1. Northern Virginia Association of Realtors
The Washington Area and Northern
Virginia Economic Performance Outlook
Stephen S. Fuller, PhD
Dwight Schar Faculty Chair and University Professor
Director, Center for Regional Analysis
School of Public Policy, George Mason University
March 19, 2009

2. U.S. Gross Domestic Product
Quarterly Change: 2006 – 2011
Forecast >>>>>
%
2006 2007 2008 2009 2010 2011
Source: Global Insight

3. GDP Percent Change
(Real Dollars)
%

4. CURRENT CONDITIONS

5. ISM Manufacturing and
Non-Manufacturing Indices
Non-Mfg
Mfg

6. Annual Change in Payroll Jobs - US
THOUSANDS
Feb 09 =
- 4.34 Mil
Source: BLS Establishment Survey

7. Initial Unemployment Claims
(4-week moving average)
Thousands
350

8. U.S. Unemployment Rate
%
Feb =
8.1%
Source: BLS, Seasonally Adjusted

9. Housing Trends:
New & Existing Home Sales
(000s) (000s)
Existing
(left scale)
New
(Rt Scale)

10. Consumer Confidence
Present Situation
100
Expectations
Source: Conference Board, GMU Center for Regional Analysis

11. Growth in Total
Consumption Outlays
%
Source: Global Insight, January 2008, GMU Center for Regional Analysis

12. U.S. Economic Performance
%
Source: Global Insight

13. The Washington Area and Northern
Virginia Economies

14. US GDP and Washington GRP
%
Washington GRP
US GDP

15. U.S and Washington Area
Recent Recessions
Washington Area
U.S.
GRP Change
3/01 - 11/01 (8) 2.5 %
7/90 - 3/91 (8) 0.2 %
7/81 - 11/82 (16) 3.1 %
1/80 - 7/80 (6) 2.3 %

16. 2009 Structure of the
Greater Washington Economy
Non-Local
Business Other Federal
11.8 % 17.9 %
Federal
33.3%
Procurement
15.4%
Local
Business
38.9%
Other: Health/Education, Media, Lobbyists

17. Total Federal Spending
Washington Metro Area
Billions Current $
Total
Procurement
Source: GMU Center for Regional Analysis

18. Federal Procurement Spending
Washington Metro & Northern VA
Billions Current $
Metro
NVA
Source: GMU Center for Regional Analysis, Eagle Eye, Inc.

19. Annual Change in Jobs
Washington Metro Area
1991 - 2008
Thousands
Avg. =
45,000
Source: BLS March 2009 Benchmark, GMU Center for Regional Analysis

20. Annual Job Change
Washington MSA
000s
Annual Data Annual Month over Year
Source: BLS March 2009 Benchmark, GMU Center for Regional Analysis

21. Annual Job Change
Northern Virginia
000s
Annual Data Annual Month over Year
Source: BLS March 2009 Benchmark, GMU Center for Regional Analysis

22. 15 Largest Job Markets
Job Change Jan. 08 – Jan. 09
(000s)
Washington - 1,800
Source: BLS March 2009 Benchmark, GMU Center for Regional Analysis

23. Job Change by Sector
Jan 2008 – Jan 2009
Washington MSA Total - 1,800
(000s)
Source: BLS March 2009 Benchmark, GMU Center for Regional Analysis

24. Percent Change in Jobs By Sector
U.S and Washington MSA
Jan 08 – Jan 09
%
Source: BLS March 2009 Benchmark, GMU Center for Regional Analysis

25. Unemployment Rate
%
Dec:
7.1%
U.S.
4.7%
Washington 3.9%
Northern VA
Source: BLS, Not Seasonally Adjusted

26. 15 Largest Job Markets
Ranked by Unemployment Rate
December 2008
%
US
7.1
Source: BLS, NOT Seasonally Adjusted

27. Housing Market Trends

28. Sales and Total Active Listings
Washington MSA, February Each Year
1000s
Listings
Sales

29. Units Sold Percent Change
By Subregion
All Housing Types
%
2007 2008 2009
NVA
MSA
SMD
DC
Source: MRIS, GMU Center for Regional Analysis

30. Housing Price Index Trends
U.S. and Washington Metro Area
Both Series Indexed to 1976 = 100
Conforming
Loans Only
Source: Federal Housing Finance Agency (OFHEO) and GMU Center for Regional Analysis

31. Average Sales Price
All Housing Types
$
Washington Metro
Source: MRIS, GMU Center for Regional Analysis

32. Annual Price Changes by Jurisdiction
Area 2007 Price 2008 Price Change % Change
Dist. Of Columbia $537,400 $543,500 + $6,100 + 1.1 %
Arlington $559,000 $539,300 - $19,700 - 3.5 %
Alexandria $502,900 $471,200 - $31,700 - 6.3 %
Montgomery $550,200 $503,900 - $46,300 - 8.4 %
Prince George’s $331,100 $290,200 - $40,900 - 12.4 %
Fairfax $542,000 $445,900 - $96,100 - 17.7 %
Loudoun $516,800 $389,000 - $127,800 - 24.7 %
Prince William $395,000 $257,900 - $137,100 - 34.7 %
MD SUBURBS $435,800 $400,400 - $35,400 - 8.1 %
VA SUBURBS $488,300 $373,200 - $115,100 - 23.6 %
METRO AREA $468,700 $394,700 - $74,000 - 15.8 %
Source: MRIS, GMU Center for Regional Analysis

33. Mortgage Foreclosure Rates
by County – Jan 08 & Jan 09
Foreclosures /10,000 units
Jan 2008 Jan 2009
Source: RealtyTrac, GMU Center for Regional Analysis

34. Economic Forecast

35. Economic Outlook (GRP) – 2013
Washington Area and Sub-state Portions
(Annual % Change)
%
NV
MSA SM
DC
Source: GMU Center for Regional Analysis

36. Employment Change by
Sub-state Region (000s)
2007 2008 2009 2010 2011 2012 2013
5.8 4.2 5.5 6.0 6.4 7.0 6.5
D.C.
4.7 3.4 6.0 10.7 12.5 14.3 16.4
Sub. MD
12.4 9.0 12.2 19.8 23.5 26.8 31.1
No. VA
22.9 16.6 23.7 36.5 42.4 48.1 54.0
REGION
Average Annual Change 1990-2007 = 45,000
Source: BLS March 2009 Benchmark, GMU Center for Regional Analysis

37. GDP/GRP 2000 - 2013
%
Washington
U.S.
Source: Global Insight, GMU Center for Regional Analysis

38. www.cra-gmu.org