Thursday, September 28, 2023

Virginia’s Housing Market Sees Sharpest Drop in Sales Since May 2020 

Home sales. Photo by Maria Ziegler on Unsplash

RICHMOND — Virginia has seen its biggest drop in home sales in more than two years according to Virginia REALTORS, yet despite slowing sales, home prices continue to rise.

According to the June 2022 Virginia Home Sales Report released by Virginia REALTORS, the 13,324 homes sold in Virginia in June were 3,208 fewer than a year ago, a slowdown of more than 19%.

Additionally, while sales activity edged up slightly between May and June, it was much lower than a typical May-to-June jump in sales, according to a press release.

“The slowdown we’re seeing in sales is due to more buyers pressing ‘pause’ on their home search,” Virginia REALTORS 2022 President Denise Ramey said. “The lack of inventory paired with the rise in interest rates have created a more challenging environment for home buyers.”

Yet, even as the market slows, many localities across the commonwealth are still experiencing an increase in home prices, the trade association said. The median sales price in Virginia in June was $397,315, nearly a 7% price gain over the same time last year.

“Buyers have limited options to choose from right now, and the low inventory levels are putting upward pressure on prices,” Virginia REALTORS Chief Economist Ryan Price said. “There are still more buyers in the market than there are active listings. This supply shortage will likely keep prices rising, but as the market continues to cool, we expect price growth will ease in the coming months.”

To view the full June 2022 Virginia Home Sales Report, Click here.

Related Articles