Driven in large part by federal home buyer tax credits, the average sales price of existing single family homes in Loudoun County rose from $438,845 in January of 2009 to $552,274 in July 2010, an increase of 26% in just 19 months. During that 19-month run, prices rose in all but five months. However, since last July the market has struggled to maintain and extend its momentum.
During the six months immediately following the end of the tax subsidies, single family home prices fell by 14%, wiping out $75,000 worth of hard-fought gains. However, home prices have risen in four of the past five months and have regained most of the losses suffered during the second half of last year. In June, the average sales price was back up to $540,631.
Townhouse prices in the county have followed much the same pattern. Between January of 2009 and June of 2010 the average sales price rose from $228,946 to $313,812, an increase of 37%. By January of this year the average price had retrenched to $268,582, but a strong spring market has recouped virtually all of that loss. Last month the average townhouse sales price was $311,392.
That strong spring market has reduced housing inventory from a five-month supply in January to its current three-month supply. As recently as January, 43% of the homes sold in the county were either foreclosures or short sales. Last month, just 24% of the sales were distressed properties.
