Third Quarter Housing Market Report Indicates Resumed Sales Growth and Healthy Demand

October 22, 2014

Richmond, Va. – According to a third quarter 2014 housing market report just released by the Central Virginia Regional MLS, sales growth has resumed in the region after a flat second quarter this year. The region as a whole had a four percent gain in sales from the same period last year.

Growth in the Tri-Cities market rose a dramatic 37 percent from a year ago. Growth was fairly widespread this quarter, with 11 of the 16 jurisdictions having more sales than last year.  Colonial Heights led the region in sales growth, rising 77 percent from the same period last year. Hanover County led the Richmond Metro area in sales growth, rising eight percent from the third quarter of 2013.

Home prices remain on a steady upward trajectory for most of the region, reflecting increased buyer demand and continued low active inventory. The average sales price in the region rose two percent from a year ago, a gain of approximately $4,000. The region’s median sales price increased three percent from last year, to $214,869. The slowed pace of the sales price growth could be an indication of a stabilizing inventory of active listings.

Within the Richmond Metro Area, the City of Richmond led in median sales price growth, up six percent to $201,500, a gain of $11,500.  At $67,300, Petersburg led the Tri-Cities market in median sales price growth, up 27 percent, a gain of nearly $15,000.

The report showed positive signs for pending sales in the region. Pending sales this quarter were up five percent—the first quarter-over-quarter increase for the region since the end of 2013. Pending sales in the Tri-Cities market increased dramatically by 40 percent from the third quarter of last year. This is the sharpest increase in pending sales for the Tri-Cities area since before the housing market crash and recession. Petersburg led the Tri-Cities market and the Central Virginia region as a whole in pending sales growth, up 61 percent from the third quarter of 2013.

The number of active listings remained flat relative to last year.Business Graph v17

“We’re pleased to see strong continued momentum in growth for the Tri-Cities market,” said Mark Joyner, President of the Richmond Association of REALTORS® and Central Virginia Regional MLS.

“The continuation of sale price increases is a good indication of rising demand among home buyers in the region,” he added. “As we approach the holiday season, some sellers may postpone plans to place their home on the market. But with demand going strong and typically fewer properties competing in the next few months, those who list now could very well come out on top.”