With the summer well underway, real estate activity in Loudoun County, continues at a fast clip with gains across the board. Heading into the 3rd quarter, a seller's market seems evident with a relatively low available housing inventory. This is especially evident with townhouse listings which not only have the lowest inventory stock per housing type but are also selling at very close to full price. The difference is fairly negligible – the most recent RBI figures shows a ratio of 99.5%. Overall, the market through the first two quarters of the year has shown solid gains in sales prices and total units sold, along with shorter days on market.
According to Forbes, Loudoun County tops the charts as the richest county in the entire nation. Rich in history, this part of the Washington metropolitan area is well known for its lush countryside, beautiful homes, local wineries and equestrian sports. Once dependent on agriculture, the region's modern-day economic growth has been largely fueled by government contractors and the tech sector. Loudoun County's recovery from the national housing crisis of 2007-2008 has been steady and sustained, without the same volatility experienced by Prince George's and Montgomery County in neighboring Maryland.
The most recent sales data for Loudoun County shows a gain of 9.4% in medial sales price from the 2nd quarter of 2012 to the same period in 2013. This is above average for Washington Metro on whole, which showed an 8% growth. It's also worth noting that the sales to list ratio for single-family detached homes is nearly as strong as townhouses, at 98.2%. Furthermore, the actual sales prices for townhouses remained relatively flat for the 12-month period. In other words, even though buyers were paying close-to-full price for townhouse units, their list prices did not accelerate at the same rate as single-family homes.
What comes next for Loudoun County? The seller's market will continue as tightening inventory, increased contract activity and an extremely tight sales-to-list ratio puts pressure on buyers. The days on market (DOM) is currently 38, the fastest sales pace in eight years. Also adding to the overall picture is a significant tightening in distressed sales inventory. In April, only 4.4% of all closed sales were attributable to bank owned properties. If there's a silver lining for buyers, it's the large jump in new listings. This is a relatively new trend and is being seen in many key Washington Metro markets as sellers look to take advantage of rising sales prices. Also worth noting is a strong increase in new home starts, particularly in Loudoun's new suburban subdivisions.
Andre Perez | District One Properties LLC | Realtor/Agent/Owner
1305 Leslie Ave, Alkexandria, VA 22301