Virginia home sales hit slowest pace in a decade

According to the December 2023 Virginia Home Sales Report, the total number of homes sold statewide in 2023 was 98,464, which is a significant 24,780 decrease from the same annual total in 2022 (a 20% drop in activity). The report indicates that the primary causes of the slowdown were rising mortgage rates and a lack of inventory. This trend was widespread, with 88% of counties and cities throughout the state reporting fewer sales in 2023 compared to 2022.

Despite the sluggish sales activity, Virginia’s median home price rose to $382,725 in December, up 6.6% from the same month in 2022. The number of active listings on the market also increased slightly from the previous December totals, by 1% to 16,244.

Virginia Realtors 2024 President Tom Campbell expects the housing market to rebound this year, with a boost from lower mortgage rates. He predicts that this will result in more housing activity on both sides of the table, as pent-up demand remains high. But Virginia Realtors Chief Economist Ryan Price cautions that the overall supply of housing remains tight, and the market will remain competitive, with only a modest increase in inventory expected.