
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SUNDAY, November 27, 1994                   TAG: 9412270028
SECTION: HOMES                    PAGE: D1   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Short

HOMES SALES TAKE SIGNIFICANT DROP

Rising mortgage rates seem to be having an impact on the state's home sales, according to a survey published by the Virginia Association of Realtors.

Sales for the month of October were down considerably from last year's figures, the survey showed. October 1994 home sales pending were 4,527 compared to 1993's figure of 5,371, a drop of 15.7 percent for the month.

For the year through October, however, 56,570 homes were reported under contract, a slight increase of 0.67 percent over last year's 10-month figure of 56,189.

"The Fed's move to raise interest rates is definitely keeping some homebuyers out of the market," said Edwin C. Hall of Roanoke, president of the Virginia Association of Realtors.

"We've been seeing home sales trending downward since the rates started to rise," Hall said. "Activity continues to be good, however, and some of the exceptionally strong months we had earlier this year are helping to keep sales still just ahead" of last year.

Increases in pending home sales were seen in eight of the 26 areas reporting sales activity, including Bristol, Martinsvile-Henry, Lynchburg and Southwest Virginia.

by CNB