Understanding real estate market reports, and things are still looking good in Haymarket area …
In each issue of Haymarket Homeowner, I publish recent real estate market trends for the Haymarket area. I review real estate market reports daily. Regardless of whether the news is good or bad, I find it all interesting and exciting. It’s what I do.
Having said that, I know I toss out a lot of comparisons, percentages and real estate terms that may make your head spin. So, before I get into some market news, I thought I’d explain a few things about these reports.
First of all, most of the comparisons I make are Month over Month (MoM). This means I compare a figure—like the number of homes that came on the market in one month—to the same month of the previous year. I compare this data to the previous year rather than the previous month because the real estate market is cyclical. We can expect similar patterns at the same times each year. For example, a distinct fluctuation is more relevant when you compare March data to the previous March rather than March to February in the same year. That’s because we expect more homes to come on the market anyway in March because it’s the beginning of the spring market.
Another term I use frequently is Median Sold Price. Many people ask: “what’s the difference between Median Sold Price and Average Sold Price?”
The Average Sold Price is the sum of the total dollar volume divided by the total units sold. The Median Sales Price is the sales price at which half of all sales are above and half of all sales are below or the “mid-point.” The Median Sales Price is often a better indication of the market, especially when a few sales may distort the Average Sales Price.
Here’s an example: Ten houses are sold in an area. One sold for $1,000,000 and nine sold for $250,000. The Average Sales Price would be $325,000 and the Median Sales Price would be $250,000.
Market Report for Haymarket, Gainesville & Haymarket
Looking at the current market trends for the Haymarket area, things are still looking pretty good. Last issue, following the spring months, I noted that housing inventory surged and home sales were down, yet home sales prices still rose slightly.
Taking a look at the whole summer now, the influx of new listings did slow down a bit, and Closed Sales (see chart) were sporadic. Overall, Prince William County had a decline in Closed Sales, however all three towns had a mix—some good months and some not as good. This is an indicator that the market is starting to stabilize.
The Median Sold Price still continued to rise though! You will see in the chart that with a couple of minor exceptions, the Median Sold Price rose in the county and in all three towns.
RELATED: Mid-Year Report: More New Listings, Fewer Sold Listings in Haymarket Area
Gainesville Neighborhood with the Biggest Gain …
The neighborhood with the BIGGEST gain in August for Median Sold Price in Gainesville was LAKE MANASSAS. The Median Sold Price in August 2014 in Lake Manassas increased +23% over August of 2013, from $600,500 to $739,000. In the Year to Date comparison the Median Sold Price increased 9.7% in this community.
RELATED: New Turtle Point Luxury Townhomes at Lake Manassas are now selling!
We’ll continue to watch what unfolds as we approach the winter months and if the rumors I hear are true, we are in for another cold and snowy winter. If you’re thinking about selling your home, right now might be a good time.