Western Loudoun County Analysis: 2011 07Posted: August 8, 2011
Record Breaking Home Sales in July
According to the Metropolitan Regional Information Service (MRIS), the 67 home sales during July in the Western Loudoun area (consisting of Middleburg, Purcellville, Round Hill, Hamilton, Lovettsville and Waterford) increased 12 percent from June and reached its highest monthly level in at least four years. In fact, 2011 sales through July have outpaced total sales from January to July 2010 by 11 percent and beat the 2009 total through July by 23 percent. In a typical year, the highest monthly sales in Western Loudoun are posted in June or July so we can expect monthly sales to decline through the rest of the year.
By contrast, home sales declined from 574 units in June to 452 in July for the entire county (-23 percent).
The table below lists July sales by area. Purcellville regained its dominance by posting 39 percent of the total sales last month in Western Loudoun in addition to a 53 percent increase over June and an 86 percent increase over last July. Middleburg’s five sales in July represented a 400 percent increase over the one sale it had last July.
Although Western Loudoun posted stellar home sales in July, the median sales price took a huge hit. The median in both May and June was $435,000 in Western Loudoun. In July, it dropped 23 percent and $100,000 to $335,000. A whopping 51 percent of the increased number of sales in July were priced between $200,000 and $399,999 and only one home sold at a price higher than $1,000,000. Compare that to June when only 33 percent of sales were priced in the $200,000 to $399,999 range and 3 homes sold for more than $1,000,000. The good news though is that the year-to-date median sales price only decreased $5,000 from June to $410,000 which is equal to the 2010 median. The median sales price more than doubled last month in Middleburg, the only Western Loudoun area to see a month-over-month increase. Although not shown above and interestingly, the year-to-date median sales price in Waterford is $749,000 while it is only $550,000 in Middleburg.
Typically, homes in Western Loudoun are on the market longer than those in other areas of the county. For example, the average days on market in Western Loudoun during July 2011 amounted to 87 days, down from a revised 114 days in June and 60 days last July. By contrast, homes sold in only 41 days on average in Eastern Loudoun during July while the average was just 61 days in Leesburg. Since January 2010, the lowest average in Western Loudoun occurred last July (60 days) and the highest was in January 2010 (235 days).
Thirty homes (45 percent) sold in 30 days or less last month with an average close price of $350,480. Compare that to 52 percent across the entire county with an average close price of $401,527. There were three closings in Western Loudoun during July that took longer than a year to sell; the average close price of these units was $786,000. They combined with three others in Eastern Loudoun and Leesburg to bring the county total to six units during July that were on the market over a year; the average close price of all six was $713,750.
Like sales totals, the days on market indicator varies significantly by individual market. Lovettsville had the lowest July average with 43 days while the average in Middleburg was 208 days (one of the five was on the market 508 days).
The average close price to original list price ratio may reflect two things: sellers’ ability to accurately price their homes to match market conditions and/or their willingness to negotiate price. The ratio decreased in July to 91.9 percent from a revised 94.9 percent in June. Western Loudoun normally has the lowest close price to original list price ratio; it was 96.5 percent in Eastern Loudoun and 94.8 percent in Leesburg last month. Here in the west, the lowest ratio occurred in Hamilton (86.0 percent) and the highest was found in Waterford (94.2 percent).
In June, eight townhouses sold in Western Loudoun at an average price of $209,113. The average price for the 59 detached homes sold last month was $426,211. Condominiums are not a factor in Western Loudoun.
The year-to-date share of short sales and foreclosures (24.6 percent distressed sales) in 2011 is the result of five consecutive months of declines from February to June. Compare that 24.6 percent to this time last year when the year-to-date share of distressed sales was 34.9 percent. Middleburg and Waterford have had only one distressed sale each so far this year explaining their low shares while the percentage exceeds 23 percent in the other local areas.
Even though the month’s supply of inventory reached its lowest point this year in July at 5.8 months, it is considerably higher in Western Loudoun than elsewhere in the county. Note that the months of supply in Eastern Loudoun was 2.7 months during July and it was 4.0 months in Leesburg. West of Leesburg, Waterford had the highest available inventory at 18.5 months and Round Hill had the lowest at 4.1 months of supply in July.
Spotlight on Round Hill
Through the end of July, 69 homes sold in Round Hill this year representing 21 percent of the Western Loudoun total. That’s an average of about 10 homes per month which matches the 2010 pace. The year-to-date median sales price was $370,000 at the end of July, -1 percent from the 2010 median of $373,000. About 51 percent of Round Hill’s 2011 sales were priced between $200,000 and $399,999, another 25 percent were in the $400,000 to $599,999 range. The average days on market in Round Hill was 115 days in June; it declined to 86 days in July. The close price to original list price ratio was 93.9 percent in July, a far cry from 64.3 percent in February. So far this year, 30 percent of Round Hill sales were distressed (one of the highest ratios in Western Loudoun) but the month’s supply of inventory, at only 4.1 months, is the lowest in the west and suggests it may be on the verge of being undersupplied.
Western Loudoun had a shocking number of sales in July, posting the highest monthly sales figure in years, something the county as a whole cannot claim. However, the dramatic decline in the median sales price is troubling and hopefully a one-month anomoly.
Rosemary deButts, Realtor, is associated with Atoka Properties located in historic Purcellville. She has the Short Sales and Foreclosure Resource certification and is a Member, Institute of Residential Marketing. Rosemary earned her degree in Economics from Randolph-Macon Woman’s College and her MBA from Old Dominion University. For more information on the Western Loudoun housing market and guidance in buying or selling a home, contact Rosemary today (firstname.lastname@example.org; 540-454-6792; http://www.housinganalyst.net).