Image source: sanaulac.vn
The housing market in Virginia experienced a year like no other in 2021. With over 150,000 home sales and a statewide median home price increase of nearly 10%, it was a record-breaking year. However, certain local markets stood out with even more impressive sales figures, rapid price growth, and significant inventory declines. Let's take a closer look at these exceptional housing market conditions in Virginia.
A Surge in Home Sales
Image source: sanaulac.vn
In 2021, statewide home sales reached an impressive 154,340, marking a 10.2% increase compared to 2020. Almost every local market in Virginia witnessed a surge in home sales. Buchanan County in southwest Virginia saw the highest jump, with a remarkable 74.2% increase compared to the previous year. Other small markets, including Charlotte County, Covington City, and Highland County, also experienced strong sales activity. The city of Colonial Heights, in the Richmond regional market, tops the list of the busiest Virginia markets with a 30% increase in home sales.
Rapid Price Increases
Image source: sanaulac.vn
The demand for homes, coupled with historically low mortgage rates and limited inventory, led to significant price growth across Virginia. Statewide, the median sales price in 2021 was $350,000, representing a 9.4% increase compared to the previous year. Brunswick County, located on the southern border of Virginia, experienced an astounding 107% increase in median sales price. Additionally, small mountain communities like Middlesex, Mathews, and King and Queen counties saw home prices rise more than three times faster than the state average.
Inventory Challenges
Image source: sanaulac.vn
One of the biggest obstacles in Virginia's housing market has been the lack of inventory. In 2021, the supply shortage worsened, with available active listings decreasing by 24.2% compared to the previous year. Almost all jurisdictions in the state experienced tighter inventory conditions. The city of Fairfax witnessed the most significant drop, with a 72.2% decrease in year-end inventory compared to 2020. Harrisonburg also experienced a dramatic decline, with a 65.9% reduction in active listings. The top ten jurisdictions with the largest decreases in inventory spanned various regions, including the mountains, central Virginia, Hampton Roads, and the Roanoke Valley.
Northern Virginia's Tight Market
Image source: sanaulac.vn
While inventory declined across the state, Northern Virginia faced the most significant challenges. At the end of 2021, there was an estimated 1.0 month of supply statewide, down from 1.5 months in 2020. However, some communities in Northern Virginia experienced even tighter inventory conditions. Areas like Prince William County, Manassas Park, and Manassas had exceptionally low supply levels, ranging from 0.18 to 0.28 months. Other counties and cities in Northern Virginia, including Loudoun County, Fairfax City, Falls Church City, and Fairfax County, also struggled with limited inventory.
The Road Ahead
Image source: sanaulac.vn
The challenges posed by low inventory are likely to persist in the Virginia housing market this year. As mortgage rates rise and affordability becomes a concern, the demand may slightly ease. However, it will undoubtedly remain a sellers' market. To gain deeper insights into the market's future, take a look at our latest economic and housing market forecasts, along with three predictions for the year ahead.
Stay informed and always reach out to Virginia REALTORS® Chief Economist Lisa Sturtevant, PhD, if you have any comments or questions about this article.
Original Article and Image Source: Virginia REALTORS®
