Fairfax County Real Estate Activity July 2006
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Red Bars: Sellers Market |
Green Bars: Buyers Market Gray Bars: Balanced Market |
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INVENTORY:
It appears the inventory of homes for sale peaked in June at nearly 9,200 homes on the market. I say peaked because July shows a slight decline to a little less than 9,100 and our Daily Market Watch is showing a further decline to 8,300 homes for sale. Like Loudoun, it is NOT because of more homes being sold because both new contracts and settlements are also declining somewhat. It appears the small reversal in inventory is mainly due to sellers not re-listing when they withdraw or when listing contracts expire. Fairfax County sellers did get a little seasonal bounce through the spring and early summer but sold inventory levels are in the average range below year 2000 levels and down 45% from the 2005 market peak.
HOME PRICE APPRECIATION:
Surprisingly, average home price appreciation is maintaining after a decline early in the year. Fairfax County might see a "softer landing" than the surrounding jurisdictions.
DAYS ON MARKET:
Average time it takes to sell reached a high of 62 days in February, declining to 50 days in June and then a reversal to 59 days in July. This also appears to be headed even higher based on the rolling 30 day accumulation we provide on the Front Page Daily Market Watch (61 days as of this writing).
SOLD TO LIST PRICE RATIO:
This ratio continues to decline and is now 95%. This is the "negotiated" ratio, SOLD PRICE as a percent of the LAST LIST PRICE. Buyers are getting a 5% reduction during negotiations.
NEW CONSTRUCTION (chart not yet available):
As of the end of July, the MLS is reporting 667 homes on the market and we measure only 46 SOLD during the month. A dismal 7%. We see builder incentives being offered everywhere. Reminder: new construction data in the MLS is very unreliable. Many more may have sold but we won't know the real number for several months.
Surprisingly, average home price appreciation is maintaining after a decline early in the year. Fairfax County might see a "softer landing" than the surrounding jurisdictions.
DAYS ON MARKET:
Average time it takes to sell reached a high of 62 days in February, declining to 50 days in June and then a reversal to 59 days in July. This also appears to be headed even higher based on the rolling 30 day accumulation we provide on the Front Page Daily Market Watch (61 days as of this writing).
SOLD TO LIST PRICE RATIO:
This ratio continues to decline and is now 95%. This is the "negotiated" ratio, SOLD PRICE as a percent of the LAST LIST PRICE. Buyers are getting a 5% reduction during negotiations.
NEW CONSTRUCTION (chart not yet available):
As of the end of July, the MLS is reporting 667 homes on the market and we measure only 46 SOLD during the month. A dismal 7%. We see builder incentives being offered everywhere. Reminder: new construction data in the MLS is very unreliable. Many more may have sold but we won't know the real number for several months.
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