As Virginia home sales boom, housing inventory plummets

Virginia home sales were up by over 30 percent in November, reflecting the greatest increase in home sales activity in more than six years.

This according to the November Home Sales Report released by Virginia REALTORS^®, which shows demand for housing continues to be strong across the Commonwealth.

There were 11,590 home sales statewide in November, 2,681 more than November 2019, an increase of more than 30 percent. Year-to-date, there have been nearly 8,000 more home sales in 2020 than there were during the same period last year, a 6.7 percent increase.

In November, the median home sales price in Virginia was $328,000, up 13.8 percent compared to a year ago, a sign of the rising demand. Year-to-date, the statewide median home price is up nearly 8 percent compared to last year.

While strong demand is likely to continue into 2021, a lack of supply is expected to be the biggest constraint on the market in the coming year.

“At the end of November, we saw a decline in active listings of nearly 40 percent compared to what was on the market just one year ago. It’s possible that the market could see a slowdown in activity as Virginia’s homebuyers face increasingly limited options,” Virginia REALTORS^® Chief Economist, Lisa Sturtevant said.

Lack of supply, growing demand, and low mortgage rates are expected to continue putting upward pressure on home prices in 2021.