Winchester, VA Market Report for the First Four Months of 2013

The Winchester, VA real estate market continues to improve as it crosses the first third of 2013.  The sales volume from January 1 through April 30 has been 406 closed properties.  The volume during the same period of 2012 was 389.  That's a 4% increase in closed properties for the first four months of 2013.  Four percent may not be earth shattering news, but it is a growing trend that seems to be gaining momentum.

The number of distressed sales during the first four months of 2013 was down to 29% of all sold properties.  Distressed properties made up 43.5% of sales in the first four months of 2012.  The change from year to year is a 33% decline.  That is more good news.  There are also less available distressed properties than at this same time in 2012. 

One of biggest shifts in the local market has been in the available properties.  The current available properties is at 470.  In 2012, the number was 513.  That's a 20% decline in available properties.  On a positive note, the number of distressed properties from the same period last year was at 15%, while the current market is at 11.3%.  The decline in distressed properties may be directly related to the decline in available properties, but there is no way to know that for sure.  It's a good sign if it is a trend that continues. 

The lower number of available listings is a sign that sellers, both homeowners and banks, are hanging onto their listings longer in hopes of getting higher offers from buyers.  Many properties are selling at/around/or above list right now.  Multiple offer situations are becoming the norm, and on some occasions, bidding wars are breaking out.  Has the market returned to the 2008 days?  Not at all. 

The overall loss of equity in this area was an average of 33%.  The small increases in price are a good sign, but they are not near the roaring 2000s, yet.  A nice steady incremental change is a little more comforting that a moon-shot increase.  Homeowners who bought in the early 2000s are starting to see their properties rise back to prices near their initial investment.  The buyers of the mid-to-late 2000s may take another decade to recover their losses, but the good news is that we are moving in that direction.