Have we hit bottom yet in the real estate market?

HAVE WE HIT BOTTOM IN THE REAL ESTATE MARKET YET? Probably one of the most frequently asked questions that I'm asked and of course, it's an impossible question to answer. The only way to know that we've hit bottom in the real estate market is to be back up on the rise again. I think the question can only be answered region by region and only time will tell the full story... but if I had to give you an opinion today, I would say that we did hit bottom last Fall of 2008. Many buyers were holding back or walking away from new construction deals and leaving their deposits on the table. Consumer confidence was at an all time low and the number of sales transactions showed it. There were a number of 'spec' homes sitting idle and the builders were getting anxious. Some of the best buys of 2009 were picking up these early winter steals.

Over the past few months, change is definitely in the air. It seems that there are multiple offers on most homes under $500k in Loudoun and Fairfax County. The deals are certainly still out there with many people picking up the foreclosures and short sales of today's market. We just have to fight a little harder to grab one. Many of the new home builders are busy writing contracts right and left. There aren't as many incentives thrown out as there was previously and even more noticeable, there's not as many builders building. Home inventory is down and the numbers tell the story. Lowered home sales inventory (down to 2200 homes in Loudoun County in July 2009), lowered days on the market (62 days on the market as opposed to 100+ day a year or two ago), historically low interest rates and first-time tax credits (which will expire soon in November unless extended by the Federal government) are making all the difference.

Things haven't looked this good in a long time. I'll keep my fingers crossed that we really have hit the bottom and are on our way back to a normal and healthy real estate market. We are not totally out of the woods yet but rays of sunshine are finally starting to filter through and it feels good!

Vicky Noufal
Noufal ~ Shea ~ Spelbring
'The Power of 3'
703-402-5416