There may be widespread concern over the US economic system. For over a yr now, the media has bombarded us with information of the declining housing market, the sub-prime mortgage disaster, and predictions of recession. However we typically are inclined to overlook that the US economic system is the most important on the planet and is remarkably resilient. This resiliency is mirrored in the truth that general efficiency within the second quarter of 2008 was robust. Internet exports have been excessive, shopper spending was robust, and the economic system grew by greater than three%.
An intensive evaluation of market traits over the previous 30+ years demonstrates that the most recent US housing market crash was inevitable. The severity of the crash, nonetheless, got here as a shock to many consultants. After the 2001-2003 recession, the housing market skilled phenomenal development as evidenced by large demand from consumers prepared to pay considerably extra for homes than they’d have paid between 2001 and 2003.
In mid 2007, the bubble burst because the sub-prime market fell aside. In consequence, housing costs have fallen and it's been tougher for shoppers to acquire mortgage loans. Significantly arduous hit by the declining housing market are areas like California and Florida. Nonetheless, this decline available in the market shouldn’t be an throughout the board pattern. There are a variety of markets throughout the nation which stay robust and Virginia is considered one of them.
Though Virginia did expertise an increase in foreclosures and a decline in house gross sales in early 2008, housing costs didn’t differ considerably. In accordance the Virginia Affiliation of Realtors and the GMU Heart for Regional Evaluation, a comparability of common house gross sales costs within the first quarter of 2007 and 2008 revealed little or no change; common house gross sales costs remained at $ 300,000 about.
In response to the Workplace of Federal Housing Oversight, house costs in Virginia confirmed regular development between the mid-1970's and 2007. Throughout the 2001-2003 recessions, house costs in Virginia really rose. In 2007, housing costs have been up from the earlier yr's ranges, regardless of a lower within the price of appreciation. If these traits are any indication of what's to come back over the subsequent 18 months or so, house costs in Virginia ought to stay regular in 2008 and should start to rise in 2009.
Northern Virginia specifically appears to have been unaffected by the present housing disaster. Statistics present an increase in gross sales quantity within the early a part of 2008 and a notable decline within the variety of days houses have been in the marketplace earlier than promoting.
As dismal as issues could appear, in the suitable market, many individuals are discovering nice offers.
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