The Virginia residential real estate market has continued year-over-year and longer term improvement according to the Second Quarter 2016 Home Sales Report released by the Virginia Association of REALTORS® (VAR). Both the total number of sales and the value of transactions rose from the same period last year, to 34,688 units and $11.720 billion, respectively. Volume – the sum of all transactions for April, May, and June of 2016 – was 8.6 percent higher than the same period last year, and nearly 20 percent higher than the second quarter of 2014. Annualized residential sales, a rolling sum of the home sales closed in the preceding twelve months, rose from 109,574 units in the last quarter to 112,019 (up 2.2 percent). Year-over-year, annualized sales rose by 7.6 percent (from 104,091 in the second quarter of 2015). Consecutive periods of improvement in annualized sales, as demonstrated in Virginia’s market, indicate sustained market strengthening. Boosted by continued low interest rates and increasing seasonal activity, second quarter 2016 sales also rose 7.6 percent from the same period last year, from 32,243 to 34,688.
According to the May 2016 Home Sales Report released by the Virginia Association of REALTORS® (VAR), the Virginia housing market continues a strong growth trend. Year-over-year, the number of transactions rose by nearly 11 percent, from 10,369 sales to 11,499. The value of transactions for May 2016 rose above $3.861 billion, gaining 10 percent on the same month last year. Typical of industry seasonality, May sales rose above April figures; historically, the market improves each month through June. Median price rose month-over-month by just over 4.5 percent, from $265,000 to $277,000. Relative to last year, the median price rose slightly from a May 2015 benchmark of $275,000. The marginal change in price from last May indicates that the volume surge this year is because of the significant jump in number of transactions. Further indicating market strength, average length of time on the market compressed from 67 days last May to 62 in May 2016, quickening by 7.5 percent. Rising median price and declining time on the market reflect limited inventory. With access to historically low interest rates, buyers may be motivated to enter the market with a sense of urgency as inventory constraints continue to press prices up.
The Virginia spring selling season is booming, according to the April 2016 Home Sales Report released by the Virginia Association of REALTORS® (VAR). The number of transactions rose by nearly 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 16.5 percent in units sold and over 22 percent in total transaction value for the month. 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 nearly 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.
The Virginia residential real estate market continued year-over-year improvement according to the First Quarter 2016 Home Sales Report released by the Virginia Association of REALTORS® (VAR). Indicating sustained long-term growth, both the number of sales and the value of transactions rose from this period last year, totaling 20,771 units and $6.34 billion, respectively. The value of transactions for the first quarter of 2016 was 2.2 percent higher than the first quarter of last year, and nearly 15 percent higher than the first quarter of 2014. Annualized residential sales, a rolling sum of the home sales closed in the preceding twelve months, rose for the sixth consecutive period, from 108,827 units in the last quarter to 109,185.
First quarter 2016 sales were 8.7 percent higher than the same benchmark in 2015, reflecting both a strong start to the first months of this year and the swell in last year’s summer volume. Aggregate median sales price for the first quarter was $249,000, the highest first quarter median price since 2008 and a 1.9 percent rise over the first quarter of 2015. First quarter home sales increased year-over-year in all nearly all price bands. Rising sales across broad price categories suggest higher consumer confidence as buyers enter the market at varied price points, supporting overall market improvement.
According to the Virginia Association of REALTORS® (VAR) February 2016 Home Sales Report, residential real estate sales rose significantly over the prior month and increased from February 2015. The month to month increase reflects both seasonal thawing and the contrast to a January 2016 market that was impacted by severe weather. Aggregate transaction value was $1.93 billion, $77 million more than for the same month last year. The boost to transaction value is due to the higher number of sales closed, as median price remained relatively static. Days on the market decreased from the same month last year by nearly 7 percent, remaining on par with this January. Buoyed consumer confidence is reflected in the latest Virginia unemployment data. The state unemployment rate dropped to a seasonally-adjusted 4.1 percent in January, its lowest level since July 2008. According to the February revenue report released by the state, recordation taxes rose significantly year-over-year.