This is the monthly market update I provide to my clients. To be added to the mailing list so that you receive these updates as soon as they are available, please sign up using the box on the right hand side of the blog page. The market doesn’t seem to have slowed down very much this Fall.
There are plenty of buyers playing beat-the-clock, but the big news continues to be the lack of inventory in the greater NoVA area. The lack of homes for sale, primarily spurred by lower prices that are driving sales, is compounded by increasing new construction sales. KB Home has announced it intends to resume building in the DC area after curtailing operations in late 2007, as described in this article. The article notes that Toll Brothers has also started snapping up properties, now that listings for sale have reached their lowest level since January 2006.
Rumors abound about a potential extension of the $8000 tax credit currently scheduled to expire November 30, but no official word yet. Stay tuned. Given our lack of inventory, if the credit gets extended then we better hope that entry-level owners decide to sell or we will have even more frustrated buyers in our area.
On the lending front, FHA may be heading for problems. The agency, which is responsible for many purchase money loans given the current environment, recently announced its cash reserves will drop below its Congressionally mandated level. This sparked a number of program changes, including special appraisal rules, similar to the HVCC that was instituted for conventional loans a few months ago–so buyers and sellers should be prepared for even more appraisal headaches to come!
In other news, here are some good articles I came across this month: 7 New Rules for the First Time Buyer and Credit Scores: What You Need to Know.
As always, please let me know if I can do anything to help you or your friends with your real estate needs.