Housing inventory in Central Virginia continues to build

As the Central Virginia housing market continues to moderate, home prices and inventory are trending higher, according to the Richmond Association of Realtors.

At the end of September, housing inventory in the Richmond region was continuing to grow – up to 2,581 active listings, or 351 more listings than at the same time last year (a 16% increase). It was the second consecutive quarter in which inventory had grown and also the largest year-over-year supply increase the region has seen in more than seven years. 

The Central Virginia market has been slowing down for four straight quarters, RAR officials said. There were 5,865 home sales across the region this quarter, or 1,242 fewer than last year (a 17% drop).

At the local level, 13 of 16 regional jurisdictions witnessed a decrease in sales activity this quarter, reflecting the broad market slowdown. 

The median sales price in the region has increased by 10% to $356,000 compared with the same time last year, which is a gain of $32,000. The third quarter median sales price in the Richmond metro area was $370,000, an 11% increase from this time last year.

Competition has eased somewhat because of rising interest and mortgage rates. Since the start of the year, the 30-year fixed mortgage rate has more than doubled.

Overall, the market remains competitive across the region, RAR officials said, as 11 of 16 local markets in the region had sales price levels exceeding the asking price on average during the third quarter.

“The spike in interest rates has taken some buyers out of the market and allowed for an increase in inventory,” said Dare Tulloch, president of the Richmond Association of Realtors and CVR MLS. “For buyers in the market, they should know that an interest rate of 6.9% is a historically modest interest rate; so it remains a good time to be in the home buying market in Central Virginia.”