Some good news from Martin Crutsinger, an AP Economics Writer, reported this afternoon that sales of existing homes in February nationwide increased after six months of decline. Most experts and economists said it is too early to tell if the decline in the housing market is coming to an end.
There were actually some positive signs in the real estate market at the national level lately. New mortgage applications jumped up in the beginning of March for the first time in more than a month according to the Mortgage Bankers Assocation. Also, the pending home sale index didn’t decline in February as many predicted. It stayed flat. Finally, the Federal Reserve is keeping short term interest rates low. Could this mean real estate conditions are improving? I will keep you posted.
We are continuing to see an increase in activity at several of our listings. To follow up on my post from the middle of January, sales remained down in 20165 & Ashburn comparing 2007 vs 2008! In January of 2007 there were 66 contracts to ratify compared to 38 in January of 2008. That puts the number of ratified contracts down 42% for January in 20165. In looking at Ashburn, there were 183 contracts ratified in January of 2007 vs. 95 ratified contracts in 2008. That puts the number of ratified contracts down 48% in the Ashburn zip codes. We are seeing an increase in traffic and got a townhome under contract in Ashburn Village this weekend so we will see how sales continue in February!
Looking at the Loudoun County average sales price of homes monthly since 1996, a few interesting things stand out to me. First of all, the average sales price of homes in Loudoun County has steadily risen since 1996 at a rate of 4%-7% every year. In 2004 and 2005, the average sales price of homes increased dramatically. At the end of 2007, the average sales price in Loudoun County is down to about where it was in the middle to end of 2004. Furthermore, if the average sales price had continued at the appreciate rate prior to 2004, average prices would be about where they are now. The increased foreclosures and short sales doesn’t help but could it be that the “pricing adjustment” is almost over?
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