Housing Market Trends: Virginia

Virginia’s competitive housing market broke record after record in 2021 and almost every market reported more sales last year than in 2020.

Going into 2022, home prices statewide were up 5.8% year-over-year in January. However, Virginia’s market is starting to relax slightly after a crazy year. The number of homes sold fell 11.5% and the number of homes for sale fell 46.6%.

If you’re looking to buy or sell in the state of Virginia, here’s what you need to know.

Northern Virginia

Northern Virginia is the most populated region of the state and is connected to the Washington Metro Area.

In December 2021, home prices in Arlington County were up 9.2% compared to last year and were selling for a median price of $675,000. On average, homes in Arlington sit on the market for 47 days compared to 39 days the year before. Arlington is seen as a somewhat competitive market with some sellers receiving multiple offers, selling 1% above listing price, with a pending sale after 18 days.

Further west in the city of Manassas, home prices were down 4.5% in December 2021 compared to the previous year, selling for a median price of $373,000. Homes in Manassas typically sell after 31 days on the market, up from 28 days in 2020. Manassas is a very competitive market with many homes receiving multiple offers with waived contingencies. The hottest homes sell for 2% above listing price and go pending in as little as 6 days.

Central Virginia

The state capital of Richmond has also had a highly competitive real estate market. Home prices were up 9.1% year-over-year in December 2021 and selling for a median price of $300,000. Richmond homes sell within 11 days, with some receiving multiple offers and waiving contingencies. The hottest homes sell 6% above listing price and go pending within 5 days.

Charlottesville has recently been experiencing a market cooldown. Homes sell for an average of $358,000, a 9.42% drop since last year. The average home is sold for 3.1% under list price after 51 days on the market.

Located east of the Blue Ridge Mountains, Lynchburg home prices skyrocketed in December 2021, up 35.3% year-over-year and selling for a median price of $230,000. The average home sells 1% above listing price within 38 days; however, some homes have sold 5% above list price and go pending in around 28 days.

Hampton Roads Region

Located on the southeastern coast of the Commonwealth, Virginia Beach home prices were up 12% in December, selling for a median price of $325,000. The Virginia Beach real estate market is very competitive, with the average home selling above listing price within 22 days and some of the most popular homes selling 3% above listing price within 12 days.

Directly West of Virginia Beach, the city of Norfolk has seen home prices rise by 7% to a median sale price of $265,000. The market is somewhat competitive, with the average home selling around listing price after 25 days on the market. However, some homes do sell 3% above listing price within 13 days.

Home prices in Newport News are roughly the same in December compared to the year before, up slightly 0.2% and selling for a median price of $226,000. The Newport News area is extremely competitive with some houses receiving multiple offers with waived contingencies. The average home sells for listing price within 25 days but some have sold 3% above listing price within 12 days.

Ways to Succeed in the Virginia Real Estate Market

While Virginia’s real estate market has been driven by strong demand, the biggest challenges facing buyers have been rising prices and a limited supply of housing. Sales are beginning to slow because buyers are struggling to find available homes within their price range. According to Virginia REALTORS®, the majority of home sales took place in early 2021. In the fall, sales activity began to cool in many markets across the state. However, demand still remains strong.

To survive the competitive markets in Virginia, buyers need to stand out. With RibbonCash Offers, buyers can put in their strongest offer — cash. With our buy before you sell option, buyers can move into someplace new before worrying about selling their existing home.

Contact one of our experts to see how Ribbon can help you today.