Q4 2011 home sales: steady as she goes

As we conclude 2011 and head into 2012, Virginia’s housing market will likely continue to stabilize, due to factors like low interest rates, rising residential rental rates, and an improving household balance sheet based on increases in household saving habits.

“We are encouraged by the overall numbers shown in the fourth quarter. The pace of home sales is picking up and without artificial stimulus proving that people are taking advantage of low interest rates and low home prices. This upcoming year is an optimistic one for real estate; one in which we hope to see stronger signs of recovery and stabilization,” said Virginia Association of REALTORS® President Trish Szego.

Highlights:

• Home sales increased in nearly every region of Virginia when comparing the fourth quarter of 2011 to the fourth quarter of 2010. Despite a 9% decline in Northern Virginia, five of Virginia’s seven regions experienced a sizable increase in home sales, the most substantive in Hampton Roads / Chesapeake Bay area with a 12.9% increase.
• After slightly inching upward in the third quarter of 2011 to a median price of $235,000, home values declined to a median price of $220,000 in the fourth quarter of 2011. It is important to note, however, that a decline between the third and fourth quarters is the normal trend in Virginia.
• The Commonwealth witnessed a remarkable 26% decline in foreclosures when comparing the fourth quarter of 2011 to the third quarter of 2011. The Roanoke / Lynchburg / Blacksburg region was the only area of the Virginia to experience an increase in foreclosures during the fourth quarter of 2011.
• Virginia has experienced a slight decline in its unemployment rate from 6.5% in third quarter to 6.2% in fourth quarter 2011.

Click here for the full Q4 Virginia Home Sales Report.