The Richmond Association of REALTORS® | Double Digit Home Sales Growth in Second Quarter

Double Digit Home Sales Growth in Second Quarter

July 20, 2016

Central Virginia Regional MLS Report Shows Double Digit Home Sales Growth in Second Quarter

Richmond, Va. – Home sales growth in the region was 10 percent higher in the second quarter this year than in the same period last year, according to a Central Virginia regional housing market report just released by the Central Virginia Regional Multiple Listing Service.

The report cites regional job growth as a contributing factor. The region added 24,000 new jobs from May 2015 to May 2016—more than 3 times the annual job growth over the last 25 years. Annual job growth of 3.7 percent over the last year puts the region’s job level at an all-time high, with growth occurring across almost all sectors. At 3.7 percent, June’s regional unemployment rate was down to its lowest level since 2008.

The Tri-Cities area continues to experience the sharpest growth percentage in the region, up 29 percent from the same quarter last year. Sales in the Richmond Metro Area were up 9 percent from the second quarter of 2015. At the local level, 12 of the 16 jurisdictions in the region had more sales than the second quarter of last year, including all jurisdictions in both the Richmond Metro Area and Tri-Cities markets. Goochland County led all jurisdictions in sales growth percentage, up 44 percent from last year. Chesterfield County led the
Richmond Metro Area in sales growth every quarter for the past year, rising 13 percent in the second quarter of 2016. Henrico County resumed sales growth, rising 8 percent from a year ago. Both Hanover County and the City of Richmond had 5 percent more sales than a year ago.

Sales prices rose throughout the region in the second quarter of 2016. The average sales price in the region rose 4 percent from the same quarter a year ago, an increase of nearly $10,000. Similarly, the median sales price in the region rose 3 percent from the last year, a gain of $5,600. All jurisdictions within the Richmond Metro Area had an increase in average and median sales prices compared to last year. The City of Richmond had the strongest average sales price gains, up 10 percent from the second quarter of 2015 to $270,039, an increase of over $11,000.

Pending sales also rose for much of the Central Virginia Region in the second quarter, up 7 percent from this time last year. Notably, all jurisdictions in the Tri-Cities market had more pending sales than last year, the first time this has occurred since the third quarter of 2014—showing evidence of increasing demand in that market.

The inventory of active listings was 18 percent lower than the same period one year ago, a trend continuing across all sixteen jurisdictions.

“The region’s housing market is very active and primed for continued demand,” said John Brockwell, 2016 President of the Central Virginia Regional Multiple Listing Service. “The local job market is booming—giving consumer confidence a boost—and with sustained sales and price growth, it’s an optimal time to sell,” he concluded.

Click here for the full report.