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.

Eastern Loudoun County Housing Supply By Zip Code

Here's a breakdown of the amount of housing supply in Eastern Loudoun County by zip code:

20152 - 3.8 month's supply

20148 - 3.9 month's supply

20147 - 2.6 month's supply

20166 - 3.3 month's supply

20165 - 1.9 month's supply

20164 - 1.7 month's supply

20176 - 4.8 month's supply

20175 - 4.0 month's supply

What do these "month's supply" numbers mean? The general rule of thumb is,

• more than 6 month's supply = buyer's market
• 4 to 6 month's supply = balanced/equal market
• less than 4 month's supply = seller's market

Sellers, don't get too excited - regardless of how little inventory there is on the market, you must price your property correctly or it will sit on the market collecting "Days On Market" and dust (more about this coming up in a post soon).

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