Third Quarter 2009
Trends in Virginia’s Housing Markets
For Immediate Release: October 23, 2009 Contact: Lisa Noon, (804) 249-5716 or lisa@varealtor.com Virginia’s housing markets appear to be moving upward, with the lowest point seen in fourth quarter 2008 and steadily improving since then, according to the third quarter 2009 home sales report released today by the Virginia Association of Realtors. “There seems to be no doubt now that we have hit the bottom and are moving back up, in terms of both price and sales activity,” commented VAR President John Powell of Colonial Heights. “We are now in our third consecutive quarter of marked improvement.” Total existing home sales in Virginia are up 5.3 percent in the third quarter compared to the second quarter numbers, and have reached the highest quarterly total in 2009. The statewide median sales price is up 2.2 percent over the second quarter and has increased about $28,000 this year. Nationally, inventory levels have trended down significantly, reaching the lowest level in 2008 and 2009, indicating the market is rebounding across the country as well. The highest percentage increase in sales by quarter was in the North Central region (includes the cities of Charlottesville, Waynesboro, Lexington and Staunton), up 29.1 percent since second quarter 2009. However the Southwest Virginia region posted the largest increase in sales compared to the same quarter last year, with a 7.6 percent increase in sales over 2008. Median sales prices advanced 4.6 percent in the Northern Virginia region compared to the same period last year, while the South Central region showed the largest increase (7.7 percent) in median sales price since second quarter 2009. # # #
Highlights In national news, Congress is considering an extension of the $8,000 first-time buyers’ credit and the possibility of broadening the program to all buyers. Mortgage rates trended down and the weekly conventional rate ended the quarter at 5.04 percent . The stock market exceeded the 9,000 mark in late July and remained in the 9,000-9,999 range through the end of the quarter.
Total existing home sales in Virginia grew to 25,032 units (up 5.3 percent) in 3Q 09 vs. 2Q 09, but were down 2.2 percent vs. 3Q 08. Four of the seven regions reporting showed an increase in sales for 3Q 09 compared to 3Q 08.
The highest percentage increase in sales occurred in the North Central region, up 29.1 percent in 3Q 09 vs. 3Q 08.
The statewide median sales price advanced for the third consecutive quarter to $251,324 (up 2.2 percent vs. 2Q 09 and down only .1 percent vs. 3Q 08). The statewide median sales price has increased about $28,000 this year.
Median sales prices advanced 6.9 percent in the Northern Virginia region from 2Q 09 to 3Q 09. South Central also showed price increases with a 1.5 percent growth from last quarter to the current quarter.
For the same period (3Q 09 vs. 2Q 09), the upper Shenandoah Valley had the largest percentage decline in median sales price, down 12.42 percent compared to 3Q 08.
Comparing 3Q 09 to the same period last year, prices were up in Northern Virginia, South Central, Tidewater, and the upper Shenandoah Valley. Only three of the seven reporting regions showed slight decreases in the median sales price.
The number of foreclosures increased across the Commonwealth (up 7.8 percent) to 18,135 for the quarter. The largest percentage increase in foreclosures compared to 3Q 08 was in the North Central region (up 22.5 percent) while the South Central region had the largest decline (down 32 percent).
Job losses continued to plague Virginia in the third quarter. The state has lost 97,700 jobs this year, particularly in the Professional and Business sector (-28,800). Unemployment, at 6.7 percent, is the lowest among Virginia’s neighbors and is tied for 5th lowest in the country.
The only area to experience a percentage decrease in sales was Northern Virginia, with a slight 2.5 percent decline for 3Q 09 compared to 2Q 09.