Ashburn Single Family Home Median Price Up $20K

The median price of single family homes in Ashburn (20147 and 20148 zip codes) has gone up almost $20K since April. This is mainly due to less inventory on the market and more buyers purchasing properties – supply vs demand. We’re currently seeing a plateau in median prices, but that’s probably due to a typical slowdown in buyer demand over the summer months.

Ashburn Single Family Home Median Price – up $20K since April

Ashburn Single Family Home Inventory – down 30 percent since 9/08

P.S. Check back on Tuesday for Leesburg’s median price and inventory levels.

Sterling Single Family Home Median Price Up $70K

The median price of single family homes in Sterling (20164, 20165, 20166 zip codes) has gone up an astonishing $70K since April. Talk about a roller coaster of a ride for median prices in Sterling – they have been in a free fall since the market turned in 2005, hit $260K in April, shot up to about $380K and came back down to $335K.

If there was ever a great example of what supply vs demand means to median prices, Sterling is it. Check out how median prices starting coming back down at the very same time that inventory started to increase (July 1).

Sterling Single Family Home Median Price – up $70K since April

Sterling Single Family Home Inventory – up 25 percent since July

What will median prices do going forward? We’ll have to see whether inventory continues to go up, plateau or go down.

P.S. Check back tomorrow for Ashburn’s median price and inventory levels.

“On The Streets” of the Loudoun County Housing Market

You read the news and see the statistics. You hear what you’re neighbors and friends are saying. But what is really happening “on the streets” of the Loudoun County housing market?

Here you go…

Buyers looking to get a great deal on a property are seeing well priced properties sell within weeks if not days of coming on the market. Many very well priced properties are seeing multiple offers and bidding wars – 2, 5 even 10+ offers. Many buyers are bidding on 2, 3 even 5 properties before finally having the winning offer and buying a house.

Sellers who price and market their property correctly are seeing lots of buyers coming through their property almost immediately after coming on the market. An offer within the first few weeks on the market is common for properly priced properties. On the other hand, no activity and no offers is the norm for overpriced properties. In a nutshell, Value is King.

We’re also seeing an up-tick in median prices in some areas of Loudoun County (as well as some areas of Fairfax County) – though this does not necessarily reflect an increase in any one specific property’s value. Take a look at the latest statistics regarding median prices and inventory levels in different parts of Loudoun County to see for yourself.

The local market is such because inventory levels (number of homes on the market) have decreased an average of 50 percent since 2007 and an average of 20 percent since this time last year. At the same time, buyer demand (aka number of homes being sold) has increased by an average of 50 percent thanks to historically low interest rates and the $8,000 first-time home buyer credit. This translates to more buyers trying to buy the same type of property, but there are less homes to choose from. But even though more buyers are fighting over fewer properties, buyers are not being suckered into or getting frustrated to the point of overpaying for a property.

Note: Despite the majority of the Loudoun housing market showing signs of stabilization, the $1M+ home sector is not fairing as well. Inventory is stagnant as is buyer demand. This is bad for sellers of $1M+ properties, but good for home buyers in that price point.

Another trend we’re seeing is a substantial decrease in foreclosure/bank-owned inventory on the market (thanks to the foreclosure moratoriums of late 2008/early 2009) and a significant increase in short-sale inventory. This has led to increased frustration on the part of buyers and agents some of whom are not familiar with the nuances of short-sale transactions and don’t know how to properly navigate through such a transaction. Getting a response from the bank(s) on a short-sale can take as little as 45 days and as long as 6 months with the average being about 90 days (more on this in a future post over at LoudounForeclosures.com).

Up until this year, many real estate investors were sitting on the sidelines as median prices continued their downward trend and good investment opportunities were rare. But that has changed. We’re seeing investors getting back into the market buying up distressed properties, doing rehab on them and then either flipping them for a 10 to 30 percent profit or renting them out as part of their long-term investment plan. Investors are especially prevelant in parts of Sterling and Leesburg.

And that folks, is the reality of the Loudoun (and Northern Virginia) housing market.

If you would like me to go into more detail or need information about a specific town, neighborhood or subdivision in Loudoun (or north/east Fairfax County), feel free to contact me.

Sterling Housing Market Update

Here’s a look at what’s going on with the Sterling housing market (all zip codes)…

Sterling Median Price

The median price has been falling in Sterling since the market turned until about March of this year. Over the past rew months, the median price has spiked significantly (by almost $100,000).

Sterling Inventory

Inventory of single family and town homes in Sterling has dropped by 60 percent since 2007 and 56 percent since this time last year. The condo inventory in Sterling has dropped by 45 percent since this time last year. This is most significant decrease of inventory out of any large town in Loudoun County.

Sterling Housing Market Overview

The huge drop in inventory throughout Sterling along with a huge increase in buyer demand has lead to a huge shift in the housing market in Sterling. Sterling has some of the lowest price points in Loudoun and lots of foreclosure and short-sale activity making it extremely attractive to first-time home buyers and investors. We’re even seeing areas of Sterling with slight to substantial recent price appreciation.

Homes that are priced well are getting a lot of traffic and a purchase offer within 1 to 2 weeks on the market. Homes priced slightly below (or way below as is the case with many bank-owned and short-sale properties) are getting multiple offers (5, 10, 15+ offers) and are bidding up over asking price within days, if not hours of hitting the market.

We’re seeing slight signs of the inventory leveling out. Unless it levels out, we’ll most likely see median prices continue their upward trend and lots of multiple offers on properties well into the summer.

South Riding, 20152 Housing Market Update

Here’s a look at what’s going on with the South Riding/20152 zip code housing market…

South Riding/20152 Zip Code Median Price

The median price for single family and town homes in South Riding/20152 zip code is showing a slight uptick after having dropped over 70 percent over the last 2.5 years. We’ll need to see some more evidence of median prices going sideways or up to call it a trend.

Condo are in the same boat as single family and town homes. After having dropped over 60 percent over the last 2.5 years, they showing slight signs of stabilizing. We’ll have to wait and see what median prices do this summer and fall before coming to a more firm conclusion.

South Riding/20152 Inventory

Inventory of single family and town homes spiked like crazy in the 2nd quarter of 2007 and South Riding/20152 zip code has been working it off ever since. Inventory of single family and town homes is down over 40 percent from July 2007 and down almost 20 percent from this time last year.

Condo inventory spiked way up, then went pretty much sideways for a year and is now down almost 40 percent from this time last year. It’s gone up slightly over the past two months, but appears to be going sideways at the moment.

South Riding/20152 Housing Market Overview

The South Riding and 20152 zip code housing market is a bit more volatile than other markets in Loudoun County because it’ has less total properties within its’ boundaries with everything from condos to large McMansions. The lower price points are selling faster and at a higher rate.

Much like the rest of Loudoun County and Northern Virginia in general, if the property is priced well, it will sell in less than 30 days. If it’s not priced correctly, it’ll just sit on the market collecting dust.

Leesburg Housing Market Update

Here’s a look at what’s going on with the Leesburg housing market (20175 and 20176 zip codes)…

Leesburg Median Price

The median price of single family and town homes in Leesburg has been bouncing up and down between just over $600,000 and $640,000 for over 2 years. Over the past few months, we’ve seen it go from about $608,000 to about $625,000.

On the other hand, the median price of condos in Leesburg has steadily dropped over 60 percent since the spring of 2007. The good news is that the median price hit about $245,000 at the very end of 2008 and has been going sideways, if not slightly up since then.

Leesburg Inventory

Single family and town home inventory in Leesburg was cut in half from the summer of 2007 to the spring of this year. We’ve seen an increase in single family and town home inventory over the past three months, but it looks like the rate of new inventory coming on the market may be slowing down as the summer months approach.

Condo inventory in Leesburg is down over 40 percent from this time last year. It looks like it showing signs of a potential plateau, but we’ll have to wait and see to know for sure.

Leesburg Housing Market Overview

It’s hard to generalize the Leesburg housing market because even two neighboring communities within the same zip code can have completely different housing market conditions. One example is River Creek versus Potomac Station. Another is Beacon Hill versus Shenstone Farm. Yet another is Tavistock Farm versus Stratford Landing.

Generally speaking, the Leesburg housing market is stabilizing a bit thanks to lower inventory and more buyer demand. But how much depends on the specific community/subdivision within Leesburg and price point. Some properties, such as town homes and entry-level single family homes are seeing multiple offers left and right while the $800K- $1M+ properties in communities such as River Creek, Lansdowne, Shenstone Farm and Beacon Hill are seeing less overall activity due to a much smaller buyer pool at that price point.

Median prices will probably continue their sideways trend while inventory levels level out or possibly drop a bit during the summer months depending on the type of property and price point.

Ashburn Housing Market Update

Here’s a look at what’s going on with the Ashburn housing market (20147 and 20148 zip codes)…

Ashburn Median Price

After it’s most recent drop from October 2008 through March 2009, the median price for single family and town homes in Ashburn has ticked up over the past two months.

Condos in Ashburn aren’t showing an uptick in median price, but they have plateaued.

Ashburn Inventory

The number of homes for sale in Ashburn continued it’s downward trend. We saw an uptick during the “spring market”, but inventory is either plateauing or on the way down once again. A downward trend should continue through the summer months because many sellers think that the summer is not a good time to put their homes on the market.

Ashburn Housing Market Overview

As inventory diminishes and buyer demand increases (thanks to lower prices, historically low rates, $8K tax credit, etc), we’re seeing the market stabilize a bit. We’re even seeing pockets of Ashburn with slight price appreciation due such low inventory and increased buyer demand.

Homes that are priced well are getting a lot of foot traffic and a purchase offer within 1 to 3 weeks on the market. Homes priced slightly below (or way below as is the case with many bank-owned and short-sale properties) are getting multiple offers and are bidding up over asking price within days of hitting the market.

Unless the inventory or rates increase (or some huge economic news rattles the entire nation), we’ll see these trends and this type of market continue through at least the summer.

Loudoun County Housing Market Statistics – April 2009

Here’s a look at Loudoun County housing market statistics for April 2009:

Total Sales/Buyer Demand 

• April 2009 sales were up 9 percent over March 2009
• April 2009 sales were up 8 percent over April 2008

Inventory/Supply

• April 2009 had 892 new listings come on the market versus 842 in March 2009, an increase of 6 percent (The increase in listings between March 2008 and April 2008 was 9 percent)
• April 2009 had 892 new listings come on the market versus 1254 in April 2008, a decrease of  29 percent

What does this mean?

The numbers show a decent increase in buyer demand and a huge decrease in inventory. This trend has been apparent since the end of 2008 and is leading to price stabilization througout Loudoun County.

This is good news for the Loudoun housing market especially for home owners and sellers. But it can be frustrating to Loudoun home buyers because they don’t have many homes to choose from. And once they do find homes that meet their needs, they’re seeing them sell before they have a chance to look at them or they’re in multiple/competing offer situations on home(s) they’re writing offers on.

Loudoun’s housing market conditions also lead to an interesting conversation with home buyers relocating to the area from places that are still getting hit hard by the market – they’re expecting the local market to be a “Buyer’s Market” like the one they’re moving from, but that’s not the case. And our local market goes against what much of the media is still saying, much of which is outdated, behind the curve and on a national, not a local level.

How does the Loudoun County housing market compare to the rest of Northern Virginia?

The rest of Northern Virginia is in a similar situation. We’re seeing the same trend in Fairfax County and now in Prince William County. Fairfax County wasn’t quite hit as hard as Loudoun County, but Prince William County definitely had us beat and is taking longer to recover. And, overall, Northern Virginia is leading the Washington, DC area in the housing recovery.

Related Articles

Are Loudoun Home Values Where The Should Be?

Loudoun Foreclosure, Bank-Owned, Short-Sale Market Statistics – April 2009

Article on Short-Sales in Loudoun Times-Mirror

The Loudoun Times-Mirror ran a story today entitled "The Skinny on Short-Sales". The article, written by Jason Jacks, goes over what a short-sale is, their pros and cons and how many there are in Loudoun County. I had the privilege of being interviewed for the story (thank you Jason), but it seems that I may have been misunderstood when going over the statistics.

In the article, I was quoted as saying, "about 30 percent of the sales [he's now seeing] involve distressed properties, with about half of those being short sales." That is incorrect.

Here's what the numbers show…

Almost two-thirds of all homes sold in Loudoun County are distressed properties (foreclosures/bank-owned and short-sales).

Short-sales make up almost 15 percent of all properties sold in Loudoun County and that number is steadily increasing.

Why are short-sales making up a greater and greater percentage of the homes sold in Loudoun County? I wrote a post about that over at LoudounForeclosures.com just the other day – "Percentage of Short-Sales Being Approved Increasing". Check it out when you have a chance.

Thank you again to Jason and the Loudoun Times-Mirror and sorry for the confusion.

Loudoun Housing Inventory Way Down, Market Conditions

Loudoun County's housing inventory/supply is still going down. The number of active properties for sale as of 12:30pm today is 1252. This is less than half the number of homes for sale in 2007 and about a third less than the latter part of 2008. We haven't this few homes for sale in Loudoun County since the boom market in the first half of this decade.

What does this mean?

1. Buyers have less homes to choose from
2. Multiple offers are increasingly common (not just my observation and experience, but that of  other agents in Loudoun and NoVA I've spoken with)
3. Prices are holding steady
4. Less competition for sellers with their home on the market
5. Great time for sellers to sell their property if they're in the position to do so

The interesting thing is that the "spring market", which means more housing inventory on the market, typically starts in the middle of February or beginning of March. Here we are April 10 and the inventory is less than it was in January, February or March meaning that the "spring market" has yet to materialize (if it will at all).

Note: I do not include new construction listings in the MLS because they are extremely inaccurate. But, when looking at those, they plummeted as well so it just confirms that overall inventory in Loudoun is way down.

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