Those of you who have followed my posts for the last several years have often heard me lament the imbalance of inventory and it’s distorting effects on the market. Well, we have reached a new low, so to speak. We now have a meager 2,500 homes on the market in the entire Northern Virginia region (inside the beltway, Fairfax, Loudon, Prince William and Fauquier Counties included). Wow. That is the lowest total since the crazy days of 2005. That translates to fewer than a 1.7 months supply of homes based upon current absorption rates. So what does this reality mean to home buyers and sellers?
As a home seller, if you are ready to sell there is absolutely no reason to wait for the “Spring Market”. Activity at open houses and showings is robust. However, there is a caveat. This is not the mid 2000’s where people were buying homes speculatively and if you could fog a mirror you’d get a loan. Buyers are still price sensitive. If a property is in very poor condition or is significantly over priced it will get lots of showings but no offers.
For you home buyers that means that even if you see tons of folks at the open house with you don’t be afraid to throw your hat into the ring if you want the house. Talk with me so I can show you how to best position yourself to win these competitive situations.
On to some local news. It looks like the re-development of Landmark Mall in Alexandria is finally breaking free so we can look forward to that transforming from a bit of a blighted situation to a regional asset.
The local economy is the envy of the rest of the country. This is reflected in things like the mortgage delinquencies rate. Nationally it is 4.1%. In the Washington region a mere 1.3%! That of course means few foreclosures or short sales to look at.
On a final note expect to see something long absent come back into the market place. Assumptions. If you’ve got a low rate fixed VA or FHA loan you’ve got an asset. Call me and I can show you how that could help you get more for your home and/or how you could get a great income stream from your equity with things like holding a discounted second trust.
Have a great 2019!
It’s a good life.