August 2009 Regional Home Sales
Northern Virginia: August 2009
The Northern Virginia Association of Realtors® reports on August 2009 home sales activity for Fairfax and Arlington counties, the cities of Alexandria, Fairfax and Falls Church and the towns of Vienna, Herndon and Clifton.
A total of 1,813 homes sold in August 2009, a less than 1 percent increase above August 2008 home sales of 1,812.
Active listings decreased by 23.66 percent from last year, with 7,016 active listings in August, compared with 9,190 homes available in August 2008. The average days on market (DOM) for homes in August 2009 decreased by 27.59 percent to 63 days, compared with 87 days in August 2008.
Sales prices continue to remain lower than those realized last year. The average sales price in August fell by 3.17 percent from August 2008, to $458,172, compared with last August’s average of $473,183.
However, the median price of homes sold in Northern Virginia rose in August to $395,000, which is an increase of 1.31 percent compared with August 2008’s median price of $389,900.
The number of pending home sales in Northern Virginia in August shows an increase of 9.70 percent at 2,070 compared to 1,887 in August 2008.
Greater Northern Virginia: August 2009
Sales activity in Greater Northern Virginia (NVAR jurisdictions plus Prince William, Loudoun and the Greater Piedmont counties) for August 2009 shows a decrease from August 2008.
The number of Greater Northern Virginia region homes sold in August was 3,207, an 8.42 percent decrease from August 2008’s total of 3,502 sales. Pending home sales showed a slight decrease from August 2008’s 3,978 to 3,884 in August 2009, a 2.36 percent drop.
The average sales price of $387,134 in August 2009 increased by almost 2 percent over August 2008’s average sales price of $380,597.
Across Greater Northern Virginia, the number of listings showed a decrease from 2008 numbers, with 13,865 listings active, which is 30.03 percent less than this time last year, when 19,816 homes were available. The average DOM for a home sold in August 2009 was 65 compared with last year’s 98 DOM, a decrease of 33.75 percent.
Economy Inching Back Upward: Our Region Leads The Pack
Federal Reserve Chairman Ben Bernanke said recently that the worst recession since the 1930s is probably over. Analysts predict the economy is growing in the current quarter, which ends Sept. 30, at an annual rate of 3 to 4 percent. It contracted at a 1 percent pace in the second quarter, note news reports about Benanke’s presentations.
Why The Federal Reserve Will Keep Interest Rates Low
While the "cash-for-clunkers" auto discount program is now over, retailers and manufacturers will have to continue to offer generous discounts to keep consumers engaged in the buying process, in view of shrinking wages and salaries. This gives the Federal Reserve plenty of room to keep interest rates low for an extended period, and term rates recently have cycled back down to reflect this reality.
Activity reports next week are expected to be generally positive. August retail sales should likely get a major lift from a surge in auto sales, industrial production is expected to move up for the second month in a row, and housing starts and permits are projected to continue climbing.
Source: Key U.S. Data Releases and Events, HIS Global Insight
Forecasting the Nation’s Economic Future
Index sees U-shaped recovery, growth starting in September
The USA TODAY/IHS Global Insight economic outlook index predicts GDP growth starting in September, the first increase since July 2008. Helping fuel the growth was improvement in seven of the eleven leading financial indicators, including stock prices, non-defense capital goods orders and light-vehicle sales. The rate of decline in the number of hours worked continued to stabilize.
For the full story, click below
Pending Home Sales on a Record Roll
National Association of Realtors®
Pending home sales activity has increased for six consecutive months in a pattern not seen since the index began in 2001.
The Pending Home Sales Index shows that contracts signed in July 2009 increased 3.2 percent from 94.6 in June to 97.6, and is 12 percent higher than a year ago when it was 87.1. This is the highest it has been since June 2007 when it was 100.7.
Lawrence Yun, NAR chief economist, said the housing market momentum has clearly turned for the better. “The recovery is broad-based across many parts of the country. Housing affordability has been at record highs this year with the added stimulus of a first-time buyer tax credit,” he said.
“Other buyers are taking advantage of low home values before prices turn higher. Nationally, the typical mortgage payment now takes less than 25 percent of a middle-income family’s monthly income to buy a median priced home, with payment percentages so far in 2009 being the lowest on record dating back to 1970. As long as home buyers stay within their budget, mortgage payments will be very manageable,” Yun said.
MRIS Data Demonstrates Strength in Metro Area Market
As illustrated in the left-hand column, despite challenging credit conditions, market fundamentals in the Washington metro region are showing signs of recovery. Buyers are buoyed by low prices, favorable interest rates and government incentives, while sellers benefit from lower days on market and declining inventory.
Home prices in the core jurisdictions of the District, Arlington and Alexandria rose by 6.4 percent during the second quarter of 2009, compared with first quarter numbers. In the inner ring of Fairfax, Montgomery and Prince George’s counties (which includes Falls Church and Fairfax cities), the increase was 9.9 percent. In the first half of 2009, the number of homes sold increased by 10 percent over the number sold during the first six months of 2008, indicating a return of buyers to the market.