Virginia home sales fall as prices continue to rise
CHARLOTTESVILLE, Va. (WVIR) – Virginia’s housing market is seeing the biggest drop in sales since the start of the COVID-19 pandemic. Despite this, house prices continue to rise.
Compared to June 2021, 19% fewer homes were sold across the Commonwealth last month, leaving estate agents wondering if this is the start of change.
“There are fewer homes closing, a lot fewer contracts that are on the market,” said Ryan Price, chief economist at Virginia Realtors.
In June, there were about 13,300 homes sold in Virginia, down about 3,100 homes from June 2021.
“You had the interest rate hike, you had the inflation, you had the war in Ukraine, you had a lot of uncertainty for people. It sometimes makes them hesitant to make a big purchase, in especially a big lifestyle purchase if they don’t have to,” said Pam Dent of the Charlottesville Area Association of Realtors. “Inventory is steadily increasing.”
“There are more active registrations than there were at the end of June last year, and this is actually the first time this has happened in years. We’ve had a supply of going down every month, so that was the first time we’ve seen any kind of change, where it’s actually building up,” Price said.
This could start to drive prices down in the future. Instead of a 10% increase each month, Price expects to see closer to 4% or 5%.
“As you see more buyers, due to rising interest rates, maybe they’ll be squeezed out of the market, and then we’ll see that price go up and slow down,” Dent said.
Charlottesville’s trends follow those of the state.
“Overall, we’re probably not much different in the big picture from most of the rest of the state or at least surrounding counties,” Dent said.
Price says the median selling price in Charlottesville is up 9.5% from a year ago.
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