RICHMOND — Virginia’s housing market slowed considerably in 2022, according to the December 2022 Virginia Home Sales Report released by Virginia Realtors, a trade association.
According to the report, there were approximately 123,000 homes sold in Virginia in 2022, 20% fewer than in 2021. The 7,492 homes sold statewide in December were also a 38% drop from the same time last year.
The rapid rise of interest rates played a significant role in that slowdown, the trade association said, with 87% of counties and cities in Virginia seeing fewer home sales in 2022 compared to 2021, and statewide sales activity back to pre-pandemic totals.
“Sales activity in the commonwealth’s housing market has been cooling for 13 consecutive months now. This is largely due to mortgage rates doubling over the past year, causing many to delay their home search,” said the organization’s chief economist, Ryan Price. “We’ve been seeing fewer new sales contracts each month. Homes are taking longer to sell, and sellers, on average, are not getting their asking price.”
These shifts, paired with an increase in inventory, could come as welcome news to potential buyers, the association believes.
“We are still seeing fewer new listings coming on the market; however, Virginia’s inventories of available homes are, in fact, growing,” says Katrina M. Smith, the association’s 2023 president. “The fact that homes are taking longer to sell is allowing the overall supply of active listings to build. Buyers may begin to see more options, not to mention less competition.”
There were 16,115 active listings on the market statewide at the end of December, a supply jump of nearly 20% over the same time last year.
Click here to view the full December 2022 Virginia Home Sales Report.
