This Week in Northern Virginia Real Estate - 9/1/2009
As summer winds down this week I have noticed even less inventory in the market place. The $200-350k price range in the close in suburbs still has extremely low inventory. My buyers in the less than $300k price range are constantly in multiple contract situations. They have been one of 18 contract, one of 6, etc. My First Time Homebuyers just can't compete with all cash no appraisal offers. Sellers are also selecting Conventional offers over FHA which is frustrating. I had a client offer $15k more than what a property ultimately sold for but didn't get the property because they were FHA and the sellers selected a lower Conventional offer.
I don't think that foreclosing on people is a great option but there are so few foreclosures in our market that I feel like it is really hurting the First Time Homebuyers out there. There is just so little inventory out there right now that it is almost impossible.
I am having success with First Time Homebuyers being able to purchase Short Sale properties. The problem now is that deadline for the First Time Homebuyers Tax Credit is December 1st and the average short sale takes about 4 months to close. Hopefully they will tell us sooner rather than later if the period for the tax credit will be extended or not.
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