Home Buyer Demand, Sales Up Across Loudoun and Fairfax County

Home buyer demand/sales in Loudoun County were up 11 percent in the 3rd quarter of 2009 over the 3rd quarter 2008. And it’s up 53 percent over 2007. (Buyer demand is defined by the number of homes that go under contract during a set time period)

Fairfax County had an 18 percent increase in home buyer demand/sales in the 3rd quarter 2009 over 2008. And it’s up 62 percent over 2007.

Why the increase?

1. Lower prices – prices have come down considerably since the peak making it more affordable and appealing for home buyers. And the less expensive something is, the more people can afford it
2. Low interest rates – interest rates hit historical lows and are still very low. Lower interest rate = greater purchasing power
3. Programs/benefits – Programs such as the $8000 first-time home buyer federal tax credit has helped spark demand (click here for more info on first-time home buyer tax credit). I’ve worked with more first-time home buyers this year than in any of the last 6 years (and it’s only October). Other programs such as the Freddie Mac HomeSteps SmartBuy program have also helped increased demand (click here for more info on Smartbuy program)

Will it continue?

Maybe. If rates remain steady and/or the tax credit get renewed or a similar program come out, then we’ll probably see home buyer demand steady or continue increasing (though I don’t think there’s room for too much more increase in buyer demand).

Maybe not. If rates creep up and/or the first-time home buyer federal tax credit not be renewed and/or (more) bad economic news come out, we may see buyer demand taper off or even decrease.

Who wins?

The buyers that purchased a home at a much lower price than years prior and at a low interest rate while taking advantage of the first-time home buyer federal tax credit made out the best.

Sellers came in at a close second – increased demand and very low inventory make for a winning combination when selling your home.

Leesburg Single Family Home Median Price up $35K

The median price of single family homes in Leesburg (20175 and 20176 zip codes) has gone up $35K since April. With inventory down 33 percent since 9/08 and buyer demand up, median prices have gone up. You can feel the effect of this in the housing market conditions in the area – Buyers have less inventory to choose from and more competition from other buyers while sellers are seeing more buyers coming through and competing for their property (if priced correctly) than since 2005.

Leesburg Single Family Home Median Price – up $35K

Leesburg Single Family Home Inventory – down 33 percent