? Market Update – January 7th 2009
1. Lawrence Yun, NAR chief economist, expected a decline in home values. “The quickly deteriorating conditions in the job market, stock market, and consumer confidence in October and November have knocked down home sales to another level. We hope the home sales impact from the stock market crash turns out to be short-lived, as was the case in 1987 and 2001,” he said.
2 This areas market is neither better nor worse than any other; however, homes continue to sell in our area when the listing agent has been direct and candid with the seller regarding price and condition. By passing along market statistics, including showing a declining market, sellers can be prepared for what are "realistic" offers in today's market which include discounted prices plus closing assistance and higher commissions. This upfront approach prepares sellers in the beginning so there are fewer surprises when offers come in.
3 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.
4. Eight of the largest 15 metropolitan areas were losing jobs as of August. The data from the Bureau of Labor Statistics showed Washington as gaining 44,600 jobs since August of 2007.
5. 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.
6. Sales prices continue to remain lower than those realized last year. The average sales price in Greater N. Virginia for November fell by 17.68 percent from November 2007, to $423,088, compared with last November’s average of $513,930.
7. A major portion of the total inventory on the market continues to be “Short Sales”. These homes are taking on average 4-6 months to close, if ever, after a contract has been received by the sellers. Most agents are reluctant to show these homes to their buyers actively looking to purchase because of the uncertainty of ever being able to get the banks decision to accept the sale.
8. FHA loans will require a minimum of 3.5% down at settlement after January 1, 2009.
9. Average conforming loan rate 5.25 with 0 points.
10. Average Days on Market in N. Virginia for November ‘08 = 91