Richmond-area home sales rise

Figures are up in city and adjacent counties but lower regionwide

Total homes sales in the core area of Richmond -- the city and Chesterfield, Hanover and Henrico counties -- rose 1.6 percent in the third quarter from the same period a year ago.

Hanover and Henrico reported sales increases of more than 2 percent, according to a report released yesterday by the Virginia Association of Realtors.

In the greater Richmond area, prices remained flat. The median price for new and existing homes, with half the houses selling for more and half for less, was about $238,000.

"Amid the national financial uncertainties and news about the economy and stock markets, the central Virginia and Richmond economy and housing market are outperforming the country and most metropolitan areas," according to an analysis included in yesterday's report.

Sales are still slipping in Virginia -- and in the greater Richmond metropolitan area -- but not nearly as much as they were in the first half of the year, according to the report.

Nationally, third-quarter figures are not available. However, sales of existing single-family homes fell 10.7 percent in August from a year ago, according to the latest figures available from the National Association of Realtors. The median home price was $201,900 in August, down 9.7 percent from a year ago.

After nearly a year of sluggish sales and price depreciation, the housing market in Virginia is beginning to show signs of strength, said Lisa Fowler from the George Mason University School of Public Policy, who spoke yesterday during a news media conference call.

The state's healthy economy is helping housing here as other markets continue to languish, Fowler said.

Home sales statewide fell 3.9 percent in the third quarter from the same period a year ago, according to the Realtors' report. The median price rose 1 percent to $232,601.

In central Virginia, which includes Richmond and 15 surrounding localities, sales fell 3.8 percent from a year ago.

The dip is mild compared with the first quarter when sales in the region dropped 31 percent in the first quarter and 28 percent in the second quarter from the year-ago periods.

The market in the Richmond area is stabilizing, said John Powell, an agent with Long & Foster in Colonial Heights. "We still have a lot of homes to choose from. We still need to see price reductions to increase sales."

Sales in Prince William County, driven by a large supply of foreclosed properties and lower prices, rose 144.6 percent in the quarter from a year ago. The median price there is down 42.4 percent to $202,716.

Prices in Northern Virginia fell 19.9 percent to $380,157, also sparking a rebound in sales. Sales rose 14.5 percent.

Christine Todd with the Northern Virginia Association of Realtors said the inventory of homes for sale there is falling.

She predicted that the buyers' market will switch to a sellers' market by spring in Northern Virginia. The market there hit bottom in December 2007, she said.

"We are digging our way out of a hole we found ourselves in six months ago," Todd said.

The housing market across the state will benefit from a slowdown in construction, as inventory levels fall, Fowler said. Housing starts statewide are at their lowest level since the early 1990s, she said.

Some areas may take longer to rebound.

Williamsburg reported a 43.3 percent drop in sales and a 4.7 percent reduction in median price to $269,161.

Angela Dougherty, an agent with William E. Wood & Associates, said Williamsburg is a destination spot, making it more vulnerable to what happens with the national economy. Contact Carol Hazard at (804) 775-8023 or chazard@timesdispatch.com.