Lynchburg-area home sales up in 4Q, down for year

Selling a home in the Lynchburg area became easier near the end of 2009 thanks to a federal tax credit for homebuyers and lower prices, but sales for the year as a whole were down from 2008.

In the fourth quarter, 449 homes sold in the Lynchburg area, a 28 percent increase from 350 homes sold in the fourth quarter of 2008, Virginia Association of Realtors data show. Earlier in 2009, sales had dropped steeply from 2008 levels, which already had been below 2007 sales.

The median price of homes sold in the Lynchburg area in the fourth quarter was $144,255, about one percent lower than in the fourth quarter of 2008.

For the year as a whole, sales were down 8.8 percent in the area. The median price for the year dropped 2.1 percent.

Lynchburg Association of Realtors President Dee Meredith said Thursday that the housing market has improved recently, but still has room to grow.

“My take on the market is that it’s still challenging, it’s still slow, slower than those of us in this business are used to seeing,” Meredith said. “But I do believe that sellers now are much more aware of their need to have their homes in the best condition possible and priced aggressively. And when sellers do that, homes sell.”

In addition to homeowners being more prepared to sell their homes, more people were ready to buy toward the end of 2009. Meredith said the $8,000 tax credit for people buying their first homes boosted local sales.

The tax credit was set to expire in November, but it was extended through April. The extended credit also allows buyers a $6,500 credit if they have owned their current home for at least five years.

“I think the first-time homebuyer tax credit has been a real impetus for sales in ’09,” Meredith said. “We saw an awful lot of first-time homebuyers out there.”

The credit is not generating as much interest now as it was in the fall, but “as the weather improves and the further we are away from the holidays, I do believe that the fact that the credit has been extended … will have a very favorable influence on our market,” she said.

Meredith also said some people are looking for homes because there is a “buyer’s market” now. Many homes are for sale and mortgage rates are low, she said.

Qualifying for a mortgage requires more credit history than it once did, but buyers with imperfect credit can get loans with higher interest rates, Meredith said. Also, the Federal Housing Administration has programs available to help buyers get mortgages with lower interest rates.

Statewide, nearly 22,000 homes sold in the fourth quarter, an 18 percent increase from the fourth quarter of 2008, Virginia Association of Realtors data show. The median price of homes sold in the state was $245,392, an 8.5 percent drop.

For the year as a whole, the number of homes sold in the state rose 1.6 percent from 2008 sales. It was the first time the state had an increase in sales since 2005, Meredith said.