It won’t be anywhere close to a record-breaker, but signs are pointing to a healthy spring market for Virginia real estate.
“Momentum is starting to build, albeit slowly,” said Ryan Price, chief economist of the Virginia Realtors trade group, in parsing February sales data reported March 27 by the statewide trade organization.
Sales for the month totaled 6,733, up 3.5 percent from a year before. The median sales price of $384,576 was up 3.9 percent year-over-year and increased in about seven of 10 Virginia localities.
The result was total market inventory of $3.23 billion for the month, up 11 percent from $2.91 billion from February 2023 but still lagging the same months in 2021 ($3.5 billion) and 2022 ($3.6 billion).
Sales-wise, the sharpest percentage increase has been along the I-81 corridor, particularly the Winchester, Harrisonburg, and Staunton regions, along with the Roanoke and New River valleys. The Greater Piedmont region, the Martinsville area and Hampton Roads are among the places where sales have lagged so far compared to last year.
The figures showed that homeowners, who are finally bringing their properties to market in significant, are overreaching in their pricing, albeit only very slightly. In February, the average sold-to-listing-price ratio in Virginia’s housing market was 99.8 percent.
But sellers will are still reaping rewards. The median sales price in February was nearly $100,000 more than the median $287,000 recorded in February 2020, and that may encourage even more property owners to trade up (or move elsewhere), in spite of the current, higher-interest-rate environment.
New listings for the month stood up 9.9 percent from a year before. And higher inventory provides more opportunity for prospective purchases as the market heads into its busy season.
Pending sales recorded at the end of February stood at 7,356 statewide, up 8 percent from a year earlier, another positive sign.
Figures represent most, but not all, homes on the market. All February 2024 figures are preliminary and are subject to revision.
