Loudoun County Real Estate Activity October 2006
November 11, 2006
| Loudoun Buyer Intensity |
|---|
|
Red Bars: Sellers Market |
Green Bars: Buyers Market Gray Bars: Balanced Market |
|
|
INVENTORY:
Inventory of homes for sale declined again in October following a seasonal trend. Active listing are down 367 homes to the 3,806 level. Sold and new contracts are at about the same level as last month. New listings are down 11% for the month. Inventory absorption rate (new contracts / total active inventory) remains at a low 10%. After waiting out the spring/summer buying season, buyers are now on the sidelines watching for more price declines. The good news for buyers: lots of homes to choose from!
HOME PRICE APPRECIATION:
Average appreciation is down 10% from October 2005. Down 7% in just the last 3 months. Considering 90% of all current re-sales included another $10,000 on average in seller subsidies, the real decline is even greater by about two percentage points to about 12%.
DAYS ON MARKET:
Average time it takes to sell is 106 days, slightly less than the 109 days last month. As of this morning, it crept back up to 109 days based on the rolling 30 day accumulation we provide on the Front Page Daily Market Watch.
SOLD TO LIST PRICE RATIO:
The "negotiated" ratio is again holding at 92 to 93%. Successful sellers are drastically lowering their price and buyers are getting another 7 to 8% during negotiations (plus seller subsidies that are not "officially" reported).
NEW CONSTRUCTION:
Incentives? Considerable! For buyers and agents alike. Recent ads are full of agent incentives: 5 to 6% of sales price...3% plus a $10,000 bonus. For buyers: finished basements...sun rooms...closing costs...mortgage payments for the first year. As of November 9th, the MLS is reporting 681 new homes on the market and only 12 new contracts in the last 30 days. A dismal 2% absorption. Average price for new construction is in the $775,000 range. There are more for sale and under contract that are not reported in the MLS.
Average appreciation is down 10% from October 2005. Down 7% in just the last 3 months. Considering 90% of all current re-sales included another $10,000 on average in seller subsidies, the real decline is even greater by about two percentage points to about 12%.
DAYS ON MARKET:
Average time it takes to sell is 106 days, slightly less than the 109 days last month. As of this morning, it crept back up to 109 days based on the rolling 30 day accumulation we provide on the Front Page Daily Market Watch.
SOLD TO LIST PRICE RATIO:
The "negotiated" ratio is again holding at 92 to 93%. Successful sellers are drastically lowering their price and buyers are getting another 7 to 8% during negotiations (plus seller subsidies that are not "officially" reported).
NEW CONSTRUCTION:
Incentives? Considerable! For buyers and agents alike. Recent ads are full of agent incentives: 5 to 6% of sales price...3% plus a $10,000 bonus. For buyers: finished basements...sun rooms...closing costs...mortgage payments for the first year. As of November 9th, the MLS is reporting 681 new homes on the market and only 12 new contracts in the last 30 days. A dismal 2% absorption. Average price for new construction is in the $775,000 range. There are more for sale and under contract that are not reported in the MLS.
Comment on Loudoun County Real Estate Activity October 2006. Follow this article is off. More articles like this one filed in: Loudoun County Market News
Subscribe to: 
Valid CSS and
