Mainstream Media Myth: Everybody is losing their house.

1. The US average foreclosure rate is 2.47%.
2. All of our markets (VA, MD, DC) have a foreclosure rate of less than two percent.
3. Foreclosure rates are moderate. Virginia ranks about 24th in foreclosure rates nationwide.
4. Only 7% of home loans in Virginia are sub-prime. Over half of Virginia foreclosures are on sub-prime loans.

Mainstream Media Myth: Everybody has a house to sell.

5. New home inventory topped out during the second quarter of 2006 and is thirty percent less today than it was then.
6. The National Association of Realtors Pending Home Sales Index, based on contracts signed in June, rose 7.4 percent in August to 93.4 from an upwardly revised index of 87.0 in July. The August reading was 8.8 percent higher than a year earlier, and the highest level since 101.4 in June 2007. Economists polled by Reuters ahead of the report were expecting pending home sales to drop by 1.8 percent.
7. Nationally, home sales were up 3.1 percent in August over July. Single family prices were up 1.1 percent in June from May.
8. Virginia second quarter (08) sales were up 48% over the first quarter (08).
9. Virginia median home prices were up six percent in the second quarter (08).
10. Single family inventory fell in Washington DC about 7.5% from April 08 to August 08.
11. Single family inventory fell in Montgomery County, MD about 7.5% from April 08 to August 08.
12. Sales are up and prices are down in many of our markets:
2nd Qtr 08 vs 2nd Qtr 07
MLS Area Average Price Sales Pending Sales
Dulles -18% + 7% + 37%
NVAR -14% -7% + 10%
Prince William -34% + 72% + 129%
Richmond Metro -2% -23% -26%
Roanoke Valley 0 % -22% N/A
Hampton Roads -2% -21% -15%

Mainstream Media Myth: The sky is falling with no end in sight.

13. The DC metro area added 35,000+ jobs from July 2007 to July 2008. This ranked fourth out of the fifteen largest metro areas. Nine areas had job loss or little noticeable gain.
14. The DC metro area has the lowest unemployment rate out of the fifteen largest metro areas and about two percentage points less than the national average.
15. Virginia is expected to add 19,000 jobs in 2008.
16. The average price of a home in Maryland has grown 9.3% since 1999.
17. People who purchased homes six years ago have, on average, seen the value of their homes rise over 24 percent, despite recent price declines.

Mainstream Media Myth: Now is a terrible time to buy.

18. On Tuesday, September 30, Virginia Governor Tim Kaine called it a good time to buy a home in Virginia.
19. The average price of a home in Maryland has grown 9.3% since 1999.
20. The average renter’s net worth: $4,800. The average homeowner’s net worth: $171,000
21. In a recent survey, 8 out of 10 economists stated they believed housing prices would be higher five years from now.
22. An overwhelming majority of economists surveyed - by a better than 5-to-1 ratio - agreed with the statement, “A person can increase their long-term wealth by purchasing a house rather than renting.”
23. Over the past 30 years, home values have risen more than 6 percent annually.
24. People who purchased homes six years ago have, on average, seen the value of their homes rise over 24 percent, despite recent price declines.
25. On average, the value of a home doubles nearly every ten years.
26. 60 percent of the average homeowner’s wealth comes from their home’s equity.
27. Homeowners benefit from the power of leverage. At an annual appreciation rate of 5 percent, a 10 percent down payment on a home will return 94 percent after three years. After five years, it increases to 225 percent. After ten, 623 percent.


28. Unlike many US businesses, Allegiance is not dependent on lines of credit.
29. Make no mistake: Allegiance is here for the long term.Division President Brian Sivak said it well the other day: “We became RE/MAX Allegiance to weather storms like this. Continue to use the Allegiance umbrella to stay out of the elements and together we will make it to clearer skies!”


30. The median selling price of a single family FSBO in Virginia was $249,500 compared with $313,400 for REALTOR assisted home sales. Is 26% more for a seller’s home worth paying a commission for? I’d like to think so.
31. Virginia’s population is expected to grow by 500,000 by 2010.
32. RE/MAX Associates averaged 39 percent more transactions than our nearest national competitor.
33. Keller Williams Associates averaged $1.1 million in sales in 2007. Long and Foster averaged $2.1 million. Allegiance Associates averaged $3.5 million.

Source: Charlie Bengel, Jr., CEO of RE/MAX Allegiance