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.

Fed Makes Huge Drop in Rates!!!

In the face of a huge housing crisis that is threatening to drag down the entire economy, the Federal Reserver dropped the widely followed Fed Funds Rate .75.  This puts the Fed Funds Rate at 3.5o%.  The fear of a recession is obviously higher than the fear of inflation. 

This size adjustment was not anticipated by many.   Most people felt they would lower the rate by .25 or .50.  This was the first .75 point cut since October 1984.  With the stock markets around the world falling and our stock market deteriorating on the fear of a recession the Federal Reserve has decided to make decisive moves.

The timing of the rate cut was not anticipated either.  This was an emergency cut ahead of their regularly scheduled meeting. 

Will it keep us out of a recession?  Only time will tell.

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