Market Conditions for Falls Church, Virginia Reported by Casey ONeal, Associate Broker, ABR, CRS, e-Pro, GRI Updated November 10, 2009.

Current Market Rating: 3 1 2 3 4 5 Buyer's Seller's

Current Price Trend: 3 1 2 3 4 5 Falling Rising

Falls Church is an address that includes Falls Church City, a very small geographic area, and the Falls Church postal address in Fairfax County. Falls Church City's school system continues to draw a crowd for it's school system and Metro proximity.

Home Buyer Tax Credit Extension Becomes Reality

On 11/6/09 the President signed legislation approving an extension and expansion of the home buyer tax credit.

Key points of the legislation include:
* Extension of the $8,000 tax credit for first-time home buyers
under contract by April 30, 2010 and settling by July 1, 2010;

* Addition of a $6,500 tax credit for existing home owners,
if living in their principal residence for five consecutive years
in the past eight years;

* Increasing income limits for eligible home buyers to $125,000
for single buyers and $225,000 for couples; and,

* Capping the purchase price of the home at $800,000.

Northern Virginia Market Stats: October 2009
The Northern Virginia Association of Realtors® reports on October 2009 home sales activity for Fairfax and Arlington counties, the cities of Alexandria, Fairfax and Falls Church and the towns of Vienna, Herndon and Clifton. A total of 1,604 homes sold in October 2009, a 10.09 percent increase above October 2008 home sales of 1,457.

Active listings decreased by 21.91 percent from last year, with 6,877 active listings in October, compared with 8,806 homes available in October 2008. The average days on market (DOM) for homes in October 2009 decreased by 38.30 percent to 58 days, compared with 94 days in October 2008.

Sales prices were lower than those realized last year. The average sales price in October decreased by less than one percent from October 2008, to $424,510, compared with last October's average of $427,502.

The median price of homes sold in Northern Virginia rose in October to $356,800, which is a decrease of less than one percent compared with October 2008's median price of $359,000.

The number of pending home sales in Northern Virginia in October shows an increase of 24.06 percent at 1,990 compared to 1,604 in October 2008.

VA 100% loans are now available to $812,500 in the DC area. Higher loan amounts are also available with a down payment equal to 25% of the purchase price above $812,500. The FHA has just implemented NEW LIMITS in March 2009 for its loan guarantee programs that will allow it to insure mortgages of up to $729,750 with only 3.5% down payment (This loan cap also applies to the FHA 203K renovation loan program).

$729,750 is the Maximum Loan for FNMA and FHLMC. As of early August the 30 year fixed rate conforming loan and FHA loan is averaging 5.5% with no points.

Here are some stats for Falls Church City for the month of October 2009:

In October, the total number of active listings on the market in Falls Church City was 32. Of those active listings, the minimum list price was $185,000 while the maximum list price was $1,199,800. The average list price was $535,428. The average number for property days on the market is 127.

The number of listings under contract was 10. Of those listings under contract, the minimum list price was $180,000 while the maximum list price was $769,000. The average list price was $457,890. The average number for property days on the market was 35.

The number of listings that were sold & settled in October was 18. Of those listings sold, the minimum list price was $160,000 while the maximum list price was $997,500. The average list price was $574,314. The average number for property days on the market was 72.

Typically in the 1st quarter of the year the inventory starts to grow. Combine that with the left over inventory from the 4th quarter and the selection of homes improves for buyers.

The FHA plan offers some great opportunities with loan limits up to $729,750. Here are some of the highlights:
*FHA loans can allow a credit score as low as 620
*The borrower has to put in 3.5% of the sales price into the transaction.
*All 3.5% can come from a gift if necessary.
You need no cash reserves.
*Qualification ratios can go as high as 50% for debt to income ratio.
*The seller can pay up to 6% of the sales price toward closing costs; however the borrower still MUST put 3% into the transaction.
*All single family homes and townhouses are eligible for FHA financing. Condos must be approved for FHA.
*FHA does not have an issue with declining markets (Fannie Mae and Freddie Mac do)
*This will really help with first time buyers, or buyers who have slightly below average credit and little cash.
*FHA mortgages are consumer friendly loans made by private banks that are insured by the government, making them attractive because the government guarantee enables lenders to easily sell off the loans.
Buyers and sellers need to be well informed. They need to educate themselves with all the fundamental local information that affects pricing and sales: including time on the market, inventory declines and increases, the overall pace of sales, and the average differential between asking prices and sold prices. With knowledge of this information you will be well positioned to buy or sell.

We would be glad to help you and your referrals with straight forward, world class service and guidance when buying or selling. Our relocation network can help connect you to agents in 63 countries.

For over a host of Facts, Tips, Free Reports, and Mistakes to Avoid, visit www.CaseyOneal.com
Feel free to call or email with questions, we want to help you with all of your real estate needs!

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with priority real time automatic email notification - *Foreclosure bargains * 3 Ways to Buy a Home for Less Money * How to Avoid 9 Common Buyer Traps BEFORE Buying a Home * $10,000 Guaranteed savings when you purchase*

Home Sellers * Free Over-the-Net Home Evaluation * 27 Tips to Drive up the Sale Price * How to Set the "Right" Asking Price * 11 Costly Home Inspection Pitfalls * Guaranteed Sale Program

Casey O'Neal, Associate Broker, RE/MAX Allegiance 703-824-4196 casey@caseyoneal.com
Serving Northern Virginia for over 24 years


ZIP Codes: 22046, 22041, 22042, 22043, 22044

Approximate Location Boundaries: Falls Church City and Falls Church Postal are different

Location Characteristics: Falls Church City offers a small town feeling with only one Middle School and one High School with excellent ratings, close to the Orange Line Metro, shopping and Washington, DC.

Falls Church is also a postal area in Fairfax County surrounding Falls Church City, and expands the Falls Church address to a large area inside the capital beltway. It is also a convenient commuting location with many established communities.



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