Loudoun County Housing Update: 2011 07Posted: August 10, 2011
Share of Distressed Sales Plummets
MRIS, the multiple listing service handling Loudoun County existing home sales and records, began requiring agents to designate distressed sales (short sales and bank-owned properties) in the first quarter of 2009 at the height of the foreclosure crisis in this area. At the time, 47 percent of Loudoun’s total home sales were distressed. Since then, the share of distressed sales has trended down and as of July 31, 2011, the share was only 20 percent here in Loudoun County. The graph below summarizes the monthly share of distressed sales since May 2009 and the red line indicates the overall trend.
Compare the July result in Loudoun to other areas in the metropolitan DC region:
Metro DC Share of Distressed Sales (July 2011)
- Loudoun = 20 percent
- Fairfax County and city, Arlington, Alexandria, Falls Church = 13 percent
- Prince William, Manassas, Manassas Park = 35 percent
- Prince George’s County, MD = 57 percent
- Montgomery County, MD = 18 percent
- District of Columbia = 9 percent
Existing home sales activity typically begins to decline in Loudoun County in July. 2011 was no exception but it did not post as sharp a decline from June to July this year as it did last year. Recall that the First Time Buyers Credit expired on June 30, 2010. Sales in the third quarter of 2010 suffered mightily last year. From June to July 2010, sales declined 30 percent from 577 units to 404. This year the decline amounted to 21 percent, from 574 units to 452. While that is good news, sales volume in July 2011 was the second lowest since 2006. The county is on pace to end the year with 5 percent fewer sales than last year and has the lowest year-to-date volume in six years (at least). There was a rare phenomenon in July…sales volume increased significantly in Western Loudoun (+12 percent) to reach a six year high. Both Eastern Loudoun and Leesburg had the more typical declines (-23 and -3 percent respectively).
Prices though are a bright spot. Over the last four consecutive months, the monthly median sales price in Loudoun has outpaced the median from the corresponding month in 2010. It suffered a slight decline in July, from $400,000 in June to $389,000, but was 2 percent higher than the July 2010 median ($382,000). It was wonderful that Western Loudoun volume increased but the problem was that the median sales price there dropped a full $100,000. Since sales in Western Loudoun only accounted for 15 percent of the county’s total, its 23 percent median sales price decline resulted in an overall county median sales price decrease of only 3 percent.
Other July results include:
- The average seller contribution was $3,656, about equal to the 2011 average of 3,681;
- Average days on market was 52 days falling below the corresponding month in 2010 for the first time this year and the 2011 average is 24 percent higher than the 2010 average;
- In 2011, 55 percent of sales were detached homes, 40 percent were attached homes and 5 percent were condominiums;
- The average close price for detached homes was $523,882 in July;
- The average close price for attached homes was $308,613;
- The average close price for condominiums was $175,760;
- The 2011 average attached home and condominium monthly sales were down 10 percent and 33 percent respectively from the 2010 monthly average;
- Even though detached and attached prices were slightly higher in July than the 2010 average, the average condominium price was 5 percent lower than the 2010 average;
- The number of active listings has stabilized in the 1,500 range over the last four months;
- Pending sales declined 20 percent from June (377 vs. 473 in June and 488 last July);
- For the fourth consecutive month, the average close price to original list price ratio exceeded 95 percent; and
- The month’s supply of inventory amounted to 3.4 months for the entire county and was only 2.7 months in Eastern Loudoun (posting the fourth consecutive month less than 3 months).
For more detail on the Loudoun County housing market, please see: Loudoun County Housing Analysis 2011 07