2015-01 Virginia Home Sales Report

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2011

2015 2011

Quarter Quarter

second second JANUARY

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 Monthly Home Sales Report

January 2015

January Market Summary January is typically the slowest month of the winter selling season and the slowest month of the year. After a particularly strong December, the January sales volume seems low. From December through January, sales and price decreased while days on the market increased. Nonetheless, January sales and sale prices improved year-over-year, resulting in an 8% increase in sales volume year-over-year. Sales generally begin to increase in February and Virginia can expect to see steady increases throughout the first quarter, as the spring selling season begins. Mortgage interest rates and the Virginia unemployment rate continued to decrease in January and December, respectively. The combination of low interest rates and low unemployment should have a strong positive effect on spring sales.

Published by the Virginia Association of REALTORS速 Analysis by the Virginia Center for Housing Research at Virginia Tech

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Virginia Monthly Home Sales Report

January 2015

Virginia's Monthly Pace of Residen/al Sales Single Family, Townhomes, Condos 12,000 10,573 10,115 9,646

10,000

9,416

Number of Residen/al Sales

8,460 8,000

7,950

8,391

8,207

7,559 7,106

6,949

6,000

8,285

6,590

5,377

5,667

5,597

+4.1%

4,000

2,000

0

(p) indicates that this month’s numbers are preliminary. The numbers may change slightly as more data is reported.

Sales increased marginally year-over-year, 4.1% from January 2014 to January 2015. In December, Virginia experienced the highest number sales it has experienced in the month of December since 2006 (when there were 8,291 sales), therefore a substantial decrease from December to January is not surprising. January is typically the slowest sales month of the year in Virginia. Sales are likely to pick up throughout February and the higher-paced spring selling season will begin in March.

Published by the Virginia Association of REALTORS® Analysis by the Virginia Center for Housing Research at Virginia Tech

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Virginia Monthly Home Sales Report

January 2015

Virginia Median Residential Sales Price Single Family Homes, Townhomes, Condos

$200,000

$239,900

$260,000

$250,000

$246,956

$249,900

$260,700

$268,000

$279,000

$264,700

$257,000

$243,000

$232,750

$229,000

$250,000

$245,000

$250,000

$250,000

$274,900

$285,000

$265,000

$250,000

$241,350

$230,000

$225,000

$250,000

$242,350

Median Sales Price

$300,000

$268,000

$350,000

+4.76%

+6.62% $150,000

(p) indicates that this month’s numbers are preliminary. The numbers may change slightly as more data is reported.

The median sales price in January 2015 ($239,900) is 4.76% higher than the previous year, January 2014 ($229,000) and 6.62% higher than the median sales price in January of 2013 ($225,000). Virginia prices declined 7.7% over the previous month, which is typical for January.

Published by the Virginia Association of REALTORSÂŽ Analysis by the Virginia Center for Housing Research at Virginia Tech

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Virginia Monthly Home Sales Report

January 2015

Virginia Monthly Residen/al Sales Volume ($M) Single Family Homes, Townhomes, Condos

4,000 3,658 3,500

3,365 3,143

3,083

Millions of Dollars of Residen/al Sales

3,000 2,721 2,500

2,564

2,456

2,709

2,582

2,384 2,163

2,087

2,060

2,000 1,551

1,675

1,629

1,500

+7.99%

1,000

500

0

(p) indicates that this month’s numbers are preliminary. The numbers may change slightly as more data is reported.

Both prices and sales were exceptionally high in December 2014. A strong December combined with typical seasonal decreases from December to January, resulted in a substantial decrease in sales volume. Nonetheless, sales volume was 7.99% higher this January than January 2014. We can expect volume to increase substantially throughout the remainder of the first quarter.

Published by the Virginia Association of REALTORS® Analysis by the Virginia Center for Housing Research at Virginia Tech

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Virginia Monthly Home Sales Report

January 2015

Virginia Average Days On Market Single Family Homes, Townhomes, Condos

100

90

80

87

90

93

95 91 86

85

-8.6% 78 74

73

Average Days On Market

70

66

69

74

77

68

85

+7.05%

80 74

77

75

80

80

82

73 67

69 64

60

50

40

30

20

10

0

(p) indicates that this month’s numbers are preliminary. The numbers may change slightly as more data is reported.

Days on the market increased to 91 in January, 7.05% higher than last January. January is always the slowest winter month for sales, so we can expect days on the market to decrease steadily through the first and second quarters of 2015.

Published by the Virginia Association of REALTORS® Analysis by the Virginia Center for Housing Research at Virginia Tech

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Virginia Monthly Home Sales Report

January 2015

Virginia Unemployment Rate Source: Bureau of Labor Statistics

9%

4.8%

5.0%

5.3%

5.5%

5.5%

5.3%

5.3%

5.1%

4.9%

4.9%

4.9%

5.0%

5.2%

5.4%

5.6%

5.6%

5.8%

5.7%

5.5%

5.3%

5.2%

5.3%

5.6%

5.6%

6%

5.6%

7%

5.7%

8%

5% 4%

Virginia’s unemployment rate continued to decrease in December 2014. Virginia has seen a steady and consistent decrease in unemployment of about 0.2% per month over a four-month period. Decreasing unemployment is likely to have a positive effect on the real estate market, as we move into the spring selling season.

Average 30-Year Mortgage Interest Rates Source: FreddieMac

4.6% 4.4%

4.43%

4.2%

4.30%

4.34%

4.34% 4.19%

4.16%

4.13%

4.0%

4.12%

4.16%

4.04%

4.00% 3.86%

3.8%

3.67%

3.6% 3.4% 3.2% 3.0%

Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Jul-14

Aug-14

Sep-14

Oct-14

Nov-14

Dec-14

Jan-15

Average 30-year fixed mortgage interest rates decreased to 3.67% in January. This month’s decrease in interest rates represents a 17.2% decrease year-over-year. The combination of low mortgage interest rates and low unemployment will likely have a strong positive effect on sales this spring.

Published by the Virginia Association of REALTORS® Analysis by the Virginia Center for Housing Research at Virginia Tech

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Virginia Monthly Home Sales Report

January 2015

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: Marketing and Communications Virginia Association of REALTORS® 10231 Telegraph Road, Glen Allen, VA 23059 (804) 264-5033 Marketing@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 RE 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

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