Loudoun/Northern Virginia Housing Market Conditions per Price Range

The question I get asked most often is, “How’s the Loudoun/Northern Virginia housing market?” Today’s housing market conditions do not allow for one, general correct answer. For the purpose of giving you a good, general idea of the Northern Virginia* housing market conditions, I’m going to break it down by price range – you choose the price range you fit into.

*I am referring to all of Northern Virginia, which includes Loudoun, Prince William and Fairfax counties (including Arlington, Falls Church, Alexandria, etc)

Note: If you would like to know what the specific housing market conditions are within your community or the area you are interested in buying within, click here to contact me so I can provide you with the specific details and statistics.

Less than $150K

• This is probably the most competitive price range to be in. The majority of properties in this price range can be found in Prince William County
• Most of the properties you’ll find in this price point are foreclosure/bank-owned and short-sale properties. But this price range is also very popular with investors so you’ll see investor flips/rehab properties on the market
• A buyer I’m currently working with had to go through countless properties and compete against over 50 offers before finally getting their offer accepted on one. One reason is because a significant amount of the offers being placed on properties at this price point are all-cash offers with no contingencies whatsoever. Trying to compete against cash offers with FHA, VA and even conventional financing offers is extremely tough – though it definitely can be done
• Properties in this price point that are priced at or below market value typically receive multiple offers within a matter of days so buyers have to jump on them as soon as they hit the market
• I have seen properties in this price range in some areas sell for 10 to 20+ percent more than they did at the beginning of 2009
• If you’re a buyer, expect to see 5, 10, 15+ offers on well-priced properties. But don’t be scared or intimidated by that – just make sure you have some extra patience and are ready to jump on a property you like as soon as it hits the market. And if you don’t get it, don’t be too down – it happens a lot at this price point. You have to just keep plugging along
• If you’re a seller in this price point, you’re sitting pretty and can expect an offer quickly if you’re priced correctly

$150K to $350K

• This is also a very competitive price range to be in. Properties in this price range are a mixture of foreclosure/bank-owned properties, short-sales and traditional resales
• The type of properties in this price range depends on how close or far you get away from Washington, DC. The closer you are to DC, the smaller and/or older of a property you typically get
• Cash offers are also becoming more common in this price range though not as much as in the sub$150K price point
• I have seen properties in this price range in some areas sell for 10+ percent more than they did at the beginning of 2009
• As a buyer, expect to compete against many other offers especially on properties priced at or below market value
• As a seller, you’re still sitting pretty as long as you price your property correctly

$350K to $500K

• This price range is also competitive especially within the Beltway. Properties in this price range are also a mixture of foreclosure/bank-owned properties, short-sales and traditional resales
• Though there are fewer instances of cash offers in this price range, they’re still out there. Though you may not be competing against 10+ offers as is common in the lower price points, I’m still seeing a handful of offers on well priced properties
• I have noticed values in this price range remain steady with some areas showing a slight increase in values
• As a buyer, expect to compete against other buyers on well-priced properties. You should be aggressive and jump on a property that interests you as soon as it hits the market
• As a seller, you’re still in a price range that has a decent amount of buyers in it. But don’t get greedy because of that fact – you still have to market and price your property correctly

$500K to $700K

• This price point puts the majority of buyers into the ‘”jumbo” loan/financing category (financing over $417K), which makes for a smaller number of buyers. The reason why is because it’s harder and more expensive to secure “jumbo” financing these days. Fewer buyers means less competition though there are still so few properties on the market that it’s still competitive
• Nevertheless, buyers are out there. A recent listing of mine in Broadlands has many buyers come through as soon as it hit the market and it the sellers received and accepted an offer within 10 days of being on the market
• Most of the properties in this price range are short-sales and traditional resales though you may see a foreclosure/bank-owned property here and there
• Though cash offers are rare at this price point, they’re still out there. I had a buyer who put 20 percent down, use conventional financing and offer the highest amount of all the offers lose to a lower priced, all cash, non-contingent offer
• I have seen values in this price range remain relatively steady since 1/1/09
• If you’re a buyer, you still have to be aggressive on finding and buying a property in this price range. But it’s definitely not as crazy as the sub-$350K range
• If you’re a seller, make sure you’re aware of your competition/other homes on the market so that you price your property correctly and adjust to comps and new properties as they come on the market. The higher the price range, the more important it is to have an experienced and knowledgeable Listing Agent working for you

$700K to $900K

• This is where the pendulum starts to swing the other way a bit (generally speaking). Properties in this price range tend to stay on the market longer and have fewer buyers competing for them. Nevertheless, if the property is priced at or below market value, buyers will come out from everywhere
• For example, there was a foreclosure/bank-owned “McMansion” in Fairfax listed just last month that was priced at $722K. This was an incredibly attractive price because the property was worth well over $800K. A buyer I’m working with offered $800K using conventional financing with a down payment of 30 percent. Their offer was not chosen because the winning offer was…take a guess…all cash, non-contingent. (Yes, someone paid $800K+ cash for a house)
• The example I just gave is not isolated to Fairfax – it’s happening in Loudoun and across Northern Virginia
• I have seen values in this price point remain steady or go down since 1/1/09 depending on location and how hard the particular community has been hit with foreclosures and short-sales
• As a buyer, this price point can be good and bad. It’s good because the market is not as crazy as the lower price points. But it’s bad because there is so little inventory on the market to choose from. You may have to wait weeks or even a few months before a property that fits your criteria. Some of my buyers have made adjustments to their criteria so they can have more properties to choose from
• As a seller, price and marketing are key in this price range. Make sure your Listing Agent is knowledgeable and is on top of your local market

$900K+

• This is the least competitive price range especially in Loudoun County. Properties in this price range in Loudoun have been known to be on the market for months and months. As you get closer to DC, the average days on market is less, but still much higher than lower price points
• Some of the properties in this price range are foreclosure/bank-owned properties, but most are short-sales and traditional resales
• This price range is still showing signs of weakness and depreciation especially the farther you get from DC
• If you’re a buyer, you’re in a good position in this price range. There are few buyers that are in the market for a $900K property and a fairly decent amount of inventory for you to choose from, including new construction
• If you’re a seller, you’ve got an uphill battle especially in Loudoun County. Be patient and realistic when selling your home. Even more so than in any other price range, make sure you have a knowledgeable and aggressive Listing Agent who will market your property correctly and will price it where it should be to get an offer

Please remember that these are general market conditions. To find out what the housing market conditions are within your community or the area you are interested in buying within, click here to contact me so I can provide you with the specific details and statistics.