Are prices falling? With stable employment and low interest rates, I cannot imagine why prices would not be stable. Sterling is still way above the December lows of two years ago. Sterling has a great housing stock of all sizes, prices and ages. At the present rate of sales and inventory, Sterling has less than a three months supply of homes, and six is considered a balanced market.
After reporting last month that prices in Leesburg were down 20% from one year ago, this month shows that prices are up 15% when compared to December 2008. Since December 2008 was the lowest point for home prices in most of the Northern Virginia market, going forward the price comparisons may get harder to beat.
Higher and higher, faster and faster, the market in Sterling, Virginia is on the move. Each month, the average sales price in Sterling keeps going up and is now 24% higher than one year ago.
The average sales price took a big jump back to where it had been tracking 60 days ago. Last month’s big drop was a statistical aberration caused because the majority of what was sold was comprised of lower priced properties.
In Leesburg, there are houses of every size, age and type imaginable. Therefore a buyer can certainly find what they want at a price of their choosing. The report below represents the market conditions in Leesburg, Virginia.
The average sales price in Sterling keeps going up each month and is now 14.6% higher than one year ago. Also, the time it takes to sell a house in Sterling is less than half the time it was taking at the same point last year, when the average days on market was at 95 days.
The average sales price took a huge dive from last month in large part because the majority of what was sold was comprised of lower priced properties. As a result, the average sales price dropped from $424,550 to $382,665. Common sense tells us that the market did not drop by 10% in one month. What we're faced with now is a statistical anomaly that should smooth itself out over time.
The average sales price of $400,991 is up 15% from the same time last year. Meanwhile the median sales price of $344,000 is up only 6.9% from the same period one year ago. The selection of houses available to purchase has been reduced by 26% from one year ago and is up 5% from last month. Interest rates of approximately 5.25% and today’s prices keep the affordability index very high for both first-time and repeat buyers. Buyers are out in force to take advantage of these favorable trends.
A popular residential area for Washington, DC commuters, Sterling is located in the northeastern section of Loudoun County, one of the fastest growing counties in the nation. Nearby public parks include Sterling’s Algonkian Regional Park and Claude Moore Park. In addition, there are several historic battlefields within a one hour drive in all directions. Dulles Town Center and the Leesburg Corner Premium Outlets provide lots of retail and restaurant choices.
What is interesting in preparing our reports is that we always pull the current month, the previous month of this year, and the current month of one year ago. Looking at the average sales price progression: September 2008 - $412,727, August 2009 - $421,493, September 2009 - $424,550, we notice a steady upward march of average sales prices.