Here is an update that George Flood, one of our most experienced agents compiled:

 

  ?          Weekly Market Update – 23 October 2008

 

 

1.         The real estate market is doing better in some areas over the same time last year according to the Northern Virginia Association of Realtors latest report.

2          RealtyTrac reported that U.S. foreclosure filings increased 71 percent in the third quarter from a year earlier, reaching the highest on record. A total of 765,558 U.S. properties got a default notice, were warned of a pending auction or were foreclosed on in the quarter, the most since records began in January 2005.

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.         Even as prices have moderated on homes in our area, buyers may have difficulty obtaining financing at attractive terms due to the problems in the national credit market.

5.         The FDIC chairman has argued that the extensive set of financial rescue strategies deployed in recent weeks needs to do more to get at what she called the "root cause" of the crisis -- millions of households heading for default on their mortgages and potentially foreclosure on their homes.

6.         In Greater Northern Virginia the number of homes sold in September this year showed a 53% increase over home sales in September a year ago. The absorption rate for September 2008 is slightly higher than last year’s with a 5.52-month supply of homes.

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.         Average conforming loan rate 6.125 with 0 points.

9.         Average Days on Market in N. Virginia for September ‘08 = 93

10.       Light, sweet crude went down to settle at $65.90 a barrel on the New York Mercantile Exchange