Friday, March 7, 2014
Wednesday, April 28, 2010
Higher Interest Rates May Be on the Way
One thing in life is for sure...everything changes. We have been experiencing a sort of "perfect storm" for buyers over the past year. Home prices were the lowest we've seen since 2003, interest rates remained at historic lows, around 5% APR, and the government even got into the act by providing a tax credit to buyers.
It does appear that we may be seeing these factors begin to adjust. First, the feds $8,000/$6,500 tax credit goes away at the end of this month. Second, the sales prices in Norther Virginia have begun to stabilize, and even increase in the closer in areas like Arlington, Alexandria, and Fairfax County. The outer lying counties are also seeing things begin to improve in regards to home values. Lastly, it looks like we will begin to see a rise in mortgage rates over the next 6 to 18 months.
I've inserted an article from REALTOR magazine about where rates are going, and why.
It does appear that we may be seeing these factors begin to adjust. First, the feds $8,000/$6,500 tax credit goes away at the end of this month. Second, the sales prices in Norther Virginia have begun to stabilize, and even increase in the closer in areas like Arlington, Alexandria, and Fairfax County. The outer lying counties are also seeing things begin to improve in regards to home values. Lastly, it looks like we will begin to see a rise in mortgage rates over the next 6 to 18 months.
I've inserted an article from REALTOR magazine about where rates are going, and why.
Economy: Growing Economy Means Higher Rates
by Lawrence Yun
Chief economist of the National Association of REALTORS
Mortgage interest rates have been historically low for a long time, but expect them to start climbing soon.
By Lawrence Yun May 2010
Thirty-year fixed rates may rise to 6 percent by December and to about 6.5 percent at the end of 2011; rates were at about 5 percent in early April.
It’s tempting to think the Federal Reserve’s recent pullback from mortgage-backed securities purchases will drive interest rates higher.
But since it ended those purchases at the end of March, as it had planned to do, the impact on rates has been negligible.
By all appearances, private investors have filled the void and are absorbing the MBS supply, keeping rates down. Predictable macroeconomic factors—the continuing high U.S. budget deficit and the recovering economy—are the main reasons rates are likely to climb.
If the U.S. government has trouble borrowing and has to raise interest rates to attract investors to purchase U.S. debt, then the rest of the private sector will also have to pay higher interest rates. That’s set to happen unless the government can offer a credible plan for tackling its deficit seriously over the long term.
Meanwhile, as the economy continues to grow, so too will interest rates, as the growing economy pushes up the demand for credit.
On the positive side, relatively benign consumer price inflation will keep borrowing rates from rising too high. I don’t foresee the mortgage rate going above 7 percent, at least for a prolonged period, in the next two years.
Of course, if you’re in the jumbo home loan market, you’re already seeing 7 percent rates. But that stems from lack of government guarantee, and we can expect to see the spread between those rates and conventional mortgages narrow as lenders stabilize.
For conventional mortgages, rates will head up, at least modestly, but the increase comes in the context of a growing economy, and that’s a welcome sign.
Thursday, March 25, 2010
A Short Sale Solution...FINALLY!!!
If you have been paying any attention, at all, to the current real estate market, then you've heard about "Short Sales". Short Sales have become a main ingredient in today's marketplace, but are a notoriously slow, and often, unproductive way to purchase a house. Until now, if you made an offer on a short sale property, you could wait for months, and months, and months...you get the picture...before you were able to close on the home. And, in many cases, you would never get the house at all. This was due to a very convoluted process of approval; one that often would require the OK from numerous lenders, and possibly multiple investors.
Now, however, there appears to be help on the horizon. Effective April 5, 2010, the federal government will begin offering incentives to lenders to do more short sales. The positives to this new program are that it will help to get a large segment of the housing inventory moving, and it will help to reduce the number of homes that actually make it to foreclosure.
I have attached a link below to an article from the Wall Street Journal that gives a little more insight into the new program.
http://online.wsj.com/article_email/SB10001424052748704207504575130053855146896-lMyQjAxMTAwMDIwNDEyNDQyWj.html
If you have any questions about short sales, or anything else, do not hesitate to contact me!
Now, however, there appears to be help on the horizon. Effective April 5, 2010, the federal government will begin offering incentives to lenders to do more short sales. The positives to this new program are that it will help to get a large segment of the housing inventory moving, and it will help to reduce the number of homes that actually make it to foreclosure.
I have attached a link below to an article from the Wall Street Journal that gives a little more insight into the new program.
http://online.wsj.com/article_email/SB10001424052748704207504575130053855146896-lMyQjAxMTAwMDIwNDEyNDQyWj.html
If you have any questions about short sales, or anything else, do not hesitate to contact me!
Monday, February 9, 2009
The Perfect Storm for Buyers...Now IS the Time!
If you are on the fence about buying, maybe this article will help you understand the opportunity you have if you were to buy NOW. Enjoy!
Five reasons to buy a home this year
Five reasons to buy a home this year
Affordability returns to housing, and buyers have loads
of negotiating power
CHICAGO (MarketWatch) -- People are afraid to buy a home in times like these, with the economy tanking and home prices continuing to fall. But if you're brave enough to stray from the herd, you might be in for the home-buying opportunity of a lifetime.
Ask for price reductions, improvements, closing costs -- whatever -- and the seller, desperately trying to get a contract, is very likely to work with you, said Jay Papasan, one of the authors of the book "Your First Home." When the market starts improving, your negotiating power starts to diminish, he added. "People can get a lot of what they need and almost all of what they want today," Papasan said. "Once a few people get off the fence, there's safety in numbers and you lose your leverage."
If you're qualified to buy a home now, the purchase makes sense for your situation and you're prepared to live in that home for at least five years, there are five reasons why you may be headed for a great deal:
1. Affordability is better than ever
According to the National Association of Realtors' housing affordability index, homes were more affordable in December than at any other point since the group started the index in 1970. The affordability index is a measure of the relationship between home prices, mortgage interest rates and family income. John and Julie Chilman, for example, recently have been able to stretch their dollars in the Las Vegas area. The listing price for the five-bedroom home they're buying was $265,000; they offered $250,000. "Our Realtor was like 'Yeah, pipe dream. Like they're going to take that,'" John Chilman said. "And all they did was counter $255,000... and they're paying all closing costs." The home had lingered on the market, and was listed for $310,000 just six months ago, he said. In Las Vegas, prices have fallen 50.7% from their peak and are now where they were in the second quarter of 2002, according to data from Clear Capital, a real estate valuation and data provider for banks and investment firms. Housing prices are down and mortgage rates remain low, but home buyers should be aware that they're in it for the long haul.
MarketWatch's Amy Hoak reports. (Feb. 5) A report from Moody's Economy.com, released this week, predicted that house prices will stabilize by the end of this year, even though the Case-Shiller house price index will fall another 11% from the fourth quarter of 2008. By the end of the real-estate downturn, prices will have fallen by double digits, from peak to trough, in almost 62% of the nation's 381 metro areas, according to the report. In 10% of the areas, declines will be more than 30%. Not all markets have experienced huge drops, however, so it's wise to take a look at how far prices have fallen in your area. The Office of Federal Housing Enterprise Oversight's Web site has a house price calculator that can help. Visit the calculator.
2. You have a large inventory to choose from
In many places it is taking months to sell a home, creating loads of inventory -- from new homes to existing homes to foreclosures. There was a 12.9-month supply of inventory in December given that month's sales pace, according to NAR. A large selection gives buyers more choices and drives down prices. And home sellers have gotten the picture. It's fair to say that home sellers have become "increasingly desperate," Papasan said. "People who have had for-sale signs in the yard for six months are starting to become in tune with the reality of the situation," he said. Buyers can take advantage.
But if you put off a purchase until inventory shrinks substantially, you might not get as good a price, said Eddie Fadel, author of the book "Don't Rent, Buy!" And be forewarned: It's nearly impossible to time the exact bottom of the housing market and even if you do there's no guarantee you'll make a killing. "You buy for quality of life... don't buy on speculation," said Duane Andrews, CEO of Clear Capital. "I wouldn't buy a home expecting the housing market to rebound quickly in the next 10 years," he said, adding that he expects moderate gains in values when the turnaround does happen. Historically, real estate appreciates about 5% a year over the long term, said Nancy Flint-Budde, a Salem, N.Y.-based certified financial planner. But as the country crawls out of a recession, many markets probably won't see huge home-price gains any time soon.
3. Builders are offering big discounts
Home builders are getting even more aggressive with their pricing. In fact, Fadel recommends looking at completed new homes first because builders are offering such steep discounts. Plus, you'd have a warranty not only on the home itself, but also on the home's appliances, he said. "[Builders] want to save their credit, save their brand, save their reputation and clear out inventory," he said. "They can go buy cheap land today with that cash."
His advice: Walk in with a preapproval for a mortgage, make an offer, then walk away without making a deal if you have to. Chances are, a builder will call back and reconsider that offer rather than let a potential buyer get away. Read more on the outlook for home builders in the spring sales season.
4. Mortgage rates are historically low!
It's not just the price of the home that will affect affordability; mortgage terms will also affect your monthly payments. These days, rates are very attractive for conforming loans, those that can be purchased by mortgage agencies Fannie Mae and Freddie Mac. (The current limit is $417,000, although that can rise as high as $625,500 in high-cost markets.) Earlier this year, rates on the popular 30-year fixed-rate mortgage hit a level not seen in decades, and rates have stayed relatively near that low for weeks. This week, the 30-year fixed-rate mortgage averaged 5.25%, according to Freddie Mac's weekly mortgage survey. See full story.
More mortgage help could also be on the way. Last week, President Obama said that his new economic plan, which Treasury Secretary Timothy Geithner is set to unveil Monday, would help lower the cost of mortgages for home buyers, although he did not give specifics. But low rates don't mean lenders are handing out mortgages easily. You'll need good credit, a substantial down payment and a willingness to document your income in order to qualify for those great rates, if you can qualify at all.
5. You can get a federal tax credit
There's currently a federal credit of up to $7,500 for home buyers who haven't owned a home in at least three years. The credit needs to be paid back, although the repayment feature is removed in the economic stimulus plan that passed in the House of Representatives. That extra cash will come in handy: The average first-time home buyer spends about $6,000 in the first six months of owning a home, said Flint-Budde. The National Home Builders Association is pushing for more help for home buyers, including an even bigger tax credit -- the Senate in its version of the economic stimulus bill is proposing a $15,000 credit. And both NAHB and the National Association of Realtors want the incentive to help all buyers, not only those who are becoming homeowners for the first time. Waiting for further federal developments, however, might sap a buyer's negotiating power, as more people get back into the market and competition returns.
Tuesday, January 27, 2009
U.S. Existing Home Sales Rise on Record Price Slump
This is an interesting article. It describes a unexpected rise in sales, yet goes on to say that it is not an indication that the market is recovering. Please note that the economist who makes that observation was probably one of the 70 economists on the panel that predicted that sales would "not" rise! Besides, here in the northern VA area, we have been experiencing rising sales, '08 over '07, for the past 6 months. Enjoy, and as always, let me know if I can be of assistance. -Rob
U.S. Existing Home Sales Rise on Record Price Slump
By Bob Willis
Jan. 26 (Bloomberg) -- Sales of previously owned homes in the U.S. unexpectedly rose from a record low, propelled by the biggest slump in prices since the Great Depression as foreclosures surged.
Purchases rose 6.5 percent to an annual rate of 4.74 million from 4.45 million in November that was less than previously estimated, the National Association of Realtors said today in Washington. The median price dropped 15 percent from a year ago, the biggest decline since records began in 1968 and probably the biggest in seven decades, according to the group.
“You have to put it in the context of an even steeper decline for the previous month,” said David Sloan, a senior economist at 4Cast Inc. in New York, who had the highest projection in the Bloomberg News survey. “The net trend is still negative. It does seem that some cheap prices are attracting buyers. I don’t think it’s a clear sign of a revival in the housing market. The housing market is very weak.”
The housing slump at the center of the global credit crisis and economic downturn is likely to persist well into 2009, hurting companies such as Home Depot Inc. President Barack Obama has pledged to stem foreclosures and boost job creation to break the longest recession in a quarter century.
The index of leading economic indicators unexpectedly increased in December as the money supply expanded, a report from the Conference Board, a New York-based research group, showed today. The 0.3 percent increase was the first gain in six months and masked signs of a worsening recession. The index points to the direction of the economy over the next three to six months.
Better Than Forecast
Resales were forecast to fall to a 4.4 million annual rate, according to the median estimate of 70 economists in a Bloomberg News survey. Estimates ranged from 4.2 million to 4.6 million.
Sales were down 3.5 percent compared with a year earlier. Resales averaged 4.91 million in 2008, down 13 percent from 2007 and the fewest in 11 years.
Home Depot, the world’s largest home-improvement retailer, announced today it will cut 7,000 associate jobs and will freeze the salaries of all its officers as the housing slump persists.
The number of previously owned unsold homes on the market at the end of December represented 9.3 months’ worth at the current sales pace, down from 11.2 months’ at the end of the prior month.
The median price of an existing home decreased 9.3 in 2008 from the prior year, also the biggest decline since records began and the biggest since the Great Depression.
Single-Family Homes
Resales of single-family homes increased 7 percent to an annual rate of 4.26 million. Sales of condos and co-ops rose 2.1 percent to a 480,000 rate.
The rebound last month was led by a distressed-property related jump in the West, including California, Nevada and Arizona, the NAR said. Sales of distressed properties accounted for about 45 percent of all sales last month.
Home sales have been falling since 2005 and prices peaked in 2006. Property values are down by about 23 percent, according to the S&P/Case-Shiller index covering 20 metropolitan areas.
President Obama last week pressed congressional leaders to reach a consensus on an $825 billion stimulus plan that would generate job growth, cut taxes and spur spending on infrastructure, saying, “it appears we are on target” to get legislation passed by mid-February.
Obama Plan
Obama will use up to $100 billion of the remaining half of the $700 billion financial-rescue funds to ease the mortgage- foreclosure crisis, Lawrence Summers, his top economic adviser, said in a letter to lawmakers on Jan. 15.
Mounting foreclosures triggered a credit crisis which in turn has deepened the recession that began in December 2007 and shows no sign of letting up. The economy lost 2.6 million jobs last year and economists surveyed by Bloomberg forecast unemployment will rise to a 26-year high of 8.4 percent by the end of 2009.
Economists surveyed by Bloomberg forecast the economy contracted at a 5.3 percent annual pace in the fourth quarter of 2008, the most since 1982. The government will release its advance estimate on Jan. 30.
Builders
Builders are scaling back as sales slump and foreclosures mount, contributing to the economic slump.
U.S. foreclosure filings jumped 81 percent last year as more than 2.3 million properties got a default or auction notice, or were seized by lenders, according to RealtyTrac Inc., an Irvine, California-based seller of default data.
KB Home, the fourth-largest U.S. homebuilder, on Jan. 9 reported a fourth-quarter loss exceeding analysts’ estimates and predicted more pain for the housing market this year.
“The housing industry continues to confront unprecedented downward pressure,” Chief Executive Officer Jeffrey Mezger said in a conference call. “These conditions persist nationally, with no visible signs of lessening in the near term.”
Centex Corp., the second-biggest U.S. homebuilder by sales, said last week it plans to write down up to $600 million in the fiscal third quarter as land values plummeted. Net sales fell 80 percent from a year earlier to 1,080 units, the Dallas-based company said in a preliminary earnings statement Jan. 23.
“Abrupt and sweeping changes in the economy caused unprecedented homebuyer hesitancy, which severely impacted sales early in the quarter,” Chief Executive Officer Timothy Eller said in the statement. “As housing starts dropped to record lows and unemployment rose, buyers remained firmly on the sidelines early in the quarter.”
To contact the reporter on this story: Bob Willis in Washington bwillis@bloomberg.net Last Updated: January 26, 2009 10:15 EST
U.S. Existing Home Sales Rise on Record Price Slump
By Bob Willis
Jan. 26 (Bloomberg) -- Sales of previously owned homes in the U.S. unexpectedly rose from a record low, propelled by the biggest slump in prices since the Great Depression as foreclosures surged.
Purchases rose 6.5 percent to an annual rate of 4.74 million from 4.45 million in November that was less than previously estimated, the National Association of Realtors said today in Washington. The median price dropped 15 percent from a year ago, the biggest decline since records began in 1968 and probably the biggest in seven decades, according to the group.
“You have to put it in the context of an even steeper decline for the previous month,” said David Sloan, a senior economist at 4Cast Inc. in New York, who had the highest projection in the Bloomberg News survey. “The net trend is still negative. It does seem that some cheap prices are attracting buyers. I don’t think it’s a clear sign of a revival in the housing market. The housing market is very weak.”
The housing slump at the center of the global credit crisis and economic downturn is likely to persist well into 2009, hurting companies such as Home Depot Inc. President Barack Obama has pledged to stem foreclosures and boost job creation to break the longest recession in a quarter century.
The index of leading economic indicators unexpectedly increased in December as the money supply expanded, a report from the Conference Board, a New York-based research group, showed today. The 0.3 percent increase was the first gain in six months and masked signs of a worsening recession. The index points to the direction of the economy over the next three to six months.
Better Than Forecast
Resales were forecast to fall to a 4.4 million annual rate, according to the median estimate of 70 economists in a Bloomberg News survey. Estimates ranged from 4.2 million to 4.6 million.
Sales were down 3.5 percent compared with a year earlier. Resales averaged 4.91 million in 2008, down 13 percent from 2007 and the fewest in 11 years.
Home Depot, the world’s largest home-improvement retailer, announced today it will cut 7,000 associate jobs and will freeze the salaries of all its officers as the housing slump persists.
The number of previously owned unsold homes on the market at the end of December represented 9.3 months’ worth at the current sales pace, down from 11.2 months’ at the end of the prior month.
The median price of an existing home decreased 9.3 in 2008 from the prior year, also the biggest decline since records began and the biggest since the Great Depression.
Single-Family Homes
Resales of single-family homes increased 7 percent to an annual rate of 4.26 million. Sales of condos and co-ops rose 2.1 percent to a 480,000 rate.
The rebound last month was led by a distressed-property related jump in the West, including California, Nevada and Arizona, the NAR said. Sales of distressed properties accounted for about 45 percent of all sales last month.
Home sales have been falling since 2005 and prices peaked in 2006. Property values are down by about 23 percent, according to the S&P/Case-Shiller index covering 20 metropolitan areas.
President Obama last week pressed congressional leaders to reach a consensus on an $825 billion stimulus plan that would generate job growth, cut taxes and spur spending on infrastructure, saying, “it appears we are on target” to get legislation passed by mid-February.
Obama Plan
Obama will use up to $100 billion of the remaining half of the $700 billion financial-rescue funds to ease the mortgage- foreclosure crisis, Lawrence Summers, his top economic adviser, said in a letter to lawmakers on Jan. 15.
Mounting foreclosures triggered a credit crisis which in turn has deepened the recession that began in December 2007 and shows no sign of letting up. The economy lost 2.6 million jobs last year and economists surveyed by Bloomberg forecast unemployment will rise to a 26-year high of 8.4 percent by the end of 2009.
Economists surveyed by Bloomberg forecast the economy contracted at a 5.3 percent annual pace in the fourth quarter of 2008, the most since 1982. The government will release its advance estimate on Jan. 30.
Builders
Builders are scaling back as sales slump and foreclosures mount, contributing to the economic slump.
U.S. foreclosure filings jumped 81 percent last year as more than 2.3 million properties got a default or auction notice, or were seized by lenders, according to RealtyTrac Inc., an Irvine, California-based seller of default data.
KB Home, the fourth-largest U.S. homebuilder, on Jan. 9 reported a fourth-quarter loss exceeding analysts’ estimates and predicted more pain for the housing market this year.
“The housing industry continues to confront unprecedented downward pressure,” Chief Executive Officer Jeffrey Mezger said in a conference call. “These conditions persist nationally, with no visible signs of lessening in the near term.”
Centex Corp., the second-biggest U.S. homebuilder by sales, said last week it plans to write down up to $600 million in the fiscal third quarter as land values plummeted. Net sales fell 80 percent from a year earlier to 1,080 units, the Dallas-based company said in a preliminary earnings statement Jan. 23.
“Abrupt and sweeping changes in the economy caused unprecedented homebuyer hesitancy, which severely impacted sales early in the quarter,” Chief Executive Officer Timothy Eller said in the statement. “As housing starts dropped to record lows and unemployment rose, buyers remained firmly on the sidelines early in the quarter.”
To contact the reporter on this story: Bob Willis in Washington bwillis@bloomberg.net Last Updated: January 26, 2009 10:15 EST
Monday, October 27, 2008
MORE Positive News about the Real Estate Market
While most financial news seems to be negative, here's some real estate news that is somewhat positive. Even though prices are still trending downward, the increase in buyers is an indication that we are at, or near, the bottom.
September new home sales rise by 2.7 percent
New home sales post unexpected increase as prices fall to lowest level in 4 years
AP
Monday October 27, 10:24 am ET
By Martin Crutsinger, AP Economics Writer
WASHINGTON (AP) -- Sales of new homes recorded an unexpected increase in September as median home prices dropped to the lowest level in four years, the Commerce Department reported Monday.
Sales of new single-family homes rose by 2.7 percent last month to a seasonally adjusted annual rate of 464,000 homes, Commerce said. Economists had expected sales would drop from the August level.
The median price of a new home sold in September declined by 9.1 percent from a year ago to $218,400, the lowest price level since September 2004, a period when home prices were rising rapidly as the country experienced a five-year housing boom.
The surprising increase in September sales still left them 33.1 percent below the level of a year ago as the country is battered by the worst slump in housing in decades.
The report on a rise in new home sales followed news last week that sales of existing homes rose in September by 5.5 percent, the largest monthly gain in more than five years.
Analysts are not convinced that the sales increases are signaling a bottom for the housing market. They note that the September gains came before the latest upheavals in financial markets which have raised new worries about the overall state of the economy.
Many analysts believe the country has already entered a recession. They are forecasting significant increases in job losses which will make it even harder to mount a sustained rebound in housing.
New home sales fell by 21.4 percent in the Northeast and were down 5.8 percent in the Midwest. However, sales rose by a sharp 22.7 percent in the West, a region of the country which has seen some of the biggest declines in prices, a development which has spurred sales. Sales were up 0.7 percent in the South.
The rise in sales left a total of 394,000 unsold new homes on the market at the end of September, down a record 25.4 percent from the number of unsold homes on the market at the end of September 2007.
Builders have been sharply cutting back on production, trying to get inventories more in line with sales.
Even with the latest drop in total unsold new homes, the inventory represents a 10.4 months supply at the September sales pace, still a historically high level.
The inventory of unsold existing homes is also remaining near historic highs as that market is being increased by a record wave of home foreclosures.
The 2.7 percent rise in sales for September new home sales followed a big 12.6 percent drop in August, which was revised sharply lower from the government's initial estimate. Sales in July had risen by 3.6 percent.
September new home sales rise by 2.7 percent
New home sales post unexpected increase as prices fall to lowest level in 4 years
AP
Monday October 27, 10:24 am ET
By Martin Crutsinger, AP Economics Writer
WASHINGTON (AP) -- Sales of new homes recorded an unexpected increase in September as median home prices dropped to the lowest level in four years, the Commerce Department reported Monday.
Sales of new single-family homes rose by 2.7 percent last month to a seasonally adjusted annual rate of 464,000 homes, Commerce said. Economists had expected sales would drop from the August level.
The median price of a new home sold in September declined by 9.1 percent from a year ago to $218,400, the lowest price level since September 2004, a period when home prices were rising rapidly as the country experienced a five-year housing boom.
The surprising increase in September sales still left them 33.1 percent below the level of a year ago as the country is battered by the worst slump in housing in decades.
The report on a rise in new home sales followed news last week that sales of existing homes rose in September by 5.5 percent, the largest monthly gain in more than five years.
Analysts are not convinced that the sales increases are signaling a bottom for the housing market. They note that the September gains came before the latest upheavals in financial markets which have raised new worries about the overall state of the economy.
Many analysts believe the country has already entered a recession. They are forecasting significant increases in job losses which will make it even harder to mount a sustained rebound in housing.
New home sales fell by 21.4 percent in the Northeast and were down 5.8 percent in the Midwest. However, sales rose by a sharp 22.7 percent in the West, a region of the country which has seen some of the biggest declines in prices, a development which has spurred sales. Sales were up 0.7 percent in the South.
The rise in sales left a total of 394,000 unsold new homes on the market at the end of September, down a record 25.4 percent from the number of unsold homes on the market at the end of September 2007.
Builders have been sharply cutting back on production, trying to get inventories more in line with sales.
Even with the latest drop in total unsold new homes, the inventory represents a 10.4 months supply at the September sales pace, still a historically high level.
The inventory of unsold existing homes is also remaining near historic highs as that market is being increased by a record wave of home foreclosures.
The 2.7 percent rise in sales for September new home sales followed a big 12.6 percent drop in August, which was revised sharply lower from the government's initial estimate. Sales in July had risen by 3.6 percent.
Friday, October 24, 2008
Amidst all the doom and gloom...SOME GOOD NEWS ABOUT REAL ESTATE!
This article was published in the The Fredericksburg Free-Lance Star, and shows that recent stats are beginning to show signs that the real estate market may be positioning itself to stabilize.
Increase in home sales raises recovery hopes
October 23, 2008 12:16 am
BY BILL FREEHLING
A trend of higher sales and lower prices in the Northern Virginia housing market has Realtors hopeful that the market will return to a more normal state by spring.
The Virginia Association of Realtors held a conference call yesterday to discuss sales and price data between July and September. Statewide, housing data are little changed from last year's third quarter, but the Northern Virginia market saw sharply higher sales and lower prices.
There were 1,067 homes sold in the Fredericksburg area during the third quarter, a 15.7 percent jump from the year-ago period. Median sales prices dropped 19.5 percent; they were $230,000 in September for the Fredericksburg area--which comprises the city and Spotsylvania, Stafford, King George and Caroline counties.
The Greater Piedmont, Dulles and Northern Virginia markets all experienced comparable percentage changes in the third quarter to the Fredericksburg area.
That trend, coupled with sharply reduced new housing starts, is bringing home inventory levels back to a more healthy ratio. For example, in the Fredericksburg area, there was an 8.8-month supply of houses in September, down sharply from the 20.6-month supply in January.
Realtors generally consider a 4- to 6-month supply of houses to be the sign of a healthy market, but the notable decrease in Fredericksburg and throughout Northern Virginia is one of the factors that Director Lisa Fowler of George Mason University's Office of Housing Policy Research pointed to as one of the "signs of strength" cropping up in the regional housing market.
The trend of rising sales and falling prices has been most extreme in Prince William County, which has been hit hard by home foreclosures. Third-quarter sales there rose 144.6 percent from the same period in 2007, while median sales prices dropped 42.4 percent.
Realtors on the call yesterday said the trend should continue in the fourth quarter and predicted that a leveling off of foreclosures and continued declines in new-home construction should stabilize the market.
Christine Todd, CEO of the Northern Virginia Association of Realtors, called 2008 "the year of the cleanup," as investors and bargain-seekers sweep foreclosures off the market.
Statewide, Virginia's economy and housing market are holding up better than nationwide, Fowler noted. Foreclosures in the state are mostly a Northern Virginia problem, with the region accounting for about 80 percent of Virginia's foreclosure activity.
Statewide, median home sales prices in the third quarter rose 1 percent from the same period a year ago. Sales dropped 4 percent.
Bill Freehling: 540/374-5405Email: bfreehling@freelancestar.com
Copyright 2008 The Free Lance-Star Publishing Company.
Increase in home sales raises recovery hopes
October 23, 2008 12:16 am
BY BILL FREEHLING
A trend of higher sales and lower prices in the Northern Virginia housing market has Realtors hopeful that the market will return to a more normal state by spring.
The Virginia Association of Realtors held a conference call yesterday to discuss sales and price data between July and September. Statewide, housing data are little changed from last year's third quarter, but the Northern Virginia market saw sharply higher sales and lower prices.
There were 1,067 homes sold in the Fredericksburg area during the third quarter, a 15.7 percent jump from the year-ago period. Median sales prices dropped 19.5 percent; they were $230,000 in September for the Fredericksburg area--which comprises the city and Spotsylvania, Stafford, King George and Caroline counties.
The Greater Piedmont, Dulles and Northern Virginia markets all experienced comparable percentage changes in the third quarter to the Fredericksburg area.
That trend, coupled with sharply reduced new housing starts, is bringing home inventory levels back to a more healthy ratio. For example, in the Fredericksburg area, there was an 8.8-month supply of houses in September, down sharply from the 20.6-month supply in January.
Realtors generally consider a 4- to 6-month supply of houses to be the sign of a healthy market, but the notable decrease in Fredericksburg and throughout Northern Virginia is one of the factors that Director Lisa Fowler of George Mason University's Office of Housing Policy Research pointed to as one of the "signs of strength" cropping up in the regional housing market.
The trend of rising sales and falling prices has been most extreme in Prince William County, which has been hit hard by home foreclosures. Third-quarter sales there rose 144.6 percent from the same period in 2007, while median sales prices dropped 42.4 percent.
Realtors on the call yesterday said the trend should continue in the fourth quarter and predicted that a leveling off of foreclosures and continued declines in new-home construction should stabilize the market.
Christine Todd, CEO of the Northern Virginia Association of Realtors, called 2008 "the year of the cleanup," as investors and bargain-seekers sweep foreclosures off the market.
Statewide, Virginia's economy and housing market are holding up better than nationwide, Fowler noted. Foreclosures in the state are mostly a Northern Virginia problem, with the region accounting for about 80 percent of Virginia's foreclosure activity.
Statewide, median home sales prices in the third quarter rose 1 percent from the same period a year ago. Sales dropped 4 percent.
Bill Freehling: 540/374-5405Email: bfreehling@freelancestar.com
Copyright 2008 The Free Lance-Star Publishing Company.
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