Virginia home sales slow down, but prices are still climbing

Published: Mar. 28, 2023 at 6:33 PM EDT
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ROANOKE, Va. (WDBJ) - Virginia home sales are slowing down, but prices are still high.

The average closing price on a house during the month of February in the Roanoke Valley was $311,507, which is $20,000 higher than the February 2022 average.

For months, the demand for homes in the Roanoke Valley has been higher than the supply. The imbalance is causing stress for homebuyers like Alexander Burch.

“It’s been incredibly difficult,” Burch said. “There’s not much out there, and on top of that when a place does come up that fits your criteria, we’ve been outbid by $10,000 to $15,000.”

Real Star Realtor’s principal broker explained buyers not only compete with each other, but with investors who are more likely to present cash offers.

“They’ll go in without inspections and a quick closing and cash, which to a seller can be advantageous, and then is detrimental sometimes to a buyer,” David Linden said.

In Virginia, there was a 20.3% decrease in home sales from February 2022 with 1,655 fewer sales. But the average selling price rose $20,000, a 5.7% increase.

The data mark yet another month of high prices and low inventory in the housing market.

“This is definitely, in my 25 years [in real estate], the longest sustained increase in the value,” Linden said. “The rise in value is just something that we haven’t seen before.”

The rise in home prices comes as rent rates across the valley are also going up.

“You need a home, you need a place to stay,” Burch said. “Especially with our baby girl, we need to expand so we need to find something. Options are slim, for sure.”

Experts say the best advice for home buyers is to have patience and not jump into something you’re unsure about.

Spring is typically the season when more homes go on the market. By adding in more inventory, that could even out the value and price of homes for potential buyers.