The day that will live in infamy for the local real estate market is Jan. 10, 2002, according to Leslie Hutchison of McEnearney Associates, Inc. in McLean.
Following the other infamous day, Sept. 11, 2001, the nation's military started building in an anti-terrorism mode, and the defense contractors set up camp in the Washington area.
"We've seen a booming market since 9/11," Hutchison said, "as soon as the contracts got released for the defense contracts. All the defense contractors have to live somewhere."
Although the real estate market was on the upswing in the Washington D.C. metro area before that, Hutchison noticed a spike after that. People were looking at the high rents, and opting to purchase as well. Low interest rates with lenders making deals with no money down makes it more attractive.
"Anybody that has good credit can buy in this market," Hutchison added.
Bob Scherbarth at Samson Realty in Chantilly sees the same thing.
"The educated consumer out there that is renting can figure out that $1,100 rent is close to the amount required to buy," Scherbarth said.
According to the Northern Virginia Association of Realtors January 2004 Home Sales Statistics, sales prices continued to climb in Northern Virginia while inventory shrank to more than 40 percent below 2003 levels. Sales prices finished the month of January with an average of $388,049, which is 16 percent higher than last year. Sales volume dropped more than 7 percent below 2003 with 1,622 homes sold in Northern Virginia.
Sales prices in Greater Northern Virginia (including Prince William, Loudoun and Fauquier Counties) also continue to climb with an average of $359,907 in January, nearly 17 percent higher than last year. Sales volume in Greater Northern Virginia was down more than 3 percent over 2003 levels while inventory declined 31 percent.
"THE INVENTORY is very tight," said Amy Ritsko-Warren, manager, communications and media relations for the Northern Virginia Association of Realtors. This is causing a dip in total sales numbers but not in the percentage of houses for sale compared to houses in general.
"It's been going down since August. It's still very much a sellers market," Ritsko-Warren said.
Zahid Hossain is seeing a lower inventory of houses for sale also, which creates competition when one goes on the market.
"There's hardly any inventory at all, you can get seven or eight offers on a single entry," Hossain said.
The multiple contract situations end up being a bidding contest.
"That shows how serious they are," Hossain said.
Home warranties are important Hossain added, and sometimes they are the difference in the transaction.
"It covers everything," Hossain added.
"YOUR TOWNHOUSES in the $250,000 to $350,000 range are almost selling as fast as they hit the market. Last weekend, [Feb. 7-8] I put two townhouses on the market and they were gone in 24 hours," Scherbarth said.
Hutchison was surprised at the rental units to houses for sale ratio as well. On Wednesday, Feb. 11, there were 1,800 rentals available and 1,300 listings of houses for sale.
"We've never had more rentals than houses for sale, ever," she said.
In this atmosphere, agents have to be quick on their feet, using technology when possible, Hutchison said. Email is a must, and a cell phone that can access the web as well as virtual tours on the web speed up sales.
"A lot of agents are going to high tech. I can pull up all the listings on my cell phone," she said, and a web page with a virtual tour is even better.
"If you're not on the web, forget it," Hutchison said.