The Virginia residential real estate market rose 11 percent from the third quarter of 2014 to a sales volume of $10.1 billion, contributing to a year-to-date volume totaling $27 billion. According to the Third Quarter 2015 Home Sales Report released by the Virginia Association of REALTORS® (VAR), this increase reflects a sustained trend of long-term improvement.
The Virginia Home Sales Report is published by the Virginia Association of REALTORS. Click here to view the full Third Quarter 2015 Home Sales Report.
Year-over-year, the number of units sold rose in every price category except $1M and above, with the most significant increases in sales closed between $300K and $500K.
“Virginia REALTORS® closed over $10 billion in sales in the third quarter. When we look at the double digit growth in sales from this time last year along with increased revenues to the state through the recordation tax, we have confidence in Virginia’s improving housing market and its positive impact on our overall economy.” says VAR President Deborah Baisden. “With prolonged access to low interest rates and stabilization in employment confidence, there is valuable opportunity for buyers to enter or upsize in this market.” Performing ahead of the national rate, the continued decline in Virginia’s unemployment rate to a 4.3 percent in September may contribute to buoyed consumer confidence.
With interest rates remaining at historic lows, buyers are able to capitalize on lower average mortgage rates in both 30-year and 15-year loans than they were at this time last year. Aggregate median sales price rose to $265,000 in the third quarter, an improvement from the preceding quarter and from the third quarter of each of the last three years, rising nearly 7 percent from the third quarter of 2012.
With the exception of notable increases in Southwest and Southside Virginia (9.5 and 9 percent, respectively), year-over-year median sales price remained static across all regions. Compared to the third quarter of last year, 2015 third quarter home sales increased 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. The most substantial increases in sales activity appear in the $300K-$400K and $400K-$500K ranges. The growth in overall transactional value for the comparable time periods between 2014 and 2015 is due primarily to an increased number of units sold, since the median sales price increase was slight (2.3 percent). The number of units sold rose to 31,176, exceeding an 11 percent rise over the same period last year.
Typical of the industry seasonality, days on the market have lengthened steadily from the preceding summer months. Relative to the third quarter of 2014, the number of days on the market decreased by 6.8 percent, indicating strong year-over-year quickening in sales pace. Annualized residential sales, a rolling sum of the home sales closed in the preceding twelve months, indicate steady improvement in Virginia’s housing market with four consecutive quarters of increase. The measure rose by 2.1 percent from the second quarter of this year. Since the second quarter of 2012, annualized sales have risen by more than 23 percent. The growth trend in annualized sales indicates long-term sustained strengthening of the residential real estate market. The Virginia Home Sales Report is published by the Virginia Association of REALTORS. Click here to view the full Third Quarter 2015
Home Sales Report. Current and past reports are available to members, media, and real estate related-industries through the organization’s website.