Pricing Strength in Prince William

It's not only the Days on Market and number of offers and volume of sales that are improving in Prince William. I'm also seeing some strength in pricing there.

The sale price as a percentage of list price has risen year over year from 87.64% to 90.97%. While it's true that much of this strength is in the lower price ranges, the fact remains that inventory is selling and prices are firming up. And, in the under $350K inventory, the pricing strength is even more apparent with very little selling much below asking price.

And since we're still not seeing the typical early spring flood of new inventory, prices, so far, seem likely to continue strong.

There's some indication of firming of prices in Fauquier, although it's too small to assume there's anything in the way of a trend here yet.

And Culpeper prices remain soft at best, probably still declining.

The question continues to be whether higher prices and lower inventory in Prince William and east will push people further out as the peak sales season approaches.

RE: Pricing Strength in Prince William

The comments I am receiving this week.....  Homes that have been on the market for some time, with little showing activity, due to being listed at a higher price than competing homes in the area, are seeing not only showings this week, but also multiple offers!!!  Inventory is dropping FAST.

One other item to note - as our recovery in the financial markets begin, I would expect to see a jump in home mortgage interest rates.  WHY?  When investors get scared of putting their money in the stock market, they move their cash into bonds.  As all this cash moves into bonds, interest rates fall.  When the opposite occurs - investors want to be in the stock market, they move their cash from bonds back to stocks, causing interest rates to go up. 

This week, we had a 10% jump in the stock market.  FOUR up days now in a row!!  We have not seen this in some time.  If this is the turn in the stock market, expect to see home mortgage rates rise. 

If your on the fence about buying a home in this area, these are the issues to consider - INVENTORY - PRICING - MORTGAGE RATES.

Inventory is FALLING

Pricing has stabilized and is now INCREASING

and mortgage interest rate will not be lower, in fact, with our recovery under way - they will be going UP.

Waiting just means, fewer homes to pick from, and you will pay a higher price, with a higher payment.  In no time, many people who have an opportunity to buy a home today, may not have the same option tomorrow.

I have lived these downturns before, and it is exactly what happened.

Thanks,

Chuck