Report: Virginia home sales market cooling, but prices still pushing upward

Home sales are down, but the cooling sales market isn’t dampening home prices, according to a new report from Virginia REALTORS®.

The report had 11,346 homes sold in the Commonwealth in July, a 26 percent drop from July 2021, a continuation of a trend toward moderation since last fall.

But home prices are still shooting upward. The median sales price in Virginia was at $385,000 in July, a gain of $25,000, a nearly 7 percent increase.

While the price trajectory is still creeping upward, indicators suggest that the upward pressure is easing.

“In most price segments, homes are still selling for more than the listing price, on average. However, that ratio has been inching down for several months,” Virginia REALTORS® 2022 President Denise Ramey said. “We aren’t seeing quite as many bidding wars as we did just a few months ago, and we expect price growth will moderate even more as the market activity continues to cool.”

The average sold-to-ask price ratio across the state was 101.2 percent, down from 102.4 percent last month (June 2022), and down from 101.8 percent last July.

While Virginia’s statewide inventory of homes still remains low, in many local housing markets around the Commonwealth, the supply of active listings is growing. About half of all counties and independent cities in the state had more active listings at the end of July compared to a year ago.

“The expanding supply is good news for buyers in the market,” Virginia REALTORS® Chief Economist Ryan Price said. “Buyers’ purchasing power has been impacted by elevated inflation and rising mortgage rates. The slowdown in sales activity we’ve seen in many areas of the state is resulting in a buildup of available homes.”

The Virginia Home Sales Report is published by Virginia REALTORS®. Click here to view the full July 2022 Virginia Home Sales Report.