Bloomberg Calls It: Home Sales Rose in June

Bloomberg was correct. The National Association of Realtors announced that existing home sales in the U.S. rose 3.6 percent in June to an annualized rate of 4.89 million units, an increase of 170,000 units over May (4.72 million units).

We reported earlier this week on a Bloomberg survey that predicted purchases of previously-owned homes would climb to an annual rate of 4.83 million in June, the highest level since October of last year. The financial reporting service missed the mark slightly, but was not too far off.

The question that is really on everyone’s mind is will Bloomberg’s other prediction prove prophetic: These numbers indicate that the end of the recession is in sight.

Separately, the NAR reiterated its stance that new appraisal rules are hampering the market’s recovery. NAR chief economist and spokesman Lawrence Yun was quoted in the press release:

“Despite the rise in closed transactions, many Realtors are reporting lost sales as a result of new appraisal standards that went into effect May 1 of this year…In many cases, normal homes are being compared with distressed homes sold at a discount, which often are in subpar condition — this is causing real harm to both buyers and sellers.”

According to NAR’s data, distressed homes accounted for fully 31 percent of sales last month.

Bloomberg Calls It: Home Sales Rose in June

• July 23, 2009
• 1 Comment

by Mark Wellborn

Bloomberg was correct. The National Association of Realtors announced that existing home sales in the U.S. rose 3.6 percent in June to an annualized rate of 4.89 million units, an increase of 170,000 units over May (4.72 million units).

We reported earlier this week on a Bloomberg survey that predicted purchases of previously-owned homes would climb to an annual rate of 4.83 million in June, the highest level since October of last year. The financial reporting service missed the mark slightly, but was not too far off.

The question that is really on everyone’s mind is will Bloomberg’s other prediction prove prophetic: These numbers indicate that the end of the recession is in sight.

Separately, the NAR reiterated its stance that new appraisal rules are hampering the market’s recovery. NAR chief economist and spokesman Lawrence Yun was quoted in the press release:

“Despite the rise in closed transactions, many Realtors are reporting lost sales as a result of new appraisal standards that went into effect May 1 of this year…In many cases, normal homes are being compared with distressed homes sold at a discount, which often are in subpar condition — this is causing real harm to both buyers and sellers.”

According to NAR’s data, distressed homes accounted for fully 31 percent of sales last month.

Note that this information is outdated.

INVENTORY SHIRNKS WHILE SHORT SALES AND FORECLOSURES ARE THE REAL ESTATES FOCUS. SOME REAL ESTATE AGENTS WHO DO REO ARE MERELY ORDER TAKERS..

I was looking over the supply of houses on the market this week in Fairfax County and it’s really getting dangerously low. Compared to May of 2008, we have 55% fewer homes on the market – and 20% more contracts written on them. That leaves home buyers with only a 7-week supply of houses and it’s getting smaller. Officially – we’re in a sellers’ market. For pocket markets (townships, subdivisions, etc.) it’s as hot a market as it was in the peek of 2005-2006 – it’s just that the prices are much lower. Ergo – the opportunity. If you’ve ever heard about buy low, sell high – now is the time to buy low.

If you are sitting in a house purchased in 2000 or earlier, you’re most likely sitting on a lot of equity that could enable you to move up to a larger home with the upgrades you’ve wanted but couldn’t afford. I know – this sounds like a sales pitch – but frankly – it’s just the simple truth. Sellers and buyers have a unique opportunity to purchase a house at prices that have been backed up several years and at interest rates not seen for decades (currently in the mid-5% range).

The average price of a 4BR, 2BA house in Springfield, for instance, sold for $235,665 10 years ago. Today, that same house sells at $371,549. While this price is down from the last five recent years, the pricing has leveled and starting to rise in pocket markets throughout Northern Virginia.

And if you’re wondering if the market has turned around consider this – the average days on market for that house in Springfield is down to 18 days. That is not a misprint – NOT 180 Days, but 18 Days – a little over 2 weeks. Many other towns in the area are in the same situation.

So what? Inventory is slipping – we need more houses on the market to meet today’s demand. Buyers are competing again for houses that look good and priced right. Consider two choices – 1) make the move up (or down) now, while prices are stable and interest rates are low; 2) invest at a time when the rent will cover the monthly payment.

While the local papers and television stations report on a dropping market nationwide, it’s not the case for the real estate market surrounding the White House. DON’T MAKE A LOCAL DECISION BASED ON NATIONAL INFORMATION. For more information about your market, call or email me at the numbers below.

http://www.youtube.com/watch?v=nLDP0Qze_eY

April Showers brings in real buyers... Common sense and not buying into hype.. is who is buying real estate. yes we are in a recession but we are turning and this areas seems to get it that real estate is local ..  and who educates themselves to the value and understand that everyone will need a place to live and this area is expected to have more growth statiscally than most places.. do I need to say why???  Check out what is going on locally here in Washington DC, Northern
Virginia area... Powerpoint to be attached..

Yours truly Falls Church, Arlington, Mclean NOVA expert,

Debra Y. Villarreal LLC

Dear Friend

If you've been waiting for the Seller's Market to return  - wait no longer! In the first quarter of this year, several towns and counties in Northern Virginia have entered the sellers market territory with a less than 3 month supply of homes available to home shoppers. Buyers have been leaping off the sidelines for months to snatch up houses that have had a 5-year back up in pricing. For instance, this activity has reduced the standing inventory in Fairfax County down from a 6.54 month supply in March 2008 to a 2.94 month supply today. Heres how the regional absorption rates look.

                              Northern Virginia:   3.14 Months

                              Arlington County:   4.33 Months

                              Loudoun County:    3.31 Months

                              Alexandria City:      3.18 Months

                              Fairfax County:       2.94 Months

                              Prince William Co:  2.03 Months

So what? If you or anyone in your family is a first time buyer - get off the fence! The federal government is offering an $8,000 tax credit (with no payback required!) Prices are still very affordable. And there is also $0 down payment financing available for first-time home buyers as well - coupled with the $8,000 tax credit. The credit is available on homes settled by December1, 2009.

 If you're a move-up buyer - now may be the time. If you bought before 2003, you most likely have the equity necessary to make that move up while the time is right - prices are lower than in 6years; interest rates are lingering in the 5% range, and there's inventory still available.

Prices are starting to move up, however. Homes in the lower end are beginning to sell at or above asking price. Meanwhile, average sales prices are selling at 96% of asking prices. As the market tightens, those price increases will start creeping up higher end homes as well.

 Give me a call now to find out the value of your current home and see if you should take advantage of this time for you to make that next move. And as always - I'm never too busy for your referrals.

GOING GREEN TIP 

I received an email from a friend recently they shared with me this amazing site to help stop our landfills becoming TRASHED! http://www.freestyle.org

From this site you can connect with people that live in your neighborhood and advertise (for free) what you consider your "trash" but could be exactly another persons treasure. Check it out you will glad you did!

• 1,305 sq. ft., 2 bath, 2 bdrm single story "One level georgeous condo..." - SOLD  - Buyer Agent

Christopher at Cedar Lakes, Fairfax  -  Internet/Public:
Top Floor condo w/2BR 2BA in Cedar Lakes. This unit sparkles and is bright and open with new neutral wall to wall carpeting, new neutral Kitchen Floor, Corian Counters and freshly painted interior. Gas fireplace with marble surround and walk out to 13 x 9 covered balcony.

Property information

One of the biggest challenges for buyers in the Washington, D.C. metro area is that they get wrapped around the axle when it comes to NATIONAL real estate news. We are not the national market. Consider this:

Prices are down NATIONALLY
Inventory is up NATIONALLY
Foreclosure filings are up NATIONALLY
Listings linger on the market NATIONALLY

In Northern Virginia -- sales are up 41%; in Prince William county, they've almost doubled over the same time period as last year. Foreclosures are drawing multiple offers OVER list price.

When you hear the news it's NATIONAL statistics - including the WORST areas for real estate.

Enter, the DC area -- where jobs have continued their growth throughout the whole recession; where real estate is already on the rebound (see the powerpoint charts in the previous posting). Forbes has rated the DC area as the best real estate market for 2009: http://blog.guidantfinancial.com/2009/01/worlds-best-real-estate-markets-for.html

 All I have to say, folks, is get on board. This bus is already loading up. This elevator is heading to the top floor. This train is all aboard....get it?

Seriously - if you ever get to look back and say, "I made a good decision," it will be the real estate market of 2009 in Northern Virgina.

Please reveiw this updates, they cover local area markets in Northern VA.

These are real numbers coming straight from the Mutliple Listing Database.

These numbers show a moving market and our local markets are doing great activity.