Va. housing market picks up in February

The pace of sales in Virginia’s housing market picked up in February, increasing 3.5% over February 2023, according to Virginia Realtors data released Tuesday.

In February, there were 6,733 home sales in the commonwealth, 228 more sales than this time last year. At the end of the month, there were 16,004 homes on the market, up by 1,446 active listings from a year ago — a 9.9% increase.

New listings also increased in February, totaling 9,729, which is up 1,395 new listings, or 16.7%, from February 2023. The increase is the largest influx of new listings Virginia has had since summer 2021, Virginia Realtors Chief Economist Ryan Price said in a statement. Additionally, about 64% of cities and counties around Virginia had more listings on the market in February than this time last year, indicating an increase in supply.

“This increase is a welcome signal to buyers, but inventory levels are still tight, and market conditions remain very competitive in most parts of Virginia,” Price said in a statement.

Homes in Virginia were on the market for a median of 15 days last month, down one day from the 16-day median reported in February 2023.

Home prices continue to rise as demand remains high. The statewide median sales price in February was $384,576, up more than $14,500, or 3.9%, from last year.

Pent-up demand and tight (though improving) inventory levels will likely “keep the market competitive as we head into spring, and prices will remain on an upward trajectory across most of the state,” Tom Campbell, Virginia Realtors’ 2024 president, said in a statement.

The Virginia housing market had 7,356 pending sales last month, up by 546 pending sales from last year, an 8% increase.

Mortgage rates moved slightly lower this week. For the week ending March 28, the average 30-year fixed-rate mortgage was 6.79%, down 0.08% from the previous week, and the four-week average was 6.82%, according to Freddie Mac data.

“February’s uptick in pending sales and new listings indicates renewed interest from sellers and move-up buyers,” Virginia Realtors CEO Terrie Suit said in a statement. “If mortgage rates drift downward later this year, as they are expected to, we could see even more sales volume growth across Virginia.”