Winchester-Frederick County, VA Third Quarter Real Estate Market Report – 2017

Winchester-Frederick County, VA Third Quarter Real Estate Market Report – 2017

The Winchester-Frederick County, VA third quarter real estate market for 2017 showed continued growth and stability. The numbers that need to be up are up and the numbers that should be down are down. That’s good news for buyers and sellers.

Winchester-Frederick County, VA Third Quarter Real Estate Market Report – Up Numbers

For sellers, the average price of a three bedroom 2 bath home has climbed consistently for the past five years. The current average price is $279290. That is a 17% increase from the 2013 average sales price of $233113. For sellers, that’s a welcome change from the difficult days of the recession.

The number of home sales is consistent with the past five years. The number of home sales in the third quarter of 2017 was 452. The average over the past five years is 456. Where the real change in the local real estate market can be seen is when you look back to the recession and follow the recovery as it unfolded.

Winchester-Frederick County, VA Third Quarter Real Estate Market Report – Where we’ve been.

The recession did not take full effect until 2009. In 2009, third quarter home sales were 378 and Winchester-Frederick County, VA Third Quarter Real Estate Market Report - 201751% of those sales were distressed properties (foreclosures and short sales). It took an average of 93 days for a home to get to closing. The average home sale was $199640. Compare that to the same period in 2007 and you see that home values dropped 37%. An average home sale in the third quarter of 2007 was $315968.

Shift forward to 2017 and home values have not recovered to that 2007 point, but they have reached a true market value and not the inflated value of 2007. Current market values are now off 12% from the same period in 2007. That gives you some sense of the how inflated prices had risen in the pre-recession years. The current market values have increased in a steady pattern since 2013.

Winchester-Frederick County, VA Third Quarter Real Estate Market Report – Steady improvements

Third quarter price increases rose 4.5% in 2014, 4.4% in 2015, 5% in 2016 and 3.6% in 2017. Third quarter numbers are still being calculated nationwide, but the second quarter numbers give us a glimpse into the nationwide market stability and how it compares to our local market. The second quarter price increases came in at 6.2%. The Winchester-Frederick County third quarter real estate market is right in line with the majority of the nation.

With a steady, and healthy, increase in home values, and a radical drop in distressed properties since the worst days of the recession, it is easy to say the Winchester-Frederick County, VA real estate market is strong a vibrant. There is little concern or worry about bubbles looming on the horizon.

It is a good time to buy, and it is a good time to sell. Interest rates are still at historical lows and homes that are ready to sell, sell quickly and for values near their list price. A 1% – 2% sale discount is common, and discounts exceeding those numbers may show that a property was overpriced for the current market environment at the time of list.

When you’re ready to buy your dream home on the Winchester-Frederick County, VA real estate market, give Cornerstone Business Group, Inc., a call. We are your local sales pros. And, we can do the same when time comes to list your amazing home. Gives us a call, and let’s make something great happen.

 

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Winchester/Frederick Co., Housing Market – September 2017

Winchester/Frederick Co., Housing Market – September 2017

The Winchester/Frederick Co., housing market slowed slightly in the third quarter of 2017, but the numbers are still good. The third quarter statistics followed the same pattern as September 2017.

Winchester/Frederick Co., housing market by the numbers

September saw 135 homes sold in the Winchester/Frederick Co., housing market. Of Winchester/Frederick Co., Housing Market - September 2017those 135 homes the average home sale was $279,955. Compared with the past five years, that is a 20% increase in sale price. The September 2013 average home sale price was $221,605.

The average days on the market has stayed consistent during that same five-year period with minimal changes. Three of the past four years experienced 64 days on the market for listings. The summer months typically see a slight decline in real estate sales with an upward movement beginning in early to mid-September. July tends to be a slower month for real estate sales in the Winchester/Frederick Co.

Winchester/Frederick Co., housing market – market health

One of the easiest ways to see if a market is healthy is by the volume of distressed properties for sale on the market (foreclosures and short sales). The distressed market in the local market has become a non-issue.

Winchester/Frederick Co., Housing Market - September 2017September 2017 only had 3% short sales and foreclosures. The third quarter of 2017 followed that down pattern with 4% overall distressed properties. Compared with the previous five years, September 2017 is 10% of the September 2013 distressed market. Those buyers looking for a diamond in the rough are having a much harder time finding distressed bargains.

Winchester/Frederick Co., housing market – slow down whys

It is customary for the local real estate market to slow down in the summer and pick up in the fall. That patter can be seen year over year, but this year is dealing with another issue.

The stock market has a saying that “stocks climb a wall of worry.” When there is turmoil in the world, the stock market tends to expand. It is actually the reverse of what you might think.

The real estate market is the opposite. The real estate market climbs the stairs of certainty. During every presidential election year, real estate takes a wait and see approach to expansion. If the election year is tumultuous, the real estate market may slow down to allow for certainty to evolve. It is likely to be replaced by a more average market once the polls close and the future has some direction based on candidate’s promises.

After inauguration, the market tends to set up a flow that will set the pattern for the year. The 2017 presidential year has been one of continuous uncertainty. Stocks continue to thrive, and real estate is still following a modified wait and see pattern. The third quarters of 2015 and 2016 were more prolific than 2017, but they were also climbing the stairs of certainty. The flow did not change radically, but it did see some adjustments as election day approached.

The current housing market has paused on landing of political wrangling in Washington, D.C. The National Association of Realtors recently revealed that pending home sales have dropped 2.6% nationwide. Uncertainty in Washington, D.C., affects housing on Main St, USA.

The Winchester/Frederick Co., housing market is mimicking the national market flow with the its improvements and cautions. The fourth quarter will tell the tale of 2018. If the next quarter follows the patter of the past five years, the 2018 real estate market will be strong. If Washington, D.C. continues to be a quagmire of dysfunction, investors, sellers and buyers will have to deal with a level of uncertainty while the market tries to expand.