It's time for the educated seller to go to Plan B.
The Federal Homebuyer Tax Credit ran from April 2008-April 2010 in various forms; in 2010, the tax credit was available not only to First Time Homebuyers, but also to many current owners.
July 2010 is lower than July 2009 by -46%
July 2010 is lower than June 2010 by -52%
Click for larger image in new window.
Inventory is currently at 15+ months. There will be some new buyers provided by DIA, but the inventory overhang will remain large for the foreseeable future. The broader economy is slowing down, and the region's unemployment remains significantly higher than two years ago.
While sellers and their agents may try to convince anybody who will listen of "value," the educated buyer knows what tack to take.
The next few months will also have low completed sales.
Meanwhile, there's talk of having hit bottom (see this and this). The "bottom" can't be determined without at least a year and a half of hindsight. This gabble is a way of trying to distract from the real conversation. The obvious response to these sales numbers would be #^%*$#**;@!!!
The above graph comes from the numbers via Nest Realty Group, which provided these sales charts and the term "Cliff Dive". Click for larger image in new window.
May and June contracts plunged. (June below, copyright RealCentralVA; click for larger image in new window).
CAAR's 2010 Mid-Year Market Report Shows Dramatically Low Sales
What Equals a Lowball Offer in This Area?
Here's What's Missing From CAAR's 1st Q Market Report
Graphs: Declining RE Sales in Central VA
The VA Housing Development Authority Market Conditions and Challenges Report
Daily Progress reporting on local sales:
Mid-Year 2010: Subsidies Boost Sales, Future Looks Bleak
Mid-Year 2009 "Area's Mid-Year Home Sales Reflect Continued Struggle."
Mid-Year 2008: "Is This the Bottom?"