It’s my offer, but it’s way higher – Royal Examiner
According to January 2022 Virginia Home Sales Report published by Virginia REALTORS®supply in Virginia’s housing market continues to shrink, setting new record lows.
There were just 12,203 total active listings in the state as of the end of January, down 4,478 from the same time last year, a decline of nearly 27%. Inventory has been declining for years in the Commonwealth, but the pace has picked up since the spring of 2020. Total inventory in Virginia is now about a third of the level of three years ago.
For the first time ever, total supply in Virginia’s housing market fell below one month. There was around 0.95 months of supply at the end of January, compared to 1.41 months at the same time last year. The months of supply statistic is calculated by taking the average monthly sales over the previous 12-month period and dividing it by the active listing inventory. Historically, five or six months of supply have been indicative of a healthy housing market.
While most local Virginia markets had fewer active listings than a year ago at the end of January, the largest supply reductions were seen in parts of the northern Virginia markets. Virginia and Richmond.
Despite a strong pool of interested buyers, low supply has led many potential sellers to delay listing their homes. “Low inventory continues to be a major constraint in the housing market. Home sales activity would likely be much stronger, except buyers can’t find anything to buy,” says Virginia REALTORS.® Chief Economist Lisa Sturtevant, PhD.
“Buyers snap up houses very quickly, knowing that there is not much on the market. 2022 has been very busy so far as some buyers attempt to enter the market before mortgage rates rise,” says Virginia REALTORS.® 2022 President Denise Ramey.
Demand has led to strong price growth and accelerated the speed of sales. In Virginia, homes are now selling almost twice as fast as they were in January two years ago. It will continue to be a seller’s market in Virginia for the foreseeable future as supply remains so low.
The Virginia Home Sales Report is published by Virginia REALTORS®. Click here to view the full January 2022 Virginia Home Sales Report.