Virginia home prices continue to rise even as sales slow

The cost of homes in Virginia continues to rise, despite slowing sales.

According to the Virginia Realtors Home Sales Report for February, there were 8,160 home sales in the state, a total that was down 8.4% when compared with the same timeframe last year. Sales, however, increased by 1.2% from January. There has been a moderation of sales activity as the housing market reverts to more seasonal patterns, officials wrote in their report.

Adding to the challenge of rising prices are rising mortgage rates.

“I’ve seen some buyers moving a little more cautiously as home prices have continued to climb,” Virginia Realtors President Denise Ramey said. “However, others are jumping into the market now, before mortgage rates rise any further.”

Chief Economist Lisa Sturtevant predicted that the increasing mortgage rates, “will cool demand somewhat, but there are still a lot of buyers in the market. A lack of inventory and high home prices are the biggest challenges in the market right now.”

This week, the rate for a 30-year fixed mortgage was 4.16% – the first time since May 2019 an average mortgage rate was above 4%.