Testing Bottom

The evidence suggests that we're testing a bottom in the Culpeper market, or at least in one segment of it.

If you look at homes with these characteristics:

• Single family home
• Less than five years old
• In one of new subdivisions in town of Culpeper
• Colonial
• 3-4 bedrooms, 2 1/2 baths
• Basement

What you're seeing are multiple offers on anything around $200K. So we're back to bidding wars with most of these then selling for more than list price. I'd say generally these are under contract within 14 days. Although it's hard to tell since the contracting process on a foreclosure can drag on for awhile.

And, yes, all of these are foreclosures. There are short sales out there in this price range as well and they're moving more slowly. Most short sales are long, painful processes and most buyers don't want the hassle. But if foreclosures really do begin to dry up, short sales will be the next ones people look to for a deal.

And, then, finally, we can move on to Joe Homeowner's house. The question is, will buyers then move up to his price? Will Joe Homeowner come down to where the banks are selling houses like hotcakes? Or will we be back to the stalemate?