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Statewide sales data for June seem to suggest that, indeed, the Virginia real-estate market’s mojo is cooling, with total sales activity from May to June up just 2 percent – much lower than a typical May-to-June rise in sales.

A total of 13,324 homes went to closing across Virginia in June, a year-over-year dropoff of 19 percent, according to figures reported July 13. That’s the sharpest yearly decline in sales since the start of the pandemic.

“The slowdown we’re seeing in sales is due to more buyers pressing ‘pause’ on their home search,” said Virginia Realtors 2022 president Denise Ramey. “The lack of inventory paired with the rise in interest rates has created a more challenging environment for home buyers.”

Year-over-year closings in June were down a whopping 27 percent (to 4,598) in Northern Virginia, which to the trade group is both the inner and outer suburbs of Washington as well as areas down to Fredericksburg and west to the West Virginia line.

Even as the market slows, localities all across the commonwealth are still experiencing an increase in home prices. Statewide, the median sales price in Virginia in June was $397,315, a 6.5-percent price gain over the same time last year.

“Buyers have limited options to choose from right now, and the low inventory levels are putting upward pressure on prices,” says Virginia Realtors chief economist Ryan Price. “There are still more buyers in the market than there are active listings. This supply shortage will likely keep prices rising, but as the market continues to cool, we expect price growth will ease in the coming months.”

The more-buyers-than-homes-for-now status was proved by some good news in the June data: The typical home went from listing to ratified sales contract in 18 days, down from 20 in June 2021 and below the average of 22 days recorded for the first half of 2022.

And all eight geographic areas of the commonwealth posted increases in median sales prices, with the jumps ranging from 1.7 percent (Southwest Virginia) to 19.4 percent (West-Central Virginia). In Northern Virginia, the median sales price of $601,250 was up 6.9 percent from a year before, slightly outperforming the commonwealth as a whole.

For the first six months of the year, sales statewide totaled 66,590, a drop of 10.7 percent, while the median sales price of $379,000 was up 8.3 percent from the January-to-June-2021 timeframe.

Total sales volume for the six-month period was $31.1 billion, down 3.1 percent from a year before.

[https://sungazette.news provides content to, but otherwise is unaffiliated with, InsideNoVa or Rappahannock Media LLC.]

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