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Virginia’s 2023 Housing Market Slowest in 9 Years, Outlook Better for 2024

Photo by Tierra Mallorca on Unsplash

RICHMOND — There were 98,464 homes sold statewide during 2023, a 20% drop in activity from 2022, according to the December 2023 Virginia Home Sales Report released by Virginia REALTORS.

The 2023 annual sales total is the lowest the state’s housing market has seen since 2014, according to the trade association, which cited climbing mortgage rates and lack of inventory as the primary causes of the slow market this year. According to the report, about nine out of every 10 counties and cities across the commonwealth (88%), had fewer sales in 2023 compared to 2022.
Despite the low sales activity, Virginia’s median home price climbed nearly every month, Virginia REALTORS noted. At $382,725, the December statewide median sales price jumped up by nearly $24,000 from last December, a 6.6% increase.
There were 16,244 active listings on the market at the end of December throughout Virginia — 129 more than this time last year, a modest increase of just below 1%. This was the commonwealth’s first year-over-year uptick in nine months, the trade association said.
“Home sales activity is likely to rebound in 2024, with an expected boost from lower mortgage rates,” said Virginia REALTORS 2024 President Tom Campbell. “If rates continue trending downward, it will likely spur housing market activity on both sides of the table as there is pent-up demand from both first-time buyers and those looking to move up.”
“This year, we expect to see a respite from the sluggish home sales of 2023,” added Virginia REALTORS Chief Economist Ryan Price. “While there will likely be some gains in inventory, the overall supply will continue to be tight, and the market will remain competitive.”
The Virginia Home Sales Report is published by Virginia REALTORS. Click here to view the full December 2023 Virginia Home Sales Report.

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