Although many people look at the median home sales prices in Loudoun County year over year to look at trends and the direction of the market, it is not a great indication of the market.
Because depending on the mix of the home type that sold (ie single family home, condo, townhouse), the sale price metrics can vary wildly and will not give you an accurate picture. Instead, you should be looking and the real estate price trends in your particular neighborhood and housing type.
If you would like a detailed pricing trend for your neighborhood - please contact us and we can get a monthly market update sent to you via email.
Beyond the home prices, there are other metrics that we review on a monthly basis to help determine the real estate trends in the area. The average days on the market and the months of supply are two great indicators of the trends and if it favors the buyers or the sellers.
Average Days on Market for Loudoun County Real Estate for April:
What does this chart show us? The year over year average days on market has grown from 26 days to 40 days - an increase of 56%. This is a substantial increase! But when you look at the trending in the last 6 months, the average days on market has dropped dramatically. This is a very positive sign for home sellers meaning that there is good demand for home in the area based on the current inventory of homes.
Loudoun County Months of Supply of Inventory for April:
The months of supply for April 2015 is 3.2. What does this mean? It means if no more homes go on the market, it would take roughly 3.2 months to sell all of the homes on the market in Loudoun County based on the current sales trends. Traditionally, if the months of supply of inventory is below 5.0, then it would be considered a "sellers market" and anything above a 5.0 would be considered a "buyers market".
Right now the inventory levels are considered a "sellers market" here in Loudoun County. The trends since Sept 2014 show the inventory levels have been reduced which is a positive sign if you are considering selling your home.
One item that home sellers should note - even though the overall market trend favors you, you still need to price the property correctly to get the home sold. If you are interested in our team providing you with a detailed equity analysis on your property, please contact us.