Loudoun County, VA Real Estate Year in Review – 2017
The Loudoun County, VA real estate market ended 2017 with a consistent pattern of positive results. Loudoun County, VA is the third most populated area in Virginia. The current population has grown to over 385,000. The average income in Loudoun County is approaching $120,000+. The population and income levels are reflected in the real estate statistics for 2017.
Loudoun County, VA Real Estate Year in Review: Positive Numbers
The Loudoun County, VA real state market saw 5000+ sales in 2017. Compared to some of the County’s neighbors, that is an incredible number. The Winchester-Frederick County, VA total sales for 2017 was 1745. Loudoun County’s immediate western neighbor, Clarke County, VA saw 210 says in 2017. The volume of sales is just one of the many positive numbers for the county.
Sales Prices are Increasing
The average sales price in 2017 was $508,571. That is a 6.7% increase from 2016. Realtor.com predicted a 3.9% nationwide increase year to year in 2017. Loudoun County, VA with its proximity to the metro-D.C. area has a certain level of insulation from market drawbacks and price slowdowns. The area price appreciation over the past five years has increased 12.3%. Homes in the state of Virginia have appreciated 4.76% statewide for the past year. Again, that puts Loudoun County, VA ahead of the average both nationwide and statewide.
Another market predicting number is days on the market. The Loudoun County, VA real estate market is very steady in this category. From 2013 to the present, the market has not deviated a single percent. The 2013 DOMP was 38 days, and the 2017 DOMP is 38. Only 2015 (58), and 2016 (51), saw any minimal change in that number, and both years were marginal and not strong predictors of the market health.
Loudoun County, VA Real Estate Year in Review: Distressed Properties and Market Health
The number of distressed property sales in 2017 were 245. Lower distressed property sales are also a good indicator of market health. In 2013, distressed properties sold were 598, 2014 were 264, 2015 were 337, 2016 were 322 and 2017 at 245. That is a number that is heading in the right direction with 2015 being the only anomaly over the past five years.
Distressed properties are made up of short sales and foreclosures. When a neighborhood has a number of these properties, property values drop at no fault of the other homeowners. As those numbers decline, property values stabilize and homeowners can demand a more market based value for their homes. Anytime distressed properties are included in the equation, market values will be skewed lower and true property values are masked by their presence.
Loudoun County, VA Real Estate Year in Review: Inventory
Market inventory has become the 800 lb gorilla in the room for much of the nation. The Loudoun County market has 545 available homes as of January 1, 2018. Low inventory has a circular effect on local markets. Sellers don’t list because there is no where to move to, and buyers can’t buy because there is nothing to buy. As long as the market stays healthy, and buyers and sellers move about with freedom, the 2018 Loudoun County market looks poised to have another banner year.