Fredericksburg City:

• 82 days on market - this is 117 days less than in December 2007
• Sellers received, on average, 92.38% of their list price when the home sold
• There is 15.7 months of inventory on the market
• 10 homes sold in December 2008 - this is the same as in December 2007
• The most popular price range was $300,000-399,999 and $400,000- 499,999 equally. 
• The average sold price was $282,806, compared to $322,330 in December 2007

Orange County

• 102 days on market - this is 88 days less than in December 2007
• Sellers received, on average, 90.35% of their list price when the home sold
• There is 19.86 months of inventory on the market
• 21 homes sold in December 2008 - this is 4 more than in December 2007
• The most popular price range was $200,000-$249,999
• The average sold price was $206,633, compared to $394,812 in December 2007

Spotsylvania County

• 111 days on market - this is 24 less than December 2007
• Sellers received, on average, 87.6% of their list price when the home sold
• There is 9.29 months inventory on the market
• 121 homes sold in December 2008 - this is 29 more than in December 2007
• The most popular price range was $200,000-$249,999
• The average sold price was $225,845, compared to $297,321 in December 2007

Stafford County

• 120 days on market - this is 48 less than December 2007
• Sellers received, on average, 88.43% of their list price when the home sold
• There is 7.33 months inventory on the market
• 139 homes sold in December 2008 - this is 74 more than in December 2007
• The most popular price range was $300,000-$399,999
• The average sold price was $253,335, compared to $343,565 in December 2007

Prince William County

• 108 days on market - this is 32 less than December 2007
• Sellers received, on average, 90.63% of their list price when the home sold
• There is 4.26 months inventory on the market
• 845 homes sold in December 2008 - this is 491 more than in December 2007!
• The most popular price range was $300,000-$399,999
• The average sold price was $212,403, compared to $349,634 in December 2007

From a REALTOR standpoint, December was a flurry of activity!  For myself and my C21 New Millennium branch, it was the busiest December in years.  So, in a down market, why is the real estate industry seeing a slight boom in business?  There are several reasons I can think of.  First, interest rates have been low.  After spending several months in the 6-7.5% interest rate range, we have been able to enjoy interest rates that hover around 5%.  For a brief 20 minutes some buyers even got to lock-in to interest rates below 5%!  Second, there is a built-up desire to purchase homes.  Buyers who were on the fence finally got off of the fence.  This is probably due in large part to the lower interest rates.  However, we also saw changes in some popular loan programs that required buyers to purchase a home before December 31 in order to benefit from the loan product.  Third, foreclosure banks started accepting reasonable offers in a timely manner.  This allowed buyers to get to the closing table before the New Year.  Fourth, Many banks that were being “acquired” by other banking institutions or “acquiring” banking institutions had a desire to get the bad debt off their books before the take-over.  We saw a noticable increase of activity for Countrywide and Wells Fargo.

Fortunately, this increase in activity has carried over to the New Year.  Even on traditional sales, showings are up and contracts are beginning to come in and be negotiated.  What’s important to remember is that we are still sorting through the consequences of the last 4 years.  This boom does not mean that we are well on our way to recovery.  What it does mean is that buyers are in the market and they are buying.  It is as important as ever to price your home correctly the moment it goes on the market.  Selling a home in this market is like creating a perfect storm.  There are several factors that have to happen simultaneously in order to end up at the settlement table.  Taking responsibility for the factors that you can influence is key to a successful outcome.

Well, there’s good news and there’s bad news.  I’ll give you the good news first, it’s a buyer’s market… well, sort of.  What?  That wasn’t good news to everyone?  Okay, then, you’re gonna love the bad news.  It’s gonna be a buyer’s market for a while longer.  I say that it is ”sort of” a buyer’s market because banks are in control, not buyers.  Foreclosures are monopolizing the housing inventory, and will monopolize the inventory for a few more years.  This means that the banks that have had to repossess these homes are deciding who gets to purchase the houses.  Banks have gotten smarter over the last year when it comes to selling a foreclosure.  They will now price them very low, in hopes of getting multiple offers, and then start bidding wars between prospective purchasers.  I’ve actually seen foreclosure homes bid up $75,000 over list price!  So, although prices are low, interest rates are low, and more buyers can afford home ownership right now, it’s not quite a buyer’s market.  But don’t get me wrong, banks are not profitting off of these foreclosures!  They are still loosing money hand over fist.  Here’s the market breakdown: 

Fredericksburg City:

• 168 days on market - this is 63 days more than in November 2007
• Sellers received, on average, 84.74% of their list price when the home sold
• There is 15.56 months of inventory on the market
• 11 homes sold in November 2008 - this is 1 less than in November 2007
• The most popular price range was under $100,000 (6 homes sold for under $100,000) 
• The average sold price was $191,618, compared to $327,694 in November of 2007

Orange County

• 141 days on market - this is 28 days less than in November 2007
• Sellers received, on average, 88.02% of their list price when the home sold
• There is 21.3 months of inventory on the market
• 21 homes sold in November 2008 - this is 6 less than in November 2007
• The most popular price range was $200,000-$249,999
• The average sold price was $231,493, compared to $307,441 in November 2007

Spotsylvania County

• 120 days on market - this is 28 less than November 2007
• Sellers received, on average, 87.96% of their list price when the home sold
• There is 11.36 months inventory on the market
• 104 homes sold in November 2008 - this is 19 more than in November 2007
• The most popular price range was $200,000-$249,999
• The average sold price was $239,348, compared to $322,877 in November 2007

Stafford County

• 115 days on market - this is 23 less than November 2007
• Sellers received, on average, 88.13% of their list price when the home sold
• There is 9.13 months inventory on the market
• 117 homes sold in November 2008 - this is 28 more than in November 2007
• The most popular price range was $200,000-$249,999
• The average sold price was $240,598, compared to $348,270 in November 2007

Prince William County

• 107 days on market - this is 25 less than November 2007
• Sellers received, on average, 89.82% of their list price when the home sold
• There is 5.4 months inventory on the market
• 726 homes sold in November 2008 - this is 391 more than in November 2007!
• The most popular price range was $300,000-$399,999
• The average sold price was $221,504, compared to $350,589 in November 2007

What does this all mean for the non-delinquent seller trying to sell their home traditionally, i.e. no bank involvement?  It means you are going to be competing with foreclosures for some time to come.  You will have to be extremely marketable and priced very well!  Traditional sellers also better be prepared to pay a buyer’s closing costs.  Traditional Sellers need to keep in mind that they are not “giving their homes away” in this market.  If they are walking away from a closing table with a $1 they are fairing far better than most homeowners!  The only people “giving their house away” are short sale sellers and banks.  Those types of sellers are actually loosing money, going into the negative, on what is owed on the loan.  Traditional sellers may not like what this market will allow them to sell their home for, but that doesn’t mean they are “giving away” their home to a buyer.  One day, not anytime soon, traditional sellers will get to bask in the sun again and reap the rewards of little work for high equity.  But right now, our market has some more correcting to do.