Second Quarter Housing Market Report: A Strong Foundation for Continued Stability and Moderate Growth
by Kate Loveluck Richmond Association of REALTORS®
Richmond, Va. – According to a second quarter 2014 housing market report just released by the Central Virginia Regional MLS, sales and pending sales remained relatively flat in the Central Virginia Region as a whole during the second quarter this year, while Chesterfield County experienced an up-tick in sales of 7 percent from this time last year. There were 4,269 sales in the Central Virginia Region, essentially unchanged from the 4,265 sales this time last year. Sales in the Richmond Metro area rose slightly, up 2 percent from a year ago. After a relatively strong first quarter, sales in the Tri-Cities fell in the second quarter, with 47 fewer sales than last year.
Even with the relatively flat sales activity, home prices continued to rise in many parts of the area. The average sales price in the Central Virginia Region in the second quarter was $246,453, up 5 percent from a year ago, a gain of nearly $11,000. The median sales price for the region also increased by 4 percent from this time last year to $212,885. Price gains have been the most consistent in the Richmond Metro Area, where the current median sales price of $216,791 is approximately $50,000 higher than the trough-level in the first quarter of 2012. At the jurisdiction level, Price George County led the region in median sales price growth, climbing 26 percent from the second quarter of 2013.
Homes are also selling faster in the Central Virginia Region compared to this time last year. The average days-on-market in the region for the second quarter was 55 days, down from 57 days a year ago.
As with closed sales, pending sales remained sluggish in the second quarter around the region. There were 4,867 pending sales in the Central Virginia Region in the second quarter, down 1 percent from a year ago. The City of Richmond experienced its first decline in pending sales in three years—falling 10 percent from a year ago—while the Tri-Cities Area experienced a rise in pending sales activity, up 8 percent from this time last year to 327.
The number of homes for sale in the Central Virginia Region continues to grow. There were 6,254 active listings at the end of the second quarter, up 5 percent from a year ago. This is the strongest inventory growth the region has seen since the third quarter of 2010, a clear indication that sellers are becoming more active in the market. The inventory is stabilizing across the region, with 8 of the 16 jurisdictions showing growth in active listings in the second quarter relative to last year.
“While home sales in the region remained relatively flat during the second quarter this year when compared with 2013, job growth in our region continues to outpace historic averages and the unemployment rate continues to drop, keeping our region’s housing market poised for continued stability,” said Mark Joyner, President of the Richmond Association of REALTORS® and Central Virginia Regional MLS. “Moreover, home prices continue to rise, which is great news for home owners who are regaining equity at a solid pace,” he added.
Serving over 5,000 REALTORS® in sixteen jurisdictions, the Central Virginia Regional MLS is the voice for real estate in the Richmond metropolitan area.