Frankly speaking, it’s starting to look a little brutal here for home sellers. We’re seeing $50,000 – $100,000 price ”reductions” frequently now and there are small signs of what I would call a “quiet, measured, panic!”.
In short, Bad Things are Happening.
Lots of sellers out there. Some, trying to preserve what equity they have left, others who bought at the top of the market last year are trying to sell and even some who bought earlier this year are worried about a prolonged period of price reductions and are trying to bail out. The worst are those who HAVE TO SELL, for financial reasons, and can’t.
Recent reports indicate that home sales in Virginia are down about 24% in the April – June quarter this year compared to 2005. The Northern Virginia Association of Realtors is reporting that July sales were off by a whopping 39% in Northern Virginia! How’s that for a soft landing!
The news is even worse for Prince William, Loudoun and the Greater Piedmont counties with sales down 44%. The number of homes for sale is up 147%. I continue to hear about Realtors leaving the business and have started getting emails from other Realtors about homes facing foreclosure.
My Best advice is, if you don’t HAVE to sell in the next year or so…wait this one out. It appears that it may get worse before it gets better.
Frank Ramos, REALTOR, e-PRO
Real Estate Consultant
http://www.northvirginiahomes.com/