Our President is likley to sign the extension for a Buyer $8000 tax credit through June '10. ADDITIONALLY- a SELLER tax credit for home owners of 5 years or more will get a $6500 tax credit for moving up. This will certainly keep the market moving through June.
Northern Virginia however should remain a strong Buyers Market with the over inflated market being artificially infalted by the incentive.
Inventory is high and prices are, in some areas, stabilizing.
Homes above 450k and non-forclosed properties are moving at or around 2004 prices. Spring time will bring more homes on the market and prices may fall 1-5% keeping the buyer market alive and well. Prices probably will not bottom for another 12+ months, especially in the 550k or less market.
Buy smart!
Rental prices are not moving up as anticipated in most areas due to high inventory. Using a rent VS buy comparison, sometimes leads to renting as a better option. Even compared with after tax savings. In other words, it may be more beneficial to rent if not planning on owning the property for any length of time.
Prices south of DC, Alexandria, Southeast Fairfax County,Burke, and Northern Prince William County are seeing downward price movement. Major price reduction in the Prince William market due to high inventory of forclosures and short sales. Buying, if in the Northern area for three or more years, is still advisable vs. renting. Prince William buyers need to stay for 5 -7 years. BUY SMART ......there is plenty to choose from! Properties over 20 miles outside DC are seeing the largest price reductions.
FYI- 20 miles out is minimum one hour commute to DC unless traveling 8PM - 5AM. then, and without construction, you will see a half hour commute. Commuting to Capitol Hill area of DC is best from Mt. Vernon, Alexandria.
ZIP Codes: 22309, 22308, 22307, 22306, 22079, 22152, 22150, 22315, 22310, 22303, 22153 Approximate Location Boundaries: Potomac River west to 123 Ox Road
Location Characteristics: Fairfax is a very large Urban County. Initially suburb of DC, now a active business and residential community. From Potomac River on the east and North sides, and View of Blue Ridge Mountains to the west. Best value in housing, transportation and schools in the immediate DC area.
About David H. Lohman:
Helping Buyers and Sellers with their Real Estate investments since 1988. Currently Principle Broker of Lohman & Associates Real Estate in Alexandria, Virginia. Living in Fairfax County Virginia since 1978, ensures buyers and sellers are very well served with my knowledge of the market and extensive experience. I specialize in Residential Sales, 1031 Tax Exchange,and Property Management in Alexandria, Fairfax County, Prince William County, Mount Vernon, Springfield, and Burke.
These reports reflect the views and opinions of their authors and are not necessarily the views and opinions of Realty Times.
