Mini Market Update - Rising Supply

The tax credit expired about a month ago and we are feeling the effects in the immediate Northern VA market. Housing inventory is sitting around and we are seeing attractive price reductions on regular sales. Meanwhile, sellers are still listing their properties in droves since it is the spring/summer market. So buyers currently have more options than they have during the past year or so. We have yet to see whether or not this is temporary - maybe buyers are in shock from missing the tax credit deadline and will start looking again soon. It's hard to believe that all of those buyers simply disappeared, but hey, I've been wrong before. The media news of interest rates rising in the near future will surely light a fire under buyers but maybe, like all things, it will take an actual rise for people to actually take action! The most likely outcome during the next few months may be a more balanced/reasonable market with some negotiating room for buyers and sellers no longer being able to list really high just because they know buyers are desperate for the tax credit!