Housing demand prevails over seasonal decline

Sales numbers can look bleak as the market begins to experience its seasonal decline, but the market it still looking strong in Virginia. Sales are holding steady compared to previous years. In fact, Virginia has seen more sales this summer than it has since 2007. Last year, Virginia sales fell in July and rose in August only to dip further in September. Summer and fall of 2012 mirrored the previous two years: 2011 and 2010. This summer we are charting a new, stronger trajectory. Barring a dramatic decrease in September, the summer quarter will have been a great success. Still, we can’t help but think the recovery is still underway. Undeniably there are some economic factors holding back some potential buyers: unemployment and access to credit, for instance. In addition, some Virginia regions are struggling with a restricted supply. Construction of new homes has picked up nationally, but days on the market in Virginia remain historically low. Are buyers snapping up homes because there isn’t much shopping to be done? If sellers, builders, and banks continue to respond to high demand the fall season may not be as low as we have come to expect.

blog1Analysis and commentary by Ted Koebel, Senior Research Associate, & Mel Jones, Research Associate, of the Virginia Center for Housing Research at Virginia Tech

Cover August2013


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