Loudoun County Real Estate Activity February 2007
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March 11, 2007
| Loudoun Buyer Intensity |
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Red Bars: HOT (Sellers Market) Blue Bars: COLD (Buyers Market) Gray Bars: Balanced Market |
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INVENTORY:
After a sharp decline the past few months, inventory of homes for sale leveled off and then ticked back up in February. Active listings are up by 38 homes to the 2,900 level. New contracts are down 73 homes. New listings are also down by 109 properties. Inventory absorption rate (new contracts / total active inventory) remains a low 15%, down slightly from January. Actual closings (sold) are up by only 12 homes.
HOME PRICE APPRECIATION:
Average appreciation is down nearly 8% from February 2005. Price declines reversed the trend in November rising 1%, 2.5% in December and a surprising 8% in January. Equally surprising is a February 13% drop from last month. The median price is flat month to month.
DAYS ON MARKET:
Average time it takes to sell is 135 days, down slightly from last month. As of today (March 11), days on market for re-sale properties is 141 days (see Loudoun Daily Market Watch).
SOLD TO LIST PRICE RATIO:
The "negotiated" ratio is down another percentage point to 91.4%. Successful sellers that lowered their price are still giving buyers another 8 to 9% during negotiations (plus seller subsidies that are not "officially" reported).
NEW CONSTRUCTION:
As of February 28th, the MLS is reporting 593 new homes on the market with only 32 closed, a very low 5% absorption rate. These numbers may 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. 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.
Average appreciation is down nearly 8% from February 2005. Price declines reversed the trend in November rising 1%, 2.5% in December and a surprising 8% in January. Equally surprising is a February 13% drop from last month. The median price is flat month to month.
DAYS ON MARKET:
Average time it takes to sell is 135 days, down slightly from last month. As of today (March 11), days on market for re-sale properties is 141 days (see Loudoun Daily Market Watch).
SOLD TO LIST PRICE RATIO:
The "negotiated" ratio is down another percentage point to 91.4%. Successful sellers that lowered their price are still giving buyers another 8 to 9% during negotiations (plus seller subsidies that are not "officially" reported).
NEW CONSTRUCTION:
As of February 28th, the MLS is reporting 593 new homes on the market with only 32 closed, a very low 5% absorption rate. These numbers may 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. 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.
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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