang, Dulles, VA Regional Office from Amit Kulkarni on Vimeo.

Search for homes and learn more about Avery-Hess: www.averyhess.com