2015-05 Virginia Home Sales Report

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2011

2015 2011

Quarter

second second M AY Quarter

VIRGINIA VIRGINIA HomeSAleS SAleSRepoRt RepoRt Home

Analysis by the Virginia Center for Housing Research at Virginia Tech

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


Virginia Monthly Home Sales Report

May 2015

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 Center for Housing Research at Virginia Tech. 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. However, it should be noted that these regions do not necessarily align with the counties and cities that comprise the 27 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.

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 County, 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 County, Fairfax City, Falls Church City, Fauquier, Frederick, Fredericksburg City, King George, Loudoun, Madison, Manassas City, Manassas Park City, Orange, Page, Prince William, Rappahannock, Richmond County, Shenandoah, Spotsylvania, Stafford, Warren, Westmoreland, Winchester City Alleghany, Amherst, Appomattox, Bedford, Botetourt, Campbell, Covington City, Craig, Floyd, Franklin County, Giles, Lynchburg City, Montgomery, Pulaski, Radford, Roanoke County, 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

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

May 2015

May Market Summary Virginia’s May 2015 sales volume was the highest sales volume the state has experienced in May since the 2008 recession. May 2015 sales were 7.5% higher than May 2014, and the 14.7% increase in sales from April to May is a typical, strong summer pace. Prices rose 3.7% year-over-year. The Virginia unemployment rate increased to 4.9% in May from 4.8% in April. This slight increase is not likely to impact the residential real estate market, but continued increases could pose a risk for decreased sales and increased foreclosures. The thirty-year mortgage interest rate increased to 3.84%. While this rate is still historically low, this increase is significant for this year and may encourage buyers to enter the market before rates increase further.

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

May 2015

Virginia's Monthly Pace of Residen7al Sales Single Family, Townhomes, Condos

12,000 10,643

10,374

10,180

9,647

10,000

Number of Residen7al Sales

8,467

9,490

+7.54% 8,368

8,453

9,043 8,431

8,294

8,000 7,109 6,662 6,000

5,776

5,667

6,047

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 14.72% from April to May 2015, which is a typical increase for this time of year based on historic trends. Sales increased 7.54% year-over-year. Virginia 2015 sales remain well above 2014 sales, but May 2015 sales were slightly lower than May 2013 sales.

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

May 2015

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

$274,388

$259,950

$250,000

$245,000

$237,250

$259,000

$250,000

$245,500

$249,490

$261,925

$267,848

$279,900

$264,700

$285,000

$274,900

$257,000

$243,000

$232,750

$228,380

$250,000

$250,000

$250,000

$245,000

$250,000

$265,000

$250,000

Median Sales Price

$300,000

$268,000

$350,000

+3.66% $200,000

+2.38%

$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 for May 2015 (274,388) is 3.66% higher than May 2014 (264,700) and 2.38% higher than May 2013 (268,000). Virginia’s median sales price increased substantially from April, similar to the increases in price in the summers of 2012 and 2013 when the market was still recovering at a high pace. The median price will likely continue to increase through June, based on typical seasonal trends.

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

May 2015

Virginia Monthly Residen4al Sales Volume ($B) Single Family Homes, Townhomes, Condos

4.00 3.67 3.50

3.49

3.38

3.14

3.10

+11.15% 2.90

Billions of Dollars of Residen4al Sales

3.00 2.73

2.72 2.58

2.62

2.59

2.50 2.18

2.07

2.00 1.73

1.63

1.83

1.50

1.00

0.50

0.00

Feb-­‐14 Mar-­‐14 Apr-­‐14 May-­‐14 Jun-­‐14

Jul-­‐14 Aug-­‐14 Sep-­‐14 Oct-­‐14 Nov-­‐14 Dec-­‐14 Jan-­‐15 Feb-­‐15 Mar-­‐15 Apr-­‐15 May-­‐15 (p) (p) (p) (p) (p) (p) (p) (p) (p) (p)

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

May 2015 sales volume was 11.15% higher than May 2014, due to a combination of higher sales and higher prices. May 2015 sales volume was the highest sales volume Virginia has experienced since the Great Recession in 2008.

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

May 2015

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

100 91 90

80

85

81

78 74

73

Average Days On Market

70

85

66

69

74

77

74

75

68

-8.22%

74

67

77

80

81

92

82

77

69

69 65

85

+2.98%

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 decreased from 77 in April to 69 in May, nearly 3% higher than May of 2014 and 5.5% lower than May of 2013. Days on the market are likely to decrease through June and then begin to increase in July if the market follows its typical seasonal course. In 2013, days on the market remained low through August as prices spiked, indicating that there was insufficient inventory to meet demand.

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

May 2015

Virginia Unemployment Rate

4.9%

4.8%

4.8%

4.7%

4.7%

4.8%

4.8%

4.9%

5.0%

5.0%

5.3%

5.2%

5.2%

5.3%

5.3%

5.3%

5.3%

5.2%

5.4%

5.6%

5.6%

5.8%

5.7%

5.5%

5.3%

5.2%

Source: Bureau of Labor Statistics

9% 9% 8% 8% 7% 7% 6% 6% 5% 5% 4%

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

The Virginia unemployment rate increased slightly to 4.9% in May. The Virginia unemployment rate has remained relatively stable, but sustained increases could have a negative impact on the residential real estate market.

Average 30-Year Mortgage Interest Rates Source: FreddieMac

4.4% 4.2%

4.19%

4.16%

4.13%

4.12%

4.16% 4.04%

4.0%

4.00% 3.86%

3.8% 3.6%

3.67%

3.71%

Jan-15

Feb-15

3.77%

3.84% 3.67%

3.4% 3.2% 3.0%

May-14

Jun-14

Jul-14

Aug-14

Sep-14

Oct-14

Nov-14

Dec-14

Mar-15

Apr-15 May-15 (p)

Average 30-year fixed mortgage interest rates increased in May to 3.84%. Nonetheless, rates remain low, 8.35% lower than May of last year.

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

May 2015

The Virginia Association of REALTORS® (VAR) is the largest professional trade association in Virginia, representing approximately 30,000 REALTORS® engaged in the residential and commercial real estate business. VAR serves as an 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: Christine Hodges Chief of Marketing & Communications Virginia Association of REALTORS® Christine@VARealtor.com 804-525-2947

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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