Good news is that the Case-Schiller Home Pricing Index reflects that housing prices are up in the Washington area for July, the 4th straight month of gains – good news…there is talk about prices not making a comeback to 2006 price levels until 2014 – bad news…nationally, home sales were down 27.2% from June- bad news…but our numbers were only 18.4%, nearly 9% better than the rest of the country – good news. Days on market is down – good news. Inventory levels continue to maintain and even slightly decrease…not really bad or good news either way, just an FYI.
Well, enough of that silly little exercise. However, I did that to illustrate a point – the market is what you make it and you can spin it the way you want so why not be positive. The other point is, if you head is spinning, so are consumers. It is our responsibility to get in front of people and explain to them that our market is different. In our area, people are always buying or selling – we have a 2.6 month supply of houses – your job is to find them. We can talk about the negative sales numbers or the positive sales prices – choose to move people forward and not keep them down!
More good news, Virginia was once again ranked extremely high as a business friendly state, #2 over all nationally, as ranked by CNBC. To illustrate this point, Northrop Grumman selected Fairfax County for its headquarters, MeadWestvaco is relocating to Richmond, Pfizer has agreed to stay in Richmond, Southern University is relocating jobs to VA, and Thermo Fisher Scientific is expanding as is Evatran. Northern Virginia boasts the lowest unemployment rates in the country and Northern Virginia has seen a drop off in foreclosures where the rest of the state has seen an increase. In addition, Gables Residential is building 120 apartments near Fair Oaks after sitting on the property since 2007 as they see a need now for more housing. STG has also inked a deal for 100,000 square feet in Reston and plans to grow from a $220,000,000 company today to a $1 Billion company by 2016 – keep an eye on them!
Now for the numbers! Inventory levels are down to just under 7,600 – contracts continue to come in at about the same pace weekly – mid 600’s and month’s supply remains in the mid 2’s with rentals still posting strong numbers at a 1 month supply. Interest rates continue to be phenomenal as well. So, as we have said for several months now and was reconfirmed at the broker owner meetings in Denver…it is an investors market! Find’em, sell’em, rent’em, manage’em and then sell’em again…what a theory and business model for the next few years! Get in the game or get out. Get it? Got it? Good!
Now, go sell something!