According to the July 2017 Home Sales Report released by the Virginia REALTORS®, the residential real estate market continues to surge. Yearto-date volume (the sum of all sales) for the period of January through July rose 9.7 percent over the same period in 2016, from $22.411 billion to $24.593 billion. Yearoveryear, transactions in the month of July reduced by less than half of one percent: from 11,549 to 11,495. Inventory constraints continue to affect the number of sales and also drive price upward, as eager buyers demand more than the current market supplies. 

Claire ForcierRowe, 2017 President of the Virginia REALTORS®, shares “Low rates and lasting consumer confidence have propelled buyers into Virginia’s market faster than sellers are committing to list their properties. Without certainty that there will be inventory to move to, prospective sellers are reluctant to list. So, there’s a premium on new inventory that’s evident in the price trends and speed of transactions this year.”

The statewide median sales price for July 2017 was $295,000, an increase of 6 percent from the median price last July ($278,275). Typical of seasonal trends, July median price tapered from June’s $299,000, declining 1.3 percent. Sustained price elevation indicates continued strong demand. Further illustrating the high motivation of buyers, the average number of days on the market remained notably low at 50 days. The average number of days on the market in July 2016 was 60 days. Average transaction speed has quickened by 16.7 percent in the last twelve months. 

July 2017 volume (the sum of all transactions) was $4.069 billion, rising 4.4 percent over last July’s volume of $3.898 billion. As a multiplier of pace and price, the gain in volume was attributed solely to higher prices, as pace was relatively flat. Monthovermonth, volume fell 20 percent (from $5.085 billion). The steep decline is typical of the industry’s seasonality, as market activity contracts following the June peak.

Click here to view the full July 2017 Home Sales Report.