1. Local MLS data shows this area increasing in sales and dropping in inventory most of the year. To Realtors in this area, the most frustrating part of the market is that there’s not enough inventory. Historically, a 3 month’s supply points to a sellers market. A market with 5-7 month’s supply is considered a normal market; above that level is a buyer’s market. A year ago we were sitting on a near 10 month supply.
2. According to HUD, 4.3 percent of all Prince William mortgages are in foreclosure, compared with the statewide rate of 3.1 percent. The Fairfax County rate is 2.3 percent.
3. Local inventory of unsold homes in the Springfield area show a decrease of approximately 37%. Pending sales are up 88% and sold units are up 45%. The absorption rate is about 3 months.
4. NAR notes that in addition to lowering interest rates, the federal government must work with mortgage lenders and credit reporting agencies to eliminate processes that are making it difficult to close on a mortgage loan so that the housing market and the nation’s economy can have a robust recovery. Now really is a great time to buy a home. Inventory is high, prices are down and mortgage rates are near 50-year lows. We have to unclog the system and let people achieve and hold on to the dream of homeownership.
5. Working to accommodate the new, lower overall limit of the bill, negotiators effectively wiped out a Senate-passed provision to the stimulus package for a new $15,000 tax credit to defray the cost of buying a home. What a blow to real estate.
6. Wednesday, a federal regulator urged more than 800 thrift institutions to suspend all foreclosures while President Barack Obama's top economic officials develop plans to keep borrowers in their homes.
7. John Taylor, chief executive of the National Community Reinvestment Coalition, a consumer group in Washington, said he was optimistic the new administration would agree to use government dollars to buy up mortgages and remove them from complex mortgage-linked securities and restructuring them at more affordable levels.
8. Average conforming loan rate 5.00 with 0 points.
9. Average Days on Market in N. Virginia for December ‘08 = 92