I have noticed that we are getting many more showings of our listings than last month. Maybe (hopefully!) the real estate slump in the Washington DC / northern Virginia area is finally ending.
Most potential buyers should consider buying now, while they can still buy homes in near perfect condition without overbidding. This is exactly what savy buyers are doing. Unfortunately, most people plan on waiting until they are 100% sure we are at the bottom of the real estate slump. By the time we are sure the slump is over, it may be too late for most buyers.
The only way we will know for sure that the slump is over is when people start buying again and prices are rising. Due to strong job growth in this area, history tells us prices may rise quickly. By that time, it will be too late for many potential buyers to get into the housing market in northern Virginia. When prices start to go up around here, and people start to overbid to buy a home, only those buyers with extra cash will be able to afford the best places. This is because the banks will insist the buyers cover any overbidding, above appraised value, with cash.
Unfortunately, as in previous up markets, this means those buyers without a lot of extra cash will wind up buying the homes that are not in such good shape, where there is no bidding war. Because these buyers don't have a lot of extra cash, most of these homes will stay in poor shape.
Unless you want to buy a foreclosure or fixer upper home, and spend a lot of time and money fixing it yourself, the way to get the most from a home investment NOW is to buy a home in near perfect condition, in the best location you can afford, and then maintain this home in near perfect condition. When you eventually go to sell the home, potential buyers will recognize how well you have maintained it and offer you the best price possible. - Bob
