Virginia Home Sales...Good News??....

Home sales in Virginia are picking up from the spring “kickoff” in March, according to the Virginia Home Sales Survey reported by the Virginia Association of REALTORS® (VAR). Figures released today showed that closed single family transactions are up in May compared to numbers seen in previous months.

“Spring is typically a peak time for home sales,” said VAR President Melanie Thompson of Fredericksburg, “and the numbers indicate that buyer interest may be picking up as we move into the summer months.”

“There are many positives in today’s market, from job creation to economic growth to historically low mortgage interest rates. Buyers who are on the fence should reconsider their position, and look at their local market again,” she added. “They'll never have better inventory to choose from. Those who wait too long are going to find fewer homes to choose from and the possibility of higher rates not too far down the road.”

January and February showed closed transactions at 6,586 and 6,826 respectively, followed by an uptick to 8,884 in March, which is typically the start of the spring buying season. In May, 9,514 sales closed, up from April’s 8,456 closings, but 16 percent less than the 11,374 recorded during last year’s near-record highs. The number of homes placed on the market was also up from April to May this year, with 10,283 pending contracts compared to April’s 9,834, but 12 percent less than the same period last year.

“It’s important to remember that the marketplace of 2005 to 2006 was extraordinary in many ways, but that the kinds of numbers we’re seeing now are more comparable to a normal market,” said Thompson.

Figures for May indicate that on the average, homes are selling at historic norms, currently 128 days on market on average for the state. Richmond Metro continues to be the fastest market at 54 days, followed by the Hampton Roads/Peninsula area at 65 days and the Roanoke Valley at 67 days.

“We’re hearing from Richmond-area agents that they predict inventory to rapidly decrease through the rest of the year, making this the best time for investment purchases,” added Thompson. “Prices appear to have stabilized in Northern Virginia, and we’re starting to hear that builders are offering fewer incentives in Virginia Beach as the new home market begins to balance out.”

The highest reported median sales price in Virginia was in the Northern Virginia area at $470,000, while the lowest was $91,250 in the Martinsville area. Nationally, the median existing single-family home price was $223,000 in May, which is 2.4 percent below a year ago, according to the National Association of REALTORS. The median is a typical market price where half of the homes sold for more and half sold for less.

“Our advice both to buyers and sellers is to get representation," said Thompson. They can make it look easy on TV, but the fact is, real estate transactions are complicated, and consumers need to work with someone who can help them navigate the process, represent their interests, and bring them value. From pricing your home correctly to ensuring that you get the best representation in what is most people's biggest lifetime purchase, the value that professional can bring will save you money."