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June Statistics - Kind of Improving?

by Jim Stakem 7/28/2009

Real estate, ashburn, leesburg, sterling, round hill, lovettsville, northern virginia, market statistics

There was no “Stakem Report” published in July. I was setting up our new web presence to make the report available in writing, electronically, and on the web. I hope you like the new format and continue to follow us.

June was a strange month. We are continuing to adjust to the realities of our new market. As always there is good news and bad.

First the “Good News?”. Average sales prices in our survey area only declined by 6% as compared to June 2008. This kind of good news gives me an ulcer! I suppose compared to a near 20% decline, a 6% decline is a great improvement. Personally I will not consider anything other than positive numbers good news.

The bad news is that Sales Volume is down 14%, and the Number of Transactions are down 9%. This is to be expected as the banks are still holding many foreclosed properties from the market which reduces the lower priced sales. The sales volume is simply the reflection of the decrease in transactions and falling average prices.

The market still remains tight! Good properties will receive offers within days (if priced correctly) and in many cases receive multiple offers. If all things were equal this should mean rising prices, however the new appraisal rules continue to deflate these prices. Some day all things will balance out and supply and demand will once again control markets!