Temperatures are dropping and the leaves are falling here in the Shenandoah Valley, which means the third quarter has come to a close. We are excited to release the 2018 Shenandoah Valley Q3 Market Report.
Across the Greater Augusta area we experienced a slight downturn in total sales this past quarter. As we’ve experienced throughout the year, market conditions have favored sellers as sales prices increase and days on market decline. Listing activity this past quarter was once again the lowest it has been in the past four years. This has contributed to limited inventory levels which is a contributing factor to the decline in total sales. With fewer options available and prices rising, some potential buyers are electing to stay in their current housing situation. Contract activity was also down this past quarter indicating that sales activity will decline in the fourth quarter this year.
- This past quarter represents the fourth straight quarter of year-over-year gains in total sales. This trend of consistent, modest growth is a sign of a healthy market.
- September was a slow month both in terms of new listings and contracts written in comparison to September 2017 which indicates that the market is slowing down as we move into the fourth quarter.
- The fact that current market conditions are favorable to sellers is evidenced by the 8% increase in median sales price and average days on market declining 28 days.
Sales activity this past quarter remained consistent with last year’s totals which indicates a stable market, but the year-over-year decline in contracts written indicates that sales may decline next quarter.
In looking at the more than $20,000 drop in median sales prices this past quarter, one would expect sales to have risen, but looking at average price per square foot, prices actually increased indicating that the homes sold this past quarter were, on the whole, smaller than those sold in Q3 2017.
The number of new listings in September surpassed the number in September 2017 which is the first time this year that has occurred.
Total sales declined year-over-year for the second straight quarter and the 29% drop this past quarter is one of the most significant we’ve seen in recent history.
New listing activity is well below what it was last year, which is a key factor in the decline in total sales as it has resulted in limited inventory available for sale.
As a result of limited inventory, we experienced a significant increase in sales prices with the median sales price of single family homes jumping more than 20% year-over-year to more than $200,000. Rising prices were also a key influencer in the decline of sales.
Be sure to read the full 2018 Shenandoah Valley Q3 Market Report.
Have questions about this report, or our local market in general? Contact your Nest Broker today to find out how your home fits into the current market.