Virginia home sales surge in November

Virginia's residential real estate market saw healthy gains across the board in November compared to the year before, according to the Virginia Association of Realtors (VAR).

November volume, or aggregate transaction value, totaled $2.6 billion, nearly 20 percent above November’s 2015 volume of $2.2 billion, the trade group said Thursday.

Year-to-date volume — the sum of all sales since Jan. 1, 2016 — totaled $34.8 billion, 7.9 percent higher than for the same time last year when sales totaled $32.2 billion and more than 20 percent higher than through the end of November 2014 ($28.7 billion).

“November sales surged on consumer response to post-election financial markets and the strong anticipation of imminent interest rate increases,” Claire Forcier-Rowe, the 2017 VAR President, said in a statement. “Buyer motivation and confidence intersected with loosened inventory to drive exceptional market performance for the month.”

Year-over-year, the number of transactions in Virginia surged by 17.8 percent, from 7,020 homes sold to 8,269. Typical of the months following the summer peak, November sales declined from October by 7.1 percent (from 8,897). Historically, sales pace tapers from June through December.

The market also saw a strong performance in median price.  The statewide median sales price for November was $265,000, 5.2 percent higher than the median price in November 2015 of $251,958.
Also indicating buyer motivation, the average number of days on the market declined  year-over-year by 10.3 percent, from 78 to 70. 

Following the federal election, the average 30-year fixed mortgage interest rate ticked up in November to 3.77 percent, 30 basis points above its October mark.

In mid-December, the Federal Reserve increased its key interest rate by 0.25%, only the second increase in a decade. The uptick  indicated  the Fed's confidence in the improving U.S. economy.