Housing market on decline across Virginia

HAMPTON ROADS, Va. (WAVY) — If you’re trying to buy a home for the first time, it’s not getting any easier.

Virginia Realtors’ March home sales report showed a decline in the state’s housing market.

Rising interest rates and home prices are to blame, according to Virginia Realtors chief economist Ryan Price, who cautions that home prices are rising faster in Hampton Roads. The median sale price in March was $397,000 — $27,000 more than a year ago.

Realtors in Virginia sold just over 8,000 homes, down 7.3% from the year before, when realtors sold more than 8,700, according to the March report.

Price said rising interest rates are not only making it more more difficult for first-time home buyers to buy a home, but existing homeowners aren’t buying larger homes either.

“People are staying in their homes longer,” Price said. “Instead of buying another home or a move-up buyer, they’re deciding to stay in their home because of the interest rate environment and because of the lack of supply that’s out there.”

According to Price, the real estate market is typically busy during the spring, but this year it’s slow. He said there’s just not enough houses on the market , which makes it more competitive.

“This pivot to a slowdown we’re seeing could signal hesitation with sellers who are watching interest rates just as closely as buyers,” said Virginia Realtors CEO Terrie Suit. “Mortgage rates have jumped back above the 7% mark for the first time since early December 2023.”

Price said there are resources for first-time home buyers , and working with a realtor can make the process easier.

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