? Weekly Market Update – 19 December 2008
1. And an increasing number of consumers taking NFCC's Mortgage Reality Check are falling into the red danger zone, indicating they are in imminent risk of foreclosure. The self-assessment test, which determines one's risk of foreclosure, is located at http://www.HousingHelpNow.org.
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. Programs such as “Hope for Homeowners” that were passed by Congress have done little to help homeowners soon to be foreclosed on. The lenders holding the notes are unwilling to re-negotiate the terms of the loans in most cases. The projected 400,000 who were to be helped will actually be about 13,000 by year end.
6. In Greater Northern Virginia the number of homes sold in October this year showed a 29% increase over home sales in October a year ago. The absorption rate for October 2008 is higher than last year’s with a 6.04-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. 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 October ‘08 = 94
11. Light, sweet crude went down to settle at $42.59 a barrel on the New York Mercantile Exchange