According to a press release dated Jan. 14, 2008 on the www.realtor.org Web site, “Nobody buys a home in the national real estate market,” said NAR President Dick Gaylord, a California broker. “All real estate markets are local, and buyers and sellers who are thinking about making a move should consult with a Realtor® in their local market to learn about conditions specific to the area. It’s also advisable to look beyond the immediate horizon – real estate has proven itself to be a good long-term investment and a safe, secure way to build long-term wealth.”

Economists predict additional action by the Federal Reserve Board to stimulate the economy by further reducing the federal funds rate. At the Fed’s next meeting, slated for January 30, experts believe it may be lowered by one-half of one percent, bringing that rate to 3.75 percent. The federal funds rate affects the cost of credit card debt, home equity lines of credit and auto loans. The Fed last lowered the rate by one-quarter of one percent on Dec. 11, 2007. Chairman Ben Bernanke was quoted in The Washington Post on Jan. 11, 2008stating that policymakers must be “prepared to act in a decisive and timely manner . . . to counter any adverse dynamics that might threaten economic or financial stability.” In its Jan. 4, 2008 article, “Pressure Mounting for a Big Rate Cut,” CNNMoney.com reports speculation by some experts of yet a further decrease, to 3.5 percent, by the middle of 2008.

The National Association of Realtors® predicts steady home sales, with an increase towards the end of 2008 and continual improvements in 2009. Consumers are waiting for additional signs of market stabilization and the potential for lower interest rates, according to NAR Chief Economist Lawrence Yun. “As a result,” Yun explains, “the exact timing and strength of a home sales recovery is a bit uncertain.”

Dr. Stephen Fuller commented at the Fri., Jan 11, 2008 Economic Conference that only two out of 52 economists have a negative view of the economy, which was cited in Business Week’s annual economic outlook survey. According to 50 of those economists surveyed, “the economy will move ahead in 2008 and not be negative,” he emphasized.

 

 

A total of 1,199 homes sold in December 2007, about 30 percent less than December 2006 home sales of 1,710.

 

Active listings increased by 21.21 percent from last year, standing at 8,733 active listings in December, compared to 7,205 homes available in December 2006. Homes continue to take longer to sell, with the average Northern Virginia home in December 2007 staying on the market for 103 days, compared with 91 days on the market (DOM) in December 2006, an increase of about 13 percent.

 

The average sales price in December 2007 in Northern Virginia was $543,970, up by about 1.35 percent from the average sales price of $536,710 last December.

 

The median price of a home sold in Northern Virginia in December was $437,500, which is a decline of 3.15 percent compared to December 2006’s median price of $451,750.

 

 

Sales activity in Greater Northern Virginia (NVAR jurisdictions plus Prince William, Loudoun and the Greater Piedmont counties) for December 2007 continued to moderate and show a slight decline.

 

Greater Northern Virginia sales data continues to reflect a higher inventory, continued price decline and an increase in DOM. The average sales price of $484,310 in December 2007 was about 4 percent below the December 2006 average sales price of $504,533.

 

The number of Greater Northern Virginia region homes sold in December was 2,040, about a 28 percent decline from December 2006’s total of 2,839 sales.

 

Across Greater Northern Virginia, 20,445 listings are active, which is about 27 percent greater than this time last year, when 16,111 homes were available. The average DOM for a home sold in December 2007 was 114 compared to last year’s 96 DOM.

 

Despite the increased length of time that homes remained on the market in 2007 and the surplus of listings, the Year-To-Date Average Sales Price for the Greater Northern Virginia region in December 2007 is $497,128, which is a 1.34 percent decline from December 2006’s YTD average sales price of $503,855.