Summer is typically the busy season for the housing market, and the July Virginia Realtors® home sales report is out. The report shows a noticeable slowdown in the housing market during the month, even though home prices continue to rise.
Virginia Home Sales
Sales – In July, 11,346 homes were sold in Virginia. That’s a change of 3,938 from July 2021, a 25.8% decrease, the sharpest year-over-year decrease in seven years.- Median Sale Price – The median home price in July was $385,000, $25,000 higher than July 2021, a 6.9% change. Home prices continue to rise due to low inventory, but higher interest rates will likely bring down the prices in the coming months. Another indicator is that the sold-to-ask price ratio across the state is down from 102.4% in June to 101.2% in July. The sold-to-ask price has been trending downward for the last four months.
- Sales Volume – July saw $5.3 billion sold volume across Virginia, a decrease of $1.5 billion or 21%. The sold volume in July 2021 was $6.8 billion, and the sold volume in the state has declined three out of the last four months.
- Average Days on the Market – The market continues to be competitive, and homes stayed on the market about three weeks or an average of 20 days in July. That’s two days longer than June, which is a normal seasonal change. Overall, it’s still only taking about half the time for a home to sell than two years ago.
- Pending Sales – Pending home sales (homes that went under contract) dropped significantly in July. There were 9,243 pending sales in July, 4332 fewer than last July, or a 31/9% decrease. The decline in pending sales indicates that a market cooldown is underway.
- New Listings – New listings in Virginia trended downward for the 11th straight month. There were 13,745 new listings in July, 4,190 fewer than in July 2021. That’s a 23.4% decrease. The downward trend of new listings accelerated in July, indicating hesitation from would-be sellers.
- Active Listings – Active listings decreased in July by only 3.4%. There were 720 fewer listings than in July of last year. This number increased from June with about 1,000 more active listings or 5.2%. The increase between June and July indicates an inventory build-up, as inventory usually declines between June and July. Overall, inventory remains low.
- Months of Supply – Though inventory remains low in Virginia, there were 1.7 months of supply during July, up from last year, a second straight year of year-over-year increase in supply. Four to six months of supply has been considered the indicator of a healthy market. The state of Virginia has not seen that summer in more than five years.
Prince William County Home Sales
Home sales statistics in Prince William County in July mirrored the state overall. Six hundred- seventy-six homes were sold, a 32.8% decrease from last July. New listings decreased from 1,050 last July to 918 this July, a change of 12.7%. Active listing increased from 528 last July to 805 this year, a 53.04% increase. Keeping in line with home prices rising, the median sold price in July of this year was $520,000, a 9.47% increase over $475,000 last year. The average home in Prince William County was on the market for 11 days in July, just a one-day increase over the previous year.
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