Virginia’s housing market sees sharpest drop in sales since May 2020

[1srelluc]

According to the June 2022 Virginia Home Sales Report released by Virginia REALTORS®, there were 13,324 homes sold in Virginia in June 2022. This is 3,208 fewer sales than last June, a slowdown of more than 19%. This is the sharpest drop in Virginia’s housing market since the beginning of the pandemic.

Sales activity edged up slightly between May and June, up slightly over 2%, which is much lower than a typical May-to-June jump in sales. “The slowdown we’re seeing in sales is due to more buyers pressing ‘pause’ on their home search,” says Virginia REALTORS® 2022 President Denise Ramey. “The lack of inventory paired with the rise in interest rates have created a more challenging environment for home buyers.”

Even as the market slows, many localities across the commonwealth are still experiencing an increase in home prices. Statewide, the median sales price in Virginia in June was $397,315, nearly a 7% price gain over the same time last year.

“Buyers have limited options to choose from right now, and the low inventory levels are putting upward pressure on prices,” says Virginia REALTORS® Chief Economist Ryan Price. “There are still more buyers in the market than there are active listings. This supply shortage will likely keep prices rising, but as the market continues to cool, we expect price growth will ease in the coming months.”

Virginia’s Housing Market Sees Sharpest Drop in Sales Since May 2020



I suspect rental prices will remain through the roof too.

 

[Harpy Eagle]

Of course rental prices will remain through the roof, there is a housing shortage

 

[1srelluc]

Of course rental prices will remain through the roof, there is a housing shortage

Well duh.....Hell there's a builder in my AO that's building around 2K sq ft homes for the sole purpose of renting them out.

 

[Harpy Eagle]

Well duh.....Hell there's a builder in my AO that's building around 2K sq ft homes for the sole purpose of renting them out.

Good, we need more rental units

 

[1srelluc]

Good, we need more rental units

Most local builders don't have the cash flow/credit line it takes to build 2K homes just to rent out but in my AO it's feasible due to the transient nature of the people who work for the .gov that blow in and out of here......He has a baker's dozen of them now (that I know about) and they are always occupied. The guy has always been savvy.

 

[Harpy Eagle]

Most local builders don't have the cash flow/credit line it takes to build 2K homes just to rent out but in my AO it's feasible due to the transient nature of the people who work for the .gov that blow in and out of here......He has a baker's dozen of them now (that I know about) and they are always occupied. The guy has always been savvy.

The first house I lived in after getting married in Beaufort SC was in such a neighborhood. About 200 homes all owned by the same people rented out to young Marines like myself waiting for base housing.

They made a killing

 

[1srelluc]

The first house I lived in after getting married in Beaufort SC was in such a neighborhood. About 200 homes all owned by the same people rented out to young Marines like myself waiting for base housing.

They made a killing

Yeah, 54% of the local population commutes into NOtVA/DC every day, that and you have a both a Smithsonian (National Zoo) research and Border Patrol K9 training facilities in my AO.....He rents most of the places to BP instructors who are usually gone within three years.....SFH rentals are many in my AO.