What is going on with Real Estate in Northern Virginia, Fairfax, and Loudoun... I have sellers who, while getting their homes ready for sale this past winter, watched as multiple offers were put forth on any decent property that hit the market. Now, the fabled spring market is here and there homes are sitting waiting for a buyer who will make a fair offer. Everyone I run into is asking “What is going on in this crazy market?”. Here I what I have been saying. Last summer interest rates rose 1% in 8 weeks (June-August) thereby reducing buyer’s purchasing power by 10%. That put the brakes on right there. Then, while every potential buyer was reeling from their interest rate set-back, our not so thoughtful politicians decided to have a very poorly timed battle resulting in the Government shutdown. Although short-lived, nearly everyone living the Metro DC area felt in one way or the other = uncertainty. Well, let’s just get through the Holidays… In January, all of the buyers who were actively looking or thinking about making a move in 2013, ended hibernation early and noticed that interest rates fell back to pre-June 2013 levels. The Politicians responsible for the shutdown were duly chastised and life was back to “business as usual”. The pent-up demand from the second half of 2013 roared into winter 2014 giving the impression that “the housing market has recovered and we are back to the good old days – say hallelujah!!”. Sellers, alas, were taking their sweet time getting their homes listed and essentially timing it with the spring market. In the end, the market is improving but we are not “gangbusters”. All of the left over demand has evaporated and the balance of sellers and buyers has evened out. The market has warmed up but we are not on fire. More like a roller coaster ride resulting from the past 6 years of sputtering yet consistent economic recovery. And, boy, was that shutdown not needed… In the end, my advice to sellers: 1) prepare your home to the best of your ability and make it as turnkey as possible – everyone around here is too busy working to fix anything 2) price at market value right when you go on the market – the first four weeks are critical and forget “room for negotiation” and price it to sell 3) be patient and remember, your first offer is almost always your best offer – try to make it work. Buyers – you are in the driver’s seat (this month or this week?). Be diligent and get out there and look – you will find a great place at a great price. As more and more inventory hits the market in the next few weeks, you will find a very good deal. Don’t be greedy and be ready to pay a fair market price – you are in the position find a dreamy new home at a great price.
Posted on: Tue, 06 May 2014 13:29:05 +0000
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