Last week, the Virginia Association of Realtors released the 2007 Year-End Market Report, which creates a context for year end market data throughout the state of Virginia. Along with providing insight and analysis into the many local, state and national issues that affected this Virginia’s real estate market this year, the report also points out that market conditions vary considerably in different areas of the state.

For example, of the 23 local markets for which data was available, only two markets showed an increase in the number of homes sold in 2007 (versus 2006).  The other 21 local markets all showed a decline in sales as compared to 2006. Overall, the state of Virginia showed an 18.46% decrease in homes sold, but there were quite a few outliers:

• Dulles Area (+ 9.61%)
• Southwest Virginia (+ 1.44%)
• Eastern Shore (- 46.68%)
• Prince William (-30.46%)
• Northern Neck (- 29.74%)

However, despite the decrease in number of real estate transfers this past year, sales prices remained relatively flat as compared to 2006. Median Prices were up 1.2 percent in 2007, and average prices were down 3.1 percent.

Overall, the report is hopeful . . .

• “Virginia faces stronger market fundamentals than many other states, with a relatively strong economy and a housing market with a relatively small share of investors.”
• “We expect that markets in Virginia that have strong job growth and low unemployment rates—which includes most of the metropolitan areas throughout the state—will see increases in the demand for housing in 2008 and prices will begin to rise.”

In April, we will see more great analysis and insights from the George Mason University School of Public Policy, whose staff will be continuing to provide these reports for each quarter of 2008.