In a significant upswing for Virginia's real estate landscape, February marked a notable surge in home listings, reaching a three-year high, according to reports from the state's leading realtors association. Despite facing escalating prices and soaring mortgage rates, buyers are displaying resilience, propelling the market forward.
Data reveals a remarkable upswing in new listings, escalating by nearly 17 percent compared to the same period last year. Concurrently, active listings have also surged by approximately 10 percent. The buoyancy in available homes aligns with a 3.5 percent increase in sales volume, totaling $3.2 billion, marking an 11 percent upsurge from 2023. The outlook remains upbeat as pending sales, a forward-looking indicator, soar by 8 percent, hinting at sustained momentum as the spring season unfolds.
Realtors in Virginia commented, "More sellers are listing their homes, indicating pent-up demand from move-up buyers and improved mortgage rates. If this trend persists, it could pave the way for increased sales volume in the coming months."
Despite grappling with escalating prices, with the median sale price climbing nearly 4 percent to approximately $385,000, buyers continue to navigate the market. Mortgage rates hovering around 7 percent add to the financial strain for prospective homeowners. However, recent data from Freddie Mac indicates a slight dip to 6.79 percent, albeit higher than the previous year's 6.32 percent.
"Activity in Virginia's housing market surged in February compared to the previous year, with increased sales and pending sales. Home prices continue to ascend across most regions," stated Virginia realtors. "While inventory grows and new listings emerge, market conditions remain fiercely competitive."
More than half of Virginia's counties witnessed accelerated sales compared to the previous year, with heightened activity along the I-81 corridor and regions encompassing Winchester, Harrisonburg, Staunton, Roanoke, and New River Valleys.
However, certain areas such as the Greater Piedmont region, Martinsville, and Hampton Roads experienced sluggish sales compared to the preceding year. Despite this, prices are on an upward trajectory, with homes priced above $400,000 fetching prices above the listing, indicative of escalating demand.
"The persistent upward pressure on prices is palpable, with homes above $400,000 consistently selling above asking price," noted state realtors.
The mid-price range of $200,000 to $400,000 remains the sweet spot for most buyers, yet even the higher echelons of the market, including properties priced at $800,000 and above, witness robust demand, accounting for over 11 percent of sales, a nearly 9 percent increase from February 2023.
"Upward pressure on home prices remains a prevailing trend across Virginia's housing markets in 2024," affirmed state realtors. "Strong pent-up demand coupled with tight inventory levels will sustain market competitiveness, likely driving prices higher across most regions in Virginia."
Amidst the challenges posed by escalating prices and mortgage rates, Virginia's housing market continues to chart an upward trajectory, buoyed by resilient buyers and renewed seller interest, promising a dynamic landscape in the months ahead.