Loudoun County Real Estate Showing Signs of Strength

During the month of April, the Loudoun County real estate market has showed signs of strengthening on both sides of the supply and demand equation.

Listings have remained steady at or near the 2600 mark for the entire month.  Currently at 2626, this shows that there hasn’t been the usual spike in new listings that outstrip the number of sales.  That was the case for 2005, 2006 and 2007 but not this year.

Demand has been very good for the month with 555 homes going under contract this month in Loudoun County with 2 more days left in the month.  In 2007 there were only 491 sales in the month of April.

Several new home builders left the area in the last couple of months including KB Homes.  This has decreased the supply of new homes in the area. 

Houses that are priced agressively are being greated by multiple contracts from buyers looking for good values.  There are a tremendous amount of buyers that have been on the sidelines for quite some time that are starting to jump into the market.   This listing in Sterling Park had 7 offers in 6 days.

We might not be at the very bottom but these four signs show that we are no longer in a freefall here in Loudoun County.

Historical Home Prices for Loudoun County – Jan 2005-Oct 2007

We are putting together some charts for the Dulles Area Association of Realtors and we thought we would share some of them with our readers. 

Here is an example of a chart showing three different prices for Loudoun County Home Sales.  It is a monthly chart and it compares the Average List Price of homes that went under contract during a calendar month with the Average Sales Price of the same homes.  The difference between the blue line and the red line illustrates the amount a buyer was able to negotiate off the list price of the average home.  In early 2005, you can see there was little if any difference between the two prices.  That started to change in the second half of 2005 and has slowly increased.  In just the last two months the percentage has gone from 97% to 95.8%. 

The Median List Price is the midpoint of the list prices for home sales during a calendar month.  Exactly half of the homes that sold during that month had a list price higher than the median and exactly half had a list price of lower than the median.  As you can see that median price remains below the average price and usually stays in a range of 85% to 90% of the average price.  However, in the month of October the median price set a new low of only 82% of the average price.  The actual dollar amount of this spread was $82,395.

A Million Dollar Home Sells every 3 days in Loudoun County

As of today, October 19th, exactly 100 homes have sold or gone under contract that were listed at or above $1,000,000 in Loudoun County since January 1st.  That is one home every 2.92 days.  Since the mortgage crisis occurred in mid-July, there have been 29 Million Dollar homes go under contract.  This is the same rate as prior to the meltdown. 

The subdivision leading the way in $1,000,000 sales is River Creek Country Club with 10, followed by Lansdowne with 8 and Beacon Hill with 6.

The highest priced home to sell this year was a 463 acre estate in Middleburg that was listed for $14,500,000 and sold for $12,500,000 in 42 days.

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