Loudoun County Residential Real Estate Inventory Continues to Fall as 2017 Ends

Loudoun County Residential Real Estate Inventory Continues to Fall as 2017 Ends

Loudoun County’s real estate market saw another decline in residential inventory, dropping to the lowest level in more than a decade, according to monthly data released earlier this week by the Dulles Area Association of Realtors.

According to DAAR, the Loudoun County market entered 2018 with 894 homes for sale, which is lower for the 30th consecutive month and 15.9 percent lower than a year ago. Based on sales over the past 12 months, the market has an inventory of 1.6 months.

According to Gibson International and Trulia.com, an inventory of between five and seven months is considered “normal” or “healthy.”

A low inventory of residential listings was one of the factors cited for high housing costs and lack of workforce-affordable housing in Loudoun County.

‘It is fairly typical to see less activity and fewer listings in December,” said Holly Weatherwax, DAAR president for 2018. “We will generally see listing inventory continue to increase beginning in January and continuing into April and May. We are hopeful that the 2018 spring market will follow that pattern and takes some of the pressure off of pricing.”

The data was compiled by the Center for Regional Analysis at George Mason University based on MRIS multiple listing data from MarketStats and ShowingTime.

Other findings summarized in DAAR’s monthly report include:

  • The number of closed sales continued to decrease. December’s 467 closed sales represented a decline of 14.8 percent over December 2016. This is a continued sign of low inventory suppressing sales, as prospective buyers find both limited choices and climbing home prices. Overall in 2017, sales were up only 0.8 percent over 2016.
  • Furthermore, fewer home buyers signed contracts in December 2017 compared to last year; new pending sales decreased 17.9 percent to 359.
  • Price growth stalled as Loudoun County’s median home sale price reached $469,900 in December—a decrease of 1.6 percent on an annualized basis. Overall, however, 2017 saw a median price increase of 4.5 percent to $465,000.
  • New listing activity decreased in December versus last year (-13.5 percent). Loudoun County added 333 new homes to the market in December, the lowest number of monthly new listings in five years. Overall in 2017, 9,469 new listings entered the market – a decline of 2.4 percent from 2016. Entering 2018, there appears to be little potential of relief from the market’s consistently low supply of homes.
  • Loudoun County homes continued to sell faster than last year, with half of the December sales listing for 20 days or less—down from December 2016’s median of 24.
  • Loudoun County home sellers received, on average, 98.3 percent of original list price in December.
  • Sales of detached homes declined significantly in December — down 15.1 percent from last year with pending sales decreasing 27.6 percent. This is the lowest number of December detached homes sold in five years. The median sales price of detached single-family homes in December was $610,368 — unchanged from the previous year.
  • Among zip codes that consistently had over 20 sales per month in 2017, Aldie’s 20105 had the largest percentage growth of closed sales — up 20.8 percent over 2016.

To review Loudoun County existing housing statistics since 2000, including average sales price by month, visit dullesarea.com/2000-2016-housing-market-statistics-tables.

Joseph Dill