Va. housing market dampens in March

The pace of sales in Virginia’s housing market slowed in March, declining 7.3% over March 2023, according to data released by Virginia Realtors Tuesday.

In March, there were 8,075 home sales in the commonwealth, 634 fewer sales than this time last year. At the end of the month, there were 14,950 homes on the market, up by about 1,400 additional listings from a year ago — a 10.3% increase.

“This is the fourth consecutive month that the overall inventory of active listings has expanded in Virginia, which is welcome news for buyers in this competitive market,” Tom Campbell, Virginia Realtors’ 2024 president, said in a statement. 

New listings decreased in March, totaling 11,470, which is 35 fewer than in March 2023. There were about 17.9% more new listings in March compared to February. However, this increase is lower than the typical February-to-March spring inventory bump.

“This pivot to a slowdown we’re seeing could signal hesitation with sellers who are watching interest rates just as closely as buyers,” Virginia Realtors CEO Terrie Suit said in a statement.  

About 65% of cities and counties around Virginia had more listings on the market in March than during that time last year. The Harrisonburg and Lynchburg regions had the sharpest increase in active listings in March. The biggest drop in active listings occurred in the Northern Virginia and Williamsburg areas. 

Homes in Virginia were on the market for a median of 10 days last month, the same time frame as during March 2023.

Home prices continue to rise even though sales volume has slowed. The statewide median sales price in March was $397,000, up more than $27,000 or 7.3%, from last year.

The Virginia housing market had 8,981 pending sales last month, up by 444 pending sales from last year, a 5.2% increase.

Mortgage rates have risen above the 7% mark for the first time since December 2023. For the week ending April 18, the average 30-year fixed-rate mortgage was 7.1%, up from 6.88% the previous week and up from 6.62% at the start of 2024, according to Freddie Mac data. 

“If these upward trends continue, the spring market will likely be slower than last year, and last year was the slowest spring we’ve seen in a decade,” Ryan Price, Virginia Realtors’ chief economist, said in a statement.