So far in 2009, the median sales price of a home sold in Loudoun County has continued to steadily rise. Below is a chart illustrating this price appreciation.
This rise in price is most likely a function of the moratorium on foreclosures that began at the end of 2008 combined with less than normal listing activity during the spring season.
The real question is will these prices continue to rise, hold steady at these levels or drop back down.
Recent developments suggest that the median sales prices will most likely move back down in the short term and languish for the foreseeable future. The reasons for this are threefold:
1. Interest Rate Runup - Interest rates have recently run up to the 5.5% level after having held below 5% for most of the year. This will cause some buyers to hold off making a purchase and might cause some homeowners who wanted to refinance to consider selling instead.
2. Moratorium on Foreclosures Lifted - The six month moratorium has been lifted on foreclosures so the shadow inventory of abandoned homes is set to start hitting the market very soon. We are already seeing an increase in those listings in Loudoun.
3. Talk of $15,000 tax credit - Any buyer on the fence about buying is more than likely going to wait and see if they will be getting a $15,000 tax credit when they purchase.
Right now, nothing is positive for the real estate market from an economic standpoint. And with President Obama focused on health care reform and green technology, states continue to face bankruptcy caused by the real estate crisis and the problems haven't been addressed. Just kicked down the road.
Bookmarking this one for future reference.
Posted by: Bank Owned Homes Las Vegas | July 02, 2009 at 02:15 AM