After six months of declining residential home sales, Virginia’s housing market may finally be poised for a recovery. Click here to view the First Quarter 2011 Virginia Quarterly Home Sales Report, or read on for a summary of the latest news.

As seen above, first quarter 2011 home sales (16,547) showed a marginal improvement over first quarter 2010 (16,499).  The coming quarter will be a challenge to keep pace with the many closings in second quarter 2010 that were related to the federal home buyer tax credit.

This graph showing the annualized trend of residential sales with one entire year’s worth of home sales represented with each data point.  The federal home buyer tax credits available in late 2009 and the first half of 2010 likely led to the overall growth in the market during that time.  This annualized rate of sales is finally stable again.

The median price of homes selling in the first quarter was $210,000 which is a rather drastic decline from $249,900 in 2010 Q3, and $260,000 in 2008-Q2.   Pricing trends over the past two years have been relatively tightly correlated with the federal home buyer tax credits.  Hopefully this year the median price will start to level off as we work our way through REO listings and other low priced listings.

Click here (or on the image below) to download the full market report.