FCC 2011 market observations

The worst seems to be over and probably has been since early 2010. While we did benefit from the balloon market (2004-2006),price appreciation in Falls Church was much more in line with the fundamentals (schools, proximity to D.C., Tysons, Metro). The fact is being an established community pays off when things go bad. This is in stark contrast to newer neighborhoods farther out that had unsustainable growth. Falls Church has fairly quickly gained back much of lost value, though a return to 5-6 years ago is not likely (nor even desirable). While prices farther out have mostly leveled out, actual price appreciation from the bottom (early 2009) is hard to find. Not so here. In addition, there have been very few distressed properties (short sale, foreclosure) in the City in the past few years— which of course is very good news. These sales drag down other non-distressed properties in immediate and near-by neighborhoods.
[box type=”info”] NOTE: All numbers are averages, rounded up or down.[/box]

 

2011 Sales

July-September: For Q3, 54 properties sold (19 condos, 5 townhouses, 20 detached). That is a very healthy number of transactions for a three month period.

Sold Price/Tax Assessment: The ratio for all property types sold through September was 9% above the tax assessed value (TAV). The ratio did vary more by type. Condos sold 6% nabove their TAV, townhouses at 9% above, and detached properties 12% above. That’s an improvement over the first half of the year, particularly for condos which were 1% below TAV for that time period.

 

Condos:

  • 19 Sold
  • DOM Range: 71-74
  • Sold Price: $385K, 6% above 2011 TAV
  • Seller Subsidy: 53% had a SS, $6,100
  • Price Difference: $14,162 (Difference between List and Sold price)

 

Townhouses:

  • 5 Sold
  • DOM Range: 13-21
  • Sold Price: $648K, 9% above TAV
  • Seller Subsidy: 40% had SS; $3,757
  • Price Difference: $10,157 (Difference between List and Sold price)

 

Detached:

  • 30 Sold
  • DOM Range: 53
  • Sold Price: $755K, 11% above TAV
  • Seller Subsidy: $1382
  • Price Difference: $14,806 (Difference between List and Sold price)

 

January-June: 94 properties changed hands (37 condos, 17 townhouses, 40 detached). That’s a sizeable increase (40%) over the first half of 2010 (67 total transactions). It’s also a 65% increase nover the first six months of 2009 (57 total)—easily the worst part of the market slump. So with back-to-back increases, there is a sustained improvement in our market since the downturn. Here nare some stats for the first half of this year.

 

Sold Price/Tax Assessment: The ratio for all property types sold through June was 6% above the tax assessed value (TAV). The ratio did vary more by type. Condos sold just below their TAV (.99). Townhouse and detached averages were both above their TAVs, 9% and 11% respectively.

Condos:

  • 37 Sold
  • DOM Range: 50-58 (Note:18 of these were in The Spectrum of which most had been pre-sold with a DOM of 0 days. Thus the overall range of 50-58 days would be higher without Spectrum sales).
  • Sold Price: $326K, 1% below 2011 TAV
  • Seller Subsidy: 70% had a SS, $6,100
  • Price Difference: $13,000 (Difference between List and Sold price)

 

Townhouses:

  • 17 Sold
  • DOM Range: 35-67
  • Sold Price: $663K, 9% above TAV
  • Seller Subsidy: $1776
  • Price Difference: $10,844 (Difference between List and Sold price)

 

Detached:

  • 40 Sold
  • DOM Range: 26-33
  • Sold Price: $755K, 11% above TAV
  • Seller Subsidy: $1382
  • Price Difference: $14,806 (Difference between List and Sold price)