Housing market in Virginia slows down in March 2024 while inventory expands

According to the March 2024 Virginia Home Sales Report released by Virginia REALTORS®, sales activity in Virginia’s housing market slowed down last month.

Statewide, 8,075 homes sold in March, 634 fewer than March 2023, a 7.3 percent decline. Prior to this dip, sales activity had been trending up in Virginia as 2024 began. The areas with the sharpest drops in activity through March were the Lynchburg region, Northern Virginia and the Richmond Metro Area.

While activity slowed, home prices continued rising in Virginia. The statewide median sales price was $397,000 in March, rising 7.3 percent from last year, a $27,000 jump. The low supply of homes in Virginia’s market continues putting upward pressure on home prices, even though sales volume has slowed. About 65 percent of counties and cities in the Commonwealth had a higher median sales price in March compared to a year ago.

Statewide, 18 percent more new listings were available in March 2024 compared to February 2024. However, the spring inventory bump is much lower than a typical February-to-March increase, which tends to be in the 30 percent to 50 percent range.

“This pivot to a slowdown we’re seeing could signal hesitation with sellers who are watching interest rates just as closely as buyers,” Virginia REALTORS CEO® Terrie Suit said. “Mortgage rates have jumped back above the 7 percent mark for the first time since early December 2023.”

While new listings have idled, the number of active listings in Virginia continues to grow. Virginia had 14,950 active listings on the market at the end of March, a 10.3 percent increase from the same time in 2023.

“This is the fourth consecutive month that the overall inventory of active listings has expanded in Virginia, which is welcome news for buyers in this competitive market,” Virginia REALTORS® 2024 President Tom Campbell said.

Rising rates and rising home prices make affordability a key concern in markets around the Commonwealth, pricing out many would-be buyers.

“If these upward trends continue, the spring market will likely be slower than last year, and last year was the slowest spring we’ve seen in a decade,” Virginia REALTORS® Chief Economist Ryan Price said.

The Virginia Home Sales Report is published by Virginia REALTORS®. Click here to view the full March 2024 Virginia Home Sales Report.