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May 2009 Regional Home Sales

Northern Virginia: May 2009
The Northern Virginia Association of Realtors® reports on May 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 1,803 homes sold in May 2009, a 4.6 percent increase above May 2008 home sales of 1,724.

Active listings decreased by 25.17 percent from last year, with 8,050 active listings in May, compared with 10,757 homes available in May 2008. The average days on market (DOM) for homes in May 2009 decreased by 14 percent to 76 days, compared with 88 days in May 2008.

Sales prices continue to remain lower than those realized last year. The average sales price in May fell by 9.5 percent from May 2008, to $433,257, compared with last May's average of $478,672.

The median price of homes sold in Northern Virginia in May was $375,000, which is a decline of 7.41 percent compared with May 2008's median price of $405,000.

The number of pending home sales in Northern Virginia in May shows an increase of 22 percent at 2,637 compared to 2,166 in May 2008.

Greater Northern Virginia: May 2009
Sales activity in Greater Northern Virginia (NVAR jurisdictions plus Prince William, Loudoun and the Greater Piedmont counties) for May 2009 shows a very slight decrease from May 2008.

The number of Greater Northern Virginia region homes sold in May was 3,262, a 3.89 percent decrease from May 2008's total of 3,394 sales. While there may be a slight decrease for home sales in May, the number of pending home sales has increased from May 2008's pending home sales of 4,305 to 4,782 in May 2009, a 22 percent climb.

The average sales price of $362,327 in May 2009 continues to lag behind the 2008 average by only 11 percent. The May 2008 average sales price was $406,899.

Across Greater Northern Virginia, the number of listings showed a decrease from 2008 numbers, with 15,208 listings active, which is 33 percent less than this time last year, when 22,625 homes were available. The average DOM for a home sold in May 2009 was 80 compared with last year's 103 DOM, a decrease of 22.5 percent.


Forecasters Say Recession Nearing End

Ninety percent of economists think the recession is nearing its end, but don't expect the economy to soar anytime soon.

The National Association for Business Economics surveyed nearly 75 percent of economists and found that the recession is expected to end in the third quarter of 2009; however, 19 percent believe it will not be until the fourth quarter of 2009 or even the first quarter of 2010.

Whatever the case may be, Americans are becoming positive again and believe things are looking up.
Source: The Associated Press, Jeannine Aversa (05/27/2009)

Pending Home Sales Up for Three

Months in a Row

Record low mortgage interest rates boosted pending home sales for the third consecutive month, with some benefit now from the first-time buyer tax credit, according to the National Association of Realtors®.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in April, rose 6.7 percent to 90.3 from a reading of 84.6 in March, and is 3.2 percent above April 2008 when it was 87.5.
Lawrence Yun, NAR chief economist, said buyers are responding to very favorable market conditions. "Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market," he said. "Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers."

SPECIAL REPORT Road to Recovery
Low Prices Bring Investors Back
Into Many Markets

By Les Christie (CNNMoney.com), June 4, 2009
NEW YORK (CNNMoney.com)-- Home price declines have sent affordability soaring, according a new report from IHS Global Insight.

..."The good news is that the declines are happening as consumer confidence is rising and housing sales and [building] starts seem to be bottoming out," said Jeannine Cataldi, senior economist for IHS Global Insight in a statement accompanying the study.

"The bad news is that job losses continue at high rates, housing inventories are still elevated and consumers, while becoming somewhat more confident, are still wary in the face of economic uncertainty."

...Inventory of homes priced under $500,000 has shrunk to a three-month supply at current rates of sale while the supply of million-dollar homes has expanded to 17 months.
This article notes that the dramatic difference in inventory exemplifies how the low end of the market is attracting more first-time buyers and investors.

Good News: Virginia Is Not a "Sand State" Where Home Foreclosures Are Highest

And now The Other News at the National Level:
Troubled mortgages hit record high
By Les Christie, CNNMoney.com staff writer
May 28, 2009
NEW YORK (CNNMoney.com) -- Despite all the hand-wringing and attempts to contain the foreclosure plague, the problem still spread during the first three months of 2009, as the number of foreclosure actions started hit a record high, according to a quarterly report.
The National Delinquency Survey released recently by the Mortgage Bankers Association (MBA), reported the largest quarter-over-quarter increase in foreclosure starts since it began keeping records in 1972. Lenders initiated foreclosures on 1.37 percent of all first mortgages during the quarter, a 27 percent increase from the 1.08 percent rate during the last three months of 2008 and a 36 percent rise from the first quarter of 2008. All told, more than 616,000 mortgages were hit with foreclosure actions.
..."Lenders are not proceeding against any foreclosures they think can be saved," said Brinkmann, "only against vacant properties and others they think have no chance of succeeding."
...Regionally, the biggest contributors to the record foreclosure rates are the so-called "sand states," California, Florida, Arizona and Nevada. These four, which represent less than 18 percent of the nation's population, account for 46 percent of foreclosure starts. More than 10 percent of all mortgages in Florida are in foreclosure.
Those states had much higher rates of subprime lending than average. California, for example, which accounts for 13 percent of U.S. mortgages, had 18 percent of all subprime ARMs outstanding during the first quarter. These states also endured severe home price declines, forcing more homeowners into delinquency.