2012_August_Report

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Published by Virginia Association of REALTORS速, the advocate for real estate professionals and property owners in Virginia.

2012

AUGUST

VIRGINIA HOME SALES REPORT


Virginia Monthly Home Sales Report

August 2012

Virginia's Monthly Pace of Residential Sales Single Family, Townhomes, Condos 12,000

10,000

9,619 9,006 8,503

8,679

8,125 8,000

7,651 7,272 6,905

6,756 6,263

6,068

5,936

6,000 5,084

+7%

4,000

2,000

0 Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

The pace of Virginia home sales continued to increase in August 2012 with a 7% increase to 8,679 home sales -- as compared to a 6% increase between July 2011 and 2012. Low unemployment rates in Virginia, as well as record low mortgage interest rates, have helped Virginia’s residential housing market continue to grow throughout 2012. The typical seasonal decline in sales is likely to be seen starting in September.

Published by the Virginia Association of REALTORSÂŽ

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Virginia Monthly Home Sales Report

August 2012

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

$247,950

$255,000

$255,100

$249,878

$238,500

$225,000

$210,000

$204,950

$225,000

$220,428

$215,000

$224,000

$240,000

$241,500

$245,000

$225,325

$225,000

$214,900

$213,900

$232,640

$236,251

$229,900

$205,000

Median Sales Price

$250,000

$239,900

$250,000

$300,000

$200,000

+3%

$150,000

-0.8%

$100,000

Alongside a 7% increase in the pace of home sales in Virginia (see Page 2), we also witnessed an increase in median sales prices in Virginia. The median sales price in August 2012 ($247,950) marks a 3% increase from one year earlier ($240,000), though a slight 0.8% decline from two years ago ($250,000). It is typical in Virginia to see steady declines in median sales price between July and January, so we should expect to see median prices continue to decline during through the fall months. Despite these seasonal declines, the increased pace of buyer activity is certainly helping to provide further stabilization and growth in median sales prices.

Published by the Virginia Association of REALTORS速

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Virginia Monthly Home Sales Report

August 2012

Virginia Monthly Residential Sales Volume Single Family Homes, Townhomes, Condos 3,500

3,068 3,000

Millions of Dollars of Residential Sales

2,776

2,500

2,662

2,669

Jul-12

Aug-12

2,422 2,259 2,038

1,957

2,000

1,889 1,715

1,698 1,561

1,500

1,320

1,000

+10% 500

0 Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

The total volume of real estate sold in Virginia during August 2012 ($2.7B) marks a significant 10% increase in the volume of real estate being transferred as compared to last August. Given the recent increases in median sales prices (see Page 3), we should expect to see further increases in overall sales volume as the pace of sales increases (see Page 2).

Published by the Virginia Association of REALTORS速

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Virginia Monthly Home Sales Report

August 2012

Virginia Average Days On Market Single Family Homes, Townhomes, Condos 120

-12%

+15%

106 105 100 101 99

100

95

98

91 85

Average Days On Market

80

97

96

86

80

88

89

92

101 99 100

103

90 83 78

79

81

60

40

20

0

Virginia’s housing market experienced a 12% decline over the past year in average days on market to the current average of 81 days. This decline in days on market is after a 15% increase in the same metric during the previous year. It is typical to see an increase in average days on market during the fall and winter months, thus we will likely see this metric start to increase over the next several months.

Published by the Virginia Association of REALTORSÂŽ

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Virginia Monthly Home Sales Report

August 2012

Virginia Unemployment Rate Source: Bureau of Labor & Statistics

5.9%

5.7%

5.6%

5.6%

5.6%

5.7%

5.8%

6%

6.1%

6.2%

6.4%

6.5%

6.3%

6.1%

6.0%

6.0%

6.1%

6.3%

6.6%

6.9%

6.4%

6.5%

6.4%

7%

6.5%

6.9%

8%

6.9%

9%

5% 4% Jul-10

Oct-10

Jan-11

Apr-11

Jul-11

Oct-11

Jan-12

Apr-12

Jul-12

Virginia’s unemployment rate rose slightly to 5.9%, though it has now been under 6% for the past seven months. The current level of 5.9% places Virginia in 10th place in the country for lowest unemployment rates.

Average 30-Year Mortgage Interest Rates Source: FreddieMac 4.4% 4.2%

4.22% 4.01%

4.0%

4.10% 3.98%

3.95%

3.98%

3.95%

3.99% 3.88%

3.8%

3.75%

3.6%

3.66%

3.59% 3.49%

3.4% 3.2% 3.0% Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Average 30-year fixed mortgage interest rates rose slightly in August 2012 to 3.59% -- though this is the second lowest interest rates in the history of tracking mortgage interest rates. These tremendously low interest rates make 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 REALTORSÂŽ

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Virginia Monthly Home Sales Report

August 2012

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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