Oh What a Difference a Year Makes! It’s Getting to be a Seller’s Market!
Oh What a Difference a Year Makes! It’s Getting to be a Seller’s Market!
One thing constant about the real estate market is that homes which show like “Beauty Queens” and that are priced correctly will sell. But, what does “priced correctly” mean? Just like the stock market, price is determined by the most recent events of the time. Homes could go up 2% in one month and come down 2% in another. That’s kind of what happened in the 2 half of 2011. In some areas, home values in May, June, and July went up or stabilized for the first time in many years. Then with the European financial roller coaster, our government’s inability to resolve the debt and budget crisis, the looming threat of federal job losses locally, and the uncertainty of some school boundaries, values gained were given back in August through the remainder of the year. Some sellers whose homes were in great condition just gave up and withdrew their listings from the market. And even with record low interest rates and a good selection of affordable homes, some buyers were just too scared to buy. The result: 8.5% fewer houses settled in 2011 as compared to 2010.
But, oh what a difference a year makes, as one can tell from all the Sold signs around. The market is good once again, particularly for homes priced $600,000 on down. The January unemployment rate in Virginia is down to 5.6%, gross domestic product is up, corporate earnings are up, and consumer confidence is on the rise. The market is tilting in favor of the seller as active listings in Fairfax County declined 13.38% in February and the average Fairfax County sales price in February for detached homes rose to $605,873 up 5.75% from a year ago. The only cloud in what is a sunny sky is that appraisals (which are based on closings for the past 90 days) are not keeping up with price increases—sometimes bringing a contract price down. Hopefully this issue will dissipate as the market continues to improve.
So, if you’re a buyer, with record low interest rates and with sales prices on the rise, now is the time to take action and BUY. And, if you’re a seller, with the tilt of the market in your favor, there’s no better time to SELL. For a free assessment of your home’s value or for a tour of available properties, give us a call.
We sell the Most Important Home in Virginia…Yours!
703-658-1600 www.wgasellshomes.com
