First Quarter 2010
Trends in Virginia’s Housing Markets
For Immediate Release: April 30, 2010 Contact: Lisa Noon, (804) 249-5716 or lisa@varealtor.com Led by low interest rate and first-time buyers, Virginia’s housing markets continue to show steady growth, according to the first quarter 2010 home sales report released today by the Virginia Association of Realtors. “It’s evident that the tax credit did its job in encouraging on-the-fence buyers to get into the market before the cutoff,” commented VAR President Cindy Stackhouse of Woodbridge, VA. Today, April 30, marks the last day to enter into a contract for the tax credit. "This is a buyers’ market, and there couldn’t be better incentives for prospective home buyers to make the move,” she added. “With the low rates we’re experiencing, plus a great selection at excellent prices, buying a home now offers huge advantages.” “Sellers need to be patient, price their homes correctly, work with a professional who can market and showcase your home at its best, and be flexible,” Stackhouse added. Most areas of the Commonwealth showed increases in sales in the first quarter over last year. The areas that led the state in closed sales include the Northern Virginia and Tidewater regions. The highest percentage increase was seen in the Upper Shenandoah Valley region with a 14.8 percent increase over the last year. Also for the first quarter, median sales prices advanced 8.9 percent statewide compared to the same period last year. The Northern Virginia region showed the greatest increase (19.2 percent) in median sales price for the quarter compared to the same time last year. # # #
Highlights
Compared to this time last year, six of Virginia’s seven regions posted sales increases. The highest annual percentage increase in sales occurred in the Upper Shenandoah Valley region which had a 14.8 percent increase in sales compared to 1Q 09. Overall though, the first quarter’s total existing home sales in Virginia declined by 33.8 percent vs. 4Q 09 but by only 1.1 percent compared to 1Q 09.
The statewide median sales price advanced $19,558 from the median in the first quarter of 2009 (+8.9 percent) to $240,470. Compared to 1Q 09, the Northern Virginia region had the highest percentage increase in its median sales price, it was up 19.2 percent to $305,174.
Following three consecutive quarterly increases, the statewide median sales price decreased slightly (-1.5 percent) compared to the fourth quarter of 2009. However, median sales prices increased in two of the seven regions since last quarter. Increases amounted to 6.8 percent compared to the fourth quarter of 2009 in the Central region and 4.7 percent in the Southwest region.
The number of foreclosures in Virginia decreased 2.4 percent from the first quarter of 2009 to the first quarter of 2010. An especially good sign was the number of foreclosures in the Northern Virginia region. They declined for the second consecutive quarter (-4.6 percent) and were down 21.5 percent vs. 1Q 09. Foreclosures did spike in the South Central region compared to last quarter (+43.3 percent).
While the quarter ended with a net loss of 42,200 jobs so far this year, jobs were actually added to Virginia’s payrolls in March. The largest percentage increase in new jobs was in the Federal Government sector (+4.5 percent) and the largest percentage loss was in the Construction sector (-8.6 percent). Unemployment, at 7.4 percent, was the lowest among Virginia’s neighbors in March and compares favorably to the national rate of 9.7 percent. In national news, the $8,000 First Time Buyer’s Credit program contributed to March’s 7 percent surge in existing home sales and the general trend is a stabilization of median sales prices. Inventory has trended down for 20 consecutive months. Monthly mortgage rates started the quarter at 5.03 percent and declined to 4.97 percent by the end of March.