The most common question any Realtor is going to get asked is, "How is the real estate market?" This is a tough question to answer and some Realtors will take the easy way out and tell people it is interesting or that they would be surprised. The real answer should always be the truth, but it is not an easy truth to get to.
There is no overall market for real estate. The market is going to vary drastically from state to state, county to county, and even subdivision to subdivision. Look at the difference in the market for single family homes in Foxfield and Greenbriar. These two subdivisions are basically right across route 50 from each other and both in the 22033 zip code.
Foxfield has two houses on the market and one under contract giving it a market absorption rate of 2 months which is a sellers market but the inventory is incredibly low. Right across the street in Greenbriar there are 17 houses on the market and 12 under contract. That gives Greenbriar a market absorption rate of 1.4. Statistically the markets come out to be fairly similar as far as market absorption rate is concerned, but they couldn't be more different when it comes to activity.
The two homes that are on the market in Foxfield have been on the market for a long time and homes in Greenbriar go off the market as fast as they come on. It is an amazing thing how much a market can differ just be crossing the street. Moving across Stringfellow from Greenbriar is another subdivision known as Poplar Tree Estates. This one is also different from Greenbriar and Foxfield and it happens to be in a different zip code.
Poplar Tree Estates is located in the 20151 zip code. In Poplar Tree Estates there are three active listings and six under contract. This gives it a market absorption rate of 0.5 this makes it an extreme sellers market but again the activity is not as fast and furious as it is in Greenbriar. Now the homes in both Foxfield and Poplar Tree Estates are newer than those located in Greenbriar.
Foxfield and Poplar Tree Estates were built in the mid to late 80's whereas Greenbriar was built in the late 60's and early 70's. The original owners in Greenbriar are now retiring and moving away and the homes located there are more of what is thought of as starter homes where the homes in Foxfield and Poplar Tree Estates are the move up homes. The lower prices in Greenbriar might also factor into creating the better than average activity. If a person is buying based mainly on location are they might be inclined to seek out the value provided by the homes in Greenbriar.
If one were to take a map they could form a triangle with Greenbriar, Foxfield, and Poplar Tree Estates as the points, but if someone were to ask, "How is the market?" the answer would differ greatly depending on where in the triangle one stood. There really is no answer to how the real estate market is as a whole. It really does depend greatly on location, location, location. The best advice I can give someone is to contact a Realtor in order to find out how their market or a market they are interested in is doing.
I learn something new in real estate everyday
so you don't have to
David Huzzard
www.SuperNoVaRealty.com
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