Median home prices rose 9% in Va. since 2021

The cost of buying a home in Virginia increased nearly 9% in the past year, according to a March 21 report from Virginia Realtors.

The statewide median sales price in February was $350,000, or $28,550 higher than it was in February 2021. That’s an 8.9% increase and the sharpest gain since June 2021. Not only are homes more expensive, but they continue to sell above listing prices, according to the Realtors group. The sharpest gains were in the New River Valley market, the southern part of Central Virginia, part of the Winchester region and areas around Fredericksburg.

The February 2022 average sold-to-list price ratio was 101.4%, up from 100.3% in February 2021. Across the commonwealth, sold volume totaled $3.6 billion in February 2022, up a 0.5% from a year ago, or about $18.3 million more. Sold volume rose about 5% from January to February, which is typical for this time of year, according to the Realtors group.

The number of homes sold in Virginia is slowing compared to February 2021, however. Last month, 8,160 homes sold in the commonwealth, 8.4% fewer than the same period last year, which saw 747 more sales. Sales were virtually flat between January and February this year, inching up just 1.2%.

“Rising mortgage rates will cool demand somewhat, but there are still a lot of buyers in the market,” said Lisa Sturtevant, chief economist for Virginia Realtors. “A lack of inventory and high home prices are the biggest challenges in the market right now.”

Houses have been selling faster as the supply has shrunk and competition has remained strong, but it has intensified since 2020. In February 2022, homes in Virginia stayed on the market an average of 30 days, a decrease from 35 days a year ago.

Fewer sellers are listing their homes, despite strong demand from buyers. There was a 3% drop statewide in new listings last month and the inventory picture is only getting worse, the report says, with about 3,500 fewer active listings available at the end of February, a 22.3% drop from February 2021. The New River Valley region had a jump in active listings but the supply in Northern Virginia and Richmond are well below 2021 levels.

“The number of active listings in the market is not keeping up with the pace of buyer demand,” the report says.