Loudoun Market Update-April 2006

May 10, 2006

[Links to updated Market Trends can be found in the sidebar under INSIDE THE GUIDE]

The Fed raised interest rates again and Loudoun County homes for sale went up dramatically in April! Homes on the market went up a whopping 600 units. New listings are outpacing new contracts by a 3 to 1 margin. Average days on the market remained about the same at 73 days. Average days on the market nearly doubled to 136 days from 76 days last month. Some say its not over until its over. I say it is over. This spring is absolutely dismal for sellers. Sellers are capitulating. Prices are coming down and it is taking incentives to attract buyers.

I call it the buyer vulture mentality, circling overhead waiting for the prey to die and then moving in to feast. There has not been a better time in the last five years for buyers. You are in the drivers seat. You have complete control. Well...almost complete control.

Here is the dilemma: there are buyers wanting to buy. They are not only watching prices come down, they are also worried that they can't sell their own home in a reasonable time and/or can't get the price they want. Almost every discussion I have with a buyer agent inquiring on one of our listings the question is asked: "Will your sellers consider a home sale contingency?" The answer is almost always no. A home sale contingency in this market is the "kiss of death." There is just to much uncertainty.

Buyers! Go make a deal. There is no better time like the present.

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