Spring sales boost Virginia residential real estate market
April sales total more than $3.2 billion
RICHMOND, Va. – May 20, 2016 – (RealEstateRama) — The Virginia residential real estate market recorded booming spring sales according to the April 2016 Home Sales Report released by the Virginia Association of REALTORS® (VAR). Bolstering market strength and economic impact, the number of sales, value of transactions, and median price rose markedly from this period last year. In April 2016, there were 9,945 sales recorded for a total volume of $3.23 billion. The value of transactions for this April was nearly ten percent higher than the same month last year, and more than 18 percent higher than in April 2014 ($2.95 and $2.73 billion, respectively). Year-to-date, Virginia residential sales have totaled more than $9.61 billion.
“Virginia’s residential sales market is roaring with the start of spring,” according to 2016 VAR President Bill White. “Sellers are well positioned to capitalize on increasing demand, while buyers are able to take advantage of sustained low interest rates. We are seeing a boom in the spring housing market and a growing impact to Virginia’s economy.”
The number of sales in April grew 8.46 percent year-over-year, from 9,945 to 9,169. April 2016 sales outpaced each prior year benchmark of recent record. Relative to March 2016, April sales grew by 16.5 percent (from 8,535). Such significant month-to-month increases are typical as the industry emerges from the slowest winter months into spring activity.
Median sales price for April rose to $265,000, 1.9 percent higher than the median price in April 2015 ($260,000) and 5.2 percent higher than the median price this March ($252,000). Along with pace and volume, median price typically increases through spring months.
The average number of days on the market declined from March, reflecting typical industry seasonality. Days on the market are fewer in spring and summer months when there is greater market activity. The average number of days on the market in April 2016 dropped from 77 in the same month last year to 70, 9.1 percent lower than the previous April. A year-over-year decrease in the average length of time on the market indicates greater buyer urgency, reflecting limited inventory and continued financial incentive for buyers.
April unemployment data has not yet been released, but the 4.0 percent low reported in March supports consumer confidence that encourages buyers into the market. Further enticing prospective buyers, average 30-year fixed mortgage interest rates dropped in April to 3.61 percent, creating greater affordability in financing.
The Virginia Home Sales Report is published by the Virginia Association of REALTORS®. Click here to view the full April 2016 Home Sales Report. Current and past reports are available to members, media, and real estate related-industries through the organization’s website.
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About the Virginia Association of REALTORS®
The Virginia Association of REALTORS® is the largest professional trade association in the state, representing approximately 31,000 REALTORS® engaged in the residential and commercial real estate business. VAR serves as an advocate for homeownership and homeowners, and represents the interests of property owners in the Commonwealth of Virginia. For more information, visit www.varealtor.com or follow VAR on Facebook and Twitter.
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.
Contact: Martin Johnson, Chief of Policy & Advocacy
Email: Martin (at) varealtor (dot) com
Telephone: (804) 514-9830