The Homefront Download

Compiled by Jill M. Landsman, NVAR Communications Director

 

Throughout Northern Virginia,

Pending Home Sales Are Up This February

The forward-looking February pending home sales data, based on signed contracts, is favorable for both Northern Virginia and Greater Northern Virginia, bucking the national trend.

 

In Northern Virginia, 1,817 contracts are pending compared to February 2008 when 1,526 were pending, an increase of 19 percent. For the Greater Northern Virginia area, there are 3,340 contracts pending, a 15 percent increase over the 2,904 contracts that were pending in February, one year ago.

 

This Is Still a Buyers Market Nationwide, Notes NAR’s Dr. Lawrence Yun

Excerpt from Dr. Yun’s column: Economist's Commentary: March 3, 2009

“It is a buyer's market for sure. Buyers have everything going for them: 50-year low mortgage rates, wide inventory selection, tax credit for first-timers, and a record high affordability index. The only thing they lack is confidence. Even so, rising affordability has been associated with rising home sales even in times of recession because about 90 percent of the workforce would still have jobs.

 

“The home buying process requires several months, from Internet searches for homes, to visiting open houses, to finding the mortgage, to conducting a home inspection, and a myriad of other related activities. Therefore, the kick from the stimulus will not show up in the data until at least May, for which the data will be reported in June/July. Once the buying picks up, it would be interesting to observe if the rebound will be a U-shaped or V-shaped recovery. …”

 Mortgage rates hold steady

The 30-year fixed rate rests at 5.41 percent as President Obama unveils foreclosure prevention program.

According to reports on CNN.Money.com, Mortgage rates remained flat last week, as President Obama unveiled a $75 billion plan to help prevent foreclosures.

 

The average 30-year fixed mortgage stayed constant at 5.41 percent for the week ended March 4, according to Bankrate.com.

 

The average jumbo 30-year fixed rate reached the lowest level in nearly two years, slipping to 6.77 percent from 6.87 percent.

 

The average 15-year fixed rate mortgage ticked up to 4.94 percent from 4.93 percent. Adjustable-rate mortgages fell, with the 1-year ARM pulling back to 5.43 from 5.58 percent; the 5/1 adjustable-rate mortgage decreasing to 5.39 percent from 5.40 percent.

 

Mortgage rates are continuing their sideways movement, though they may tilt higher as long-term concern grows regarding how the government will manage its growing budget deficit, according to an analyst cited in the article.

 

Current Mortgage Applications

What does today's data mean for REALTORS® and consumers?

  

 

Patience Needed Now and In the Future For Our National Recovery, Notes The Caucus Blog Site of the New York Times Online

 

In a March 12, 2009 NYT The Caucus, The Political and Government Blog column debating the possibility of a second stimulus package from the Obama Administration, the economic adviser to Vice President Biden, Jared Bernstein, told MSNBC: “And this is a plan that is part of an economic package including financial stabilization, including getting the housing market back up and running again, all in the context of a budget that organizes spending over the course of the next 10 years.”

 

 

Housing Affordability Continues to Improve Nationally, Notes NAR President

 

NAR President Charles McMillan, said it’s ironic with the nationwide challenges in the  housing market that affordability conditions have improved dramatically. “Housing affordability is at a record high – the buying power of a typical family has risen significantly,” he said. “With the drop in interest rates, a median-income family can afford a home costing $20,000 more than a year ago for the same monthly mortgage payment. With the strong housing stimulus, we are hopeful inventory will get trimmed and [that the stimulus] will help prices stabilize in many areas by the end of this year.”

 

  

 February 2009 Home Sales

Northern Virginia: February 2009

The Northern Virginia Association of Realtors® reports on February 2009 home sales activity for Fairfax and Arlington counties, the cities of Alexandria, Fairfax and Falls Church and the towns of Vienna, Herndon and Clifton.

 

A total of 1,067 homes sold in February 2009, a 10.11 percent increase above February 2008 home sales of 969.

 
Active listings decreased by 17.75 percent from last year, with 7,811 active listings in February, compared with 9,497 homes available in February 2008. The average days on market (DOM) for homes in February 2009 decreased by 6.03 percent, to 109 days, compared with 116 days in February 2008.
 
Sales prices continue to remain lower than those realized last year. The average sales price in February fell by 20.70 percent from February 2008, to $380,077, compared with last February’s average of $479,320.
 
The median price of homes sold in Northern Virginia in February was $318,000, which is a decline of 22.53 percent compared with February 2008’s median price of $410,500.
 

Greater Northern Virginia: February 2009

Sales activity in Greater Northern Virginia (NVAR jurisdictions plus Prince William, Loudoun and the Greater Piedmont counties) for February 2009 continues to show an increase from 2008.
 
The number of Greater Northern Virginia region homes sold in February was 2,177, a 25.81 percent increase from February 2008’s total of 1,730 sales. This marks the eleventh consecutive month of increased year-over-year sales totals for Greater Northern Virginia.
 
The average sales price of $305,549 in February 2009 continues to lag behind the 2008 average by 27.34 percent. The February 2008 average sales price was $420,540.
 
Across Greater Northern Virginia, the number of listings showed a decrease from 2008 numbers, with 15,335 listings active, which is 28.77 percent less than this time last year, when 21,528 homes were available. The average DOM for a home sold in February 2009 was 105 compared with last year’s 121 DOM, a decrease of 13.31 percent.