Real Estate Market Report

Interest rates are still low, but slowly rising, and home values in the local real estate market are slowly moving upward, but with fewer sales as sellers are less willing to take big price cuts. Some sellers with properly priced properties in good condition are getting offers within a few days of listing their homes for sale, but most homes are taking far longer. Many sellers who can afford it, have taken their properties off the market or rented them out. The average number of days on the market for real estate is now about 85 days and some properties have been on the market for many months. Many sellers and builders have reduced their prices during the last six months, but lately, price drops have been fewer and for smaller amounts. The market appears to be most active for owners selling a home below $450,000. Since the beginning of 2007, all price ranges are getting more showings and more contracts are being written than for the same time period a year ago. Avgerage home prices started the year a little lower compared to 12 months earlier, but since mid summer they have increased slightly over the 2006 levels.

In Fairfax County and the surrounding Northern Virginia area, 2007 remains mostly a buyers market with home prices having come down after 2+ years of rapid increases. Lately however prices are increasing slightly even though showings and contracts are decreasing and the average number of days on the market runs 75 to 134 depending on the neighborhood and part of the area you are buying in. If you are buying a home, the best homes usually go quickest, so it is important that you have a good real estate buyer agent looking out for you by doing a daily check for new listings that might meet your needs. You can use the search links on our useful links page to do your own home search of the local MLS listings or set up an automatic daily search.

A Realtor should also be able to recommend lenders and tell you about any special financing programs offered in your area. In Virginia, ask about the VHDA programs for moderately priced homes. There are also programs such as interest only payments for high and moderately priced homes and ways to avoid having to pay private mortgage insurance (PMI). If you don't have 20% of the sales price for a down payment, ask your lender about an 80/10/10 or an 80/15/5 loan package. It may be better to pay a higher interest rate and the PMI payments or get an Adjustable Rate Mortgage, if you are only planning to live in the home for a few years. Also, PMI payments are now tax deductible.

Because of the increased number of mortgage loan defaults in 2007, lenders are increasing their credit score requirements for many loans. This will restrict the pool of potential buyers and help reduce or keep prices at their current levels.

The following information is for September 2007. The statistics cover all of Fairfax County, City of Fairfax, Falls Church, Arlington, and Alexandria. The trends are similar for Prince William and Loudoun Counties.

Source: Metropolitan Regional Information Systems, Inc. - MLS Resale Data
Copyright 2007 - Information deemed reliable, but is not guaranteed.