Key Takeaways

• Market activity ended on a positive note as 2024 came to a close. There were 7,907 closed home sales across Virginia in December, 978 more sales than this time last year, reflecting a 14.1% increase. Last year was unusually slow due to interest rates in the upper to mid-7% range for much of the fall market, so the surge this year indicates buyers are coming to terms with mortgage rate levels which are still elevated but lower than a year ago.
• More demand than supply continues to push up home prices in most parts of the commonwealth. The statewide median sales price in Virginia was $413,490 in December. This is nearly $31,000 higher than it was last year, a strong 8% increase to the median price of a home.
• With more sales and higher prices, sold dollar volume in Virginia’s housing market continues to surge. There was about $4.1 billion sold volume statewide in December, an influx of nearly $800 million from last year (+24.3%).
• There were 16,588 active listings on the market at the end of December across Virginia, about 1,900 more listings than last year, representing a 13% increase. Supply in the market has been expanding for more than a year, but overall supply levels remain tight.

Outlook

The 2024 market ended stronger than 2023, but it was still relatively slow compared to average levels. Here are some key things to watch as we progress into 2025:

• Inventory conditions remain tight but improved in 2024. This pattern is likely to continue into 2025 as pent-up demand from move-up buyers builds and the lock-in effect loosens over time.
• With more inventory, the pent-up demand that is out in the market will likely absorb the listings which should facilitate more sales. But many of these sales will likely be repeat buyers with sizable equity built up from prior home purchases. With interest rates still elevated and home prices climbing, many first-time buyers will likely have a difficult time entering the housing market in 2025.

Click here to view the full December 2024 Virginia Home Sales Report.