Realtors report a more balanced market in Falls Church, Virginia over the last few weeks, with home prices and concessions slightly more favorable to the buyer than in the past seller's market.
"Is this a seller's or buyer's market?" asks Realtor Carol Wills, "I have seen a shift over these past four to six weeks. Listings are taking longer to sell, and we are being more conservative in our pricing.
Incentives are also on the rise.
"New homes are offering agents a great bonus up to $3,500," says Wills. "I have seen more of them recently as the builders want to move the end-of-the-year inventory. Sellers are adding bonus dollars in addition to the commission. We have price reductions and sellers offering to help with financing. I was sure we were heading into a buyer's market until interest rates dropped again. I would not be surprised to see January boom again with a strong sellers market."
Agrees Realtor Peter Scholossberg, "The past month's activity suggests a moderation of the strong seller's market we've experienced for the last two years. Properties are staying on the market longer with many more price reductions and expired listings than before.
"There is still a strong demand from first-time homebuyers for the lower priced properties, but there is definitely a softening of the market for properties above $300,000," he says. "As always, homes that sparkle and are priced and marketed properly go quickly. Buyers should be encouraged by the return to a less frenzied atmosphere in the residential real estate market while sellers can be confident that their homes will sell quickly if they are properly priced and presented. Today's low interest rates are a powerful generator of the strong demand for homes and the experts suggest that rates will stay down through 2003.
Yet, the market is still trending toward a buyer's market.
"While strong demand and low supply have been in effect for the last three years," says Realtor Casey O'Neal, "September was a transition month. More homes came on the market in September, and in early October there were more choices available than there were a few months ago. Low interest rates have been a real bonus for home buyers.
"The hottest segment of the market is with single-family homes priced under $300,000," he says, "selling quicker because of affordability. Townhouses are popular in the $200,000 to $300,000 range and condos are also doing well in the $100,000 to $200,000 range. Single family homes under $400,000 are desirable for first time and move up buyers. Buyers are more picky in the higher price brackets, while homes with close proximity to the subway are more desirable.
Advises O'Neal, "Multiple offers are less frequent now than in the first half of this year. Because of the change in the market, some homes are currently overpriced. It is critical for a buyer and seller to be represented by a professional who can analyze and recommend strategies to negotiate the best contract."
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Published: November 18, 2002
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