Most of Virginia remains in throes of housing slump

The only regions in the state with price increases were Charlottesville, Williamsburg, and Roanoke

By: By CAROL HAZARD Media General News Service | WSLS 10
Published: July 25, 2008

The housing slump continues in most parts of Virginia, with the exception of a few areas, including the Piedmont.

A rebound may be occurring in some Northern Virginia markets, where prices have dropped the most, according to a report released yesterday by the Virginia Association of Realtors.

Sales of new and previously owned homes in the Richmond area in the second quarter dropped 23 percent from the same period a year ago. The average price here fell 2 percent to $283,546 from the same period a year ago, according to the report.

“It has slowed, but we are still moving properties,” said Scott Shaheen, president of the Richmond Association of Realtors and a vice president with Long & Foster.

The inventory of single-family homes on the market here rose 14 percent from a year ago, indicating more slowing is likely ahead.

In Virginia, the number of home sales fell 13 percent in the second quarter from a year ago, while the average price slipped 7 percent to $319,462.

Sales increases occurred in Loudoun County, the Prince William County-Manassas region and in Piedmont Virginia. These same regions reported the sharpest year-over-year price decreases—a sign that the real estate market in the areas may have hit bottom and that the lower prices are bringing buyers back into the market.

Prince William, for example, reported a 72 percent jump in sales. Prices there fell 31 percent, the steepest drop in the state.

The average price of a home that sold in Prince William in the second quarter was $284,000. However, 12 months earlier, it was nearly $400,000.

“We dropped prices quickly and early,” said Cindy Stackhouse, a Realtor with Century 21 in Dumfries.

As many as 3,300 houses on the market in Prince William are foreclosed properties, compared with about 630 in the Richmond area, according to a Long & Foster Web site on foreclosed properties.

The only regions in the state with price increases were Charlottesville, Williamsburg and Roanoke.

Contact Carol Hazard at (804) 775-8023 or chazard@timesdispatch.com