Virginia’s typical seasonal decline has set in. November sales and prices were down and there were no changes in unemployment or interest rates to counter-act this seasonal trend. Year-over-year metrics are also down since Virginia experienced an unusual uptick in sales last November (a break from tradition as shown in graph below). Nonetheless, Virginia’s housing market is poised for full recovery and there are a number of reasons to look forward to next year. First, the U.S. Census reported increased housing starts in November, especially is the U.S. South which includes Virginia. Confident builders and a record number of starts signal that there will be more inventory in the months to come. Second, the Federal Reserve signaled its confidence in the economy by announcing its plan to taper its quantitative easing program. Finally, Congress passed a two-year spending bill which should boost confidence throughout the U.S. and stabilize a large part of the Virginia economy.
Analysis and commentary by Ted Koebel, Senior Research Associate and Mel Jones, Research Associate, of the Virginia Center for Housing Research at Virginia Tech.
For the VAR November Home Sales Report, click here.