As the Loudoun County real estate landscape continually transforms, staying informed about key metrics is vital for buyers, sellers, and investors alike. Through our weekly Loudoun County Real Estate Market Update, we aim to provide you with valuable insights that will empower you to make informed decisions. Whether you’re a prospective homebuyer, a seller looking to navigate the market effectively, or an investor seeking opportunities, understanding these trends will be your compass in Loudoun County’s real estate journey.
Homes Sold: 24% Jump
The number of Homes Sold seems to be taking a rollercoaster ride over the past several weeks. The Loudoun County Real Estate Market experienced a 24% week-over-week increase this week, but that follows an 11% decline last week, a 49% increase the previous week, and a 41% decrease in early September.
However, it is important not to look at individual metrics in isolation. A deeper analysis reveals a clear relationship between Homes Sold and New Listings. The number of Home Sold has generally moved in line with New Listings, just with a 30 day lag. This makes sense since sales tend to close approximately 30 days after contract ratification and many homes are still selling within a few days of hitting the market.
Homes Under Contract: A Consistent Rise Continues
For the fourth consecutive week, Homes Under Contract continued to tick upward. This is also in line with the general upward trend in New Listings. With more homes for sale, it expands the available options for prospective buyers. This increased inventory often sparks greater interest and competition among buyers, resulting in more homes under contract. These two metrics moving together also indicates that buyer demand remains strong.
Active Listings: Active Listings Dip 13%
After three weeks of steady increases in Active Listings, the market saw a slight week-over-week decline. However, it is important to look at the actual numbers in conjunction with the percentages. Inventory levels are so low, a 13% decline translates to a difference of only 9 listings compared to last week. Traditionally, October also marks the time of year that Active Listings begin to decline. Potential sellers tend to avoid putting their homes on the market during the holidays. Many opt to wait for the spring market, but with buyer demand still high it could benefit sellers to hit the market before the end of the year.
Average Days on Market: Up Four Days
The average days on the market ticked up from 15 days last week to 19 days this week. This metric suggests that on average, homes are taking slightly longer to sell than in previous weeks. However, well-prepared homes that are priced right continue to sell quickly – usually in the first week. For buyers that means it is critical to tour a home when it first hits the market and to be prepared to make a quick decision. For sellers, this emphasizes the importance of carefully preparing your home for market and pricing it correctly to get the most attention from buyers.
List to Close Price Ratio: Holding Steady
Lastly, the average list to close price ratio continues to hover just above 100%. This indicates that on average, homes are selling at or slightly above list price. A close alignment of the list price and close price suggests a strong seller’s market. In such a scenario, sellers often have the upper hand, and buyers may need to be prepared to offer competitive bids to secure a property.
Despite metrics indicating a continued seller’s market, it may not be sustainable. Increased interest rates, limited supply, and rising prices create strain on potential homebuyers. However, buyers are continuing to choose home ownership over renting and finding ways to make it happen.For those looking to buy or sell in Loudoun County, staying informed and understanding the nuances of the market is crucial. Consider partnering with local real estate professionals who can provide up-to-date insights and strategic guidance tailored to your unique needs.
For our latest monthly analysis of the Loudoun County Real Estate Market, click here –> August 2023 Full Month Market Update
If you have specific questions about the Loudoun County Real Estate Market or need advice on your current situation, email us at [email protected]!