Virginia home prices up, yet home sales slowing, including in Shenandoah Valley

As more homes in Virginia are going on the market, the industry is also seeing a statewide slow down of sales.

According to Virginia REALTORS’s September 2022 Virginia Home Sales Report, 10,172 homes were sold in the Commonwealth in September 2022, 3,062 fewer than in September 2021. This is a decrease of 23 percent.

Home sale prices are also starting to go below asking prices, according to a press release.

The largest sales drops so far in 2022 have been in coastal communities such as Northern Neck and the Chesapeake Bay and Rivers region, but also Northern Virginia and part of the Shenandoah Valley.

Approximately $4.5 billion of sold volume was in Virginia in September 2022, $1.1 billion less than a year ago, and a more than 20 percent drop in volume from September of last year.

The press release stated that the statewide home price in September 2022 was $365,000, nearly $15,000 more than 2021. Although home prices continue to trend up, evidence shows that upward pressure is easing.

“In September, Virginia’s average sold-to-list price ratio, meaning what a home sold for compared to the price it was listed for, was 99.9 percent,” Virginia REALTORS^® Chief Economist Ryan Price said in the press release. “While this may not seem significant, it’s actually the first time this ratio has dipped below 100 percent since January 2021.”

In more good news for home buyers, the inventory of homes available in the Commonwealth continues to grow, especially in the New River Valley, the Winchester area and part of Central Virginia.

“Last month, about 44 percent of all counties and cities in Virginia had more inventory on the market than at the same time last year,” Virginia REALTORS^® 2022 President Denise Ramey said in the press release. “While our inventory levels remain historically low, we’ll likely see them continue to build as the market continues cooling.”