Return to Economic Normality Cited by Obama Administration Aide
According to a new report that appeared on the Reuters Web site, White House Economic Adviser Larry Summers said recently that the foundations for a return to growth had been laid and there were signs that “economic life was getting back to normal.”
Speaking to an audience attending a social security conference at the Washington, D.C. National Press Club, Summers cited large and small signs the financial crisis was easing, although it will take a while for it to be over entirely, he conceded.
"In more obvious indicators like the stock market, less obvious indicators like credit spreads, the spread between LIBOR and federal funds, forward markets and what they suggest about housing prices...what one sees is a substantial return to normality," Summers said.
Uptrend Continues in Pending Home Sales
For the first time in six years, pending home sales are up for the fifth consecutive month, according to the National Association of Realtors®. The last time there were five consecutive monthly gains was in July 2003.
“Historically low mortgage interest rates, affordable home prices and large selection are encouraging buyers who’ve been on the sidelines. Activity has been consistently much stronger for lower priced homes, said Lawrence Yun, NAR chief economist. “Because it may take as long as two months to close on a home after signing a contract, first-time buyers must act fairly soon to take advantage of the $8,000 tax credit because they must close on the sale by November 30.”
Yun expects existing-home sales to gradually rise over the balance of the year, with conditions varying around the country. “It appears home sales are on a sounder footing and inventory is gradually being absorbed.”
Center for Regional Analysis Dissects the Recession
and Government Spending
http://www.cra-gmu.org/forecasts.htm
A CRA research paper about Federal Procurement Spending in the Washington area, published in July 2009, cites the following about current federal spending and its regional impact:
“With the increasing federal role in the national economy under the policies of the Obama Administration and the shift of federal funding to domestic programs, the Washington region could be positioned for an accelerated recovery from the current economic downturn.”
The Associated Press Reports: Fed More Hopeful On Economy;
Holds Record Low Rate
The Federal Reserve delivered a vote of confidence in the economy, and some of the highlights of that great news are cited below:
Factory activity is improving. Home sales are starting to pick up, although much of the activity involves people snapping up bargain-priced foreclosed properties. Companies are cutting far fewer workers.
Some financial stresses also are easing, but lending is not flowing normally and financial markets aren't back to full throttle.
Many analysts believe the economy — which logged a mild contraction in the second quarter after a dizzying free-fall in the prior six months — is growing now.
Chart courtesy of Metropolitan Regional Information Systems, Inc
Chart courtesy of Metropolitan Regional Information Systems, Inc
July 2009 Regional Home Sales
Northern Virginia: July 2009
The Northern Virginia Association of Realtors® reports on July 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 2,053 homes sold in July 2009, a 10.55 percent increase above July 2008 home sales of 1,857.
Active listings decreased by 25.62 percent from last year, with 7,439 active listings in July, compared with 10,002 homes available in July 2008. The average days on market (DOM) for homes in July 2009 decreased by 31.87 percent to 62 days, compared with 91 days in July 2008.
Sales prices continue to remain lower than those realized last year. The average sales price in July fell by 5.03 percent from July 2008, to $460,807, compared with last July’s average of $485,225.
However, the median price of homes sold in Northern Virginia rose in July to $410,000, which is an increase of 2.76 percent compared with July 2008’s median price of $399,000.
The number of pending home sales in Northern Virginia in July shows an increase of 10.21 percent at 2,266 compared to 2,056 in July 2008.
Greater Northern Virginia: July 2009
Sales activity in Greater Northern Virginia (NVAR jurisdictions plus Prince William, Loudoun and the Greater Piedmont counties) for July 2009 shows a very slight decrease from July 2008.
The number of Greater Northern Virginia region homes sold in July was 3,462, a 1.87 percent decrease from July 2008’s total of 3,528 sales. Even with the slight decrease in home sales for July, there was an increase in the number of pending home sales, from July 2008’s 4,114 to 4,251 pending sales in July 2009, a 3.33 percent climb.
The average sales price of $394,660 in July 2009 continues to lag very slightly behind the 2008 average by less than 1 percent. The July 2008 average sales price was $396,714.
Across Greater Northern Virginia, the number of listings showed a decrease from 2008 numbers, with 14,491 listings active, which is 32.26 percent less than this time last year, when 21,393 homes were available. The average DOM for a home sold in July 2009 was 65 compared with last year’s 101 DOM, a decrease of 35.75 percent.