The December Home Sales Report released by Virginia REALTORS® on Thursday showed a surging housing market in the second half of 2020.
The surge resulted in a 10.8 percent increase in home sales year over year from 2019 – the fastest growth in annual sales transactions in the Commonwealth in more than five years.
Sales activity in the final quarter of 2020 was significant compared to recent years. Home sales activity gained steam throughout the fall and into the winter months when transactions typically tend to slow. In December, there was a total of 12,525 home sales in Virginia, 32.4 percent higher than a year ago.
Demand for homeownership has been strong throughout the pandemic, fueled by historically low mortgage rates.
“The foremost challenge for Virginia’s housing market has been a lack of supply. Declining inventory has limited options for would-be homebuyers and has driven up home prices across the Commonwealth,” Virginia REALTORS® Chief Economist Lisa Sturtevant said.
In Virginia, the median sales price in 2020 was $319,902, which was up from $295,000 last year, an 8.4 percent increase. For the past few years, home prices have risen by between 2 and 4 percent, so the gain in 2020 is notable.
The biggest price gains were in the last few months of the year. In December, the median sales price statewide was $325,000, up 10.2 percent.
Demand for homeownership should continue to be strong in Virginia in 2021, while a lack of inventory will constrain market activity. Virginia REALTORS® forecasts that home sales will increase in 2021, though the pace of home sales transactions will slow due to insufficient supply.
The Virginia Home Sales Report is published by Virginia REALTORS®. Click here to view the full December 2020 Home Sales Report. Current and past reports are available to members, media, and real estate-related industries through the organization’s website.
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