Loudoun Market Watch: Blizzards and Low Inventory Dampen Sales

By Editor · on March 15th, 2010 ·

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Loudoun Market Watch: Blizzards and Low Inventory Dampen Sales

Loudoun Market Watch: Blizzards and Low Inventory Dampen Sales

Loudoun Market Watch:  Blizzards and Low Inventory Dampen Sales

LEESBURG – Preliminary February results are in; the blizzards that bombarded Loudoun in February had a considerable negative impact on existing home sales activity.  The blizzards were partially to blame for the total sales decline in February to 242 units from January’s revised but still low total of 262 units

(-7.6 percent month-over-month). Besides the bad weather, a lack of inventory was the other contributor.  Compare the total number of active listings in February 2010 (1,236 units) to the total in February 2009 (2,320 units).  That’s a year-over-year decrease of a whopping 47 percent.  Since about 43 percent of the preliminary total sales during February were distressed (either short sales or foreclosures), it appears that sellers were reluctant to put their homes on the market in recent months unless they had an urgent need to do so (if they were facing pre-foreclosure or an upcoming relocation, for example).

Pending sales declined about 3 percent from January, presumably due to the relative lack of inventory and the snow storms.  While the preliminary month’s supply of inventory exceeded five months for the first time since May 2009, it was still within in the parameters for a market in equilibrium (where there is enough supply to satisfy demand).  This suggests that sales declined due to low inventory levels.    For the second consecutive month, thetotal number of preliminary attached unit sales exceeded the total detached unit sales

Other factors were at work though.  The market was showing increasing stability and had several positive indicators in February.  First and foremost, the preliminary median sales price reached $340,000, up a significant 5 percent compared to January.  Prices have notably stabilized in Loudoun since the dark days of 2008; the median was $340,000 or more for seven of the last nine months.   Likewise, sellers were pricing their homes to meet market demand; the preliminary average close price to original list price ratio reached 96.4 percent in February.  That was the highest monthly ratio in the last four years.  And, it has equaled or exceeded 95 percent for seven of the last eight months.

The preliminary average seller subsidy declined 30 percent from last February and remained essentially unchanged between January and February.  Another indicator of a stable market was the average days on market – the figure declined to 51 days from  70 in January and posted the fifth time in six months that it was below 60 days.

As far as sales activity for distressed units was concerned and drilling down to the subdivision level, the Sterling Park neighborhood has accounted for 13 percent of the total distressed sales in Loudoun so far this year.  Distressed active and pending listings in Ashburn Village, South Riding and Belmont represented 15 percent of the county total in February.

For a copy of the latest report, visit www.dullesarea.com. For questions on DAAR’s housing market statistics contact Rosemary deButts, 540/338-2212, rdebutts@1757realestate.com.

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This entry was posted on Monday, March 15th, 2010 at 8:17 am and is filed under Loudoun County Virginia Home Sellers, Northern Virginia Home Sellers. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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