Virginia Housing Market Analysis - August 2024
The Virginia housing market in August 2024 presents a delicate picture, reflecting both challenges and opportunities for buyers and sellers alike. Key metrics indicate a slight cooling in certain areas, while others show resilience and growth.
The Median Sales Price for homes in Virginia stands at $447,700, marking a 2.9% decrease year-over-year (YoY). Similarly, the Median List Price has seen a 1.3% decline, now at $437,200. Despite these decreases, the median Price Per Square Foot has increased by 3.5% to $229, and the Median List Price per square foot has risen by 5.2% to $231. These figures suggest that while overall prices have softened, the value per square foot has appreciated, indicating a potential shift in buyer preferences towards smaller, more efficiently priced properties.
Sales activity has also experienced a downturn. The number of Homes Sold in August 2024 is 9,944, reflecting a 2.8% decrease YoY. Pending Sales have dropped by 5.0%, totaling 10,147. However, New Listings have seen a slight increase of 0.4%, reaching 10,789. This uptick in New Listings, coupled with a 14.2% increase in inventory to 18,109 homes, suggests that the market is becoming more favorable for buyers, with more options available.
The Months of Supply, a critical indicator of market balance, has risen by 20.0% to 1.8 months. This increase indicates a shift towards a more balanced market, though it still leans towards a seller's market. The Median Days on Market have increased by 5.0% to 27 days, suggesting that homes are taking slightly longer to sell compared to the previous year.
In terms of pricing dynamics, the average sale to list ratio is 99.7%, down by 0.8% YoY. The percentage of Homes Sold above list price has decreased significantly by 8.2%, now at 36.0%. This decline indicates that buyers are gaining more negotiating power. Additionally, the percentage of Price Drops has increased by 3.6% to 30.5%, further emphasizing the shift towards a more buyer-friendly market.
Finally, the percentage of homes going off the market within two weeks has decreased by 6.2%, now at 46.3%. This metric suggests that while homes are still selling relatively quickly, the pace has slowed compared to last year.
Overall, the Virginia housing market in August 2024 shows signs of cooling, with decreases in median sales and list prices, as well as a drop in the number of Homes Sold and Pending Sales. However, the increase in inventory and New Listings, along with the rise in Price Per Square Foot, indicates that opportunities still exist for both buyers and sellers. The market appears to be moving towards a more balanced state, providing a more stable environment for real estate transactions.
