Market Conditions for Falls Church, Virginia Reported by Casey ONeal, Associate Broker, ABR, CRS, e-Pro, GRI Updated September 3, 2008.

Current Market Rating: 2 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.

$729,750 is the New loan amount - See below market stats for details!

Here are some stats for Falls Church City for the month of August 2008:

In August, the total number of active listings on the market in Falls Church City was 60. Of those active listings, the minimum list price was $114,500 while the maximum list price was $1,725,000. The average list price was $694,414. The average number for property days on the market is 92.

The number of listings under contract was 14. Of those listings under contract, the minimum list price was $250,000 while the maximum list price was $1,250,000. The average list price was $719,843. The average number for property days on the market was 83.

The number of listings that were sold & settled in August was 10. Of those listings sold, the minimum list price was $229,000 while the maximum list price was $679,000. The average list price was $499,708. The average number for property days on the market was 42.

$729,750 is the New Maximum Loan!
On 3/6/08 FHA, Fannie Mae, and Freddie Mac announced that they have raised loan limits set by the economic stimulus bill.
FNMA and FHLMC will only purchase jumbo-conforming mortgages that are originated through December 31, 2008, and that are secured by one-unit properties. Mortgage lenders will assist customers with implementation by providing reference materials including an online loan limit reference tool and guidance on our loan limits based on a property's geography, both of which are expected to be available on April 1, 2008.
Prior to the change, FHA was capped at $362,790 and Fannie and Freddie had loan ceilings of $417,000. Before the credit crunch, rates on jumbo loans were about .25 percent higher. Now with tighter credit, jumbo rates are as much as a 1% higher.
The FHA plan will open up some great opportunities. Here are some of the highlights:
*FHA loans can allow a credit score as low as 620
*The borrower has to put in 3% of the sales price into the transaction.
*All 3% 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!

VIP Buyer Programs *Beat out other buyers to Hot New Listings (and those with newly adjusted prices)
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*

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Casey O'Neal, Associate Broker, RE/MAX Allegiance 703-824-4196 casey@caseyoneal.com
Serving Northern Virginia for over 23 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, close to the Orange Line Metro 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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