A Market Shift In Loudoun

Could the "Whisperers" be right (click to see original post)? June's month end reports for Loudoun suggest that may be the case. Although sales prices are down about 17% from last year; market activity is UP, with a 19% increase in the number of homes going under contract compared to the previous year. NAR says a "balanced market" carries about a 6 month supply of homes (meaning that at the current absorption rate, it would take 6 months for all the homes to go under contract). In Loudoun, as of the end of June, we're at just over a 5 month supply. It's also important to look for indicators of affordability and renewed confidence in the real estate market, like signs of investors and first time home buyers entering the market. One of the best indicators for this is the type of financing being used. - In June 2007, 94% of purchases where financed with conventional loans; with less than 1 percent being financed with a government backed loan like FHA or VA (typically used by first time home buyers); and just over 5% of the purchases were via loan assumptions or cash transactions (often indicators of investor purchases). - Comparatively, in June 2008, only 55% of the purchases were using conventional loans; over 30% were FHA or VA; and nearly 13% were purchased with cash or by loan assumption. Before you decide to buy or sell, contact an expert who can give you even more specifics about your area. But in general, in Loudoun, there are definately measureable signs of stabilization! A few words of caution.... A stabilizing market does not mean that prices will start to rapidly appreciate immediately. So, sellers, please don't convince yourself that by next year you'll be able to get more for your home than you can this year. To keep abreast of the sales going on closest to you, visit this web site to get a free market snapshot (it works throughout No. Va, regardless of your zip code) -www.20175homesales.com - you will need to enter your actual address and email so that the report can be properly generated and emailed to you automatically, and it will be updated monthly and resent until you unsubscribe or increase the frequency of updates you're receiving. There is no charge or obligation, and this is all handled automatically through the software program. The information is pulled straight from the MLS. And, buyers, don't put off that purchase since you think prices won't be increasing immediately - the lending world is changing daily and investors and first time home buyers are finding it harder and harder to be deemed worthy of a loan. Costs of some loans are going up and if you are paying more to borrow the money, then your "buying power" is reduced. Any first time home buyers hoping to get in "no money down" should be moving quickly. Recent legislation will be taking away the most popular national no money down program - a seller funded down payment assistance program combined with FHA. Those programs disappear if you have not closed on your new home by October 1st of this year - so move quickly! (You can read more about this at http://therealestatewhisperer.blogspot.com/2008/07/take-action-now-save-down-payment.html Call or email anytime with questions or comments - vchrisner@kw.com 703-669-3142 Visit my web site at www.VickyChrisner.com for many more resources.