March Update

The stock market is doing well overall, interest rates are fantastic, consumer confidence is increasing and Virginia has one of the strongest job markets in the nation. There is no reason for 2007 to not be a great year for real estate. Housing inventory is at much more realistic levels compared to 2006. Those sellers that are in the market are fully aware of market conditions and not caught by surprised like some sellers in 2006. Buyers are taking advantage of the pricing corrections and all of the other positive factors in today’s market and they are very active. YTD the market has been very strong. There is no reason for that not to continue. Once the ice is gone and warmer weather appears sold signs should pop up everywhere just as they did in the warmer weather in January. Overall I look for 2007 to be a strong year with some appreciation in the spring months and flat in the last half of the year. I expect buyer demand to be greater than 2006 and the wild card is the amount of inventory that will come on the market. I do not expect to see the same amount of inventory in 07 that we had in 06. The “flippers” and the new home “specs” are gone from the market. Many of the slated condo projects are now going to remain apartments and may of the sellers who were in the market just to “catch the wave” before it was gone are out of the market. Many of the sellers who rented their homes because they could not sell it may be back but they will not be here this spring as they are stuck in 12 months leases and most only rented when the spring market was over. In 2006 every other home was a vacant house as the sellers got caught in the transitional market. (They must not read this blog!) Most of those vacant homes are now gone and the sellers currently in the market know what to expect and they have staged their homes and priced accordingly. These homes are selling. There are a fair number of foreclosures in the market; something we have not seen in the last 5 years and more will be coming. Same with relocation listings. These will have an effect on the market as they primarily compete on price. We will have to watch this trend. Overall I expect 2007 to be a great one, more in balance with opportunities for everyone.