Key Takeaways

• Closed sales activity continues to ramp up compared to a year ago in Virginia’s housing market. There were 7,853 homes sold throughout the state in November. This is an influx of 905 sales from last year, a 13% surge. While sales activity has picked up in recent months, it still remains below longer-term averages for this time of year.
• Home price growth remains a factor in most regions around Virginia. The November statewide median sales price held firm at $415,000. Unchanged from last month, but $30,000 higher than November of last year (+7.8%).
• There was north of $4 billion of sold volume in total around the commonwealth in November. This is more than $760 million more sold volume than a year ago. The jump in volume continues to be driven by more closed sales and climbing prices.
• Supply conditions are improving but remain relatively tight. There were about 2,000 more active listings on the market at the end of November than there was a year ago, which brought the total active inventory to nearly 18,900 listings statewide (+12.3%).

Outlook

It was a solid November in Virginia’s housing market, but will the momentum fade? Here are some key things to watch as we head into next year:

• Affordability concerns remain a key factor in many regions around the commonwealth. Home prices continue to march upward in most markets in Virginia,
  and mortgage rates have shown little sign of retreating. This will likely keep some buyer segments, particularly first-time buyers and moderate-income buyers on the sidelines in 2025 unless there are improvements to mortgage rates.
• The large influx of pending sales in November compared to last year signals that the December market could see more closed sales than last year, which would be a strong end to the year. At the same time, inventory conditions continue to improve as more new listings are hitting the market. For those that are able to make the finances work, this could translate into more sales activity in the coming months.