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Home Sales Statistics
August 2008
Quick Take on the Economy: Stock Market News
By Lawrence Yun, NAR Chief Economist
The financial companies were hammered on Monday because the government is no longer willing to provide backup to subprime lending mistakes of Wall Street.
A major fall in the stock market will hamper broader credit availability and economic growth.
Because the government in essence is running Fannie and Freddie, the mortgage availability will depend solely on government appetite to buy mortgages in the secondary market and independent of the fate of Lehman, AIG, or other struggling financial companies. So far, mortgage rates have come down following the government takeover of Fannie and Freddie.
For Dr. Yun´s full take on the economy, click on:
http://www.realtor.org/research/commentary_quick91608
Tax Credit for First–Time Homebuyers Is Now Available
A $7,500 tax credit is now available for first–time homebuyers who purchase a home between now and June 30, 2009, as part of the Housing and Economic Recovery Act of 2008. This money is actually a loan that must be paid back through tax returns over 15 years.
The tax credit is for first–time homebuyers, and was passed as part of the Housing and Economic Recovery Act of 2008. To qualify for the full $7,500, individuals must earn less than $75,000 annually, couples may earn up to $150,000. Individual buyers with income of up to $95,000 and couples with income up to $170,000 are eligible for a partial credit.
Realtors® are also behind the credit. "[It] will help chip away at inventory levels, stabilize prices and spur [sales] activity," said Richard A. Smith, CEO of Realogy, the parent company of both Coldwell Banker and Century 21.
Housing Market Outlook
According to Dr. Stephen Fuller, George Mason University Center for Regional Analysis, the Northern Virginia Economic Outlook for the housing market continues to adjust with sub–prime mortgages resets ending over the next several months. ARMs are expected to continue longer with recovery slowly beginning in spring 2009.
Even with the latest pullback, pending home sales have been fairly stable on a national basis for nearly a year, with dramatic local market differences continuing. "The outer Washington, D.C., exurbs also are coming around very strongly. The Northeast region retreated following a robust gain in the previous month, and soft activity was observed in the broad midsection of America despite very affordable conditions," said Lawrence Yun, chief economist for the National Association of Realtors®.
August 2008 Housing Data
Northern Virginia: August 2008
The Northern Virginia Association of REALTORS® reports on August 2008 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 1,812 homes sold in August 2008, just 5.78 percent greater than August 2007 home sales of 1,713. At the end of August, there were 1,887 sales contracts pending in Northern Virginia, an increase over the 513 contracts pending in August 2007.
Active listings decreased by 11.40 percent from last year, with 9,190 active listings in August, compared with 10,373 homes available in August 2007. Homes continue to take longer to sell in 2008, with the average home in August staying on the market for 87 days, compared with 75 days on the market (DOM) in August 2007.
Sales prices continue to remain lower than those realized last year. The average sales price in August fell by 14.98 percent from August 2007, to $473,183, compared with last August´s average of $556,574. However, the average sold price has continued to remain stable throughout the first half of 2008.
The median price of homes sold in Northern Virginia in August was $389,900, which is a decline of 17.92 percent compared with August 2007´s median price of $475,000.
Greater Northern Virginia: August 2008
Sales activity in Greater Northern Virginia (NVAR jurisdictions plus Prince William, Loudoun and the Greater Piedmont counties) for August 2008 shows an increase from 2007.
The number of Greater Northern Virginia region homes sold in August was 3,502, a 29.09 percent increase from August 2007´s total of 2,713 sales. This marks the fifth consecutive month of increased year–over–year sales totals for Greater Northern Virginia.
The average sales price of $380,597 in August 2008 continues to lag behind the 2007 average by about 26.35 percent. The August 2007 average sales price was $516,746.
Across Greater Northern Virginia, the number of listings continues to show a decrease from 2007 numbers, with 19,816 listings active, which is 13.98 percent less than this time last year, when 23,036 homes were available. However, the average DOM for a home sold in August 2008 was 98 compared with last year´s 91 DOM, an increase of 8.12 percent.
Information deemed reliable, but not guaranteed.
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