Loudoun County Real Estate Activity December 2006
January 11, 2007
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Red Bars: HOT (Sellers Market) Blue Bars: COLD (Buyers Market) Gray Bars: Balanced Market |
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INVENTORY:
Inventory of homes for sale continues a rapid decline. Active listings are down nearly 500 homes to the 2,900 level. Sold listings are up a little over 100 homes from November but, new contracts are only up about 30 homes. New listings are down 18% for the month. Inventory absorption rate (new contracts / total active inventory) remains a low 14%. Part of this trend is due to sellers withdrawing form the market in large numbers perhaps waiting until late winter to early spring to re-list.
HOME PRICE APPRECIATION:
Average appreciation is down11% from December 2005 and down 6% in just the last 3 to 4 months. Price declines reversed the trend in November rising 1% and up another 2.5% in December. It remains to be seen if average price has bottomed.
DAYS ON MARKET:
Average time it takes to sell is 101 days, down 19 days from last month. This is a bit misleading as the "official" reports contain new construction and December is always the month builders get their end of year rush to close and most of these are "info" only postings. As of yesterday (January 10), days on market for re-sale properties was 125 days (see Loudoun Daily Market Watch).
SOLD TO LIST PRICE RATIO:
The "negotiated" ratio rose a couple of percentage points to 93.3%. Successful sellers are drastically lowering their price and buyers are still getting another 7 to 8% during negotiations (plus seller subsidies that are not "officially" reported).
NEW CONSTRUCTION:
December is always a banner month for builders as they rush to clear inventory for year end. Regardless, sales of new construction remains in the doldrums. Huge incentives, price reductions, guaranteed home sale to get sellers to the closing table, and increasing incentives to agents bringing qualified buyers. For buyers: finished basements...sun rooms...closing costs...mortgage payments for the first year. As of November 30th, the MLS is reporting 659 new homes on the market with 107 closed in December. These numbers will change as builders are notoriously slow getting their sales posted in the MLS. There are always more for sale and under contract that are not reported.
Average appreciation is down11% from December 2005 and down 6% in just the last 3 to 4 months. Price declines reversed the trend in November rising 1% and up another 2.5% in December. It remains to be seen if average price has bottomed.
DAYS ON MARKET:
Average time it takes to sell is 101 days, down 19 days from last month. This is a bit misleading as the "official" reports contain new construction and December is always the month builders get their end of year rush to close and most of these are "info" only postings. As of yesterday (January 10), days on market for re-sale properties was 125 days (see Loudoun Daily Market Watch).
SOLD TO LIST PRICE RATIO:
The "negotiated" ratio rose a couple of percentage points to 93.3%. Successful sellers are drastically lowering their price and buyers are still getting another 7 to 8% during negotiations (plus seller subsidies that are not "officially" reported).
NEW CONSTRUCTION:
December is always a banner month for builders as they rush to clear inventory for year end. Regardless, sales of new construction remains in the doldrums. Huge incentives, price reductions, guaranteed home sale to get sellers to the closing table, and increasing incentives to agents bringing qualified buyers. For buyers: finished basements...sun rooms...closing costs...mortgage payments for the first year. As of November 30th, the MLS is reporting 659 new homes on the market with 107 closed in December. These numbers will change as builders are notoriously slow getting their sales posted in the MLS. There are always more for sale and under contract that are not reported.
Note: If you engage us to represent you in a new home purchase, we give YOU the agent incentive and in most cases a portion of the standard commission. Call for details.
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