The real estate market in Loudoun, Virginia showed some signs of life in June as home sale prices went up. Thanks to eager buyers who flocked to the area seeking foreclosed homes sale and short sales.
But industry analysts noted that the vigorous market activity in June resulted to a drop in inventory. It used to be that buyers get to sift through listings containing 2,500 properties. Now, with sellers pulling their properties off the market to wait for a higher market value or instead, choosing to rent them, the number of homes for sale declined to 1,000.
They noted that there are plenty of buyers in a market with low inventory. They question whether buyers can endure the long wait they have to go through on a short sale deal or survive the competition in the foreclosure market.
Although far from the booming market in mid-2000s, real estate in Loudoun is starting to wake up from its slumber as discounted-priced distressed properties continue to attract buyers.
According to market data, there were 529 properties sold in Loudoun market in June, representing a 22 percent increase compared with May figures but 12 percent below than the previous year’s June numbers.
Home prices inch up in June by 5 percent compared with May. However, the June median home sale price of $340,000 was below 5 percent from the same month the prior year. Compared with last summer, supply of properties for sale in Loudoun is good only for 105 days, compared with last summer’s 7-month supply.
Aside from the rise in home sales price, the real estate market in Loudoun is also awash with more positive news including the reopening of Lennar’s sales center at Martin’s Chase development located in Ashburn and resumption of Brookfield Homes’ sales at the Goose Creek Bend. Sales of both real estate developments stopped due to the collapse of the housing market.
Industry analysts are optimistic about the market’s recovery. They put their hopes on first-time homebuyers whom they are sure would take advantage of the $8,000 federal tax credit.
They pointed out that properties in Loudoun have high interest rates, adding that when foreclosed houses that are under priced are placed on listings, sellers get multiple offers. Market data showed that 45 percent of the total home sales in the county involved a short sale or foreclosure.
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