Virginia report may2013

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2011

2013 2011

Quarter

second second M A Y 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 Monthly Home Sales Report

May 2013

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

12,000

10,193 9,740

10,000 9,064

8,664 8,000

9,026 8,550

7,698 7,213

5,775

6,000 5,068

7,212

+78.8%

7,257

7,400

7,386 6,843

5,508

5,899

+85.0%

4,000

2,000

0

Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 (p) (p) (p) (p) (p)

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

The pace of Virginia home sales continued to climb in May 2013 with a 12.5% year-over-year increase to 10,193 home sales. Virginia sales are increasing faster this spring than they did last year. The graph shows an 85% increase in sales from January 2013 to May 2013 compared to a 79% increase from January 2012 to May 2012. Despite a slight increase in 30-year mortgage rates, consumer confidence seems very strong.

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 2013

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

$268,000

$250,000

$240,595

$230,000

$225,000

$242,500

$248,000

$235,000

$240,000

$248,000

$257,241

$258,000

$250,000

$239,000

$225,000

$210,900

$205,000

$225,000

$220,000

$240,000

$241,100

$245,000

$224,000

$215,000

Median Sales Price

$250,000

$225,075

$300,000

$200,000

+7% $150,000

19%

$100,000

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

Virginia continued to experience increases in the median sales price throughout May. The median sales price increased 19.1% from the seasonal low in January. Also, notice that the median sales price in January 2013 was $225,000, which is only slightly lower than the May 2011 median sale price. This overall growth in price trends is further evidence of recovery. The median sales price in May 2013 ($268,000) marks a 7% increase from one year earlier ($250,000) and a 19% increase from two years ago.

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 2013

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

4,000

3,500

3,384 3,117

Millions of Dollars of Residential Sales

3,000

2,804

2,500

2,276

2,723

2,802 2,662

2,159

2,024

2,000

2,270 2,087

2,249 2,090

+50.5% 1,675

1,500

1,525 1,317

+38.5% +50.5%

1,531

1,000

500

0

Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-14 Apr-15 May-16 (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.

The total volume of real estate sold in Virginia during May 2013 ($2.7B) marks a significant 20.7% increase in the volume of real estate being transferred as compared to last May. In addition, we see that sales volume has increased much more this spring, 50.5% from March to May, compared to last spring, 38.5% from March to May.

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 2013

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

120 106 100

97

96

Average Days On Market

88 80

89

99

101 101

92

103 102 91 84

88 80

81

83

89

86

90

92

94 85 77

-13%

72

-14%

60

40

20

0

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

Virginia homes sold in May had been on the market for an average of 72 days, the lowest DOM we have seen since 2006. Virginia experienced a 14% decline in this metric over the past year. The year-overyear declines shown in the graph are evidence of the strengthening housing market.

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 2013

Virginia Unemployment Rate

Apr-11

Jul-11

Oct-11

Jan-12

Apr-12

Jul-12

Oct-12

Jan-13

5.2%

5.3%

5.6%

5.6%

5.6%

5.7%

5.8%

5.9%

5.9%

6.0%

6.0%

5.9%

5.9%

5.9%

5.9%

6.0%

6.2%

6.3%

6.5%

6.6%

6.6%

6.6%

6.5%

6.4%

6.3%

Source: Bureau of Labor & Statistics

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

Apr-13 (p)

(p) indicates that this month’s numbers are preliminary. The rate is subject possible change and finalization by the Bureau of Labor Statistics.

Virginia’s unemployment rate continued to decline through May, likely bolstering consumer confidence and balancing the effects of a slight increase in mortgage interest rates.

Average 30-Year Mortgage Interest Rates Source: FreddieMac

3.9% 3.8%

3.80%

3.7%

3.68%

3.6%

3.55%

3.5%

3.60%

3.53%

3.47%

3.4%

3.38%

3.3%

3.35%

3.35%

Nov-12

Dec-12

3.57%

3.54% 3.45%

3.41%

3.2% 3.1% 3.0%

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Jan-13

Feb-13

Mar-13

Apr-13

May-13

Average 30-year fixed mortgage interest rates rose 0.09% in May. This slight increase may have stalled some buyers, but the rising Virginia sales numbers do not indicate a reaction to higher rates. In general, low interest rates continue to make a compelling argument for buyers to step into the market.

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 2013

The Virginia Association of REALTORS® (VAR) is the business advocate for real estate professionals in Virginia. VAR represents more than 28,000 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 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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