According to the February 2023 Virginia Home Sales Report released by Virginia REALTORS®, there were 6,505 home sales across Virginia in February. This is a 20.3% reduction compared to February 2022, or 1,655 fewer sales. This marks the fifteenth consecutive month ending with a decrease in sales activity in the state’s housing market, as interest rates have more than doubled during this period.
Even with the slowdown in sales activity, home prices continue to trend up in many parts of the state, a reflection of the tight inventory conditions that persist in most areas. At $370,000, the statewide median sales price rose 5.7% from this time last year, a $20,000 price jump.
The statewide average days on market in February was 38 days, eight days longer than a year ago. In addition to homes staying on the market longer, Virginia’s sellers, on average, are getting slightly less than their asking price. “This is some good news for buyers that are active in the market,” says Virginia REALTORS® 2023 President Katrina M. Smith. “Nearly all of Virginia’s markets have more active listings available than they did one year ago.”
At the end of February, there were 14,558 active listings on the market statewide, 2,416 more listings than last year. “Active listings are building up, but keep in mind that it’s not from new listings, which remain down,” says Virginia REALTORS® Chief Economist Ryan Price. “February saw a 22% reduction in new listings since the same time last year, reflecting hesitation from sellers.”
Following the collapse of Silicon Valley Bank and Signature Bank and the subsequent drop in mortgage rates, it’s possible there could be an influx of buyers who might have pushed pause when rates were trending up. “The recent events in the banking sector continue to resonate across the nation’s economy,” says Virginia REALTORS® CEO Terrie Suit. “If mortgage rates continue to drop, it could induce activity in what has been a slowing housing market.”
While this could provide a boost heading into the spring market, overall sentiment for buyers remains low. Click here to view the full February 2023 Virginia Home Sales Report.