Fairfax County Real Estate Activity August 2006
September 9, 2006
| Fairfax Buyer Intensity |
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Red Bars: Sellers Market |
Green Bars: Buyers Market Gray Bars: Balanced Market |
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INVENTORY:
Inventory of homes for sale definitely peaked in June at nearly 9,200 homes on the market, declined slightly in July and then again in August. August shows a small decline to a little less than 8,700 homes for sale. Fairfax County sellers did get a smidgen of a seasonal bounce through the spring and early summer but sold inventory levels are in the average range below year 2000 levels and down 50% from the 2005 market peak.
HOME PRICE APPRECIATION:
Surprisingly, average home price appreciation is maintaining after a decline early in the year. Year over year is showing a 6% increase. Compared to surrounding jurisdictions, Fairfax County seems to be holding up much better.
DAYS ON MARKET:
Average time it takes to sell is higher at 67 days in August. With a slower sales season ahead of us I suspect this measure is going even higher.
SOLD TO LIST PRICE RATIO:
This ratio continues to decline and is now 93.6%, down 2 percentage points from last month. This is the "negotiated" ratio, SOLD PRICE as a percent of the LAST LIST PRICE. Buyers are getting about a 7% price reduction during negotiations.
NEW CONSTRUCTION (chart not yet available):
As of the end of August, the MLS is reporting 624 homes on the market with only 41 SOLD during the month, a 7% absorption rate. A lot of the excess inventory may be due to Condos being overbuilt and investors trying to flip. Reminder: new construction data in the MLS is very unreliable. 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. Year over year is showing a 6% increase. Compared to surrounding jurisdictions, Fairfax County seems to be holding up much better.
DAYS ON MARKET:
Average time it takes to sell is higher at 67 days in August. With a slower sales season ahead of us I suspect this measure is going even higher.
SOLD TO LIST PRICE RATIO:
This ratio continues to decline and is now 93.6%, down 2 percentage points from last month. This is the "negotiated" ratio, SOLD PRICE as a percent of the LAST LIST PRICE. Buyers are getting about a 7% price reduction during negotiations.
NEW CONSTRUCTION (chart not yet available):
As of the end of August, the MLS is reporting 624 homes on the market with only 41 SOLD during the month, a 7% absorption rate. A lot of the excess inventory may be due to Condos being overbuilt and investors trying to flip. Reminder: new construction data in the MLS is very unreliable. More may have sold but we won't know the real number for several months.
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