As we close the door for 2022 and enter into a new year, it’s vital for us to take a look into the key trends we saw in the housing market last year. Since 1981, The National Association of REALTORS® (NAR) has produced an annual survey report of home buyers and sellers who completed a transaction within a given year. This annual survey report gives us insight into the trends from the consumer level nationwide. This year, Virginia REALTORS® opted for the Home Buyers and Sellers Over-Sample Report, which provides a snapshot of home buyer and seller trends in Virginia. The survey covers information on demographics, housing characteristics, and the experience of consumers that participated in the housing market in 2022.
Here are three key takeaways from the 2022 Virginia Home Buyer and Seller Report:
1. Virginia had a higher proportion of first-time home buyers than the nation as a whole.
According to the 2022 Profile of Home Buyers and Sellers, the national share of first-time buyers has shrunk to its lowest ever recorded by NAR® at 26%, down from 34% in 2021. Many first-time buyers in Virginia struggled to enter the housing market in 2022 due to rising home prices, low supply, and climbing mortgage rates, however, first-time home buyers fared better in Virginia than the nation as a whole. About 30% of sales in Virginia during the past 12 months were first-time home buyers, which is 4% higher than the national percentage, according to NAR®.
2. Townhome sales in Virginia outpace the nation.
According to the report, 13% of buyers in Virginia purchased a townhome last year, which is much higher than the nation as a whole at 3%. Townhomes and row homes are becoming more popular because they are often less expensive than detached single-family homes, and make up a large portion of the housing stock in some of the larger regional housing markets in Virginia.
3. Virginia has a higher share of home sales in rural areas than the nation as a whole.
In Virginia, most home purchases were made in rural areas. Last year, 35% of buyers purchased a home in a rural community with a population density of less than 500 people per square mile and a place with fewer than 2,500 people. This is 16% above the national share of rural home purchases.
The Profile of Home Buyers and Sellers report by the National Association of REALTORS® has been the leading industry source for over forty years. The data is collected from a nationally representative sample of recent home buyers who purchased a primary residence in a 12-month period. This survey report enhances real estate professionals’ ability to tackle the needs and expectations of their clients.
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