As we look at the 2009 real estate market recovery in Northern Virginia, there are various indicators to pull out to demonstrate how hot the market has turned here. The first item to watch is the pending sales. (I know many people want to look at pricing, but the problem with watching pricing is you never know where the bottom is until it bounces back up!)

Pending sales let you know buyers believe prices have hit bottom and are starting to jump off the fence. As pending sales (contracts written) pick up speed, the number of closed sales follow suit. Once sales surpass year-over-year percentages, the media starts jumping on board, officially announcing the market has turned.  Well – we saw the turn last fall (nearly a year ago) and all the numbers have been in a positive run since.

Next – I reported that inventory was hitting lows that would result in higher prices. And that’s exactly what happened. In my last issue of Around Town, I shared with you how the average prices have been moving up now for 7 consecutive months– well, that’s now 8 months straight for the whole region. And that brings us to the final indicator of a turning market, and that would be the Days on Market.

As of July 2009, the average days on market (DOM) for houses sold in Northern Virginia has hit the 60-day mark. The significance of 60 days is that it is half the time it took (120 days) to sell a house at the height of the buyers market, which was in January 2008 (see the chart on the flipside of this newsletter).

So what? What does this mean to you? Well – it doesn’t take much to figure out what’s happening here. Prices hit the bottom for buyers, buyers jumped off the fence, inventory dropped, prices are moving upward and now more buyers are jumping in droves, dipping the time on market.

We are selling more and more regular sales these days – non-foreclosure – and that means regular sellers are moving up to the larger, more updated home since they have plenty of first-timers and move-up buyers in line to buy their home for a profit. The market is tightening up!

Make your move now while there is still plenty of higher-priced inventory available.