Loudoun County, VA 1st Quarter Real Estate Market Update - 2018
The Loudoun County, VA 1st quarter real estate market had a great first quarter. The market continues to expand, home prices continue to climb and distressed properties continue to decline. It's going to be a sunny Spring.
Loudoun County, VA 1st Quarter Real Estate - Average Sales Price
There was a 6% average sales price improvement over the first quarter of 2017. The average home sale price was $516,700. In 2017, that number was $486,382. Most of the past five years have shown some level of improvement, but the 2017-2018 increase is the highest. The 2014-2015 average sales price increased 2.2%, but 2015-2016 dropped slightly at .02%. That quickly rebounded with a 1.4% increase from 2016-2017.
Loudoun County, VA 1st Quarter Real Estate - Number of home sales
The number of home sales in the first quarter has followed a similar pattern over the past five first quarters. In 2018, 1250 homes were sold. That was a minor decline (-4.8%) from 2017, which has 1313. The 2017 first quarter improved over 2016 by 4%, and 2016 first quarter improved 6% over the first quarter of 2015. The biggest jump in the past five first quarters was 2014-2015. That jump was 10%.
The challenge for 2018, and the most reasonable explanation for the small decline is the lack of existing homes on the market. The lower inventory that has plagued the country for the past nine months most certainly affected the volume of home sales. Now that Spring is upon us, the market is likely to show increased numbers over the same period last year.
Loudoun County, VA 1st Quarter Real Estate - Distressed properties are no longer distressing
The number of distressed properties also continues to decline. The first quarter only 2.9% of all sales in the distressed category. There were 17 short sales and 19 foreclosures. That is the lowest number in five first quarters. The 2017 market had 6.1% distressed properties and 2014-2016 averaged 7.5% over the three first quarters.
The nationwide foreclosure rate dropped to a 12 year low in 2017. The drop was 27% from 2016 to 2017. The largest change can be seen in the 2010 to 2017 market which was a drop of 76%. Currently, the national foreclosure rate is at the lowest it has been since 2005. The national first quarter foreclosure rate is below the pre-recession rates, and it has been for six consecutive quarters.
The Loudoun County, VA 1st quarter real estate market's 2.9% is a good sign for home sellers. The lack of foreclosures and short sales on the local market will give greater stability to local housing prices, and that can be seen in the continually improving average sales price.
Loudoun County, VA 1st Quarter Real Estate - Active listings and pending home sales
The current pending home sales in the Loudoun County, VA real estate market are now at 980. That number nearly eclipses the total sales for the first quarter of 2018. The average list price of the pending sales is $545,766. If that number holds or stays close through closing, the second quarter may see a rise in average home sale prices.
With lower than needed inventory, buyers are scrambling to buy homes soon after they hit the market. The current number of available existing homes in 1134. In a market as big as the Loudoun County, VA market, that is not many. There is some light at the end of the low inventory tunnel. The January 2018 inventory increased year to year by 13.35%.
If the trends of higher home sales, high average sales prices, lower distressed properties and improved inventory continues, the Spring is going to be very sunny for Loudoun County, VA real estate. When you're ready to list your Loudoun County, VA home, give Cornerstone Business Group, Inc., a call. We are your local real estate sales pros.