Sales Up Again In Northern Virginia


The number of home sales (year over year) rose for the fourth consecutive month in November, while the number of homes on the market declined for the fifth month in a row. Pending sales (homes going under contract) rose for the eighth month in a row. We currently have an absorption rate (current inventory/monthly sales) of 7.6 months.

It’s still a buyers market, but it’s starting to turn.


I guess the question is, what’s going to happen now? December is usually a slow month in Northern Virginia real estate, but mortgage rates have been falling (around 5.6% right now). The government has been making noises about trying to push rates down to 4.5% to kick-start the residential home market – so are buyers waiting until they get that low? Is the market anticipating this? What if the government decides it will take too much money – will rates shoot up if it doesn’t happen?

My own seat-of-the-pants view is that most buyers are going to wait until after the holidays, but that January and February will be extremely active – and spring 2009 will see a buying spree. There are sellers aplenty (many not yet in the market) and buyers – in our area – who have been salivating for years but nervous.

Get ready.


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