What is going on in Prince William Real Estate Market???

Wow! As a 10 year high selling volume realtor.........I have not SEEN this since 2003! Multiple offers is the norm. CAsh Buyers are competing with other Cash buyers. First time buyers are in the mix and why not - $8000 Tax Credit if they purchaser before DEcember 1st (Hopefully the U.S. Government will extend this).

Prince William's prices have risen 4.7% in the last two months, Yes, RISEN 4.7% in the last two months. How the heck did this happen.

In the last 10 months, our "Inventory" (houses on the market) was just around 7,000 homes on the market. These homes included many many foreclosures. These prices were down 54% since 2006. So these homes were priced at 2001 - 2002 levels. In stepped Cash investors, some entirely 100% cash, while others were putting down 20/25% down. And why not, a single family home (and there were many under $150,000). PUrchaser the home, get a payment of $800 per month and rent it out for $1300 to $1600 per month. That's a major POSITIVE CASH FLOW! Can the stock market return such a major investment on a monthly basis? If you find it, please let me know .....and make sure it's legal please.

So $400-$800 per month positive cash flow for the investors! And how was the rental market you ask???? Well, guess what, as people lost their home, they had to go somewhere. We manage about 205 properties. I had prospective tenants coming through the door daily. Most lost their home. I'd ask to see their old mortgage staement (the one they paid for 3 years) along with their new mortgage payment(after the loan matured and jumped 2-3%)........so their payment went from $1600 to $3000 overnight. So if they're looking for a rental at $1500, well they have proven that they could pay $1600 for 3 years...........THEY'RE ACCEPTED!

Now, the first time home buyers.........wouldn't it be nice to turn back the clock on anything you wanted to buy at 2001 or 2002 prices. A car, watch, that internet stock........have you ever said, "I should've could've." Well here are the homes at half price. The purchasers can purchase almost cheaper than renting:

$1500 house for rent:
You need $1500 Security Deposit + $1500 First month's rent = $3000.

to Purchase $100,000 home:
You need 3.5% down, that's $3500 + Closing costs (which the bank can pay) = $3500.

***And you can re-file 2008 tax return and in as little as 8 days get your $8000.

That's a positive $5500 YOU GET IN YOUR POCKET TO BUY A HOME........WOW!!!!
AND with a 30 year FIXED MORTGAGE at almost 50 year low interest rates.


Prince William County was probably hit the hardest in Virginia. But it was also the first County to get "Off the mat," and drop the prices to move the house. And it has.

Right now, it's not uncommon to have 5-10 offers per home within the first two days on the market. And the morotorium on foreclosures has limited the number of new properties for sale.

In summary, there's a reason for this surge, 1/2 price, record interest rates, great responsible loans, and Prince William County is a great place to live!

More to follow. I have written 4 contract this week and have not won ----YET!!!!