Over the past month of working in the Eastern Prince William County real estate market, I have noticed some changes that have been continuing and I wanted to bring them out in the open now. In many local areas, including Lake Ridge and Dale City, the market (except for the upper end $500k+) has become a balanced market and in some instances slightly a seller’s market. Some recent observations:
- Inventory levels – Except for the upper bracket homes, most subdivisions in the area have very little in terms of fully available inventory. Recent searches of the MLS show some subdivisions with ZERO active homes with many others offer only a handful of homes on the open market.
- Prices – While some areas still have slightly declining property values, many others have seen home values stabilize or even rise to levels that were seen back in 2008. Many homes are selling with a net sales price (purchase price minus seller contribution) of at or within 5% of original list price. Properties listed under market values are receiving multiple bids bringing their values in line with other recent sales.
- The shift from an REO driven market (for now) – Another trend in many neighborhoods is the number of short sales that are currently pending sale. Until the “next wave” of foreclosure described in the media come to fruition, short sales will probably be a dominant force in our market.
- The Return of Regular Sales – The number of transactions not involving a short sale or foreclosure is on the rise especially in the middle and upper brackets (300k+) as these long time owners finally decide to move up or on in their property ladder. Some neighborhoods are now driven primarily by normal sales. This tend may expand to lower price ranges if property values start to steadily rise and as investors decide to sell off their assets.
So is it the right time to buy or sell? That is still a personal decision but recent market signs point away from the gloom and doom being broadcasted by the national media.
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