The day many homeowners in Northern Virginia have been waiting for finally arrived last month. The average sales price in the area moved up to $528,224 - which less than $10,000 away from the top price reached for March in 2006.
At the rate that sales prices are escalating this spring season, the market could overtake the peak prices of 2006 by the end of the summer. Escalation clauses are pushing offers over the asking price by upwards to $25,000 and $50,000. (Don't be afraid, however, remember pricing is high enough here that $25,000 doesn't even represent a 5% increase in many cases).
Meanwhile, as you can see from the chart below, prices fell to a low of $380,828 in March 2009 and now average prices have surged more than $150,000. While some communities are still digging out of the lows of the last few years, the inventory levels and cheap money are creating a situation where pricing is on the rise for the foreseeable future.