Where'd the Summer go?

Wow, how the summer has flown by. The real estate market has seen a lot of changes during the summer that has caught our attention. The government passed the housing stimulus bill which should help jump start our business going into the fall.

Foreclosures and short sales continue to “dominate” the real estate landscape affecting values in all price ranges. We have seen the number of active homes in Northern Virginia drop from 16,902 in June to 13,738 the first week of September. This has made it tougher for buyers to purchase homes as we have seen some areas and price points attracting multiple contracts. Those areas incorporate houses under $300,000 in NOVA and those over $1,000,000 in select locations throughout area. We have seen a strong rental market get stronger. With the value of properties declining, many opportunities have been made available to investors. Also, as a result of the drop in inventory, homes priced right, staged right and in the right condition are selling quickly as the demand for housing is making a comeback.

Other areas of interest are the loss of Down Payment Assistant Programs such as Neimiah, Ameridream, and other nonprofit seller funded programs as a result of their high default rates. We have seen loan programs such as 100% financing go by the wayside, loan amounts on FHA rise to $729,750 and stricter guidelines being implemented.

All this being said, it is a great time to be involved in residential real estate as a buyer, seller or investor. Don’t be swayed by the negative media and their comments.