How’s the real estate market in Virginia? After more than a year and a half of incredibly robust activity in real estate, Virginia’s housing market is returning to normalcy.
The northern Shenandoah Valley of Virginia is a sellers’ market due primarily to low inventory, averaging under two months’ supply in four counties. Prices remain strong, and average days-on-market hovers near 28 days.
The last two years have seen booming job growth in Virginia. Employment is nearing pre-pandemic levels, and many economists predict that job growth will slow.
Rising interest rates, higher prices, and low inventory have left many potential buyers waiting for an opportunity to get into the real estate market. Many home builders feel that negative national headlines are stoking fears and causing many buyers to hold off.
While 6% interest rates may sound daunting to those newer to the housing market, rates are historically below average. Just ask Kyle Homan of Fairway Mortgage in Winchester, VA. He’ll tell you,
“Baby Boomers like myself once saw interest rates at 18%, Gen X witnessed 9%, and Millennials hit the high 6%. From a historical perspective, today’s rate market is well below rates trending back over 40 years.”
Experts say that Millenials and Gen Z buyers make up a large part of that potential buyer group. Millennials previously have avoided home ownership. However, now well into their 30’s, they want to buy. Gen Z seems to have more of an investment mindset at an earlier age and may hit the buyer pool simultaneously.
While we have seen a seasonal cooling-off period in Virginia, many local agents expect the 2023 market to be strong. A well-priced property in a good location and excellent condition may still see multiple offers and may sell for an over-asking price. However, seller concessions and home inspections are back in play.
The unique environment, rural vibe, and proximity to Washington, D.C. give the northern Shenandoah Valley of Virginia a strong appeal. The housing market here has a resiliency that outpaces national trends. In many ways, a return to normalcy is a good thing for buyers and sellers alike.
“Is The Media Keeping Home Buyers in a State of Fear?” www.nar.realtor, 8 Mar. 2023, www.nar.realtor/magazine/real-estate-news/is-the-media-keeping-home-buyers-in-a-state-of-fear.
“Virginia Economic and Housing Market 2023 Forecast – Virginia REALTORS®.” Virginia REALTORS®, 30 Sept. 2022, www.virginiarealtors.org/research/reports/other-reports/virginia-economic-housing-market-overview-sept-2022.