Home sales across Virginia last month were up more than 20 percent compared to the June average each of the last four years, as prices continued to rise in double-digit increments.
That said, there are signs pointing to a slightly more balanced (buyer-vs.-seller) market in the fall, according to an analysis of the data by the Virginia Realtors trade group.
“It remains a sellers’ market, although buyers likely will find less competition and more options this summer and into the fall,” said Lisa Sturtevant, chief economist for the organization. “Inventory will remain tight, and demand will stay strong, but the pace of home-sales activities – and the increase in prices – should begin to return to a more normal state.”
Sales statewide in June totaled 16,393, up 24.4 percent from the 13,176 transactions of June 2020. While the June 2020 market was impacted to a degree by the initial stages of the COVID crisis, the dropoff was not huge – sales for June had totaled 14,182 in 2017, 13,887 in 2018 and 13,106 in 2019. Adding 2020 figures into the mix, the average for those four years was 13,588.
Year-over-year sales were up in each of the eight reporting corridors of the commonwealth, with the increases ranging from 7.5 percent in West Central Virginia to 37.9 percent in Southside Virginia. In Northern Virginia (the inner and outer suburbs plus areas even further out of the D.C. core), sales for the month totaled 6,202, up 34.4 percent from a year before.
Median sales prices were up in every nook and cranny of the commonwealth by double-digit figures, ranging from median prices of less than $180,000 in Southside and Southwest Virginia to $560,000 in Northern Virginia.
Add up the sales and prices, and total sales volume for June stood at $7.5 billion, up just under 50 percent from a year before.
Most markets across the state are seeing expanding inventories, although the 19,346 active listings at the end of June represented a decline of nearly 18 percent from a year before. There was a 1.5-month supply of homes on the market at the end of June, down from 2.3 months a year ago and less than half what is needed for the market to be considered balanced between buyers and sellers.
However, it is expected that overall inventory will start creeping up as owners of single-family homes feel more comfortable putting their properties on the market in coming months.
“Inventory levels have increased from one month to the next for the past four months, after years of nearly continuous month-to-month inventory declines,” Sturtevant said. “Buyers are not drawing down those new listings as quickly as they have in the past.”
Figures represent most, but not all, homes on the market. June 2021 figures are preliminary and are subject to revision.
For more data, see the Website at www.virginiarealtors.org.