Hey everybody. I am back to singing in the rain. I'm at KW Mega Camp right now, and will be sharing all of my interesting stories soon.

Last night I met with some new clients who were delightful (you know who you are if you're reading this!)...  a topic came up that comes up a lot and I felt was worthy of discussion today - The media is ALL over the idea that it's a buyer's market - but what I'd like to remind you is that real estate is local, it's really hyper-local.  What does that mean?

First, we need to define what IS a buyer's market?  The economic definition of a buyers market reads like this:

A buyer's market is a market for a good where prices are falling and there are more parties interested in selling than buying.

OK - that makes sense.  But how does it translate to real estate?  Typically we look at absorption rates - or simply put, how long will it take to sell through our current inventory of homes.  I found another definition which generally follows what I've always heard which is this:

A seller's market is defined by absorption rates of 1-4 months

A normal market is defined by absorption rates of 5-6 months

A buyer's market is defined by absorption rates of 7+ months

One very important factor to keep in mind is that numbers can swing wildly month by month because you are looking at 1 month in a bubble.  I'm sure a learned economist might take exception to the quick and dirty, back of the napkin numbers we're looking at here, but nonetheless I was fascinated by what I found.

So, when I sat down this morning to pull together some facts and figures to share, before I even got started, I figured I'd find that in the closer in markets where things haven't been in a nose-dive decline, that I'd find lower rates and in markets that are saturated with inventory, I'd find that buyer's market conditions really exist.  Take a look at the chart below.  I had ordered it loosely by geography - distance from the city.

At first glance I was surprised to see the LOWEST absorption rates in Manassas - now I don't do a whole lot of business out in Prince William County - most of my business is done in the closer in areas of Arlington, Alexandria, Falls Church and the like...  I was a little surprised by McLean's super high rate of 16+ months of inventory, but then, it all made sense.  Look at the chart below, re-ordered by average list price in that city.

Interesting, huh?  With the ONE exception of Falls Church, it lines up EXACTLY with average selling prices. What this tells me is that in areas with reasonable prices, properties are selling - at a very good pace in most cases.  This ALSO tells me that with a few exceptions, our metro area is largely within the "normal" ranges - it's what I've been saying, but here are the numbers to show for it. 

The other interesting thing I found while researching this morning is that it really doesn't matter what you label things (e.g., market conditions, outside factors, etc...) - what matters are 3 things:

1) low asking prices
2) acceptable interest rates and
3) large inventories

So there you have it - as a buyer, please don't think you are driving the boat - that you can get whatever you want and then some from today's sellers.  Likewise, as a seller, recognize a good deal when one comes along.  Work with the buyers and their agent, be flexible and realistic.  Hey, it sounds like I just described a "normal" market.

Give me a call if you'd like to discuss further - it's truly a fascinating study.

Happy Thursday

Jennifer

Serving all of your real estate needs in Arlington, McLean and the entire Northern Virginia Region!

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Let's face it - what sells a home is the right person walking through the door at the right time.  The process is a balance between a competent real estate agent and a client, in most cases.  The agent comes to the table with a plan for how to cast the widest net to catch potential buyers.  This might include hosting an open house, online advertising, etc...

However, there are definitely two sides to the partnership and if the seller doesn't truly get their head in the game, you could find yourself with a lopsided partnership - even the best marketing can't sell a house that really isn't prepared properly to sell.  So let's examine what the home sellers can, and should, do!

FIRST -

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Choosing who will represent you on the purchase or sale of your home (or investment property) is a big deal!  It's probably one of the single largest purchases or sales you will make in your entire life and unless you're a big investor, probably something you will only do a handful of times in your life.  So when the time comes for your to choose that special person that will guide you through this process, it's important to look for the qualities that are most important to YOU.

I started out thinking I would do a "Top 10 List" of sorts, a la David Letterman.  But I quickly realized that the list will be different for everybody!  What's important to you may not be as important to your co-worker, stock broker or college roommate who has recommended an agent to you.  Don't get me wrong, a personal referral is an excellent source, but make sure they are the right person for YOU and your needs. 

Here is MY list of what I would look for in a real estate professional (and remember they are in NO particular order - just train of thought):

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...And the results are truly a mixed bag.  For all of the media hype about what a bad market it is right now, we're still seeing some good successes in these closer in markets.  Frankly, we're beginning to see successes overall where homes are priced appropriately and presented well, no matter where they're located.  Sometimes it is still taking some time, which is frustrating for the sellers.  However, a home seller in the DC area can have hope!

Here's how the numbers look for just the month of November, 2007 and how it compares with just last November:

Click here to continue reading about November home sales in Arlington Virginia

I've decided to add a new feature to my blogworld - Neighborhood Focus.  This week, to kick it off, I'll be taking a closer look at Westover, a charming neighborhood in North Arlington that gives the feel of yesteryear.

Washington Boulevard is the "Main Street" if you will, of Westover.  Traffic slows when you enter into the 2-3 block stretch resembling days gone by.  It's an area of local shops, small-town feel, and everything you need - from the post office, the grocery, a few colorful restaurants, a barber, drug store, hardware store, coffee shop, library...  what else could you need?

Here is a look down one of the sidewalks of Westover Village.  You can see the barber shop and Scoop Beauregards - one of my personal favorite ice cream parlors in the entire area!

This shopping center is flanked by 2 very clever restaurants:  The Lost Dog Cafe and the Stray Cat Cafe!  I can personally vouch for the garlic-y white pizzas and wide array of beer/ale served at the Lost Dog!  It's definitely something to experience.

It's a quaint part of Arlington that offers a variety of housing options some even affordable!   Also, it lies within walking distance to the East Falls Church metro - making it a commuter's dream.

So if you're considering a move to Arlington, or even just like exploring new places - consider slowing down and experiencing Westover!  You won't regret it.

Happy Thursday

Jennifer

I'm sure you've heard all about the "green movement" - as it relates to the housing industry, it involves updating processes and materials to build (or renovate) a more environmentally friendly home.  Arlington County has created a program called the Green Home Choice Program.  The program deals with everything from minimizing the amount and types of construction waste, to eco-friendly products and energy efficient (Energy Star) systems.  Having an energy efficient home can not only save you money each month on your energy bills, but also save in the long term on the use of natural resources, like water and gas.  Green homes can also help reduce the allergens and pollutants sometimes found in building materials.

One of the great side benefits of participating in this program is that the "green home" builder moves to the front of the permit approval line often saving measurable time in the building process. 

In order to qualify as a certified builder in the Green Home Choice Program, an application is required through the county outlining the project intent - a special inspector will then be assigned who will keep a scorecard for the project to ensure that the project remains in the acceptable scores for the program.  Arlington County maintains a great list of resources for green home architects, builders and suppliers.

In the end, going green is kind to our environment, saves the homeowner money each month AND might even be completed a little more quickly with the help of Arlington County!  So if you're considering going green, check out the benefits and go for it!

Happy Wednesday

Jennifer