ATTENTION HOME SELLERS: You are not going to like what you are about to read. If you wish to hide your head in the sand and continue on in a state of denial, please click the following link and have fun: www.itsnotbadatall.com
If you are planning on selling your home or in the midst of doing so right now, then read on for the truth, if you can handle it.
The truth is that prices are coming down. There's downward pressure on prices and if you plan to sell your home, you need to understand this and that signs are indicating that prices are continuing to drop.
Here's a few charts that tell the story in Alexandria, Virginia. While the numbers are different in different areas, the story is pretty much the same across the board in Northern Virginia.
Of the 338 Alexandria Virginia condos currently on the market, the average listing price is $303,412. There are 102 condos in Alexandria under contract and pending sale. The average listing price for these is $245,187. Over the last 30 days, there have been 63 Alexandria condos that have sold. Their average listing price at the time of sale was $271,487, which represented a $14,500 reduction in price from their original average listing price. The final net sales price was $260,561.
There's downward pressure indeed. The pending sales listing prices are well below the list prices and net sales prices, so it's a sure bet that next month's actual sales price numbers in Alexandria will be significantly lower. Those Alexandria condo sellers with their condos priced well above recent sales are now faced with the possibility of having to make drastic price reductions to get their Alexandria condo sold.
People trying to sell their townhouse in Alexandria are faced with a similar picture, except that the pricing gap between actively listed homes and those that are pending and sold is even wider. In fact, while 157 Alexandria townhouses are on the market at an average price of $764,825, the 48 that are under contract had a listing price of $524,295. That's a $240K difference!
Additionally, the listing price for the pending sales is well below the most recently sold listing and sales prices, indicating a coming significant drop in prices in the next month.
There are 120 active Alexandria Virginia single family home listings priced at an average of $920,738. Compared with the pending sales average listing price of $722,107, sellers of single family homes in Alexandria are facing a similar impending price drop.
ANALYSIS: These three graphs clearly show the way that prices in Alexandria, and indeed through much of Northern Virginia, are heading. If you are planning to sell your home, you need to take this information into serious consideration. You need to discuss with your REALTOR pricing your home to place you in an advantageous position compared to the surrounding market.
On the flip side of the coin, if you are a buyer, this might be one of the most opportune times to enter the real estate market in Northern Virginia. Will prices continue to go down? Perhaps.
Should you wait before buying?
Consider the impact of a change in interest rates:
Buy a $400K home today at 6% interest rate and your monthly payment will be $2,398.50.
Wait and buy the same home for $375K at 7% interest rate and your payment will be $2,494.88.
Take advantage of professional, expert advice, with a free no-obligation real estate consultation.
Contact Brian Block, REALTOR/Attorney, RE/MAX Allegiance: Licensed in Virginia & Washington D.C. (703) 626-0715. If you are interested in purchasing or selling a property in Northern Virginia including Arlington County, Alexandria City, Annandale, Burke, D.C., Fairfax County, Falls Church City, Lorton, Springfield, Washington D.C., contact Brian today.
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