THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Saturday, September 24, 1994 TAG: 9409240239
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY MYLENE MANGALINDAN, STAFF WRITER
LENGTH: Medium: 62 lines
Existing-home sales in Hampton Roads increased slightly in August, apparently because interest rates have leveled off and people have decided they may as well buy now.
``(Interest) rates are not going up and they're not going down,'' said Lisa G. Noon, a spokeswoman for the Virginia Association of Realtors. ``Historically, rates are still very, very low. Over the last 25 years, they have been as high as 11 or 14 percent.'' Conventional 30-year mortgage rates have hovered around 8.5 percent recently.
Pending sales for single-family homes increased 8.2 percent in August to 1,926 houses under contract. Pending sales, which means the house has been sold but the sale has not closed, are the best indication of housing activity.
The average price of a single-family home in South Hampton Roads was $107,754 compared with $106,721 on the Peninsula.
``Tidewater has always been one of the more active areas in the state,'' Noon said. ``The area is growing more than others. The economy is growing so strongly.''
She said the relatively stable status of interest rates has helped home sales, particularly the popularity of different mortgages. Adjustable-rate mortgages, which have changing interest rates at specific intervals over the maturity of a loan, have become more popular than conventional 30-year mortgages, she said.
``Interest rates have certainly calmed down,'' she said. ``If the interest rates drop in the fall, as predicted by the National Association of Realtors, then we'll see people buying. There may be pent-up demand in the housing market.''
The steady growth in Hampton Roads reflected the pattern across the state. Through August, 46,313 homes were reported under contracts, a 2 percent increase over last year's figure of 45,387.
``Mortgage rates have remained reasonably steady since the last reporting period as has the price of houses,'' said Edwin C. Hall, Virginia Association of Realtors president.
Housing starts in Hampton Roads also improved in August, according to Builders and Contractors Exchange Inc. The seven cities in Hampton Roads issued 409 residential permits, a slight improvement over the 396 permits issued in July.
The residential permits issued in August were worth slightly more than those issued in July. The permits issued totaled $38.9 million, compared with $38.3 million in July.
Hampton Roads mirrored the nation as housing starts rose 2.1 percent to an annual rate of 1,442,000 units, the Commerce Department reported Thursday. ILLUSTRATION: Color staff graphic by Janet Shaughnessy
Home Ownership Trends
Home Ownership (in percent)
Source: U.S. Census Bureau
For copy of graphic, see microfilm.
KEYWORDS: U.S. CENSUS BUREAU HOUSING by CNB