Watch out homebuyers, home prices are on the rise!
Currently, buyers have still been motivated to buy since home prices on average are still lower than last year. Although, over the last four consecutive months, home prices have continued to rise in the Northern Virginia area according to statistics taken from the Northern Virginia Association of Realtors (NVAR).
In June alone 2,169 homes sold which is a 14% increase from June 2008. The average days a home was on the market shrunk 12 days from 83 days in June 2008 to only 71 days in June 2009. There is a 27% decrease in active listings since last June where there were 10,440 homes on the market compared to the 7,617 active listing in June 2009.
The sales prices of homes in Northern Virginia are still below last-years prices standing at $451,354 in June 2009 compared to $487,549 in June 2008. However, over the last quarter the average home sales price in April was $405,514 and in rose in May to $433, 257, and continued to rise in June to $451, 354.
What does this all mean? The housing market continues to improve due to the rise in average sales prices of homes and active listings going under contract faster while the housing supply continues to shrink.
The National Association of Realtors concludes that these statistics show that the real estate market locally and nationwide is beginning to show signs of stabilization. NAR states that the main contributing factors to the market stabilization are:
- Housing affordability
- Increase in contracts pending
- $8,000 First-time home buyers tax credit
- Consumer confidence index in June and beyond
- Respected economists oppose more stimulus spending