This Week's Caller Said" Is Inventory Low, Or Are Agents Bluffing?"

By
Real Estate Agent with EXIT Realty Associates 0225018862

It was yesterday, I received another call and the prospective home purchaser  was questioning " How come it so hard to find a home with a one or two car garage in Lake Ridge Virginia under $350,000?"

My response was....simple "because many home sellers cannot sell because they may be upside down or and many homeowners are still not in a position to move. Currently on a good day, you may have a handful of homes to choose from maybe two in that price range."

I reassured her agents are not bluffing. Resale inventory is low in several price points. Take a look.

  • Homes For Sale in 22192 Between $300,000 and $400,000 View Here ( current home inventory is very low)
  • Homes For Sale in 22192 Between $350,000 and $400,000 VIEW HERE ( Less than two dozen homes For Sale)
  • Homes For Sale in 22192 between $400,000 and $500,000 VIEW HERE ( currently inventory is good in this price point) 

I did a market update earlier this week to help home buyers and home sellers understand the local real estate market conditions. 


That said, I met with a prospective move-up buyer late yesterday. They have a Pulte Carriage Home in Lake Ridge Virginia. A very sought after starter home here in Lake Ridge Virginia. Someone is going to be able to get a darling home when it comes on the market. That's if the homeowner chooses to sell. You see they are in a win-win situation. They can rent or sell whichever they choose to do. They are one of the lucky homeowners in the Lake Ridge Virginia area who can consider a move-up purchase and make a solid non-contingent offer on a move up home.

With mortgage interest rates under four percent and seven year arms at less than three percent, home buyers are coming out of the woodwork and chances are low inventory situations will continue into fall.

Call me

 Homeowners if you are thinking it time to buy your move-up home, now is the time. When inventory is low, you are more likely to get your price.If your curious what your home would sell for simply call me or simply fill out this form with your street address and tell me a little about your home and I will send you a comparative market anaylsis. Then let me come take a look at it to see what you would have to do to put your home on the market. Chances are...not much. When inventory is low, and demand is high that is always good news for home sellers.

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Joe Jackson 07/20/2012 10:04 AM
Topic:
ActiveRain Community
Location:
Virginia Prince William County Woodbridge Lake Ridge
Tags:
market update
erick and company
sell my home fast

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Rainmaker
702,672
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

Our Realtor association is great at putting out graphs and charts on the housing statistics.  Just showing someone a graph comparing the declining inventory versus the sales is a big eye opener to many buyers.

Jul 20, 2012 05:55 AM #27
Rainer
57,035
Valerie Blake
Prudential PenFed Realty, Washington, DC - Washington, DC

When I got my first sales license (DC) 15 years ago, I followed it up within 3 months with MD and VA.  Did the same thing a few years later with my associate broker's license.  I was encouraged to do that by my managing broker and I believe he was right on target.  When people move here they tell you, "I want to live in DC."  Sometimes they do end up living in the District, but more often than not, their budget or lifestyle necessitates a buying tour of the suburbs.  What I don't immediately know, I learn.

I have honed my business over the years and now tend to stay inside the Beltway, but I still think it is important to provide seamless service  in our multiple jurisdictions to my clients.  With listings, I prefer to stay closer to home, to be able to deal with emergencies or attend showing appointments in a timely manner.

As to the inventory issue, I have a buyer who believes there is something wrong with my automated listing download because she hasn't received any new listings in the neighborhood she likes in more than a week ($450-650K range).  Guess what?  There haven't been any.  And I recently had a discussion with a seller about whether to list now or in the fall.  When I ran a list of similar competing properties in his range ($900K-$1.1M), there were a total of 13 in the entire District.  No two were in the same neighborhood so being a specialist there was of no advantage.  We listed immediately and were under contract in 6 days.

The part that makes me crazy is that the media lumps us all together, good or bad, as the DC Metropolitan Area when things are very different in Lake Ridge and Gaithersburg than they are in DC, Bethesda & Arlington.

 

Jul 20, 2012 06:20 AM #28
Rainer
78,560
Gayle Beyer
Welcome Center Realty 772-336-8583, FLA777 - Port St Lucie, FL
Port St Lucie FL Real Estate Broker

LOL...yes we all conspire.. Never amazes me what buyers say and how expert they truly are - Reality is the numbers don't lie so that is all we can show them, the black and white.

Jul 20, 2012 07:03 AM #29
Rainmaker
364,893
John DL Arendsen
ON THE LEVEL General Contractor, Crest Homes Factory Built Housing Dealer & Developer & TAG Real Estate Sales & Inves... - Leucadia, CA
Contractor, RE Brk, Factory Built Home Dealer/Devl

No bluff in our area, however, I'm waiting with bated breath for the next shoe to drop (Shadow Inventory)

Jul 20, 2012 07:22 AM #30
Rainmaker
414,506
Peggy James
EXIT Realty Associates - Woodbridge, VA
Lake Ridge Virginia Real Estate Specialist

Valarie- love the rebutle. I'm glad it works for you. I'm a small town girl, and the thought of getting on the Beltway around Washington or the 295 Corridor is right up their with going to the dentist for a route canal! LOL!!  I'll keep you in mind for those that are thinking of crossing the river and beyond.

OMG! I love your comment about a client who thinks there is something wrong wth your automatic listing feed. For some they will need to adjust the price, consider moving their boundry lines of where they will consider living or do nothing at all and stay put.

John- we're starting to see a few of the shaddow inventory homes hit the Prince William County Virginia market now. Homes that were foreclosed long ago, however are just being released now.

Jul 20, 2012 07:39 AM #31
Rainmaker
654,279
Joetta Fort
The DiGiorgio Group - Arvada, CO
Independent Broker, Homes Denver to Boulder

Same in our area.  Once homebuyers start looking, they don't have to ask me if it's true.

Jul 20, 2012 07:39 AM #32
Rainmaker
414,506
Peggy James
EXIT Realty Associates - Woodbridge, VA
Lake Ridge Virginia Real Estate Specialist

Joetta- It's great to know the same in happening in Denver. Wow, tough news out your State today. My heart goes to everyone involved.

It it interesting to see who is commenting on this post. I love hearing that other area's are experincing the same trend across the county. Keep the information flowing. Consumers are just waking up to the fact the interest rates are lower than ever before and their buying power is awesome.

Our Regional Owners Nancy and Tom Shaver of Exit Realty Virginia, noticed the blog, she sent it to my broker Terrylynn Harrell of Exit Choice Realty.

A few minutes ago Ken Harvey from the Washington Post called and he commented how he really like the post. You never know who's ready our blogs. Nice talking to you Ken.

Jul 20, 2012 10:31 AM #33
Rainmaker
60,264
Sharon Sanchez
Ace Home Realty - Carson, CA
Your Number "1" Source For Real Estate.

Hi Peggy.  The same thing is happening in Southern California.  Have a wonderful weekend.

Jul 20, 2012 11:39 AM #34
Rainmaker
645,432
Stephanie/Bob The Ruiz/Miller Team
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Hi Peggy, we are hearing this from all around the Country.  Our inventory dropped 40% in the past year.

Jul 20, 2012 01:21 PM #35
Rainmaker
669,379
Evelyn Kennedy
Gallagher & Lindsey, Alameda, California - Alameda, CA
Alameda, Real Estate, Alameda, CA

Peggy:

Buyers know that the inventory is low.  They swoop down on new listings and want to seem them ASAP.  They decided to make offers quickly, because they know if they don't they will be up against other buyers in a multiple offer situation.

Jul 20, 2012 04:14 PM #36
Anonymous
Anonymous

Peggy, Once again, great blog.  It is funny to see what prospective buyers really think is going on.  Those that continue to think the low ball offer is still going to get them in the house are going to miss the boat.  Great Information.

Jul 20, 2012 05:57 PM #37
Ambassador
1,289,788
Tammie White
Benchmark Realty, LLC (615) 495-0752 or www.TWRealtyGroup.net - Franklin, TN
Franklin TN, South of Nashville

I worked with three different buyers this year who all wanted a three car garage in Franklin TN between $400K to $500K. There were only 12 at the time. Inventories are definitely low.

Jul 20, 2012 06:40 PM #38
Rainmaker
67,412
Jim Miner
Miner Noh & Associates - Phoenix, AZ
Residential Seller and Investment Specialist

It is time for move up buyers to step up, "nice idea" except when they are upside down maybe they do not want a short-sale and if they get one or a foreclosure then the lenders will not loan to them.

Are you agents bluffing, someone needs to introduce this individual to Al Gore so he can learn about this thing called the internet.

Jul 20, 2012 07:06 PM #39
Rainmaker
414,506
Peggy James
EXIT Realty Associates - Woodbridge, VA
Lake Ridge Virginia Real Estate Specialist

Sharon- It's nice to hear some good news coming from California. Thanks for sharing today.

Bob- It's interesting to hear that your inventory in Ocala Flordia is down 40%. Goodness. Would you say that is because folks can't sell? Or is it because the foreclosures have slowed?

Evelyn- I think from your comment you may have been experiencing the shortage sooner that the Prince William County Virginia area has. Our Northern Virginia real estate market has been low on inventory all year. Prince William County Virginia is not experiencing segments of the market where a home will sell quickly. A rental home will be snapped up in days.

Rick- hey thanks for stopping in to read this post. Hope you are doing well. I don't get to Stafford and Fredericksburg Virginia much. Are things improving or are inventory levels still good? Let us know.

Tammi- And the purchasers really had their hearts set on that coveted third car garage and nothing less would do. Boy in a situation like that, he who hesitates looses their dream home.

Jim- I hear you. I actually have a townhome owners right now who are upside down, however can rent for what they owe monthly ( because rents have increased) and their income has increased since they bought seven years ago and they can afford to carry both payments. For those who have excellent credit and steady jobs, sometimes making that move-up purchase right now is the right thing to do. Rates are not going lower and their buying power is excellent.

Jul 20, 2012 07:30 PM #40
Rainer
206,871
Dörte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton

Dear Peggy,

The same is true in our area, especially if buyers want a home in good condition.

Jul 20, 2012 08:19 PM #41
Rainer
7,179
Helen Wiegman
Wiegman Realty Group - Lakewood Ranch, FL

Hello Peggy,

It is so interesting how this response is so area specific.  I service the Manatee/Sarasota Counties in Florida.  Manatee was once dubbed, "the fasting growing county in the nation."  We do have low inventory, in certain price ranges and in certain subdivisions.  Since we had a ton of new construction and new communities popping up well into late 2007, many of those communities fell hard.  In those markets, you can barely find anything decent, clean, etc. under the $200,000 range.  In other areas, such as Lakewood Ranch you can not find the same for under $300,000.  The $800,000 and over market and waterfront is stable and improving as we have many communities where there are wealthy individuals.  I always tell buyers on the fence, buy now or regret later.  Our rental market is incredible as well.  It's an exciting time to be in real estate.

Good luck with all of your future sales and I would love to work referrals with you back and forth!

 

Helen

Jul 21, 2012 07:21 AM #42
Rainer
188,095
Lisa Treu
Treu Group Real Estate - Delray Beach, FL
Palm Beach County Florida is hot too. In fact many areas see multiple offers. It is hard for buyers to imagine until they start the offer process even though they are hearing it.
Jul 21, 2012 11:48 AM #43
Rainmaker
1,280,991
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

No bluff about it.  Inventory is low.  There are too many of us to have a conspiracy like that.

Jul 21, 2012 01:40 PM #44
Rainmaker
834,581
Lyn Sims
RE/MAX Suburban - Schaumburg IL Real Estate - Northwest Suburbs of Chicago - Schaumburg, IL
Schaumburg Homes

Really great info & well done. We're not making this stuff up!

Jul 21, 2012 02:58 PM #45
Rainmaker
364,893
John DL Arendsen
ON THE LEVEL General Contractor, Crest Homes Factory Built Housing Dealer & Developer & TAG Real Estate Sales & Inves... - Leucadia, CA
Contractor, RE Brk, Factory Built Home Dealer/Devl

Anyone care to speculate where QE3 will take the RE market?

Sep 13, 2012 04:43 PM #46
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Rainmaker
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Peggy James

Lake Ridge Virginia Real Estate Specialist
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