Loudoun County Housing Update: 2011 06Posted: July 8, 2011
The existing home market in Loudoun County had a good June. While unable to beat total sales in June 2010, the 553 preliminary sales represented a 31 percent gain over May and outpaced both June 2009 and June 2008. The table below illustrates the total sales activity and median sales prices from January to June in the last six years. Even though June had a strong sales rally, the year-to-date totals are still the lowest in at least six years. By contrast, the 2011 median sales price in Loudoun County continues to advance, reaching the highest point since 2007.
Of the 2,287 units sold in 2011 to date, the largest share was priced between $200,000 and $399,999 (44 percent). During May and June however, nineteen homes priced above $1,000,000 were sold (10 in May and 9 in June) – this is unprecedented in recent history. High priced homes contributed to the $410,000 June median sales price representing a 5 percent increase over May 2011 and June 2010 as well. Median prices advanced throughout the county. Eastern Loudoun posted a median of $388,450 in June, up from the revised May median of $360,549. In Leesburg, the median increased from $410,000 in May to $420,000 in June. Western Loudoun, which typically posts the highest median sales price, was $440,000 in June, up from $435,000 in May.
As shown on the following graph and for the fifth consecutive month, the share of distressed sales (short sales and bank owned properties) declined in Loudoun County during June to reach the lowest point since the multiple listing service began requiring these designations in early 2009. There were 78 short sales and 35 foreclosures among the preliminary 553 sales in June (20 percent). Compare that to 28 percent in May and 30 percent last June. In both Leesburg and Western Loudoun the share fell below 20 percent and in the historically troubled Eastern Loudoun portion of the county, the share has declined steadily over the last five consecutive months from 44.8 percent in January to 21.3 percent in June.
The average days on market indicator continued to tumble in June reaching the lowest point (53 days) since September 2010. With a dearth of active listings (almost 200 fewer than at this time last year), the month’s supply of available inventory was only 2.8 months in June. The market is onsidered to be in equilibrium (enough supply to meet demand) when the available inventory is four to five months. The June inventory level indicates that Loudoun is currently significantly undersupplied. This is especially evident in Eastern Loudoun with only a 2.1 month’s supply. Leesburg is dangerously low as well at 2.9 months. Western Loudoun posted its lowest inventory level this year in June at 6.4 months.
Representing 59 percent of total sales in June, 328 detached homes sold at an average close price of $543,936. Townhomes accounted for 36 percent of all sales with an average close price of $314,828 and the average close price was $188,661 for the 28 condominiums (5 percent) that sold last month.
Purcellville based real estate consultant Rosemary deButts summarized, “Total sales were unexpectedly robust in June but were still not strong enough to make up for the slow sales plaguing Loudoun during most of 2011. However, Loudoun’s supply deficiency and declining distressed sales have contributed to an ever-improving median sales price.”###
FOR MORE DETAIL, SEE Loudoun County Housing Analysis 2011 06