APRIL 2016
Published by the Virginia Association of REALTORS®, the advocate for real estate professionals and property owners in Virginia.
April 2016
The Virginia Association of REALTORS® (VAR) publishes monthly and quarterly home sales reports to provide our members, the media, and real estate‐related industries with current data. The report data comes from a variety of sources and is analyzed by the Virginia Association of REALTORS®. All data may be used with citation to the proprietary owner, the Virginia Association of REALTORS®. The data presented is based on specific economic regions comprised of counties and independent cities in Virginia, as detailed in the map below. It should be noted that these regions do not necessarily align with the counties and cities that comprise the 28 local REALTOR® associations in Virginia. For example, the economic region defined as Northern Virginia encompasses more counties and cities than those within the bounds of the Northern Virginia Association of REALTORS®. Please take this into consideration when referencing regions.
Published by the Virginia Association of REALTORS Data recorded May 12, 2016
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April 2016
April Market Summary
April residential real estate sales indicate growing strength in the Virginia housing market. The number of transactions rose by 8.5 percent year‐over‐year, from 9,169 sales to 9,945. The value of transactions for April 2016 rose above $3.2 billion, gaining nearly 10 percent on the same month last year. As expected with industry seasonality, April sales outperformed March, rising over 16 percent in units sold and over 22 percent in aggregate transaction value. Median price and days on the market also indicated strengthening, both seasonally and year‐over‐year. Median price for the month rose to $265,000, up more than 5 percent from March ($252,000) and up 2 percent from April 2015 ($260,000). The average length of time on the market declined significantly month‐over‐month and year‐over‐year to 70 days, dropping nearly 10 percent from March 2016 (79 days) and the previous April benchmark (77 days). Rising median price and declining time on the market reflect that inventory has remained tight. As the market moves into more active spring months and low interest rates continue to entice prospective buyers, limited inventory will continue to pressure sales price and create urgency.
Published by the Virginia Association of REALTORS Data recorded May 12, 2016
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April 2016
Sales Pace ‐ Monthly Single Family, Condo, Townhome 14,000
12,684 11,818
12,000
10,369 10,000
8,521
10,202
9,169
9,562
9,945 8,866
8,000 6,000
8,746
8,535
7,016 5,807 6,085
5,887
6,499
+ 8.46%
4,000 2,000 0
The number of home sales in Virginia increased nearly 8.5 percent year‐over‐year, from 9,169 in April of 2015 to 9,945 in April of 2016. Sales increased 16.5 percent from March to April, typical with the onset of the more active spring season. Based on historic trends, Virginia can expect to see increasing activity through June.
Sales Pace ‐ April Benchmarks Single Family, Condo, Townhome 10,500 9,945
10,000 9,500
9,169
9,000
8,737 8,507
8,500 8,000 7,500 April 2013
April 2014
April 2015
April 2016
April 2016 residential real estate sales surpassed recent prior year benchmarks. Published by the Virginia Association of REALTORS Data recorded May 12, 2016
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April 2016
Median Sales Price Single Family, Condo, Townhome
$350,000
$265,000
$252,000
$244,900
$264,000
$252,000
$250,000
$252,000
$268,000
$284,000
$275,000
$251,500
$245,800
$250,000
$246,000
$270,000
$239,895
$290,000
$260,000
$310,000
$275,000
$330,000
$230,000 + 1.9 %
$210,000 $190,000 $170,000 $150,000
Median sales price for April 2016 ($265,000) was nearly 2 percent higher than April 2015, and 5.2 percent higher than March 2016 ($252,000). Median price typically rises through the spring months.
Published by the Virginia Association of REALTORS Data recorded May 12, 2016
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April 2016
Residential Sales Volume ‐ Monthly Single Family, Condo, Townhome $2,945,431,630
$3,229,171,496
$5,000,000,000 $4,500,000,000 $4,000,000,000 $3,500,000,000 $3,000,000,000 $2,500,000,000 $2,000,000,000
+ 9.63%
$1,500,000,000 $1,000,000,000 $500,000,000 $0
Sales volume grew nearly 10 percent from April 2015 to April 2016. Sales volume measures the total sum of each home sale price in Virginia and, therefore, generally follows sales pace and median price trends. The significant year‐over‐year increase in volume reflects both rising median price and the higher number of transactions relative to the same month last year. Typical of industry seasonality, April 2016 volume rose significantly from March 2016 volume (22.5 percent). Along with other market indicators, volume typically peaks in June.
Published by the Virginia Association of REALTORS Data recorded May 12, 2016
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April 2016
Average Days on Market Single Family, Condo, Townhome 100 90
91
92 86
84
80
78
77 69
67
70
62
72
78
77
85 79 70
64
60 50 ‐ 9.1%
40 30 20 10 0
Average length of time on the market decreased markedly from the preceding month and also year‐ over‐year. Average number of days on the market in April 2016 decreased 9.1 percent from the prior April (from 77 days to 70). As with median price and sales pace, days on the market reflect increased market activity through spring months.
Published by the Virginia Association of REALTORS Data recorded May 12, 2016
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April 2016
Virginia Unemployment Rate Source: Bureau of Labor Statistics
7.0%
4.1%
4.1%
4.0%
Feb‐16
Mar‐16
4.8% Jul‐15
Jan‐16
4.9% Jun‐15
4.2%
4.9% May‐15
Dec‐15
4.8% Apr‐15
4.1%
4.8% Mar‐15
Nov‐15
4.7% Feb‐15
4.2%
4.7% Jan‐15
Oct‐15
4.8% Dec‐14
4.3%
4.8% Nov‐14
4.5%
Sep‐15
4.9% Oct‐14
5.0%
4.5%
5.0%
5.3% Jul‐14
Sep‐14
5.2% Jun‐14
5.0%
5.2% May‐14
Aug‐14
5.3% Apr‐14
5.5%
5.3%
6.0%
Mar‐14
6.5%
4.0% 3.5% Aug‐15
3.0%
The Virginia unemployment rate for April 2016 has not yet been released. Virginia unemployment in March dropped to 4.0 percent, its lowest point since June 2008. Low and declining unemployment correlate with increased consumer confidence and may encourage potential home buyers to enter the market.
Average 30 ‐Year Mortgage Interest Rate Source: FreddiMac
4.40% 4.20% 4.05%
4.00%
3.98% 3.91% 3.84%
3.80%
3.94%
3.89%
3.96% 3.87%
3.80%
3.67%
3.66%
3.60%
3.69% 3.61%
3.40% Apr‐15 May‐15 Jun‐15
Jul‐15 Aug‐15 Sep‐15 Oct‐15 Nov‐15 Dec‐15 Jan‐16 Feb‐16 Mar‐16 Apr‐16
Average 30‐year fixed mortgage interest rates decreased in April 2016. The average rate was 6 basis points lower than in April 2015; assuming identical loan amounts, financing in April 2016 was 1.6 percent more affordable than in the same month last year (3.61 percent relative to 3.67 percent). Sustained low interest rates enhance accessibility to the market and may encourage prospective buyers. Published by the Virginia Association of REALTORS Data recorded May 12, 2016
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April 2016
The Virginia Association of REALTORS® (VAR) is the largest professional trade association in Virginia, representing approximately 31,000 REALTORS® engaged in the residential and commercial real estate business. VAR serves as the advocate for homeownership and private property rights and represents the interests of real estate professionals and property owners in the Commonwealth of Virginia. NOTE: The term REALTOR® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict code of ethics. All inquiries regarding this report may be directed to: Martin Johnson Virginia Association of REALTORS Martin@VARealtor.com 804‐249‐5708 The numbers reported here are preliminary and based on current entries into multiple listing services. Over time, data may be adjusted slightly to reflect increased reporting. Information is sourced from multiple listing services across Virginia and is deemed reliable, but not guaranteed. Published by the Virginia Association of REALTORS Data recorded May 12, 2016
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