According to the May 2016 Home Sales Report released by the Virginia Association of REALTORS® (VAR), the Virginia housing market continues a strong growth trend. Year-over-year, the number of transactions rose by nearly 11 percent, from 10,369 sales to 11,499. The value of transactions for May 2016 rose above $3.861 billion, gaining 10 percent on the same month last year. Typical of industry seasonality, May sales rose above April figures; historically, the market improves each month through June. Median price rose month-over-month by just over 4.5 percent, from $265,000 to $277,000. Relative to last year, the median price rose slightly from a May 2015 benchmark of $275,000. The marginal change in price from last May indicates that the volume surge this year is because of the significant jump in number of transactions. Further indicating market strength, average length of time on the market compressed from 67 days last May to 62 in May 2016, quickening by 7.5 percent. Rising median price and declining time on the market reflect limited inventory. With access to historically low interest rates, buyers may be motivated to enter the market with a sense of urgency as inventory constraints continue to press prices up.
Click here to view the May 2016 Home Sales Report.