THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Tuesday, January 24, 1995 TAG: 9501240237
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY MYLENE MANGALINDAN, STAFF WRITER
LENGTH: Medium: 54 lines
Hampton Roads' home sales trailed the state last year and fell below 1993 levels, the Virginia Association of Realtors reported.
Hampton Roads recorded 20,684 pending home sales in 1994, down 10.5 percent from 1993. Pending home sales consist of houses under sales contract which have not closed.
Statewide, sales declined 4.2 percent last year to 61,407 homes under contract, compared with 64,122 sales in 1993.
Virginia home sales outpaced 1993 in the first half of 1994, but slowed as interest rates rose in the second half.
Many in the local real estate industry attribute the sales slump to the higher rates. The Federal Reserve Board increased interest rates six times during 1994.
``I guess consumers needed to re-evaluate their buying decision-making at the current rates,'' said Darlene Lamb, president of the Tidewater Association of Realtors in 1994.
``When the rates were lower, it was a no-brainer,'' Lamb said. ``Do I need to refinance or can I buy up? Do I want to add on or do I have enough equity that I can sell and move up? They have to reevaluate more carefully.''
Home sales on the Peninsula increased last year. Although 225 home sales in December was not an improvement, the Peninsula showed a 14 percent gain for the year with 4,942 total units.
The Southside, however, fell 16.2 percent in 1994. Pending home sales were 15,742 last year compared with 18,784 in 1993.
Hampton Roads' residential real estate agents, however, remain optimistic about this year's prospects, Lamb said.
``Consumer confidence is still up,'' Lamb said. ``There's no major factor for why people are cautious right now. We're still going to have a strong year, but with the same volume or less than last year. It's just an evening out of the market.'' ILLUSTRATION: Color staff graphic
Source: Virginia Associates of Realtors
PENDING HOME SALES
Contracts in Dec '94
Percentage change from Dec. '93
Total contracts for 1994
Percentage change from 1993
For copy of graphic, see microfilm.
KEYWORDS: HOME SALES HAMPTON ROADS by CNB