According to the NAR Web article, Near-Term Home Sales to Hold in Modest Range, Dr. Lawrence Yun, NAR’s senior economist states that he expects stability on the national horizon in sales activity in the months ahead.

 

“Existing-home sales should be relatively stable over the next few months, holding in a modest range, with some pent-up demand growing from buyers who’ve been on the sidelines,” Yun said. “Mortgage disruptions will hold back sales over the short term, but long-term fundamentals are favorable. A modest upturn is projected for existing-home sales toward the end of the year, with broader improvement to include the new-home market by the middle of 2008.”

 

Dr. Yun’s insight applies to Northern Virginia home sales in July, as we have posted just a .1 % (that is one-tenth of 1 percent) difference in the number of home sales compared to July 2006. In addition, the average July 2007 home sale price of $554,274 reflects a 3 percent gain when compared to July 2006 home sales average prices. With Northern Virginia’s long-term fundamentals on solid ground, buyers who have hesitated can use negotiation tools for an excellent buying transaction.

 

According to NAR, “The 30-year fixed-rate mortgage is forecast to average 6.7 percent in the fourth quarter and then ease to the 6.5 percent range next year.

 

The following excerpt is from the NAR Web site:

 

The National Association of Realtors® today applauded President George W. Bush’s statement of support for programs that would give homeowners greater flexibility to refinance their loans through the Federal Housing Administration.

NAR has been advocating regulatory changes to the FHA program to help families keep their homes in light of the decline of the subprime market and impending interest-rate adjustments.

 

For the full story, go to:

 

 

A total of 1,859 homes sold in July, about .16 percent (that is 16/100 of 1 percent) more than in July 2006, when 1,856 homes sold. That favorable sales total number could lead to continued sales totals on the uptick for the balance of 2007 and beyond.

 

Active listings increased from June as sellers prepared for the spring market, but total inventory did not match last year’s level by -13.28 percent, standing at 10,368 active listings at the end of July, compared to 11,956 homes available in July 2006. Homes continue to take just a little longer to sell, with the average Northern Virginia home in July 2007 staying on the market for 66 days. In July 2006, homes averaged 58 days on the market (DOM).

 

The average sales price in July 2007 in Northern Virginia was $554,274, reflecting a 3.08 percent boost from the average sales price of $537,731 in July 2006.

 

The median price of a home sold in Northern Virginia in July was $480,000, .75 percent (that is 75/100 of 1 percent) above July 2006’s median price of $476,450. The median price reflects the price at which an equal number of homes in the region are sold at higher and lower prices.

 

 

Greater Northern Virginia sales data shows a slight lag in market activity, as a higher inventory and lower demand in further-out suburbs have slowed the sales pace compared to the core Northern Virginia region. The average sales price of $512,946 in July 2007 was about .89 percent (that is 89/100 of 1 percent) more than the July 2006 average sales price of $508,397.

 

The number of Greater Northern Virginia region units sold in July was 2,951, about a 3.37 percent decline from July 2006’s total of 3,054 sold houses.

 

Across Greater Northern Virginia, 23,005 listings are active on the market, which is 9.09 percent less than this time last year, when 25,305 homes were available. The average number of days on the market for a home sold in July 2007 was 81 compared to the 67 DOM of one year ago.