Average Price of a Home in Loudoun County
The average price of a home in Loudoun County jumped 14% year over year for the month of March. This is following the month of February 2013 where we saw the average price of a home in Loudoun County rise 10% when compared to February 2012. The average price of a home for March 2013 is $445,134 with is up from February 2013’s average home price of $433,927. This trend should continue and is expected to continue as inventory levels are currently lagging behind demand from buyers. We have seen the numbers for New Listings and New Pending Sales increase month to month, however these numbers continue to be down significantly when compared to last year at this time. The numbers of closed sales have increased when compared to yearly and monthly numbers.
Current Inventory Pushes Prices Up
Current inventory levels in Loudoun County are down over 11% when compared to March 2012. This is certainly having an effect on the average price of a home in Loudoun County as supply and demand is the most important factor effecting home sales. The downward trend for inventory has continued for some time now. With the approach of the spring market inventory levels should increase seasonally as expected however levels are still significantly off the mark from where inventory was a year ago. There is currently approximately 2.5 months of supply currently listed for sale. Given that 6 months supply is considered a balanced market and anything less is a buyer’s market you have to conclude that the upward trend for the average price of a home in Loudoun County will continue. Many in the industry are beginning to wonder if we are set up for another run up in prices and a potential bubble. There is significant competition in the market with agents and buyers reporting many multiple offer situations and the return of escalation clauses. As would be expected the Average Days on Market has decreased about 12% to 56 days compared to 64 days in March of 2012.
Spring Market Heats Up
As the spring market continues to heat up the average price of a home in Loudoun County should continue to improve. This trend should encourage homeowners who have been reluctant to test the market and list their homes. The current inventory levels are still low and sellers should expect to see prices continue to improve however it may still be some time for some homeowners in Loudoun County to recover lost value, there we areas that saw 30%-40% declines in their home value for the height of the market in 2005-06. For more information on homes for sale in Loudoun County or your neighborhood visit www.loudouncountylivingllc.com/sell