Loudoun County Housing Inventory Cause for Caution

After a year of steadily diminishing housing inventory throughout Loudoun County, inventory has spiked over the last 2 months. After dropping almost 30 percent from the beginning of May 2009 to the middle of April 2010, inventory has spiked up almost 10 percent in a matter of a few weeks…

More Loudoun County housing inventory statistics…

• The number of new listings coming on the market in March 2010 was 50 percent higher than in March 2009 (1092 versus 727)
• The number of new listings coming on the market in April 2010 was 32 percent higher than in April 2009 (994 versus 752).

The increase in new listings and overall inventory may be a very welcome thing if you ask buyers. Most buyers can’t seem to find a home that meets their needs or they’re competing against multiple offers every time they do.

But if you’re a seller, that’s a different story. More homes on the market means more competition, lower selling prices and increased days on market.

Loudoun County housing inventory and the rate of new listings coming on the market is something we all need to keep our eyes on because if inventory continues to go up AND interest rates go up this summer as everyone is saying they will, the market will soften.