Supply and demand are both growing in Ashburn, reflecting a growing economy and increased consumer confidence. According to the statistics, we have a balanced market with just under a four month supply. The conventional wisdom is that a balanced market has a six month supply. So the current direction on prices is still indicating up.
- Homes for sale: 511 (up from 497 in May and up from 433 one year ago)
- Homes sold: 133 (about the same as May’s 131 and up from 123 in May 2009)
- Average sold price: $441,119 (down a bit from last month at $451,953 and about the same as $440,838 in May one year ago)
- Average days on market: 27 (the same as in May, but way down from 62 one year ago)
27 days on the market! A few years ago a 27 day average would have prices rising two percent or more per month. While fundamentals never change, there are times in every kind of market when things just get a bit out of whack. It happened in 2003-2006 when prices got bid to very high levels. While the statistics reflect a stable market, which is based on a comparison of month to month and one year ago, if we look back 18 months, we can see how far prices have come from their bottom in December 2008.
But c’mon, 27 days on the market?! When market times get that low and inventory is under four months, it is safe to forecast big price jumps. So that is my forecast.
Market report provided by David Hess, Executive Vice President, Avery-Hess, Realtors.
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