Virginia housing market: Everything you need to know
Virginia, with its picturesque landscapes and proximity to Washington, D.C., offers a thriving real estate market. As of 2022, around 67.4 percent of households in Virginia own their homes, surpassing the national average. This article provides a comprehensive overview of the current trends in the Virginia housing market, offering valuable insights for both buyers and sellers.
Virginia Housing Market Overview:
In July 2023, Virginia saw a 21 percent decrease in home sales year-over-year, primarily due to low inventory levels and rising mortgage rates. Despite this, home prices have risen by 3.9 percent year-over-year, with the median sale price reaching $400,000. Sellers are benefiting from these trends, enjoying a $15,000 increase in median sale prices.
Key Statistics:
- Median sale price: $400,000, a 3.9 percent increase from the previous year, aligning with the national median.
- Average days on the market: 23 days, slightly longer than the previous year but still relatively fast.
- Inventory: A tight market with only a 1.8-month supply of homes, well below the balanced market threshold.
- Sale-to-list ratio: 100.6 percent, indicating homes are often selling above their listing price.
- Closing costs: Average 1.7 percent of the home’s sale price, approximately $6,800 for a $400,000 home.
Advice for Home Sellers:
Virginia sellers are in a favorable position, with rising median sale prices and high buyer demand. Homes are selling relatively quickly, with an average of 23 days on the market. To maximize your sale, consult a local real estate agent for a precise understanding of your home’s value based on comparable properties in your area.
Advice for Home Buyers:
Virginia’s market presents challenges for buyers, as home prices continue to rise and supply remains limited. Working closely with a trusted Realtor who understands the local market is essential. Consider exploring markets like Portsmouth for more budget-friendly options, or be prepared for higher prices in Northern Virginia towns.
Market Predictions:
While the market may experience a temporary lull in the third quarter due to higher mortgage rates, experts do not foresee a nationwide housing market crash. Expect pent-up buyer demand to surge in the fourth quarter and early 2024 if mortgage rates decrease. Virginia’s real estate market is expected to remain strong, thanks to its proximity to federal jobs and robust military employment.
Conclusion:
The Virginia real estate market offers both opportunities and challenges for buyers and sellers. Collaborating with a skilled local real estate agent is crucial for navigating the complexities and securing the most favorable deal in this competitive market. Whether you’re looking to buy or sell, a Realtor’s expertise can make all the difference.