THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Wednesday, May 31, 1995 TAG: 9505310586
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: By MYLENE MANGALINDAN, STAFF WRITER
LENGTH: Short : 41 lines
Home sales in Hampton Roads declined for the third consecutive month in April when they fell by 13.8 percent.
Prospective home buyers still perceive interest rates as being too high, real estate professionals said.
``Interest rates have come down considerably since the first of the year,'' said Richard B. Thurmond, president of William E. Wood and Associates Realtors. ``I believe that has caused the market to rebound in May.''
According to the Federal Home Loan Mortgage Corp., ``Freddie Mac,'' 30-year fixed-rate mortgages are 7.85 percent this week. They have dropped since May 4, when they were 8.27 percent.
Pending sales in Hampton Roads fell to 6,704 through April for the year to date. That's down more than 100 from the 7,776 recorded through April 1994.
Pending sales, which represent existing-home sales under contract, for April were 1,804, a drop of more than 14 percent when compared with the 2,137 in April 1994.
``You're looking at numbers that compare against last year's numbers and the year before when we had exceptional sales because of exceptionally low rates and pent-up demand,'' said Lisa Noon, spokeswoman for the Virginia Association of Realtors. ``Because of those two things, housing sales went off the charts. We feel we're getting back to traditional, or typical, home sales.''
For example, Noon pointed out that pending sales for the Southside in 1991 - 4,859 - equaled the year-to-date totals this April.
The negative impression left on consumers about the Federal Reserve's interest-rates hikes and other mixed economic news has left them wary.
``I don't think the word's getting out properly that interest rates are reasonable,'' said Lydia Lorenzen, executive vice president with Metro MLS Inc. by CNB