THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Tuesday, October 25, 1994 TAG: 9410250277
SECTION: BUSINESS PAGE: D01 EDITION: FINAL
SOURCE: BY MYLENE MANGALINDAN, STAFF WRITER
LENGTH: Medium: 60 lines
Housing starts and existing-home sales remained steady in Hampton Roads during September, reflecting the ambivalence of homebuyers watching and waiting for any indication of a change in the economy.
Housing starts improved slightly in September from the previous month, according to Builders and Contractors Exchange Inc., which tracks this data. But statistics show an overall slowing trend.
In September, 485 residential permits to build single-family houses were issued in the seven main cities in Hampton Roads, compared with 409 permits in August. The permits were issued for total construction valued at $41.3 million. Residential permits are the best indicator of local housing construction.
``They certainly weren't spectacular in September,'' said Bob Lyons, director of the Builders and Contractors Exchange.
In fact, for the year, construction is down. Construction through September 1994 totaled 4,593 permits, a 4.3 percent decrease from the same period last year. Virginia Beach, in particular, showed a steady decline in the number of permits it issued, a reflection of the water-shortage issue facing the region's largest city, Lyons said. Until Virginia Beach can ensure water for new developments, building may slow down further, he predicted.
Existing-home sales in the region did not fare well, falling almost 10 percent in September from the previous month. The Virginia Association of Realtors reported 1,623 pending sales in Hampton Roads in September. Pending sales - the number of sales contracts waiting to close - are the best indication of local home sales.
``Right now we're status quo,'' said Arthur Zachary, president of Metro Listing Service. Listings have dropped. ``There's still activity, but not as brisk as the beginning of the year,'' he said.
Sales through September 1994 fell 5.2 percent to 16,826 contracts, compared with 17,756 in the first nine months of last year.
Part of the reason for the decline can be attributed to the discretionary buyer who is sensitive to the rise in interest rates.
``I think it all comes down to interest rates. I think it's a psychological thing,'' said Lisa Noon, spokeswoman for the Virginia Association of Realtors.
Virginia reported fewer sales last month as well. The state had 4,811 sales pending, compared with September 1993's figure of 5,431.
The average sales price of houses was $106,613 in the Southside and $103,238 in the Peninsula. ILLUSTRATION: Graphic
Existing-Home Sales
Through Sept. '94 16,825 Contracts
1993* 17,756 Contracts
*For first nine months
KEYWORDS: REAL ESTATE SALES
by CNB