Sellers Market? Really?

Statistically, and historically, it is true that Northern Virginia is now once again in a sellers market. By definition from the National Association of Realtors a sellers market is where, based on the current rate of absorption, the active inventory would be exhausted in 6 months or less. Those who purchased their home in the last 4 years or so would be hard pressed to find much to be excited about with this news as local price declines in some areas are reaching/surpassing 2004 numbers. Today’s market environment is far more complex than usual, so this absorption statistic should be taken with a grain of salt. With so much uncertainty many potential buyers are still on the fence (despite record low interest rates), and some willing buyers are unable to obtain a loan based on the newly rejuvenated common standards. I would be remiss to forget those who would love to buy right now, but fear they may not have a job once all is said and done, so they (rightfully) fear the risk.
All told I think most would agree it is still very much a buyers market, and will continue to be for sometime. Today’s conditions are ripe for cash heavy first time buyers to come in and buy a home they can be happy with for a long time, fantastic for long-term investors, and fairly ripe for those who would like to move up. For the later any potential losses on their current home can be made up by the deep discount they can find on their larger home. Regardless, historical “laws” of home ownership are more true now than ever… maintain a reasonable dept ratio, and buy for the long term.

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