Buy Alexandria Real Estate: Downward Price Pressure -- Can You Feel It? It's Alive and Well in Alexandria Virginia

Alexandria Virginia Real Estate Blog

Downward Price Pressure -- Can You Feel It? It's Alive and Well in Alexandria Virginia

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.

Alexandria Virginia Condo Prices

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.

Alexandria Virginia Townhouse Prices

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.

Alexandria Virginia Single Family Home Prices

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.

Any Questions? 

Take advantage of professional, expert advice, with a free no-obligation real estate consultation.

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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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Comment balloon 5 commentsBrian Block • October 23 2008 11:51AM

Comments

Graphs speak much more clearly to many people than statistics. The pending stats should be enough to really wake sellers to the current pricing reality.

Posted by Sharon Simms, St. Petersburg FL - CRS CIPS CLHMS RSPS (Coastal Properties Group International - Christie's International) over 9 years ago

Brian those graphs are sure easy to read, which is great.  I should work up something similar to show for our market.  You can't argue with those stats.

Posted by Charlie Harden over 9 years ago

Brian, dont forget that despite this pricing trend, alexandria sales are up 23% over last sept.  It could be that alexandria is finally sucumbing to the pressure the rest of the NOVA area has seen, or it could be that it is on the verge of bottoming out given that sales are up. 

Posted by Jason over 9 years ago

Jason, that is very true.  Sales are up throughout much of Northern Virginia, indicating that at these lowered prices, buyers are willing to get off the fence and commit to getting into the real estate market.  Inventory levels are starting to decrease slightly which should result in a more balanced market come Spring '09.

Posted by Brian Block, Northern Virginia & D.C. Real Estate (RE/MAX Allegiance, Managing Broker/Branch Vice President) over 9 years ago

Brian it doesn't sound much different than Mass. It does seem that many sellers though are starting to face reality...at least that has been my experience.

Posted by Bill Gassett, Metrowest Massachusetts Real Estate (RE/MAX Executive Realty) over 9 years ago

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