We have been tracking the market trends for home sales located in the South of Northern Virginia™ area, and as realtors®, we have noticed an important change. We are now in a buyers market. Home prices had escalated off the scale; there were 10 or more contract offers on one home. Buyers had escalation clauses in their offer, buyers looking at 30 plus homes or more.  There has been a turn around with the price of homes at a manageable listing price. Buyers can have their agents negotiate and get a 10,000 to 20,000 less on homes. Sad to say that many homes are now foreclosures are foreclosures, short sales and large inventory of existing homes.

The inventory of foreclosure and existing homes is high. There are a lot of very nice renovations and remodeled homes. This means that folks are realizing that this is the time to purchase. Why buy new when you can purchase homes that already have the options and for far less. The purchase price of a home is still lowering along with getting closing cost help in this area and they are starting to not only to buy, more are making offers on the same home, more are offering above the sales price, Some more are in a position to not ask for closing costs.

South of Northern Virginia™ includes the communities where we live and serve as Realtors®: Woodbridge, Dumfries, Triangle, Quantico, Stafford, King George, Fredericksburg and Spotsylvania.

We moved to this area because the cost of living in Northern Virginia is continuing to rise. Fredericksburg is a hub of activity, there’s a mall and a gigantic shopping center right off interstate 95. Developments are going up in new areas quickly. There are plenty of homes, new or existing where the sales price is comfortable to purchase,

Northern Virginia is a great place to live; it was our home for 20 years. If you want to slow your life down a bit, Stafford and the surrounding areas are  places to consider. There is more rural area than city life and many farmlands are becoming housing developments with acreage. Of course, the more people move into an area there are changes, in Stafford changes are coming along, but not as fast as other areas.

The mortgage companies along with banks have made it difficult purchase because if the subprime scare. Loans such as no money down and 100% financing very is hard to find. The banks are also asking more for a downpayment which makes it hard for those that do have 7000 to put down on a 250,000 home along with 7000 earnest money deposit very troubling many. There is no longer the American Dream of everyone owning their Dream Home.

There are the authorities in Real Estate hinting that sales market will pick up at the end of 2008 into 2009. What we see in South of NoVa™ area, there is a large inventory of foreclosures. Sad to say homeowners are caught in a squeeze which makes more foreclosures hitting the market in a large number. There are homeowners squeezed into a corner, the only thing they can do is “walk away.”

In our area based on what we see the housing market slow down will continue up to the end of 2009 and the beginning of 2010. Home sales prices will no longer be out of reach, they will level out. For those holding onto their homes believing that what they expect that sales prices will be as high as they purchased, a word of warning, things will not be as before with the down turn of this market.

There still will the ability for homeowners to build equity in their home.  Homeownership is still a solid decision.

There is no equity in renting. There is nothing to gain from giving your hard earned money to landlords. Think at the end of your lease, what do you have? What is the total amount of money spent renting? 

Thanks for viewing our thoughts!

Larry and Madeline

South of NoVa™ Team