Va. housing market off to slow start in 2024

The housing market in Virginia had a relatively slow start in 2024, according to January data released Feb. 23 by Virginia Realtors.

In January, 5,640 homes sold in the state, only 31 more sales than January 2023. Overall in 2023, Virginia home sales dropped 20% compared with 2022 and were the lowest the market had seen since 2014.

Inventory remains tight, according to Virginia Realtors. At the end of January, Virginia had 15,229 active listings, up 362 listings — 2.4% — from a year ago. Although active listings have increased, the numbers reflect homes staying on the market longer, not necessarily more sellers listing homes, according to Virginia Realtors.

In January, the Virginia market saw 8,034 new listings, down 122 new listings from a year ago, a decrease of 1.5%.

“Many homeowners looking to buy another home remain reluctant to lose the low mortgage rates they are currently locked into,” Ryan Price, Virginia Realtors’ chief economist, said in a statement. “Because of this, many would-be sellers are choosing to pause their plans and not list their home for sale.”

For the week that ended Jan. 11, the national average 30-year fixed-rate mortgage was 6.66%, according to Freddie Mac data. In the week ending Jan. 18, the average 30-year fixed-rate mortgage was 6.6%, and in the week ending Jan. 25, that rate was 6.69%.

The situation could change, though, if mortgage rates fall as the year continues, Virginia Realtors CEO Terrie Suit said in a statement: “More move-up buyers could be enticed to enter the market, and this could provide some much-needed inventory supply across the commonwealth.”

In February, however, mortgage rates rose. This week, mortgage rates increased for the fourth consecutive week, reaching a two-month high and nearing 7% again, according to a Freddie Mac summary. As of Feb. 29, the average 30-year fixed-rate mortgage was 6.94%, and the four-week average was 6.81%, according to Freddie Mac data.

Despite relatively flat sales, upward pressure on home prices continues, according to Virginia Realtors. The statewide median average sales price in January was $371,889, nearly $22,000 higher than in January 2023, a 6.3% increase. Of the state’s local markets, 67% had a higher median sales price this January than in the same month last year.

“The accelerated price growth has been driven by the low supply of homes for sale,” Tom Campbell, Virginia Realtors 2024 president, said in a statement. “We predict this trend will continue into the spring unless more listings come on the market.”