Buyers are asking, “Where can I find a home to buy in Northern Virginia”?
That’s a good question, and I have the answer – “New Construction.” With interest rates “still” at historic lows and the lack of inventory of available resale homes, buyers are streaming to new home builders.
“What does this do for homeowners in Manassas Park?”
In general, new construction drives resale home prices, so as builders raise their prices (happening now), it tends to pull resale values up also. Do I hear a “Come on new construction!?”
So, why are buyers flocking to new construction? It’s simple – there is a lack of available homes for sale. The chart shows us there was a 20% decrease in new listings on the market in April of this year compared to last year. And as of May 1st, there are only 12 available homes for sale. You would have to go back to 1999 to see numbers that low.
Why is inventory so low? Homeowners have been staying put, waiting for their values to increase back to 2008 levels. Are they ever going to get back to 2008 levels – probably not. That was a crazy market most of us hope will never repeat. Unless you want to see the bubble burst again, let’s just keep a steady pace of 2-5% yearly increases.
|Days on Market Until Contract||21||51||-58.82%|
|Average Sales Price||$231,756||$208,028||11.41%|
|Avg SP to OLP Ratio||98.80%||98.10%||0.68%|
|Detached Avg Sold Price||$275,580||$228,200||20.76%|
|Attached Avg Sold Price||$211,836||$177,770||19.16%|
|Detached Units Sold||5||12||-58.33%|
|Attached Units Sold||11||8||37.50%|
The average sales price for April 2012 was 11.41% higher than last April which is more of a correction from the big drop we had from the fall of 2008-2010. We should see pricing stabilize next year as more sellers decide to list their homes for sale, bringing inventory back in line with demand.
For professional real estate service, do not hesitate to call the Realtors at Avery-Hess. Our phones are always on! 703-492-6500.
Market data and commentary provided by Mark Holyfield, Managing Broker, Lake Ridge Avery-Hess, Realtors.
Search for homes in Manassas Park, and all the DC Metro: www.averyhess.com