We saw a big statistical fluke in Sterling for the July closings. Read the details below:
- Homes for sale: 467 for sale at the end of June and July (very stable! 454 in May, 470 in April, 460 in March and down from 491 one year ago.)
- Homes sold: 89 sold in July. (Way down from the tax credit frenzied 133 in June. And down from 135 one year ago when another tax credit was in place.)
- Average sold price: $305,155 (down from $305,155 one year ago.)
- Average days on market: 42 ( very stable, 39 in June and 32 days one year ago)
Note that in the past 13 months prices in Sterling had risen from an average of under $320,000 to over $365,000. Then suddenly with the July closings, we saw an average sales price of only $305,155. This tells me that we had an absence of higher priced units selling and that had the effect of a big drop in the averages. We went from 133 closings to 89. The big difference was the majority of these closing were lower priced houses. Much of the trade up market took the opportunity to buy and close in time to get the tax credit. As the market stabilizes in the absence of any more government stimulus, it is this writers hope that there will be no more government intervention in the market so the market can normalize without stimulus. Stimulus, or even the expectation of a stimulus, distorts the market by influencing behavior. It is also very expensive to our national budget, since in a majority of cases we are paying people to do what they were going to do anyway.
Commentary and analysis provided by David Hess, Executive Vice President.
Search for homes in Sterling, VA and the entire DC Metro: www.averyhess.com