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  ** The following article recently appeared in The Northern Virginia Real Estate Review. Vol 1. Issue 3. November 19, 2007

Northern Virginia Market Watch

By: Dan Rochon

 Alexandria, Va. -  Until recently many investors used methods of investing that took advantage of the rapid appreciation in our market.  Now with the slow down, investors are asking how to thrive in the new real estate economy.  

 A winning strategy can be to swim against the current.  When everybody is sitting on the sidelines waiting to act, those that are willing to take action have the advantage.  Lemmings make bad investors.              

The most recent data provided by the Northern Virginia Association of Realtors, states that there are almost twice as many listings in the Northern Virginia region active in September, 2007 as there were in the same month two years ago and almost three times as many as four years ago. (10,721 active listings in September, 2007, 6,693 active listings in September, 2005, and 3,807 active listings in September, 2003).  Sales prices have remained relatively constant for the past two years with a large increase from four years ago.  The average sold price for September, 2007 was $529,278, it was $543,170 in September, 2005, and in September 2003 the average sold price was $363,376.  The average annual appreciation of a home in this area over the past 30 years has gained an annual rate of 7.2% as calculated by the Northern Virginia Association of Realtors.

 According to Peter Kebis with Access National Bank, interest rates are outstanding.  The 30 year fixed rate is as low as it has been in nearly two years at below 6%; investor rates vary depending on your circumstance.  With rates as low as they are, it is a good time to review your existing mortgages to be sure that you are maximizing your return of investments by having the lowest possible mortgage.

Real estate is an excellent long term investment and should not be viewed as a get rich quick strategy.  Long term successful investors buy when prices and interest rates are low.  When inventory is high you'll find the least buyers competing with you for the same properties, which means that you’re in a strong negotiating position to get the best price and terms.  With so many motivated sellers, finding properties as investments with little money down that will break even as rentals is possible.

 When developing your winning plan of real estate investing be sure to consider the facts.  Remember, interest rates are at an all time low; inventory is at an all time high; and the long term appreciation in the Northern Virginia area is constant.  The investors that will look at this opportunity with a long term perspective will reap the benefits.  

 About the Author: Dan Rochon is a successful real estate investor.  Dan lives in Northern Virginia and owns and manages residential property in Virginia and along the eastern seaboard.  He is owner of the sales team, Dan and Traci and Consultants with Keller Williams in Alexandria, Va.  Dan and Traci and Consultants focus on working creatively with investors and specialize on selling short sale properties.  You may reach him at 703-346-2776 or http://www.OldTownTownHomes.com.

 Peter Kebis is a Senior Loan Officer for Access National Mortgage, a national lender based in Reston, Va.  Mr Kebis has been involved in investment property purchase transactions and has experience with creative financing solutions in buying investment properties.