Real Estate Shows a Bit Of Progress

With Prices Way Down, Number of Sales Rises

Painting, cleaning and remodeling the kitchen are some of the projects self-proclaimed handyman Kevin Garvey is ready to delve into now that he has a home of his own.

After he had browsed more than 30 houses in Northern Virginia, the price and location of the single-family house off Liberia Lane made the first-time home buyer move to Manassas.

"There were a lot more options in Manassas than in other areas," said the 24-year-old, who looked in Leesburg, Centreville, Ashburn and Alexandria before buying the $305,000 house. "This was a bank-owned property at a good price. It was an offer I couldn't pass up."

Garvey is one of many first-time home buyers making their way to the area, real estate agents said. After a plague of foreclosures, Prince William County, Manassas and Manassas Park finally have some positive activity in the housing industry.

"I'm happy to say we are seeing a lot of first-time home buyers," said Carolyn Capalbo, a real estate agent with Keller Williams in Manassas. "People are seeing the prices come down to a point where it makes sense to purchase. What they would be paying in rent versus a mortgage is about equal, so there is a strong argument to buy."

Because of the number of foreclosures in Prince William, Manassas and Manassas Park -- 659 in March -- a lot more affordable houses are on the market, real estate agents said.

Garvey, who moved from Tallahassee, said he was attracted to Manassas because real estate taxes are lower, the neighborhood is nice and it's close to his government job. Although Garvey said he didn't expect to buy a house at age 24, the prices here vs. in Florida made it a better option.

"What I found interesting here with the foreclosures was I could get a better deal than what I could have gotten in Florida" for the same size home, Garvey said.

Metropolitan Regional Information Systems data show that the number of housing sales for Manassas is up 33 percent in March 2008 from March 2007. Although 673 active listings remained on the market at the end of March, 52 units sold, compared with 39 that sold in March 2007. Eighty-six sales are pending.

Housing sales in Prince William are also rising. At the end of March, active listings numbered 5,757. During that month, 502 units sold, vs. 418 sold in March 2007 (a 20 percent jump). Manassas Park had 294 active listings on March 31. Twenty-five units sold that month, compared with 14 in March 2007, MRIS data state.

"We've seen a clear increase in activity over the past 30 to 45 days," said agent John Thompson of Northern Virginia Samson Realty, adding that agents are noticing multiple offers on some Manassas and Prince William properties. "It's a supply-and-demand-driven market. There are lots of good deals out there, and anytime you have a commodity where there are good deals, there will be buyers lining up."

While some jurisdictions are starting to see a positive trend in housing sales, MRIS data show that many surrounding localities are still on the decline. Housing sales in the counties of Fairfax and Loudoun and in the city of Alexandria, for example, are down 26, 20 and 40 percent, respectively, from a year earlier, data show.