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Virginia REALTORS 4th Quarter & Year End 2016 Homes Sales Report - Dan Vollmer

Virginia REALTORS 4th Quarter & Year End 2016 Homes Sales Report

· As with each quarter of 2016, fourth quarter residential real estate metrics improved over their prior year benchmarks and contributed to a year of increasing strength in the Virginia market.

· Year-to-date market volume (the sum of all transactions) for 2016 grew 8 percent over 2015 volume, totaling more than $37.916 billion (up from $35.095 billion).

· Volume for the fourth quarter of 2016 totaled $8.527, rising 8.9 percent over the fourth quarter of 2015 (from $7.830 billion).

· For the fourth quarter, pace rose year-over-year by 6.8 percent (from 24,639 to 26,308 transactions).

· Annual pace rose to 116,091 transactions, up 6.6 percent from the total number in 2015 (108,870).

· Annualized residential sales, the rolling sum of sales for the previous twelve months, rose 1.5 percent from the third quarter measure. The nine consecutive quarters of improvement in Virginia’s annualized residential sales underscore sustained market expansion.

· Average days on the market declined year-over-year by 10.4 percent, from 77 to 69 days.

· Median price rose 3.9 percent year-over-year, from $255,175 in the fourth quarter of 2015 to $265,000 for the fourth quarter of 2016.

· Relative to the third quarter of 2016, and in keeping with seasonal trends, fourth quarter median price fell by 2.2 percent (from $271,000). Price declines are typical through winter months.

· Third quarter sales grew in every price category except the lowest ($0-$100k), with the most significant performance jumps in the $300k-$500k range.

· Year-over-year, all regions of Virginia saw increasing sales for the fourth quarter.

· Year-over-year, median price rose in the fourth quarter in all regions except the Southwest region, where there was a slight decline.

· For the year as a whole, all regions of Virginia saw increasing sales and rising median price relative to 2015 aggregate performance.

· The Virginia unemployment rate ticked up to 4.2 percent in November 2016. The Virginia unemployment rate continues to track below the national rate (4.7 percent at 2016 year-end).

· 30-year and 15-year fixed mortgage interest rates rose quarter-over-quarter for the first time since the third quarter of 2015 (to 3.81 percent and 3.07 percent, respectively). Rates spiked from October to November on anticipation of a Federal Reserve Rate hike in the key rate, and again in December when the rate hike was actually announced.

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