According to the December 2023 Virginia Home Sales Report released by Virginia REALTORS®, there were 98,464 homes sold statewide during 2023. This is 24,780 fewer home sales than the annual total in 2022, a 20% drop in activity.

The 2023 annual sales total is the lowest the state’s housing market has seen since 2014. Climbing mortgage rates and lack of inventory were the primary causes of the slow market this year. About nine out of every ten counties and cities across the commonwealth (88%), had fewer sales in 2023 compared to 2022, reflecting how widespread the market cooldown was.

While sales activity for the year was the lowest in nearly a decade, Virginia’s median home price climbed briskly nearly every month. At $382,725, the December statewide median sales price jumped up by nearly $24,000 from last December, a 6.6% increase.

There were 16,244 active listings on the market at the end of December throughout Virginia. This is 129 more listings than this time last year, a modest increase of just below 1%. This was the commonwealth’s first year-over-year uptick in nine months.

“Home sales activity is likely to rebound in 2024, with an expected boost from lower mortgage rates,” says Virginia REALTORS® 2024 President Tom Campbell. “If rates continue trending downward, it will likely spur housing market activity on both sides of the table as there is pent-up demand from both first-time buyers and those looking to move up.”

“This year, we expect to see a respite from the sluggish home sales of 2023,” says Virginia REALTORS® Chief Economist Ryan Price. “While there will likely be some gains in inventory, the overall supply will continue to be tight, and the market will remain competitive.”

Click here to view the full December 2023 Virginia Home Sales Report.