Key Takeaways

• Closed sales activity stalled this month in Virginia’s housing market. There were 9,408 homes sold statewide in August, 48 fewer sales than a year ago, essentially flat from last year (-0.5%).
• Upward pressure on home prices continues to be evident in most parts of the commonwealth. The statewide median sales price in August was $415,000. This is $15,000 higher than it was a year ago, a 3.8% increase.
• While closed sales were flat, higher price points led to a modest increase in sold dollar volume around the state this month. There was approximately $4.9 billion of sold volume in Virginia in August, about $116 million more than this time last year, a 2.4% uptick.
• More active listings are on the market than last year. There were 19,499 active listings statewide at the end of August, an influx of 3,662 listings from a year ago, which is a 23.1% jump.

Outlook

Market activity was flat in August, but how could falling rates impact the upcoming fall market? Here are some key things to watch:

• Mortgage rates are drifting downward. Much of this movement was the market anticipating the rate cut in September. Rates will likely continue to inch lower with some volatility in the coming months. This could spur more buyers to re-enter the market.
• Affordability concerns are brewing in some regional housing markets in Virginia. Home price growth has been consistent and has shown little sign of abating. Any improvements to interest rates will help buyers on the margins but segments of potential buyers, namely first-time buyers, are likely getting priced out of some markets in Virginia. This could shift demand to markets that are more affordable over time.

Click here to view the full August 2024 Virginia Home Sales Report published by Virginia REALTORS^®.