Virginia
Monthly Home Sales Report August 2011
Virginia Monthly Home Sales Report
August 2011
Virginia's Monthly Pace of Residential Sales Single Family, Townhomes, Condos
10,000 9,095 9,000 8,067
8,000 7,210
7,817
7,779
Jul-11
Aug-11
7,071
7,000 6,034
6,000
6,631
6,468
6,427 6,009
5,105 5,000
4,697
4,000
3,000
2,000
1,000
0
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Home sales increased 8% in August 2011 as compared to August 2010. This increase is a welcome sign in Virginia after recent declines in the pace of home sales. With the current historically low mortgage interest rates combined with the slower pace of sales in 2010 Q4 as a result of the June 30, 2010 expiration of the tax credit, we are likely to continue to see year-over-year increases in the pace of home sales for the remainder of 2011. It is important to note that one external factor that could affect Virginia’s housing market in coming months is if the current FHA loan limits are not extended by congress by October 1, 2011.
Published by the Virginia Association of REALTORSÂŽ
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Virginia Monthly Home Sales Report
August 2011
Virginia Median Residential Sales Price Single Family Homes, Townhomes, Condos
$239,000
$245,000
$240,000
Mar-11
$225,000
$215,000
Feb-11
$230,000
$213,400
$232,900
$237,000
$230,000
$205,000
Median Sales Price
$250,000
$239,888
$250,000
$300,000
Jul-11
Aug-11
$200,000
$150,000
$100,000
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Apr-11
May-11
Jun-11
The median residential sales price declined ever so slightly (less than 1%) in Virginia between July 2011 and August 2011. The current median sales price of $239,000 is only 4% lower than the median sales price one year ago of $250,000 in August 2011. Virginia is only experiencing relatively modest price adjustments at this time, while many areas of the country area continue to see significant declines in home values.
Published by the Virginia Association of REALTORS速
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Virginia Monthly Home Sales Report
August 2011
Virginia Quarterly Residential Sales Volume Single Family Homes, Townhomes, Condos
3,000 2,795
2,500 2,304
Millions of Dollars of Residential Sales
2,242
2,000
1,922
1,890 1,740
1,888
1,918
Mar-11
Apr-11
2,356
2,322
Jul-11
Aug-11
1,770
1,500
1,350 1,240
1,000
500
0
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
May-11
Jun-11
The total volume of real estate sold in Virginia during August 2011 ($2.322B) marks a 4% increase in the volume of real estate being transferred as compared to last August. Despite slight declines in median sales price, the overall home sales volume was able to increase 4% due to the 8% increase in the pace of home sales in Virginia over the past year.
Published by the Virginia Association of REALTORS速
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Virginia Monthly Home Sales Report
August 2011
Virginia Average Days On Market Single Family Homes, Townhomes, Condos
120
100
100
101
99
95
98 93
91
Average Days On Market
80
85
86
Sep-10
Oct-10
91 87
87
Jun-11
Jul-11
80
60
40
20
0
Aug-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Aug-11
After six months of declining average days on market, this metric is has started to trend upwards again in Virginia. It will take several more months of data before we can make any sweeping conclusions about trends in the length of time it takes to market and sell a home, but August 2011’s increase is an important indicator VAR will continue to monitor.
Published by the Virginia Association of REALTORSÂŽ
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Virginia Monthly Home Sales Report
August 2011
Virginia Unemployment Rate Source: Bureau of Labor & Statistics 8% 7%
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%
6.0%
6.0%
6.1%
6.3%
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
5% 4% 3% 2% Aug-10
Jan-11
Feb-11
While Virginia’s unemployment rate has started to gradually increase again over the past several months, it still remains quite low compared to the rest of the nation. The current level of 6.3% places Virginia 9th in the country for the lowest unemployment rate. While comparatively low, we will now need to see stability or a decline in this rate for this to translate into an overall improvement in Virginia’s economy and Virginia’s real estate market.
Average 30-Year Mortgage Interest Rates Source: FreddieMac 5.5% 5.0%
5.0% 4.7%
4.5%
4.4%
4.4%
4.2%
4.3%
Oct-10
Nov-10
4.8%
4.9%
4.8% 4.6%
4.5%
4.6% 4.2%
4.0% 3.5% 3.0% Aug-10
Sep-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Mortgage interest rates have steadily declined over the past six months to a current national average of 4.2% for a fixed rate mortgage. These tremendously low interest rates are making it quite compelling for buyers to step into the market, given how they can protect themselves from inflation by fixing their housing costs at such a low, long term rate.
Published by the Virginia Association of REALTORS®
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Virginia Monthly Home Sales Report
August 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.
Published by the Virginia Association of REALTORS®
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