Home Sales Statistics
September 2008

Economists Press for New Programs for Homeowners . . . ,
according to The Wall Street Journal

FHA Initiatives Bear Fruit
WSJ, Oct. 15, 2008 . . ."The rescue effort could buy the government some time to get other measures up and running – and to see whether they will help stabilize home prices. Some analysts say one government initiative that appears to be bearing fruit is the increase in loan limits of mortgages backed by the Federal Housing Administration – to as high as $729,000 in some cities. In September, FHA mortgages financed 28 percent of home purchases, up from 19 percent in August, according to Zelman & Associates, a housing research firm, and the number of buyers seeking government-backed mortgages more than doubled from last year, as houses have become affordable again.

Thomas Lawler, a housing economist in Leesburg, Va., said in that article, "If you want to buy a home, and you have enough money for a modest down payment, it´s not that hard to get a mortgage today."

Both Candidates Weigh the Best Path To American Dream
Both political presidential candidates "tout homeownership as a central pillar of the American dream," according to a Sept. 12, 2008 Wall Street Journal article.

But with many borrowers nationwide having challenges meeting current loans and with some housing prices fluctuating, both candidates also are rethinking how best to achieve the goal of homeownership. The good news is that both candidates have urged stiffer measures to stem mortgage fraud and called for greater transparency in the loan process, so homeowners can better understand their mortgage terms.

Housing Affordability Index Expected to Rise
Lawrence Yun, NAR chief economist, said homebuyers were responding to improved affordability. "What we´re seeing is the momentum of people taking advantage of low home prices, with pending home sales up strongly in California, Nevada, Arizona, Florida, Rhode Island and the Washington, D.C., region," he said. "It´s unclear how much contract activity may be impacted by the credit disruptions on Wall Street, but we´re hopeful most of the increase will translate into closed existing-home sales."

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said despite all the turmoil in world financial markets, home mortgages are available. "Mortgages have been harder to find, and availability and terms vary depending on credit score and location, but Realtors® can help buyers find reputable lenders while helping them navigate the transaction process," he said. "The recently enacted economic stimulus package should help housing by gradually freeing the flow of credit."

The 30-year fixed-rate mortgage will probably average 6.1 percent in the fourth quarter and rise gradually to 6.6 percent by the end of 2009. NAR´s housing affordability index is expected to average 18 percentage points higher this year than in 2007.

September 2008 Housing Data

Northern Virginia: September 2008
The Northern Virginia Association of Realtors® reports on September 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 1,650 homes sold in September 2008, a 53.92 percent increase above September 2007 home sales of 1,072. At the end of September, there were 1,777 sales contracts pending in Northern Virginia, an increase over the 650 contracts pending in September 2007.

Active listings decreased by 15.01 percent from last year, with 9,112 active listings in September, compared with 10,721 homes available in September 2007. Homes continue to take longer to sell in 2008, with the average home in September staying on the market for 93 days, compared with 85 days on the market (DOM) in September 2007.

Sales prices continue to remain lower than those realized last year. The average sales price in September fell by 22.96 percent from September 2007, to $407,748, compared with last September´s average of $529,278. 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 September was $348,250, which is a decline of 20.85 percent compared with September 2007´s median price of $440,000.

Greater Northern Virginia: September 2008
Sales activity in Greater Northern Virginia (NVAR jurisdictions plus Prince William, Loudoun and the Greater Piedmont counties) for September 2008 shows an increase from 2007.

The number of Greater Northern Virginia region homes sold in September was 3,360, a 85.74 percent increase from September 2007's total of 1,809 sales. This marks the sixth consecutive month of increased year-over-year sales totals for Greater Northern Virginia.

The average sales price of $332,803 in September 2008 continues to lag behind the 2007 average by about 32.11 percent. The September 2007 average sales price was $490,180.

Across Greater Northern Virginia, the number of listings showed an increase from 2007 numbers, with 25,330 listings active, which is 7.19 percent more than this time last year, when 23,632 homes were available. However, the average DOM for a home sold in September 2008 was 101 compared with last year's 98 DOM, an increase of 2.55 percent.

Information deemed reliable, but not guaranteed.