ROANOKE, Va. – Virginia REALTORS reported Southwest Virginia saw a slow housing market in 2023. In fact, this trend was seen across the Commonwealth as the group reported that 2023 was the lowest housing market that the state has seen since 2014.
According to Virginia REALTORS “December 2023 Home Sales Report,” 98,464 homes were sold statewide during 2023. However, that’s 24,780 fewer home sales than the annual total in 2022.
“This was really driven by three primary factors. One, we had an interest rate, you know. Almost half a percent last year for a 30-year fixed, we had very low supply. So, not a lot of active listings out there on the market. And so that really slowed down a lot of the sales activity that we typically would have a lot of homeowners opted to remain in their homes. Instead of losing their ultra-low interest rates that a lot of folks are locked into,” said Chief Economist Ryan Price with Virginia REALTORS.
Here’s how the number of homes sold in Southwest Virginia looks.
In Franklin County, more than 540 homes were sold last year compared to nearly 800 homes sold in 2022. In Montgomery County, more than 850 homes were sold, which is down from 1,000 homes sold in 2022.
Rockbridge County saw almost a 30% decrease in homes sold. Sales in Bedford County were down 23%, and in Pittsylvania, sales were down at almost 10%.
This might be concerning if you were looking to sell your home. However, realtors said there is some hope.
“If they find a home that meets their budget, with the current interest rates, and they have a need to sell, then there’s really, I think, a great opportunity to do that. We’re seeing more homes come on the market, we’re seeing the supply situation, improve a little bit,” said Price.
There is some worrying news though if you are looking to buy a new home. Virginia REALTORS said the average home price is climbing.
10 News is working for you. We have the latest numbers in Southwest Virginia. The group reported you’ll pay the most for a home in Montgomery County at around $340,000 on average, which is up almost 10% from 2022. Meanwhile, in Roanoke County, prices are up almost 6% at about $300,000. Homes in Craig County sold on average for more than $180,000 and in Pittsylvania County for around $190,000 last year.
Virginia REALTORS said it’s competitive for home buyers right now.
“Having your financing already in order is going to be very important. You know, maybe broadening your search criteria on the type of home that you’re looking for or the community that you’re looking in,” said Price.
Price also has some advice for first-time home buyers.
“Make a little bit more room in your budget, perhaps for a housing payment. You can do this by paying off credit cards or auto loans, really examining the budget and making a little bit more room because home prices are still climbing,” said Price.
He also said to try to expand your horizon when looking at homes. Price said this could mean maybe looking for a townhome instead of a single-family home. He also said you should have a price range.
When it comes to next year, the Virginia REALTORS predicts that home sales are likely to rebound. The group also thinks home prices will continue to climb and there could be more supply in the market. Virginia REALTORS also predict that new home construction will increase.
See a full breakdown of data about the housing market in Southwest Virginia below: