If you’re considering buying or selling a home in Virginia, it’s important to understand the current real estate market trends. Virginia is known for its picturesque landscapes and high home prices, especially in the areas surrounding Washington, D.C. According to data from Virginia Realtors, the homeownership rate in Virginia is higher than the national average, with approximately two-thirds (67.4 percent) of households owning their homes as of 2022. Whether you’re a buyer or seller, it’s crucial to stay informed about the Virginia housing market.
An analysis of the housing market in Virginia reveals a decline in sales coupled with an upward trend in home prices. According to the most recent data provided by Virginia Realtors in July 2023, there has been a significant drop of almost 21 percent in home sales compared to the previous year. This decline can be attributed to the limited availability of housing inventory and the surge in mortgage interest rates. On the other hand, sellers have experienced a positive development with a 3.9 percent increase in prices compared to the previous year. The median sale price across the state has risen by $15,000, indicating a favorable market for sellers.
Jeremy Johnson, an associate broker with Long & Foster Real Estate in Virginia Beach, asserts that despite a decrease in sales, the Virginia residential housing market continues to exhibit resilience and strength. The current prevailing trend can be attributed to the scarcity of available inventory, which is a result of the substantial number of buyers in the marketplace.
Should you consider purchasing or selling in the Virginia housing market? Virginia, like many other regions in the country, is currently experiencing a real estate market that heavily favors sellers. The demand for homes far exceeds the available supply, which puts buyers at a disadvantage when it comes to negotiating. The scarcity of homes on the market makes it increasingly difficult for buyers to find suitable properties.
If you are a seller, there is good news for you in Virginia. Median sale prices are rising, buyer demand is high, and homes are selling relatively quickly. In July, the average days on the market statewide were only 23, which is an increase of just three days from the previous year. In comparison, back in 2019, before the pandemic, the average days on the market in Virginia were 41. With a large number of buyers and limited properties to choose from, sellers definitely have the upper hand.
However, before you decide to sell your home, it is crucial to have a clear understanding of its value. Seek the assistance of a local real estate agent who can analyze comparable properties in your area. Knowing the sale prices of similar homes will give you a more accurate perspective on the potential market price your home can achieve.
On the other hand, if you are a buyer in Virginia, the situation is not as favorable. You will be competing in a market where home prices are rising and the supply is limited. Both new listings and active listings have decreased by approximately 20 percent compared to the previous year. However, there is a slight silver lining as the average months of inventory in Virginia have increased by 4.9 percent year-over-year.
Buyers need to be prepared for a potentially lengthy homebuying process and should work closely with a trusted Realtor who understands the local market, advises Johnson.
According to Redfin data, Portsmouth, located near Norfolk, is a cost-effective market that is worth considering for individuals on a tight budget. The median price for a home in Portsmouth is $250,450, which is significantly lower than the statewide median. On the other hand, towns in Northern Virginia that are situated just across the Potomac River from D.C. tend to be much more expensive. For instance, the median price in Arlington is $687,500, while in Alexandria it is $608,500. To determine how much house you can afford, you can utilize Bankrate’s home affordability calculator. Additionally, obtaining preapproval for a mortgage can greatly assist with budgeting, as it provides insight into the amount a lender is likely to loan you in advance.
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