Home sales across the Old Dominion increased 14.1% from a year ago, the biggest increase in three years, as prices rose 6.5% and there was more inventory for buyers to choose from.
According to figures released by the Virginia Association of Realtors on May 21, a total of 9,416 properties went under contract in April.
The areas that saw the strongest increases in activity in April were the Shenandoah Valley, Roanoke Valley and Winchester area, according to the industry group.
The increase from 8,252 listings a year ago marks a reversal from March, when there was a year-over-year decline, and suggests the market is starting to pick up despite affordability concerns.
(Sales increased, but were lower than the 11,991 cases in April 2022 and the 13,571 cases in April 2021.)
The statewide average sales price in April was $416,548, up 6.5% from 2017. The fastest price increases in April were in Southwest Virginia, parts of Central Virginia, and suburban Northern Virginia, specifically Loudoun and Prince William counties.
“While listings and sales have increased significantly, there is still pent-up demand putting pressure on home prices,” Ryan Price, the association’s chief economist, said in an analysis of April’s data.
Statewide, the number of homes coming on the market in April was up 19 percent compared to last year, the biggest increase in nearly three years. A total of 16,047 homes were on the market at the end of April, up 18 percent. This is seen as good news for buyers in an environment of rising mortgage rates.
“Mortgage rates trended slightly lower in May, but are still higher than where 2024 began,” said Terry Suits, CEO of the Virginia Association of Realtors. “Thirty-year fixed-rate rates remain above 7%, but there are some signs that consumers are adjusting to higher rates.”
Despite the influx of new listings, housing affordability remains a major concern in the state’s market, according to the group.
“Price increases are likely to continue as demand for housing outpaces increases in property supply,” Price said.
Total sales in the Virginia market in April were $4.94 billion, up 22.8% from a year ago.
