Home sales start to slow down in the Roanoke Valley

Published: Jul. 28, 2022 at 6:52 PM EDT
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ROANOKE, Va. (WDBJ) - Home sales in the Roanoke Valley are starting to slow down. Homes are staying on the market longer, making it easier for buyers to send in offers.

A realtor with Realstar Realtors explained how there’s been a slowdown in home purchases compared to June 2021.

“Some buyers with the uptick in the interest rates may jump off the buying train and wait to see what happens,” Bob Hartman said.

The buyers’ pause has led to a 16.7% decrease in home sales from last year. 672 houses were sold in June 2021 and 560 homes were sold in June 2022.

A market leader with Movement Mortgage explained the increase in interest rates limited buyers from overpaying and outbidding potential homeowners.

“About a month and a half ago rates shot up, and they went up about 1%, and that scared a lot of people out of the market,” Dave Henry, NMLS 272168, said. “Now with rates coming back down, it gives people a little bit more of a comfort level and gives them a chance to be able to afford a little bit more of a house.”

Because homes aren’t flying off the market as fast as before, the president of the Roanoke Valley Association of Realtors explained more sellers are motivated to add their listings.

“There are fewer people willing to overpay for homes or willing to pay $30,000 over asking price for homes is what’s allowing those sellers, who were hoping to purchase, an opportunity to enter this market and have a home to sell first,” Ashely Wainwright Donahue said.

The overall housing supply is still lower than last year, and median prices are up nearly 18%. The median home price in June 2021 was $245,000 compared to $290,000 in June 2022.

Hartman explained houses are selling quickly, but buyers now have some breathing room.

“I think it gives them the chance to not run too fast, and instead jog into a purchase, which is really good for everybody involved,” Hartman said.

Realtors also explained with homes staying on the market longer, the industry is heading toward a more balanced market between buyers and sellers.

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