Virginia
Monthly Home Sales Report May 2011
Virginia Monthly Home Sales Report
May 2011
Virginia's Monthly Pace of Residential Sales Single Family, Townhomes, Condos 12,000
10,475 10,000 8,885 7,817
8,000 7 123 7,123
7 197 7,197
7,036 6,022
6,000
6,565
6,463
6,422 6,004
4,686 4,091 4,000
2,000
0 May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Virginia home sales climbed in May 2011 to levels unmatched since May 2010 and June 2010. We must bear in mind, however, that there were a significant number of federal home buyer tax credit closings last May and June which would have increased the number of closings in those months beyond typical levels. Thus, excluding last May and June, the most recent month of home sales in Virginia exceeds every month of sales in the past year. Virginia’s housing market will likely continue to perform strongly through the remainder of the summer, and the pace of home sales in July and August will likely exceed the previous July and August. July 2010 and August 2010 were atypically low months for home sales due to buyers having closed earlier in the year to take advantage of the federal home buyer tax credit.
Published by the Virginia Association of REALTORSÂŽ
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Virginia Monthly Home Sales Report
May 2011
Virginia Median Residential Sales Price Single Family Homes, Townhomes, Condos
Mar-11
$225,000
$214,900
Feb-11
$230,000
$213,000
$232,900
$237,000
$230,000
$239,900
$250,000
$256,730
$249,500
$205,000
Median Sales Price
$250,000
$235,000
$300,000
$200,000
$150,000
$100,000 May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Apr-11
May-11
After a steady increase in the median sales price in Virginia between January 2011 and April 2011, the median sales price dipped slightly in May 2011 to $225,000. This figure still shows only a 4% decline in median sales price as compared to one year ago in May 2010. With strong months of sales in June, July and August, it is likely that we will see the median price increase further yet.
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Virginia Monthly Home Sales Report
May 2011
Virginia Quarterly Residential Sales Volume Single Family Homes, Townhomes, Condos 3,500 3,197 3,000
Millions of Dollars of Residentia al Sales
2,603 2,500 2,269
2,241
2,000
2,234 1,921
1,888 1,738
1,876
1,902
Mar-11
Apr-11
1,768
1,500
1,345 1,236
1,000
500
0 May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
May-11
The total volume of real estate sold in Virginia during May 2011 ($2.23B) is roughly equivalent to the amount of real estate sold last July and August. This is a marked increase over the past four months when the volume of real estate sales dipped as low as $1.24B in January 2011. While June 2011 sales volume likely will not match last June ($3.20B) we should still expect to see an increase in sales volume over each of the next three months due to typical seasonal increases in sales.
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Virginia Monthly Home Sales Report
May 2011
Virginia Average Days On Market Single Family Homes, Townhomes, Condos 120
100
100
101
99
95
97
91
Average Days On Market
80
76
78
80
79
Jul-10
Aug-10
85
86
Sep-10
Oct-10
94
60
40
20
0 May-10
Jun-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Another sign of returning health in Virginia’s housing market is the continued decline in the Average Days on Market to 94 days in May 2011. This current level is still 24% higher than it was one year ago (76 days), but it has been gradually declining over the past several months since it peaked at 101 days in February 2011. We should expect to see this level decline even further as we continue through the summer sales months.
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Virginia Monthly Home Sales Report
May 2011
Virginia Unemployment Rate Source: Bureau of Labor & Statistics 8%
7%
6.7%
6.8%
7.0%
6.9%
6.9%
6%
6.5%
6.4%
6.5%
6.4%
Sep-10
Oct-10
Nov-10
Dec-10
6.9%
6.6%
6.3%
6.1%
Mar-11
Apr-11
5% 4% 3% 2% Apr-10
May-10
Jun-10
Jul-10
Aug-10
Jan-11
Feb-11
April was the third straight month that Virginia’s unemployment rate declined, and the current level (6.1%) is the lowest unemployment rate in Virginia over the last 13 months. This is a significant sign of continued overall improvement in Virginia’s economy that will help Virginia’s real estate market to improve. Virginia unemployment rate is currently tied for the 9th lowest unemployment rate in the country.
Average 30-Year Mortgage Interest Rates Source: FreddieMac 5 5% 5.5% 5.0%
4.9%
5.0% 4.7% 4.6%
4 5% 4.5%
4.4%
4.4%
4.2%
4.7%
4.8%
Dec-10
Jan-11
4.9%
4.8% 4.6%
4.3%
4.0% 3 5% 3.5% 3.0% May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Feb-11
Mar-11
Apr-11
May-11
Mortgage interest rates continue to decline, to an average of 4.6% at the end of May 2011. While the current rates are not the lowest seen in the past 12 months, they are still at very attractive levels well below 5%. With rates this low, buyer should still be attracted into the market based on favorable financing terms unless some of the other changes to the financing market are enacted, such as higher down payment requirements.
Published by the Virginia Association of REALTORS®
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Virginia Monthly Home Sales Report
May 2011
The Virginia Association of REALTORS® (VAR) is the business advocate for real estate professionals in Virginia. VAR represents more than 29,000 REALTORS active in all phases of real estate brokerage, management, development and appraisal. Our mission is to enhance our membership’s ability to achieve business success. All inquiries regarding this report should be directed to: Stacey Ricks, Director of Public Relations Virginia Association of REALTORS® 10231 Telegraph Road, Glen Allen, VA 23059 (804) 249-5716 Stacey@VARealtor.com www.VARealtor.com/HomeSales Information sourced from multiple listing services across the state with data compiled by R E Stats Inc. All information is deemed reliable but is not guaranteed. Figures might not match those reported elsewhere.
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