It's a Great Time to Buy!

by Jim Stakem 4/10/2009

loudoun county, ashburn, leesburg, potomac falls, sterling, purcellville, south riding, lovettsville, hamilton, middleburg, chantilly, reston

There has been a lot of discussion recently about what kind of market we are in. The “rules” we usually operate under simply do not apply! This is not a Seller's market! Unless you use the simplistic definition of the National Association of Realtors which is based on the number of months supply of homes, more than 6 months supply is a Buyer's market and less is a Seller's market. My description of the status of the market is also simple. If the market bias favors the Seller it is a Seller's market, if it favors the Buyer it is a Buyer's market! We currently have a market which favors the Buyer. Although our inventory of less than 6 months should favor the Seller, the backlog of foreclosures, rising unemployment, difficulty in obtaining mortgages and a generally poor economy continues to favor the Buyer. None of these are a surprise to anyone however what is surprising is that some “experts” are actually calling this a Seller's market. Don't let them fool you!

What is really happening is that we have a stable market and prices are staying relatively solid at the new and lower level. We have plenty of buyers for our listings and the higher end of the market is finally loosening up a bit. As more homes in higher price ranges begin to sell the average and median sale prices will begin to increase. Do not confuse this with the price of homes going up! It will simply mean that there are more expensive homes being sold. As always we will have varying circumstances in each neighborhood. To really understand your home's value and trends you have to look at your immediate neighborhood! To make it simple, we have established a new price structure and we have a relatively good market based on the new prices.