Sustained housing growth and appreciation will depend largely on job creation if interest rates tick upward, predict Fairfax County, Virginia Realtors, but brisk winter sales appear to show a lot of consumer confidence that housing growth will continue.

"The job market is growing and the number of homeowners is increasing," says Realtor Shirley Chambers. "A gradual increase in interest rates is projected for the fourth quarter. As interest rates move up, the strength of the housing market will depend largely on job growth -- which we expect to accelerate and drive demand for houses as the year progresses."

Meanwhile, home prices continue to increase.

"The demand is still high and supply is low," says Chambers, "especially for moderately priced homes. Higher priced homes are taking longer to sell, but they do sell, as long as they are reasonably priced and are in good condition. Buyers should be ready to make offers accompanied with a lender's approval letter, in order to compete with other buyers in the market."

Says Realtor Brandi Brookhouse, "The spring market is early this year. It's a seller's market, but the still-low interest rates are making now an ideal time for buyers to purchase a home. Rumor has it that interest rates are going up in the second quarter of 2004. So, buyer's should take advantage of the low interest rates now! Sale prices continue to rise slightly with most homes selling in 30 days or less."

"The winter market in the local Washington, DC metro real estate market is going strong, with Fairfax County a central hot spot," says Realtor Casey O'Neal. "High demand from buyers and a low inventory of housing choices are placing pressure on most segments of the market, continuing the pace of quick movement on properties."

He suggests, "Fairfax County along with the local DC area had shown signs of moving from a seller's market, but the first quarter is proving to be typical of past trends -- a strong seller's market. In the affordable price range, the more you're still in a seller's market. Higher priced properties aren't moving quite as quickly. Buyers have the ability in some cases to be picky and less anxious to buy on impulse, although in most housing close in to DC and especially to the Metro subway, homes are moving fast.

"Relatively stable rates are still very attractive and consumer confidence is has been improving," continues O'Neal. "Speaking of affordability, townhouses and condominiums have been the hottest market commodity because of affordability and location and have surpassed detached homes in their sales. Metro proximity is a desired location for many commuters, with a premium typically associated with properties that are within one mile of the subway. Buyers and their agents still need to plan aggressive strategies to obtain the home of their choice, as some homes are still drawing multiple offers in less than a week in the lower end price range. Understanding how a seller prices a home is a critical analysis, with some homes priced over market value, some at market value, and occasionally some great values below market value. Dealing with multiple offers can be exciting for sellers, a nightmare for buyers, and a critical skill for agents to advise their respective clients."

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Published: February 19, 2004

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