Rising mortgage rates and inventory constraints kept sales activity in Virginia’s housing market low throughout 2023.
However, the outlook for 2024 is better.
“Home sales activity is likely to rebound in 2024, with an expected boost from lower mortgage rates,” Virginia REALTORS® 2024 President Tom Campbell said. “If rates continue trending downward, it will likely spur housing market activity on both sides of the table as there is pent-up demand from both first-time buyers and those looking to move up.”
According to the December 2023 Virginia Home Sales Report released by Virginia REALTORS®, 98,464 homes sold during 2023, which is 24,780 fewer home sales than the annual total in 2022, a 20 percent drop in activity.
The 2023 annual sales total is the lowest the state’s housing market has seen since 2014. Climbing mortgage rates and lack of inventory were the primary causes of the slow market. About nine out of every 10 counties and cities across the commonwealth (88 percent), had fewer sales in 2023 compared to 2022, reflecting the widespread market cooldown.
While sales activity for the year was the lowest in nearly a decade, Virginia’s median home price climbed briskly nearly every month. At $382,725, the December statewide median sales price jumped up by nearly $24,000 from last December, a 6.6 percent increase.
At the end of December, Virginia had 16,244 active listings on the market, which is 129 more listings than the same time in 2022, a modest increase of just below 1 percent. The Commonwealth’s first year-over-year uptick in nine months was at this time.
“This year, we expect to see a respite from the sluggish home sales of 2023,” Virginia REALTORS® Chief Economist Ryan Price said. “While there will likely be some gains in inventory, the overall supply will continue to be tight, and the market will remain competitive.”
The Virginia Home Sales Report is published by Virginia REALTORS®.
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Rebecca Barnabi
