Buy Alexandria Real Estate: December 2007

You've been wary about jumping into the real estate market.  Perhaps rightly so.  You hear daily reports on television, on the radio, and read about it in the newspaper, magazines, and online.  Real estate is going to hell in a handbasket.  Mortgage lenders are going out of business and those that stay in business have tightened their purse-strings.

Maybe you are comfortable renting and waiting for the real estate market to settle down.  Or you need more space than your current home provides but you are willing to tough it out and see what the prices do before making a move.  You want to move to a new neighborhood but you are willing to wait.

Keeping a pulse on real estate in Northern Virginia, you know there are increasing foreclosures, bank owned properties, increased inventory, and some desperate sellers.

Where's the good news for 2008?

Right here:  YOU MIGHT ACTUALLY BE ABLE TO AFFORD A HOME IN 2008!

If you're like many people who live in the metropolitan D.C. area, you watched with amazement from 2001 through 2005 as home prices skyrocketed at increasing double digit appreciation rates.  If you bought before 2001 or any time in that time period, you have likely benefited from the property's amazing appreciation.  You refinanced, renovated, consolidated your other debts, and otherwise enjoyed the equity in your home.

Maybe you missed out on the home equity largesse fest, and scowled whenever your friends and colleagues bragged about how much money they made on their homes.  You sat on the sidelines and regret that you didn't buy that $450,000 Ballston condo when you had the chance to buy it in 2001 for only $175,000!

Do you believe in second chances?  Then 2008 may be your year.

Here's a graph that shows the average sales price of homes in Northern Virginia from 1996 through November 2007:

Appreciation reached its peak in 2004 and 2005 when values skyrocketed a whopping 20.6% and 22.2% above the values from the previous years.  Prices in 2006 were flat and in the last few months of this year have been trending down slightly.

You may never be able to buy a luxury condo above the Orange Line metro for under $200,000 again, but prices have stabilized and this next year might present a good buying opportunity.

Have you made your New Year's Resolutions yet?

If one of your resolutions is to buy a new home, 2008 could be among the best times to buy real estate in recent history in Northern Virginia or D.C.

CLICK HERE TO START YOUR 2008 HOME SEARCH

For questions about real estate in Northern Virginia or D.C., contact Brian Block with RE/MAX Allegiance at 703-626-0715 or by e-mail at  brian@brianblock.com.  Visit our Northern Virginia and D.C. real estate website for more information on available properties. 

If you read the newspaper and listen to the mass media, you'd think that foreclosures are everywhere.  That's what they love to report -- crisis, drama, mayhem...  It gets listeners, viewers, readers, etc.

Some areas of the country are much worse than others.  Overall, the D.C. metro area remains in pretty decent shape when it comes to foreclosure numbers.  In the month of October, the District had one active foreclosure for every 3,388 households, according to research company RealtyTrac.  Virginia had one foreclosure for every 1,261 households, the 29th highest in the country.  Maryland has quite a bit more foreclosure activity with 1 in 645 households -- the 12th highest in the country.

Buyers ask me everyday about purchasing foreclosures in Northern Virginia.  In addition to foreclosures, which are often designated on the MLS as REO, or real estate owned by the bank, another designation that's popping up a bit is "short sale."  A short sale is the sale of a home where the proceeds fall short of the owner's outstanding mortgage balance. Some lenders will agree to accept the short sale proceeds and forgive the rest of the mortgage balance  when the owner cannot make the mortgage payments.  Why?  By accepting a short sale, the bank may be able to  avoid a lengthy and costly foreclosure proceeding.

Where are the foreclosures and short sales in Northern Virginia?

The chart below shows the MLS prevalence by area of short sales, foreclosures, REO properties that are available. 

TOTAL NUMBER OF ACTIVE LISTINGS DESIGNATED FORECLOSURE, REO, SHORT SALE:

Northern Virginia homebuyers can find some good deals by exploring foreclosures and short sales.  However, it is important to be aware that the process may take longer than a regular sale.  After a offer is submitted on a property, it must be reviewed by the bank prior to acceptance.  This process can take anywhere from days to several months and is therefore not recommended for someone who must purchase and move in quickly.

CLICK HERE TO RECEIVE INFORMATION ON FORECLOSURES AND SHORT SALES (Indicate in the Notes Section that you are seeking foreclosure information) 

More than 58% of the homes currently available for sale in Alexandria, Virginia are condominiums.  See Alexandria Virginia Condominium Inventory -- November 2007. 

However, there are still a good number of single family homes and townhouses in all price ranges available throughout Alexandria City.

As of December 5, 2007, there are 338 townhouses and single family homes on the market in Alexandria.  65 homes sold in the last 30 days.  This means that there the current inventory represents a 5.2 month supply of Alexandria homes available.  Despite media reports to the contrary about the Northern Virginia housing market, at least in Alexandria there remains a healthy and stable resale inventory.  Additionally 69 Alexandria homes are currently under contract and pending sale.

Where are the homes in Alexandria?

The chart below shows the current amount of homes available in the highest inventory areas of Alexandria.

Here are some other articles about several of these neighborhoods:

November Update on Cameron Station Sales

Old Town Alexandria: Homes For Sale -- Something Old, Something New & Market Statistics

Del Ray, Alexandria: A Popular and Eclectic Neighborhood

The table below details current pricing in each of these popular Alexandria communities:

Single Family Homes are Available in ALL price ranges in Northern Virginia

CLICK HERE TO SEARCH FOR YOUR NEXT HOME IN ALEXANDRIA OR ANYWHERE IN NORTHERN VIRGINIA

If you are considering selling your home in Alexandria, Virginia, it is important for you to understand the timing of the current real estate market.  Despite media reports, properties are still selling in Northern Virginia, albeit slower than in years past.

As of December 1st, 2007, the average amount of time on the market for all properties currently available in Alexandria is 93 days.  The amount of time it takes to sell a home can vary quite a bit depending upon the price range.

The chart below provides a breakdown by price range of all homes currently on the market in Alexandria, Virginia.  Red columns indicate that the homes in this price range have averaged more days on the market than the overall average of 93 days.  

Almost all homes under $900,000 hug the overall average of 93 days on the market, with many of the particular price ranges being somewhat below.  Looking at the chart, it is readily apparent that higher priced homes are taking quite a bit more time to sell.  Alexandria homes in the $1.5 million to $2 million price range have been on the market for an average of 116 days.  Those over $2 million have averaged 1/2 year on the market.

What's the trend? 

Alexandria homes that sold in November 2007 spent an average of 51 days on the market.  Homes that are currently under contract and pending sale were on the market for 75 days before receiving an accepted offer.  Active listings have been on the market for 93 days.  

Time to market a home for sale in Alexandria is increasing. 

This upward trend of days on market will result in downward pressure on pricing for Alexandria homes.

Average prices in Alexandria

Currently available homes:  $523,127
                under contract:  $497,935
        sold November 2007:  List Price $500,742  Sold Price $488,312

With more time on the market, you should see current listing prices reduced to be more in line with average sold prices for November.  

For a complete market analysis of your home, contact Brian Block, RE/MAX Allegiance at 703-626-0715 or by e-mail at brian@brianblock.com

Click here for a confidential online comparative pricing analysis of your home.