The Winchester, VA real estate market update for February 2016 shows a few substantial changes from January 2016. The total number of homes closed in the Winchester / Frederick County real estate market was 97 compared to 81 in January. That's a 19% positive move in the local market.
One of the areas that showed a negative turn in the market is the volume of 
distressed sales. January had the best number of distressed sales since the market upheaval in September 2008. January 2016 closed only 5% in foreclosures and short sales. February 2016 increased to 12%, more than double the January numbers.
Is that a cause for alarm? Not necessarily, but it is a area to keep an eye on. Short sales and foreclosures bring market values down. Fortunately, the distressed properties sold in February were scattered throughout the city and county. That may be the saving grace in the numbers. No one area suffered more than another.
The bigger concern would be in the days on the market. January 2016 showed an uptick to 74 days on the market. Some of that increase could be a result of the TRID implementation in October 2015 which increased the estimated days till closing for many sales. The February number of days skyrocketed to 154. Here again, it more than doubled the previous month. The Herculean snowfall of January 2016 may be the culprit in the higher number. If you can't shop for a house, you can't buy one.
Another change from January to February was the average sale price. January 2016 had an average sale price of $247600. February's average sale price was $235387. That's a 5% sales price drop over 30 days, but remember, there were more homes sold in February. That alone could drive the numbers down slightly, but it doesn't give a full explanation for the decline.
Overall, the market is responding to typical seasonal adjustments. Cold weather, holidays, snow, rain, less daylight and a few other things will directly impact the real estate market. At this point, there is no reason to sound an alarm, but if the trend continues in the second quarter, it might be time to change your home sale or buying strategy.
When you're ready to sell or buy, remember to call your Cornerstone Business Group, Inc., agent. We are your local real estate sales pros.
Winchester, VA real estate market update for February 2016
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