Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, February 9, 1994 TAG: 9402090082
SECTION: BUSINESS PAGE: C-6 EDITION: METRO
SOURCE: Associated Press
DATELINE: WASHINGTON LENGTH: Medium
The National Association of Realtors predicted mortgage rates will remain low in 1994.
Prices for previously owned homes nationally were up 3.4 percent in the fourth quarter of 1993, compared with the final three months of 1992, the association said. Inflation rose 2.7 percent for 1993, averaging about 0.3 percent for each of the last three months.
In Virginia, the association said, 121,500 houses were sold in last year's fourth quarter, 13.8 percent more than in the 1992 period.
"All the factors are there - low rates, an improving economy, an ample supply of housing and willing consumers," said Realtors President Robert H. Elrod. "The timing has been perfect for both buyers and sellers."
Realtors economist John A. Tuccillo said he expects mortgages to remain attractive despite the Federal Reserve's move last week to nudge up short-term rates.
"Ultimately, we think this will have a calming effect on long-term rates, because it signals the Fed's resolve to fight inflation," he said.
The Realtors group is forecasting a 3.6 percent home price increase nationally this year.
Its latest figures are based on a survey of sales of previously owned single-family homes in 131 metropolitan areas.
All sections of the nation showed gains, with the largest concentration of affordable homes and the strongest overall residential real estate market in the Midwest, the group said.
Elrod said both first-time and trade-up buyers contributed to the heavy volume of purchases as mortgage rates fell to the lowest level in more than 20 years.
\ Median home pruices\ Charleston, W.Va. $73,500 +2.4%\ Charlotte $106,000 +5.7%\ Norfolk $99,900 +6.3%\ Richmond $92,400 +2.2%\ Unites States $106,90 +3.4%\ South $95,400 +3.6%\
by CNB