Homes sales in Fairfax County have showed significant upward (+21.2 percent) movement in February when compared to Feb. 2008 numbers. I am convinced that this is the result of pent-up demand on the part of first-time home-buyers. Much of the February activity came prior to the finalizing of the government’s $8,000 first-time home-buyer tax credit. This should only further increase demand As it took a perfect storm of events to trigger the precipitous drop in demand, we now have the perfect rainbow. Home prices have fallen to an affordability level not seen in over 25 years, interest rates are a historic lows and to top it off, the USG is basically handing out checks to buy a home. Toll Brothers is evening telling me that they have a mortgage guarantee program if a buyer loses their job. The median price for a home in Fairfax County now stands at $307,000, a 24.2 percent drop from last year’s prices.

If the open house I held at my newest listing on Great Owl Circle in Reston is any indication, buyer interest has started to go through the roof.  I had 26 groups of people come through the home last Sunday.  This equates to more than 50 people a level of interest reminicent of four or five years ago.  The home three doors down sold in three days for $7,000 over list price.  A second one in the neighborhood sold for list price in one day.