Jack Frost's Housing Forecast

Northern Virginia Magazine
February 2010
By Katie Wilmeth

The thaw is usually when would-be homebuyers come out of hibernation. But spring has come early, thanks to an extension on the housing tax credit into 2010 and a market that's looking up.

"Our spring market sometimes gets going early - even in January - which will probably happen this year, since fall has been so good," says Donna Evers of Washington-based Evers & Co. Real Estate Inc. "The advantage of getting going early is that there aren't going to be any price rises in the spring. It will happen later, toward May."

So that house you've had your eye on will likely be less this month than it will be once the followers bloom in the front yard.

Weather aside; it's the extension, and addition of, homebuyer tax incentives that may really drive the market even in a typically freezing month like February. In November, Congress extended the much-ballyhooed $8,000 first-time homebuyer tax credit until April 30 (with a June 30 closing deadline). The bill also green-lit a $6,500 tax credit for anyone who buys a new primary residence that has lived in their current home for at least five years.

The rough market also meant prices fell in the last couple of years, but the National Association of Realtors warns they won't stay so low through the spring.

"With the abnormal drop in home prices over the past few years, the price-to-income ratio has fallen below the historic trend line," says Lawrence Yun, NAR chief economist. "This is adding to the buying power of the typical family, with affordability conditions this year at the highest record dating back to 1970, but prices are beginning to flatten and are poised to ride [in 2010]."

In other words, it might be worth braving the cold if you're looking to buy a house.

Sell Your House In Any Season
Donna Evers offers advicebr /> Know that two key things are the same anytime a house is on the market: price and preparation.br /> Make sure your house looks prettier than competition.br /> Remember outdoor and indoor staging are critical.br /> Keep the walk cleared of snow and ice.br /> Paint, clean, refinish floors, update the kitchen and baths if they need it.br /> Keep things sparkling clean and sparsely accessorized in winter or summer.