Although there have been several major retrenchments along the way, the average sales price of existing single family homes in Fairfax County has risen by a robust 37% since January, 2009. In fact, fueled by the federal government’s home buyer tax credits all of that gain was achieved in just 18 months, and for the past year the market has been struggling to maintain the price point it reached in July of 2010.
TheFairfax market took a sizeable dip in the two months immediately following the end of the home buyer tax credits last summer before rebounding nicely in the fourth quarter of last year. During the first quarter of this year the market plunged again, but it has made steady, strong gains in each of the past three months, and now the average sales price stands roughly where it stood last July.
Townhome prices in the county have followed much the same pattern. Between January of 2009 and July of 2010, the average sales price rose by 25%. Following the end of the tax credit, prices dropped for five the next six months. However, prices have now risen for five consecutive months and in the process have shot past the level recorded during the last days of the tax credit buying frenzy.
As in Prince William County, conditions in Fairfax seem right for further upward pressure on prices. Inventory remains extremely low with less than a three month supply of homes on the market. While Fairfaxwas not hurt as badly as Prince William by the foreclosure mess there are many fewer now than there were just 18 months ago. In January of 2010, roughly 40% of all homes sold in the county were either foreclosures or short sales. Last month, just 14% of the sales were distressed properties.
