Port Potomac-What's Behind The Rise in Towhouse Prices In 2010?

As most of us know every story has a backstory.  In Port Potomac the story is the increase in townhouse prices between 2009 and 2010.  Checking the numbers in the MLS shows the net sales price has increased from $263,290 in 2009 to $288,183 in 2010.  But what is the backstory?  Why the increase in values?  Was it the first time homebuyers tax credit?  Was it the lower interest rates for buyers?  Or was it the change in the number of distressed properties being sold in the neighborhood?

Most likely it was a combination of all of them yet I took a closer look at the last question, the change of numbers in distressed properties in the neighborhood.  If you look at the numbers you will see that foreclosures in Port Potomac townhouses last year even outpaced even short sales.  In 2009 distressed properties and in particular foreclosures ruled the neighborhood.  In 2010 the number of foreclosures for sale is just below half of 2009 numbers.  Though short sales are still at the same number we see fewer short sales being sold below far below market value. 

For anyone not familiar with Port Potomac, the townhouses in the neighborhood were completed and delivered in 2004 and into 2005.  This was the height of the market in Prince William County and a time when many new developments were the target of buyers hoping to make a quick flip and put some money in their pocket.  Timing is everything and the buyers who bought early in the project and sold quickly did manage to walk away but those who bought just a few months later found themselves in a tougher spot. 

Today's buyers in Port Potomac are getting a great deal in a development that offers terrific amenities and a location that offers multiple options for commuting from Prince William County to DC to the North and Quantico to the South.  No more townhouses are being built in the community so the construction in the townhouse section of the neighborhood is complete.

I've listed and sold three properties in Port Potomac in 2010.  If you are interested in selling or buying a home in Port Potomac give me a call.  Let my experience in selling homes in the neighborhood and understanding of the backstory of the sales numbers work for you. 

Port Potomac Neighborhood Quick Tour

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If you are interested in learning more about the Northern Virginia Real Estate market including Alexandria, Arlington, Fairfax and Prince William Counties give Cindy Jones and CJ Realty Group, Inc a call at 703-346-2213. 

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