It is striking that there are so many similarities in the home sales data for 22309 and Fairfax County in general.  Fewer homes are on the market this year, average and median sold prices have gone up, but so have days on market, while overall sales volume has fallen since March of 2010. 

Days on market (DOM) – the time that a house sits on the market before going under contract – has increased significantly, but more so in our neighborhood.  The Fairfax County DOM figure has increased to 71 days from 51 last year (a 39% increase) while our zip code has increased to 123 days, a stunning 173% increase over last year. 

These similarities and trends most likely are due to the effect of the first time and existing homebuyer tax incentive program that was in full swing last spring.  These programs no longer exist, so we will have to see how the year will finish.  But last year’s spring market was certainly more buoyant as a direct result of the tax incentive program.

Talking about legislation, the State Legislature recently passed a number of measures that will affect real estate throughout Virginia.  All measures will be effective by July 1, 2011 unless otherwise specified.  Some items will affect homeowners directly.  New provisions include[1]:

1. Protecting the Public by Disclosing Chinese Drywall:

HB 1610/SB 942 Chinese Drywall disclosure.  Requires real estate licensees and landlords who have actual knowledge of defective Chinese drywall in a dwelling unit to disclose that information to a prospective tenant or buyer. A tenant may terminate the lease if the disclosure is not provided within 60 days of the discovery of defective drywall.

2. Making it Easier for Homeowners to Appeal Property Tax Assessments:

HB 1588/SB 1350 Assessment appeals.  Lowers the burden of proof from “clear and convincing evidence” (80 percent) to a “preponderance of the evidence” (51 percent) to successfully appeal an assessment to a board of equalization or to a circuit court in tax years beginning after January 1, 2012. Assessors are required to provide certain information regarding the assessment, and homeowners are allowed to request a physical inspection of the property. 

3. Preventing Anti-Growth Ordinances:

HB 1931/ SB 783 Zoning; clustering.  Prevents a locality from using its cluster development authority to impose more stringent land use requirements for a cluster development than what is allowed under state code or to prohibit extension of water or sewer to adjacent property.

4. SJ 292 Public transportation on Route 1.  Requests an evaluation of potential public transportation services to Fort Belvoir and the Marine Corps Base at Quantico.

5. HB 1645/ SB 987 Exemption for disabled veterans. Codifies the constitutional amendment adopted in November, 2010, which provides for a property tax exemption on the principal residence and one acre of land for veterans who have a 100 percent, service-related disability beginning in 2011 tax year.

6. HB 2278/ SB 1073 Real estate tax relief.  Codifies the constitutional amendment adopted in November, 2010, which allows local governments to establish annual income limitations for property tax relief for the elderly and disabled.

For more information on this legislation, you can read more at www.NVAR.com.

[1] www.NVAR.com