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New Home Mid-Year Report Finds Sales Down, but Prices Up in Central Virginia

RICHMOND, Va., Aug. 15, 2014 (GLOBE NEWSWIRE) -- The new home industry in Central Virginia continued its recovery, but faced mixed results in the first half of 2014, according to a new report from the Home Building Association of Richmond (HBAR) and Commonwealth Partnerships (CWP).

Data provided by Integra Realty Resources-Richmond (IRR-Richmond) indicates that the number of new home sales in Central Virginia was down 2 percent and permits dropped 8 percent in the first half of 2014 compared to the first half of 2013. However, the average new home price in the region rose 7 percent and reached $356,607 in the same timeframe. These uneven results highlight the fragile nature of the new home industry's recovery and the long road ahead as the sector returns to optimal conditions.

"The Mid-Year report gives an honest assessment of the where our industry is at, which is best described as subdued optimism," said Craig Toalson, Chief Executive Officer at HBAR. "Although the long winter had a chilling effect on the homebuilding market, we anticipate that 2014 will still be seen as a year of steady growth."

In the 2014 Mid-Year report, IRR's data show that the first six months of 2014 showed progress, albeit at a slower pace than the same timeframe a year earlier.

"The new home sector in the Richmond region continued to show signs of recovery during the first six months of 2014," said Ken Brown, Senior Managing Director at IRR.

CWP Partner Andrew Ryan also noted that the growth in home prices was a positive development for the new home industry.

"Although sales slid slightly in the Richmond region's new home market, the increase in average home price is a very good sign," he said. "This gain underscores the rising costs associated with building a new home, but more importantly, it highlights the growing strength in the local market and continued demand for new homes."

The RVA New Home Market Report highlights a number of key indicators and provides an accurate and unbiased look at state of the industry in Central Virginia covering both the single and multifamily sectors. For a full copy of the report visit: www.hbar.org or www.cwpmarketing.com. The next edition of the RVA New Home Market report is scheduled for release in February 2015.

About Home Building Association of Richmond (HBAR)

The Home Building Association of Richmond is the professional trade association of the home building industry in Central Virginia, serving builders and service providers. HBAR is dedicated to the American dream of homeownership by providing resources and support to the home building community and home buyers. For more information, visit www.hbar.org.

About Integra Realty Resources-Richmond (IRR)

IRR-Richmond provides complete real estate valuation and advisory services, including market and marketability studies, highest and best use and feasibility analyses, site location, acquisition and development counseling, zoning and land use consultation, investment analysis and tax appeal, and litigation support. The firm also publishes the Integra Residential Report, released quarterly since the late 1980s, which provides a comprehensive analysis of the housing market in the Richmond region with an emphasis on the new construction segment of the market. For more information, visit www.irr.com.

About Commonwealth Partnerships (CWP)

Commonwealth Partnerships teams with clients to develop and implement strategic marketing, communications, and community relations campaigns for industries that support economic development, including real estate, A/E/C, professional services, nonprofit, senior living, and transportation. With award-winning experience, we focus on eight areas of service: branding and creative, content marketing, public relations, advertising, website development, social media, community relations, and research and analysis. For more information, visit www.cwpmarketing.com.

CONTACT: Andrew K. Ryan akryan@cpgroupllc.comSource: Commonwealth Partnerships