Wednesday, September 07, 2005

Market Cooling in Northern Virginia

The housing market is cooling in Northern Virginia ( DC suburbs). Here are some highlights:

Home sales in Fairfax County dropped 7.7 percent in July compared to last year. In Arlington, they tumbled nearly 19 percent due to a sharp decline in condo sales. Loudoun County fell 12.3 percent.

It's something we've been waiting for. It's just a natural market balance. We thought it was coming last year," said Amy Ritsko-Warren, spokeswoman for the Northern Virginia Association of Realtors.

The rising inventory, along with fewer sales, helped push July's average price of a single-family home or townhome in Fairfax County down $19,000 from June, to $597,255.

DC is a special market in that there has been strong high paying job growth in the past 4 years. The DC area is likely to see stagnating prices with home price appreciation being near to inflation.

4 comments:

  1. This comment has been removed by a blog administrator.

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  2. With prices as high as they are- 500K for a fixer upper, and 350K for a 2BR condo- despite the so called strong job growth, stagnation would be the least worse scenario.

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  3. i agree with skytrekker...

    also check out...

    realtynow.blogspot.com

    good real esatate blog...

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  4. from the Inman news report:
    "The Washington, D.C., area also has seen a surge in luxury condo projects. Douglas M. Firstenberg said, 'Right now we're looking at a potential oversupply of residential. There is a lot of conversion of residential coming online, and huge price escalation."

    The overbuilding should take care of all of those new jobholders.

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