August 2011 Regional Home Sales

The data that we use to calculate our NVAR market statistics reports come from RBIntel, a subsidiary of MRIS. Recently, RBIntel changed the method used to calculate certain data points. Using these revised calculations will result in changes to our reports from prior years.

Our 2011 reports, which include 2010 data, do include numbers calculated using the new RBIntel methods. All of our reports going forward will be created using the new calculations. Click here to learn more about the changes implemented by RBIntel. To view the RBI monthly market statistics for the NVAR region, click here.

Northern Virginia: August 2011

The Northern Virginia Association of Realtors® reports on August 2011 home sales activity for Northern Virginia.Download Report:

Northern Virginia
August 2011

The Northern Virginia Association of Realtors® reports on August 2011 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 1,685 homes sold in August 2011, substantially the same as August 2010 home sales of 1,695.

Active listings are down by about 9 percent from last year, with 4,695 active listings in August, compared with 5,156 homes available in August 2010. The average days on market (DOM) for homes in August 2011 was up by about 8 percent to 56 days, compared with 52 days in August 2010.
 
Sales prices are about the same as those realized last year. The average sales price in August increased by about 1 percent from August 2010, to $498,128, compared with last August’s average of $492,565.
 
The median price of homes sold in Northern Virginia was the same this August as last, at $425,000.

The number of new pending home sales in Northern Virginia in August showed an increase of about 12 percent at 1,609 compared to 1,441 new contracts pending in August 2010.

Wall Street Journal Reports: Mortgage Rates Hit All Time Low
Mortgage rates, hitting record lows, dropped since mid-August from an average of 4.15 percent for a 30-year fixed, to an early September average rate of 4.12 percent. This was down from 4.22 percent the previous week, reported Amy Hoak of the Wall Street Journal on September 9.

Concerns about euro-zone sovereign debt and a weak U.S. payrolls report for August put downward pressure on yields on Treasury bonds, enabling fixed mortgage rates to hit these new lows, according to Frank Nothaft, chief economist of Freddie Mac.

Mortgage rates haven't been above 6 percent since November 2008, according to Bankrate.com. When the 30-year fixed-rate mortgage was 6.33 percent, a $200,000 mortgage would have had a monthly payment of $1,241.86. A mortgage rate of 4.35 percent on the same size loan would mean a monthly payment of $995.62. Such savings create incentives for clients who are ready to downsize or upsize their home purchase.

Fifteen-year fixed-rate mortgages averaged 3.33 percent the week ending September 9, down from 3.39 percent the previous week and 3.83 percent a year ago, according to Freddie Mac.

To obtain the rates, the 30-year fixed-rate mortgage required payment of an average 0.7 point, while the 15-year fixed-rate mortgage and both ARMs required payment of an average 0.6 point. A point is 1 percent of the mortgage amount, charged as prepaid interest.

Think Your Clients Must Have a 20 Percent Down Payment? Think Again
Many programs are still available that require less than 20 percent down. VHDA programs, VA, FHA, USDA and HomePath are but a few of the programs that require 0-5 percent down. This could be the best time ever to become a home buyer.  It depends on where a client is looking and the person’s financial condition. The best advice to give your client is to recommend a few quality lenders since these rates will not remain low indefinitely.

Local Realtors® Report Motivated Consumers, Improvements in Distressed Property Market
Strong Fall Market Predicted
“I'm seeing a lot of sellers finally deciding to put their properties on the market,” says Pat Kline of Avery Hess Realtors® in Springfield and NVAR Chair-Elect. “I believe the small increase in prices, along with the shortage of quality ‘regular’ sales available in some areas, makes it a good time to sell.”

Kline says that her buyers are looking for well priced, updated homes but will not wait for lenders to approve short sales. “The rates are fantastic and all parties seem motivated,” Kline says. “While we haven't reached a balanced market by any means, in the areas with less foreclosures the traffic is pretty brisk.”

The Fairfax and Northern Virginia are ahead of the curve compared to market reports nationwide, observes Thai Hung Nguyen of Westgate Realty in Falls Church. “We have only about 5 percent foreclosures in this market,” says Nguyen. “Short sales are still lingering around 20 percent of our market, but the distressed market here is not as distressing as many have perceived.” This holds true for pricing as well. Nguyen notes that  short sale and foreclosure prices are only about 10 percent less than market value, and some of those properties that are in good condition are realizing the same as market value after being bid up in multiple-offer scenarios.

“It is still hard to push a short sale to closing,” says Nguyen, “although I have seen better progress than before from banks. ”

This region’s housing market heads into fall on an upbeat note after modest but steady gains over the summer, according to Washington Examiner reporter Dean Smith in his September 8 report featuring several NVAR members.

"Read globally and focus locally," said Robyn Burdett of RE/MAX Allegiance in Fairfax. "All that counts is what's in your backyard. The fall will be strong and 2012 will be a year to watch."  Read more.