Virginia saw its slowest real estate market in more than a decade in September, according to a market report by Virginia Association of Realtors, an association that represents 38,000 real estate agents.
“There were 8,023 homes sold across the state in September, which is 2,149 fewer sales than this time last year, representing a 21.1 percent decline,” the report said.
“The sharpest reductions in listings continue to be in Northern Virginia, as well as some segments of the Richmond metro region,” says Virginia Realtore 2023 President Katrina M. Smith. “However, we are seeing growth in some places. Parts of western Virginia, including the Shenandoah Valley and New River Valley, have more listings on the market than a year ago. Because these are smaller markets, these increases don’t move the needle on the overall state number.”
The report attributes the decline in sales to low inventory and climbing mortgage rates. Mortgage rates are the highest since December 2000.
Home prices are continuing to rise, with median price statewide at $380,000.
“The median home price in Virginia is now more than $100,000 higher than it was in September five years ago,” the report said.
The average sold-to-ask price ratio across Virginia was 100.3 percent. Homes in the $600,000 to $800,000 range are getting 100.8 percent of their asking prices. Those over $800,000 are getting 100 percent.
The median time a house stays on the market declined from 13 days a year ago to 10 days. Back in 2019, the median time on the market was 20 days statewide.
Northern Virginia Prices
In a separate look at market statistics, the Northern Virginia Association of Realtors said the median home sale price in September 2023 was $650,000, up 5 percent from a year ago but down 7.1 percent compared to August 2023.
It said the five-year average for median price sold in September is $594,028. NVAR covers Fairfax and Arlington counties, Alexandria, Falls Church, and Fairfax City.
Of the areas NVAR covers, Falls Church saw the highest median price at $860,000, which was down 10.4 percent from 2022. Arlington showed up second with a median price of $700,000, up 25.6 percent from a year ago, followed by Fairfax City at $666,750, a price gain of three-tenths of a percent.
In September, 1,180 homes sold, a decline of 18.2 percent from the year before. NVAR said the number of new listings dropped 35.86 percent to 1,368 in September. The association said the five-year average for September active listings is 2,390.
Homes stayed on the market an average of 17 days.
“Current homeowners have no incentive to forgo their lower interest rate unless they are forced to move. That’s why homebuying options are scarce,” said NVAR Board Member Jamie DeSimone, Keller Williams Capital Properties, in a news release.
“We’ve been experiencing the ‘ouch factor’ as high mortgage rates have chilled the market. With the resulting limited inventory, sellers choosing to list their homes are receiving multiple offers and have leverage over buyers. The market remains competitive, as there are more people who want to buy than there are homes to sell,” said NVAR CEO Ryan McLaughlin.
Feature image, stock.adobe.com
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