June and YTD Warren County Real Estate Market update

JUNE and YEAR TO DATE Warren County Real Estate Market Update
By Beth Waller, Associate Broker
KW Solutions – Keller Williams Realty

(Statistics derived from research from the Metropolitan Regional Information Systems database, the local Realtor Multiple Listing Service on 7/15/17)

Remember when real estate statistics were enough to make homeowners wish they were renters? Well, those days are long gone, and the data I just gathered from the Metropolitan Regional Information Systems (Warren County’s Realtor MLS service) proves it!  This year in Warren County, there has already been a 10% increase in homes sold year-to-date and the number of new constructions sold in Warren so far this year (54) has exceeded the number of new homes sold during the entire year of 2016! Although we are nowhere close to Warren’s new construction numbers from 2005 (when 224 new homes sold), this marked improvement indicates that land values should be increasing as more buyers turn to builders in their home search.

Other positive news for the Warren County market includes the fact that foreclosure/real estate owned sales as well as short sales are significantly down.  In total for 2016, there were 64 foreclosed listings closed in Warren County. In 2010, that number was 248, and thankfully the numbers have been decreasing since then.  There were also only 16 short sales closed in 2016 (short sales are when seller’s lenders must approve the sale because sellers owe more than the houses are worth on the market). In 2012, Warren’s highest year for short sales, there were 62 closed.  This year I am shocked yet thrilled to report that there has only been 1 short sale closed in Warren. Last year through July 15^th there were 11 short sales reported to have been closed.  This is an indication that more homeowners are finding themselves with longed-for equity in their homes.  That, combined with fact that the inventory of homes for sale is so low, is creating a fantastic seller’s market.

This year to date ACTIVE 297 (as of 7/15/17): 

• 57 Active new constructions
• 23 Under contract
• 377 already SOLD this year to date (that’s a 10% INCREASE from 2016 which reported 339 in the same time period)

We definitely have a shortage of properties for buyers to choose from, which is causing prices to rise based largely on supply and demand factors. For example, there are only a total of 24 homes listed in Warren 200k or less with 3+ bedrooms and 2+ baths. This is prompting bidding wars on many properties. I’m seeing competitive buyers waive home inspections and closing cost assistance requests. I’ve also seen more escalation clauses this year than in my recent memory. Escalation clauses are offered when buyers commit to beating competing offers up to a certain amount.

To date there have been 377 homes sold in Warren compared to last year when, during the same time period, 339 had sold. That’s a sharp contrast to 2012 when 119 had sold in the same period.  The total number of residential properties sold in 2016 was 658 in Warren vs. 625 in 2015 (a 5% increase), so we are on track to surpass last year’s numbers by leaps and bounds.

I’d also like to point out that the average days on market for all residential homes sold in 2016 was 86 days, while in 2015 homes averaged 98 days on the market. THIS YEAR TO DATE AVERAGE DOM FOR WARREN’S SOLD HOMES IS: 66 DOM

MY PREDICTIONS

I believe 2017 will mark a breakthrough year in new construction and land sales. With existing home inventory so low, builders are building more and homebuyers are resorting to custom building more than I’ve seen in recent years.

I’m expecting a fantastic real estate market to continue throughout 2017 both nationally and locally. We have definitely recovered, and though prices aren’t back to the artificial values of “the boom,” they are appreciating at a remarkable rate and many happy homeowners are finding themselves with a surprising amount of equity.

I’m very encouraged about the market in general and expect amazing summer, fall and winter sales numbers. The market tends to slow between 4^th of July and Labor Day, and this 4^th of July holiday slag started earlier than in years past, which is why June’s numbers are down from last June.  We’ve started the post-holiday pick up, however, and I expect the market to remain stronger than usual during this period until September.  In general, I’ve found that holiday weekend activity has been higher than normal this year and expect that trend to continue.  I’m continuing to see multiple offers on properties, which is the BEST way to ensure sellers are getting top dollar.

Now is an ideal time for sellers who have been considering selling and purchasing a new home concurrently.  Sellers in higher price ranges are more and more willing to take “home sale contingencies,” in which their purchasers have to sell their current home before closing on a purchase.

Potential sellers should contact their Realtor for a complimentary market analysis to see if they can take advantage of the low inventory vs. high buyer demand and fetch a surprisingly high sales price this summer.  Anyone thinking of selling in the next year should snap photos of their homes with flowers in bloom and throughout the seasons for their agent to use in marketing.

Beth Waller, Associate Broker
KW Solutions – Keller Williams Realty
540-671-6145
27 Cloud Street, Front Royal VA
Licensed in VA