Virginia housing sales drop again, but listings spike 35.5%

Virginia’s home sales have slowed down for the third month in a row, according to April’s statewide sales data released Wednesday by Virginia Realtors.

The trade association reports that the state’s active listings jumped 35.5% in April, the biggest year-over-year gain since 2019. But closed sales dipped 0.8%, with 9,334 homes sold last month — 74 fewer than a year ago. Furthermore, the year’s sales activity through April is 3.1% lower than last year’s.

The report specifically notes a slowdown in sales in Southwest Virginia, the New River Valley, Blue Ridge and Dan River regions. On the other hand, Northern Virginia, the greater Richmond region, Charlottesville region and the greater Piedmont area, which includes Culpeper, Madison, Rappahannock and Fauquier counties, saw increased sales in April.

In a statement, Virginia Realtors Chief Economist Ryan Price noted that sales are “trailing” 2024 levels.

“This could be a reflection of uncertainty with the employment landscape in some parts of the state, as well as mortgage rates which have hovered in the upper 6% range so far this year,” he said.

The state’s pending sales increased for a second consecutive month, with 9,962 pending in April — a 5.6% increase from March and a 1.5% increase over April 2024. The association says the March increase reflects a typical spring market bump with more buyers and sellers entering the market.

Virginia Realtors notes in the report that the U.S. economy shrank in the first quarter of the year, amid uncertainties surrounding President Donald Trump’s trade war and shifting consumer sentiment. It also said the decline in gross domestic product at the beginning of the year mainly was because businesses rushed to shore up their reserves before tariffs imposed by Trump went into effect.

The report also notes that consumers are reining in their spending. While total employment levels increased in Virginia, the unemployment rate also increased. Virginia Works reported that for the week ending May 10, there were 18,144 continued claims, 14.5% higher than the comparable week of last year (15,847). Old Dominion University Economist Bob McNab told Virginia Business last week that he believes at least some of the unemployment numbers can be attributable to the Trump administration’s cutting federal contracts and tens of thousands of federal jobs.

The Virginia market had 21,739 active listings at the end of April, a significant 35.5% jump from last year. The association says the inventory growth offers buyers some supply-side relief, but elevated mortgage rates and climbing prices are creating affordability challenges, especially for first-time buyers.

Virginia’s median home prices rose in nearly 70% of the state’s local markets compared to last year. The statewide April median sales price was $425,000, up $8,453 — a 2% increase — from last April.

The association reports that prices were higher in parts of the Greater Piedmont, Greater Augusta and Southern Piedmont regions, but the median prices in the Dan River region dropped compared to last year.

Due to home price growth, Virginia Realtors says the sold dollar volume in Virginia increased from last year’s level despite a slowdown in sales activity. The association reports about $5.1 billion of sales statewide in April, an increase of about $136 million or 2.7% from April 2024.

On average, homes took a little over a week to sell in Virginia, with the median days on market being 10 days, increasing from 7 days last April.

“While homes are staying on the market slightly longer than they were last year, the current days on market is still quite low by historical standards,” Virginia Realtors President Lorraine Arora said in a statement.

Based in Glen Allen, Virginia Realtors represents about 35,000 Realtors and is the state’s largest trade association.