Activity continued to increase in May
Number of Homes sold
Buyers were expected to slow down in May and there was some signs of that. However, closings continued to rise as purchasers that ratified contracts in April were clambering to cash in on the $8000 Federal Tax credit. We saw similar results throughout northern Virginia.
Sold Homes in Prince William County
There was a bit more leveling off in Prince William County, as the inventory remained extremely low! Home buyers were competing with as many as 10-15 offers and prices were beginning to get bid up. With the low pricing in the County, many would-be purchasers were better off waiting until the tax credit expiration, where their savings could be substantially greater than $8000.
Average sold price No. Virginia
The average sold price remained relatively flat in all Northern Virginia areas. This is no surprise given the current economic circumstances.
Average sold price Prince William
Time on the market continued to drop as first time buyer activity lead the way. If there is “Shadow” inventory waiting in the wings as is expected, the line should level off as that inventory becomes available. Shadow inventory refers to foreclosed homes that the banks have yet to put on the market for sale. Many lenders are saying that they have caught their breath now and will be releasing soon.
The real test of the sustainability of our marketplace and home values will take place after June, when the last of the tax credit recipients must close. There remain a lot of “if’s” in today’s real estate market. The two certainties are that homes prices in areas like Prince William have become an incredible value and interest rates have remained amazingly low for an extended period of time now. Something is gonna give. That is why smart investors have already moved in and made their move!
Posted by Jim Evans 
