Loudoun County Real Estate Activity July 2006
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August 11, 2006
| Loudoun Buyer Intensity |
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Red Bars: Sellers Market |
Green Bars: Buyers Market Gray Bars: Balanced Market |
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INVENTORY:
Are we turning a corner? It appears the inventory of homes for sale is turning downward to a bit above 4,700 from a high last month of nearly 5,000. It is NOT because of more homes being sold because both new contracts and settlements are also declining. It appears the small reversal in inventory is mainly due to sellers not re-listing when they withdraw or when listing contracts expire. For a buyer's market, we see few buyers taking advantage of the good deals that are available.
HOME PRICE APPRECIATION:
Average appreciation declined by 4.3% from last years average. At a little over half way through the year, full year appreciation could easily see a 10% total reduction.
DAYS ON MARKET:
Average time it takes to sell reached a high of 84 days. This appears to be headed even higher based on the rolling 30 day accumulation we provide on the Front Page Daily Market Watch (88 days as of this writing).
SOLD TO LIST PRICE RATIO:
This ratio continues to decline and is approaching 94%. This is the "negotiated" ratio, SOLD PRICE as a percent of the LAST LIST PRICE. Successful sellers are drastically lowering their price and buyers are getting another 6% during negotiations.
NEW CONSTRUCTION:
Although new construction data is the most unreliable for reasons stated many times, the data we do have and what we read in the news indicates builders are struggling to write new contracts on "to be built" and "spec" homes. As of the end of July, the MLS is reporting 778 homes on the market and we measure only 48 SOLD during the month. A dismal 6%. Builder incentives continue to be hot item.
Average appreciation declined by 4.3% from last years average. At a little over half way through the year, full year appreciation could easily see a 10% total reduction.
DAYS ON MARKET:
Average time it takes to sell reached a high of 84 days. This appears to be headed even higher based on the rolling 30 day accumulation we provide on the Front Page Daily Market Watch (88 days as of this writing).
SOLD TO LIST PRICE RATIO:
This ratio continues to decline and is approaching 94%. This is the "negotiated" ratio, SOLD PRICE as a percent of the LAST LIST PRICE. Successful sellers are drastically lowering their price and buyers are getting another 6% during negotiations.
NEW CONSTRUCTION:
Although new construction data is the most unreliable for reasons stated many times, the data we do have and what we read in the news indicates builders are struggling to write new contracts on "to be built" and "spec" homes. As of the end of July, the MLS is reporting 778 homes on the market and we measure only 48 SOLD during the month. A dismal 6%. Builder incentives continue to be hot item.
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Alby made the following comment on August 11, 2006 5:43 PM
I'm watching that Inventory number.. 4,389 and falling. Keep on coming down...
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