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.
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ReplyDeleteWith 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.
ReplyDeletei agree with skytrekker...
ReplyDeletealso check out...
realtynow.blogspot.com
good real esatate blog...
from the Inman news report:
ReplyDelete"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.