Stock Market and Loudoun Real Estate Inventory Two Peas In a Pod
October 10, 2008 by Danilo Bogdanovic
Filed under Statistics
The stock market and Loudoun County real estate inventory are two peas in a pod – they are both at their lowest levels in years.
As of 2:00pm today, the number of homes for sale in Loudoun County was 1801. This is the lowest level of inventory we've seen in years. During the last several years (since the peak of the market in summer 2005), inventory has remained well above the 2000 mark.
As for 2:00pm today, the Dow Jones Industrial Average was just above the 8000 mark, it's lowest level in 5 years.
This is a good sign for the Loudoun County real estate market and adds to the continued stabilization of the local market which we've been seeing happen throughout 2008.
Note: I do not use new construction/builder listings as part of the number/data because those listings are inaccurate and builders tend to game the MLS system a lot.
Check out the "Statistics" category of LoudounScene.com for more data and analysis of the Loudoun County real estate market.
A on Sat, 11th Oct 2008 3:38 pm
Sure there’s low inventory. People aren’t bothering to sell their houses because they know their values have dropped off a cliff. What incentive is there to sell? Simply having low inventory isn’t going to reignite the housing market around here, because people are holding back on any significant moves until the economy turns around.
Danilo Bogdanovic on Sat, 11th Oct 2008 5:08 pm
A,
Thanks for your comment and you make a point that some people make as well. Consider this though…
Anyone who bought between the summer of 2005 and today has definitely lost value. And a lot of people who bought during the peak of the boom (2003 to 2005) are upside down as well. Therefore, we should have seen low inventory immediately following the peak due to home values tanking.
But that was not the case and in fact, inventory shot up and stayed high from the summer of 2005 to the end of 2007. Only this year have we seen inventory dropping.
As far as an incentive to sell, people sell because they have to move due to work, a divorce, retirement, having more children and needing more room, etc. No matter what the economy is doing or how low or high interest rates, people will always move. In fact, people in this area move an average of once every 5 years.
Robert Ahmed on Sun, 1st Aug 2010 2:00 pm
it is good to invest in the stock market but you must be very careful and not speculate on rising stocks.”;:
Evan Foster on Tue, 28th Sep 2010 3:20 am
oh i love to invest on the stock market but it is really risky these days:”‘