I've spent a lot of time the last couple of weeks on previewing homes for sale in the area. I've looked mostly at homes priced in the mid and upper-ranges. And I've come to one inescapable conclusion. Homes are still seriously overpriced in our area.

No seller wants to hear this. And I don't want to be the one to break it to you all. But the vast majority of homes I toured have absolutely no chance of selling for anything near their asking price.

Mind you, this is only my opinion! And I'll no doubt be proven wrong on at least one! I saw a property today in Amissville, listed for $575K where the house would need to be bulldozed so you could start over! I'm entirely serious here! Granted there was also a barn (in rough shape!) and it was on 12 acres, but seriously! I was nervous going upstairs as the ceilings on the lower level were clearly compromised and I wasn't sure how extensive the damage was!

You're thinking that's only one property and that I exaggerate the nature of the problem. Unfortunately, that was just one example among many of truly overpriced properties.

If you're a buyer looking for a real fixxer upper, I'd be turning in seriously lowball offers on some of these places. I don't know that the sellers are mentally and emotionally ready yet to accept the deal, but I'd sure be trying right now!

On the flip side of this, what is selling are the properties that show beautifully and are very aggressively priced.

Strangely enough, I'm also seeing good movement on rentals all of a sudden! It's got me wondering if a lot of potential first time buyers have given up on the idea given the current credit crunch in the mortgage markets.

July numbers should be available to me in the next day or so and we'll see if inventory's deceasing substantially.