Loudoun Lags Others In Housing Market

The median sales price of an existing Loudoun home dropped 8.6 percent in August compared with the same month a year ago, making the county's housing market one of the worst-performing in the Washington region, according to data released this week.

Sales prices dropped 1.3 percent in Prince William County and 4.5 percent in Prince George's County, according to the Metropolitan Regional Information Systems (MRIS), which provides figures to real estate agents. And they rose 0.6 percent in the District, 2.1 percent in Fairfax County and 25.7 percent in Arlington County, where condominium sales were strong.

In Fauquier County, the median sales price dropped 11 percent.

The fresh sales numbers offer some good and bad news for Loudoun home sellers.

The bad news is that the median selling price of an existing house was $444,500 last month, compared with $486,500 in August 2006, according to the MRIS. The median is the point at which half the houses sell for more and half for less.

The good news is that prices have been rising in Loudoun since January, when the median was $419,500.

Home prices have been dropping across the Washington region the past two years after double-digit run-ups from 2002 to 2005. And the buyer's market in Loudoun is especially evident in communities such as Lansdowne, Brambleton and South Riding, where new houses are being offered alongside existing properties.

"If you bought your house in those communities three years ago, when the market was higher, you may have spent $40,000 or $50,000 on different options, such as granite [countertops] or a finished basement," said Dale Polen Myers, a longtime agent at Carter Braxton Real Estate in Leesburg. "And now if you are selling that house, you have to compete against new homes from the same builder who is offering to do things for the buyer as an incentive for them to buy."

Newspaper advertisements for new homes in the Washington area scream with incentives.

"The Choice Is Yours! 50% Off Options (No Limit) Or We'll Pay All Closing Costs!" promises Ryan Homes.

"Deal of the Century. You Name Your Deal!" says K. Hovnanian Homes.

"Below-Market Financing Starting at 3.999%," trumpets Del Webb.