Pocket Markets Reveal Pent-Up Demand

Here’s the Big Real Estate Story – Interest rates are headed in the 5-ish range again and prices have leveled. That’s it. End of story. Sign here. In fact, the market is actually turning around. Despite what the two dailies have reported, homeowners and shoppers must look at pocket markets to determine how they’re doing as far as the equity in their homes and in determining if it’s time to hold or get sold.

In the Washington, D.C. area, headlines from The Washington Post and The Washington Times would make any mere human shake in their household boots – “Region’s Home Prices Continue to Fall; Some Pockets Thrive,” and “Overvalued Homes Discourage Buyers.” The statistics tell a different story. Consider these numbers from http://www.mris.com/ (the local MLS web site):

December 2007 home sales prices of single-family homes compared to December 2006:

Washington, D.C.: +22%

Arlington County (VA): +21%

Alexandria City (VA): +12%

Fairfax County (VA): Even

So what? What does that mean to you? Answer these questions:

Ü When do you want to buy that move up property?

Ü Now, while the prices are low and interest rates drive down your monthly payment?

Ü While sellers are willing to provide buyers with thousands in closing costs?

Ü While there are plenty of great looking houses with new flooring, new kitchens and baths?

Ü Or when the prices start up, the seller subsidy evaporates and the monthly payment inflates because of higher interest rates?

It starts inside the beltway and moves outward from there. Where do you want to be in 2008?

For more information on Commonsense Real Estate Advice, visit Anthony’s blog at http://commonsenserealestate.blogspot.com/.