Lorton, VA Market Report – 7/4/13

04 Jul
July 4, 2013

Sellers are asking, “Is this a good time to sell my home in Northern Virginia?”

Good question, and I have the answer:  ABSOLUTELY!! 

Just look at the housing report below, comparing sales activity for May 2013 against May 2012. Sold prices jumped an average of 22% for all home types (single family, townhome, condo) with the largest jump for townhomes and condos at 27%, or $70,000.  But wait - detached single family homes sold for over $108,000 more than last year, too! I call this the “Big Bounce Back” from the price drop of 2007-2009. Check out the stats below then go to the next question sellers are asking…

 

May

 

2013

2012

+/-

New Listings

67

55

21.82%

Active Listings

64

76

-15.79%

Under Contract

96

109

-11.93%

Days on Market Until Contract

32

19

+68.42%

Closed Sales

61

37

+64.86%

Average List Price for Solds

$500,308

$397,558

+25.85%

Average Sold Price

$480,059

$393,481

+22.00%

Detached Avg Sold Price

$648,042

$536,535

+20.78%

Detached Units Sold

29

18

+61.11%

Attached Avg Sold Price

$327,825

$257,987

+27.09%

Attached Units Sold

32

19

+68.42%

“So, if my home values have gone up this much, why not wait until next year to sell when they may be even higher?” 

Another good question. Let’s look at what could affect mortgage rates and therefore home pricing in the next year: in the last week of May, Fed Chairman Ben Bernanke hinted that the Fed would cut back on its “Quantitative Easing” program. QE was initiated in efforts to stimulate the economy by buying Treasuries and Bonds, and Mr. Bernanke’s comments sent Stock and Bond markets reeling with volatility.  

In the weeks following, the Dow Industrials experienced seven days of 200-point swings, ending lower on five of those occasions. As a reminder, the folks at the Fed are the nation’s policymakers who set the country’s interest rates and monitor its general economic health. Mr. Bernanke ultimately confirmed “tapering” of QE at a late-June Washington news conference.

This discussion had the result of pushing interest rates from 3.35% at the beginning of May, up to 4.5% by the end of the June. If this continues, interest rates could very well be in the +6% range by the spring of 2014.  

So what could this do to home values in 2014? Best case scenario, values normalize to +2-4 % per year. Worst case, prices stabilize and drop in 2014. Either way, if you are thinking of moving, now is a great time to sell or buy. There is still a large pool of buyers waiting to purchase a home in Northern Virginia, so sell your home and then take advantage of “still” historically low interest rates to downsize or purchase your dream home.

Information obtained from statistics supplied by Metropolitan Regional Information Systems, and analysis and comment by Mark Holyfield, Avery Hess, Realtors, Lake Ridge Regional Office .

Erica Higgins

Administrative Manager & Marketing Assistant at Avery-Hess, Realtors
Front Royal
Office: (540) 631-9009
Email: ehiggins@averyhess.com

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