2011 2014
second Fsecond IRST Quarter QUARTER Quarter
VIRGINIA VIRGINIA Home HomeSAleS SAleSRepoRt RepoRt
Analysis by the Virginia Center for Housing Research at Virginia Tech
速 速 Published by by Virginia association of reaLtors , the advocate for for Published Virginia association of reaLtors , the advocate realreal estate professionals andand property owners in Virginia. estate professionals property owners in Virginia.
Virginia Quarterly Home Sales Report
2014-Q1
Virginia Month-to-Month Sales Trends Single Family Homes, Townhomes, Condos 2011
2012
2013
2014
Number of Single Family, Townhome and Condo Sales
12,000
10,000
8,000
6,000
4,000
2,000
0 January
February
March
April
May
June
July
August
September
October
November December
Month
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2011
4,728
5,116
7,145
7,311
8,391
9,223
7,970
8,136
6,916
6,263
6,070
6,758
2012
5,068
5,775
7,213
7,698
9,064
9,740
8,664
9,026
7,213
7,261
7,400
6,838
2013
5,528
5,911
7,456
8,660
10,454
10,763
10,344
10,104
8,138
7,887
6,882
7,356
2014
5,333
5,595
6,910
The pace of residential home sales in the first quarter of 2014 was 5.67% lower than the first quarter of 2013. This decrease has been widely attributed to the weather, but could also be a sign of a slowing recovery. Despite the year-over-year decrease, the pace of sales is increasing steadily as we enter the spring selling season. If the slow first quarter can indeed be attributed to the weather, we should see sales pick up substantially in the next couple of months.
Published by the Virginia Association of REALTORS速 Analysis by the Virginia Center for Housing Research at Virginia Tech
Page 2
Virginia Quarterly Home Sales Report
2014-Q1
Virginia Quarterly Residential Sales Single Family Homes, Townhomes, Condos
Number of Single Family, Townhome and Condo Sales
35,000
29,962
30,000
28,749 26,502 24,911
24,906
25,000
23,001
22,461 21,509
20,000
19,099
18,558
18,056
18,910 17,838
17,105
-5.67% YOY
15,000
10,000
2010-Q4 2011-Q1 2011-Q2 2011-Q3 2011-Q4 2012-Q1 2012-Q2 2012-Q3 2012-Q4 2013-Q1 2013-Q2 2013-Q3 2013-Q4 2014-Q1 Quarter
The pace of home sales was 5.67% lower in the first quarter of 2014 compared to the first quarter of 2013. Decreasing pace is typical for Virginia in the first quarter, primarily because the winter season lingers through February. Sales increased from 5,595 in February to 6,910 in March (23.5%), indicating that Virginia is moving into the higher paced spring selling season.
Published by the Virginia Association of REALTORS速 Analysis by the Virginia Center for Housing Research at Virginia Tech
Page 3
Virginia Quarterly Home Sales Report
2014-Q1
Virginia Annualized Residential Sales Single Family Homes, Townhomes, Condos
Number of Single Family, Townhome and Condo Sales
110,000
99,130
100,000
100,082
99,010
95,292 90,978 90,000 83,630
84,194
83,570
84,111
85,062
86,658
91,832
88,568
81,367 80,000
70,000
60,000
50,000
2010-Q4 2011-Q1 2011-Q2 2011-Q3 2011-Q4 2012-Q1 2012-Q2 2012-Q3 2012-Q4 2013-Q1 2013-Q2 2013-Q3 2013-Q4 2014-Q1 Quarter
Our annualized sales metric showed no growth for the first time in 12 quarters (3 years). We expected a slow first quarter due to Virginia’s fairly harsh winter and hope that the faster pace of sales in March will lead to a strong second quarter. However, a decline in this metric may also be an indication that the market recovery is slowing. Each data point on the graph above includes 12 months of home sales data ending in the quarter shown. For example, the 2014-Q1 figure (99,010 sales) includes home sales from April 2013 through March 2014. Using this rolling sum of home sales can provide a clearer indicator of long-term trends in Virginia’s housing market.
Published by the Virginia Association of REALTORS® Analysis by the Virginia Center for Housing Research at Virginia Tech
Page 4
Virginia Quarterly Home Sales Report
2014-Q1
Regional Changes in Sales 2013-Q1 vs. 2014-Q1 Units
Northern Virginia -9.3% Central Valley -8.5%
Roanoke / Lynchburg / Blacksburg +8.3% Southwest Virginia -12.7%
Central Virginia -2.2%
Hampton Roads / Chesapeake Bay -4.5%
Southside Virginia -2.1%
Region
2013-Q1
2014-Q1
Change
Central Valley
1,038
950
-8.5%
Central Virginia
2,945
2,881
-2.2%
Hampton Roads / Chesapeake Bay
4,511
4,308
-4.5%
Northern Virginia
8,395
7,614
-9.3%
Roanoke / Lynchburg / Blacksburg
1,355
1,468
8.3%
Southside Virginia
387
379
-2.1%
Southwest Virginia
268
234
-12.7%
All of Virginia
18,899
17,834
-5.6%
Every region of the state experienced a slower pace of sales compared to the first quarter of 2013 with exception of the Roanoke/Lynchburg/Blacksburg region. Decreases in sales ranged from 2.1% (8 fewer sales) in Southside to 9.3% (781 fewer sales) in Northern Virginia.
Published by the Virginia Association of REALTORS速 Analysis by the Virginia Center for Housing Research at Virginia Tech
Page 5
Virginia Quarterly Home Sales Report
2014-Q1
Virginia Median Residential Sales Price Single Family Homes, Townhomes, Condos
$235,000
$249,000
$254,000
$269,000 $232,600
$241,000
$248,000
$249,500 $215,000
$220,000
$235,000
$232,500
$210,000
Median Sales Price
$250,000
$232,694
$300,000
+1.03%
$200,000
$150,000
+11.9%
$100,000 2010-Q4 2011-Q1 2011-Q2 2011-Q3 2011-Q4 2012-Q1 2012-Q2 2012-Q3 2012-Q4 2013-Q1 2013-Q2 2013-Q3 2013-Q4 2014-Q1 Quarter
The median sales price in Virginia increased 1% over the past year to $235,000. Looking at the longer term trend, the median sales price in Virginia has increased by 11.9% over 2011-Q1. The median price decreased steadily from second quarter of 2013, following the typical pattern of seasonal price fluctuation in Virginia. Previous years indicate that prices will increase through the second quarter and level out in the third quarter.
Published by the Virginia Association of REALTORS速 Analysis by the Virginia Center for Housing Research at Virginia Tech
Page 6
Virginia Quarterly Home Sales Report
2014-Q1
Regional Changes in Median Sales Prices 2013-Q1 vs. 2014-Q1
Northern Virginia +2.9% Central Valley +1.0%
Central Virginia +6.9%
Roanoke / Lynchburg / Blacksburg +0.3% Southwest Virginia -16.7%
Hampton Roads / Chesapeake Bay -1.4%
Southside Virginia +4.9%
Region
2013-Q1
2014-Q1
Change
Central Valley
$186,965
$188,750
1.0%
Central Virginia
$175,000
$187,000
6.9%
Hampton Roads / Chesapeake Bay
$195,000
$192,250
-1.4%
Northern Virginia
$340,000
$349,900
2.9%
Roanoke / Lynchburg / Blacksburg
$146,000
$146,500
0.3%
Southside Virginia
$72,000
$75,500
4.9%
Southwest Virginia
$120,000
$100,000
-16.7%
All of Virginia
$240,535
$235,000
-2.3%
Median sales price stayed fairly stable throughout the state. Only Southwest Virginia experienced a significant change (-16.7%). Based on state trends, we can expect to see increases in prices in all regions through the second quarter.
Published by the Virginia Association of REALTORS速 Analysis by the Virginia Center for Housing Research at Virginia Tech
Page 7
Virginia Quarterly Home Sales Report
2014-Q1
Virginia Quarterly Residential Sales Volume ($M) Single Family Homes, Townhomes, Condos
11,000
9,913
10,000
9,308
Millions of Dollars of Residential Sales
9,000
8,197 8,000
7,684 7,307
6,000
5,000
6,935
6,789
7,000
6,446
5,446
5,498
5,275
5,268
4,866 4,503
-4.2% YOY
4,000
3,000
2,000
2010-Q4 2011-Q1 2011-Q2 2011-Q3 2011-Q4 2012-Q1 2012-Q2 2012-Q3 2012-Q4 2013-Q1 2013-Q2 2013-Q3 2013-Q4 2014-Q1 Quarter
This graph illustrates the dollar value of real estate sold (in millions) during each quarter over the past three years. The volume of real estate sold in the first quarter of 2014 ($5.2B) decreased 4.2% from the first quarter of 2013 ($5.4B) primarily due to a slower pace of sales. Median sales price was slightly higher this quarter than in the first quarter of 2013.
Published by the Virginia Association of REALTORS速 Analysis by the Virginia Center for Housing Research at Virginia Tech
Page 8
Virginia Quarterly Home Sales Report
2014-Q1
Virginia Price Distribution Of Residential Home Sales Single Family Homes, Townhomes, Condos 2013-Q1 $2M +
36 25
-31%
$1.5M - $2M
45 49
9%
187 194
$1M - $1.5M
Price Range
4% 450 436
$750K - $1M
2014-Q1
-3% 1,670 1,638
$500K - $750K
1,614 1,576
$400K - $500K
-2% -2% 2,743 2,560
$300K - $400K
-7% 4,207 4,021
$200K - $300K
-4% 5,286
$100K - $200K
4,898 2,681 2,441
0 - $100K 0
500
-7%
-9%
1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 6,500 7,000 7,500 8,000 Number of Single Family, Townhome and Condo Sales
Year-over-year home sales decreased in all price ranges this quarter except for the $1-$2M price ranges. Sales increased 4% in the $1M-1.5M range and 9% in the $1.5M-2M range. These increases represent a very small number of sales, 4 and 7 sales respectively. Given the small number of sales, there is not much insight to be gained from these relatively small increases. During the first quarter, unemployment and mortgage interest rates remained stable, so decreases in most of the price ranges likely reflect the seasonal trend. The decrease was most substantial in the $2M+ price range, 31%. Again, since this decrease represents a very small number of sales (11) there is not a lot of insight to be gained from this decrease, although it is reasonable that increases in interest rates would have the largest impact among higher priced sales. Decreases in other price ranges ranged from 2% to 9%.
Published by the Virginia Association of REALTORS速 Analysis by the Virginia Center for Housing Research at Virginia Tech
Page 9
Virginia Quarterly Home Sales Report
2014-Q1
Virginia Average Days On Market Single Family Homes, Townhomes, Condos
120
104 100 91
100 94
103
93 85
84
88
+1%YOY
91
80
80
Average Days On Market
92
71
71
60
40
20
0
2010-Q4 2011-Q1 2011-Q2 2011-Q3 2011-Q4 2012-Q1 2012-Q2 2012-Q3 2012-Q4 2013-Q1 2013-Q2 2013-Q3 2013-Q4 2014-Q1 Quarter
Days on the market remain relatively low and the year-over-year change was slight. Time on the market increased 15% from the fourth quarter of 2013 to an average of 92 days in the first quarter of 2014. Days on the market dropped from 98 in February to 89 in March indicating that the spring selling season is underway.
Published by the Virginia Association of REALTORS速 Analysis by the Virginia Center for Housing Research at Virginia Tech
Page 10
Virginia Quarterly Home Sales Report
2014-Q1
Regional Changes in Foreclosures 2013-Q4 vs. 2014-Q3
Northern Virginia -11% Central Valley 36%
Roanoke / Lynchburg / Blacksburg 6% Southwest Virginia 0%
Central Virginia 32%
Hampton Roads / Chesapeake Bay 3%
Southside Virginia 62%
Region
2013-Q4
2014-Q1
Change
Central Valley
28
38
36%
Central Virginia
225
297
32%
Hampton Roads / Chesapeake Bay
463
479
3%
Northern Virginia
547
486
-11%
Roanoke / Lynchburg / Blacksburg
84
89
6%
Southside Virginia
13
21
62%
Southwest Virginia
12
12
0%
All of Virginia
1,372
1,422
4%
Many areas of Virginia experienced an increase in foreclosures in the first quarter of 2014. The increases in foreclosures in the Central Valley and Southside are somewhat misleading because the number of foreclosures is so low that small changes result in large percentage changes. Northern Virginia’s foreclosures decreased this quarter. Only Central Virginia experienced a significant increase in the number of foreclosures.
Published by the Virginia Association of REALTORSÂŽ Analysis by the Virginia Center for Housing Research at Virginia Tech
Page 11
Virginia Quarterly Home Sales Report
2014-Q1
Monthly Residential Sales VIRGINIA (All MLS-Reported Home Sales)
UNITED STATES (Existing Home Sales) 600,000
16,000 14,000
500,000
12,000
400,000
10,000 8,000
262,000
243,000
5,922
5,595
6,000 4,000 2,000 0
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Dec-13
Jan-14
Feb-14 (p)
300,000 200,000 100,000 0
The pace of Virginia home sales has been similar to the pace of sales in the United States as a whole throughout the year. Both the United States as a whole and Virginia continued to experience seasonal decline through January, but the pace picked up in February. Virginia’s pace increased slightly faster than that of the United States as a whole.
Monthly Residential Median Sales Price VIRGINIA (All MLS-Reported Home Sales)
UNITED STATES (Existing Home Sales) $300,000
$300,000 $233,000
$250,000 $230,000
$200,000
$200,000 $189,200
$150,000 $173,500
$150,000 $100,000
$100,000 $50,000
$250,000
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13 Sep-13
Oct-13
Nov-13 Dec-13
Jan-14
Feb-14 (p)
$50,000
The median sales price in Virginia also increased more quickly than prices in the United States as a whole. The US median price increased only 0.7% from January to February while Virginia’s price increased 1.9%.
Published by the Virginia Association of REALTORS® Analysis by the Virginia Center for Housing Research at Virginia Tech
Page 12
Virginia Quarterly Home Sales Report
2014-Q1
Virginia Unemployment Rate Source: Bureau of Labor & Statistics
7% 7%
6.4%
6.5%
6.6% 6.2%
6%
6.0%
5.9%
5.9%
5.6%
6% 5%
5.5%
5.3%
5.8% 5.4% 4.9%
5% 4%
2011-Q1
2011-Q2
2011-Q3
2011-Q4
2012-Q1
2012-Q2
2012-Q3
2012-Q4
2013-Q1
2013-Q2
2013-Q3
2013-Q4
2014-Q1
2013-Q3 unemployment rate based on preliminary August 2013 data.
Unemployment Rates By State
seasonally adjusted, November 2013 (U.S. rate = 7.0 percent)
14.0% and over 12.0% to 13.9% 10.0% to 11.9% 8.0% to 9.9% 6 0% tto 77.9% 6.0% 9% 4.0% to 5.9% SOURCE: Bureau of Labor Statistics Local Area Unemployment Statistics
3.9% or below
Virginia’s unemployment rate decreased in the first quarter of 2014 to 4.9% in February. Virginia remained at the second lowest level of unemployment in the United States in March, but unemployment rose to 5.0%. It isn’t likely that this slight rise in unemployment had a discernible impact on sales.
Published by the Virginia Association of REALTORS® Analysis by the Virginia Center for Housing Research at Virginia Tech
Page 13
Virginia Quarterly Home Sales Report
2014-Q1
Average 30-Year Mortgage Interest Rates Source: FreddieMac
5.0% 4.8%
4.85% 4.66%
4.6% 4.4%
4.44%
4.31%
4.2%
4.01%
4.0% 3.8%
3.92%
3.80%
3.6%
3.36%
3.2% 3.0%
4.36%
3.69%
3.54%
3.4%
4.30%
3.50%
2011-Q1 2011-Q2 2011-Q3 2011-Q4 2012-Q1 2012-Q2 2012-Q3 2012-Q4 2013-Q1 2013-Q2 2013-Q3 2013-Q4 2014-Q1
Average 15-Year Mortgage Interest Rates Source: FreddieMac
4.5% 4.0% 3.5% 3.0%
4.1% 3.9% 3.5%
3.3%
3.5% 3.2%
3.0% 2.8%
2.5% 2.0%
2.7%
2.7%
3.4%
3.4%
2.9%
2011-Q1 2011-Q2 2011-Q3 2011-Q4 2012-Q1 2012-Q2 2012-Q3 2012-Q4 2013-Q1 2013-Q2 2013-Q3 2013-Q4 2014-Q1
30-year mortgage interest rates increased in the first quarter of 2014, while 15-year rates remained stable. Generally rates remain very stable and should have had little affect on sales.
Published by the Virginia Association of REALTORS速 Analysis by the Virginia Center for Housing Research at Virginia Tech
Page 14
Virginia Quarterly Home Sales Report
2014-Q1
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, Chief of Marketing and Communications Virginia Association of REALTORS® 10231 Telegraph Road, Glen Allen, VA 23059 (804) 249-5716 Stacey@VARealtor.com www.VARealtor.com/HomeSales
Economic Regions
Central Valley: Central Virginia:
Hampton Roads / Chesapeake Bay:
Northern Virginia:
Roanoke / Lynchburg / Blacksburg:
Albemarle, Augusta, Bath, Buena Vista City, Charlottesville City, Fluvanna, Greene, Harrisonburg City, Highland, Lexington City, Nelson, Rockbridge, Rockingham, Staunton City, Waynesboro City Amelia, Buckingham, Charles City, Chesterfield, Colonial Heights City, Cumberland, Dinwiddie, Goochland, Hanover, Henrico, Hopewell City, King and Queen, King William, Louisa, New Kent, Nottoway, Petersburg City, Powhatan, Prince Edward, Prince George, Richmond City, Sussex Accomack, Chesapeake City, Franklin City, Gloucester, Hampton City, Isle of Wight, James City, Lancaster, Mathews, Middlesex, Newport News City, Norfolk City, Northampton, Northumberland, Poquoson City, Portsmouth City, Southampton, Suffolk City, Surry, Virginia Beach City, Williamsburg City, York Alexandria City, Arlington, Caroline, Clarke, Culpeper, Essex, Fairfax, Fairfax City, Falls Church City, Fauquier, Frederick, Fredericksburg City, King George, Loudoun, Madison, Manassas City, Manassas Park City, Orange, Page, Prince William, Rappahannock, Richmond, Shenandoah, Spotsylvania, Stafford, Warren, Westmoreland, Winchester City Alleghany, Amherst, Appomattox, Bedford, Bedford City, Botetourt, Campbell, Covington City, Craig, Floyd, Franklin, Giles, Lynchburg City, Montgomery, Pulaski, Radford, Roanoke, Roanoke City, Salem City
Southside Virginia:
Brunswick, Charlotte, Danville City, Emporia City, Galax City, Greensville, Halifax, Henry, Lunenberg, Martinsville City, Mecklenburg, Norton City, Patrick, Pittsylvania
Southwest Virginia:
Bland, Bristol City, Buchanan, Carroll, Dickenson, Grayson, Lee, Russell, Scott, Smyth, Tazewell, Washington, Wise, Wythe
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® Analysis by the Virginia Center for Housing Research at Virginia Tech
Page 15