NoVa home prices increase, Hampton Roads sees inventory boost

Prices remained high in August

Published September 14, 2023 by Courtney Mabeus-Brown

Median home prices in Northern Virginia continue to increase, hitting $700,000 in August, an 11.6% percent increase over the previous year, according to the latest report from the Northern Virginia Association of Realtors.

At the same time, year-over-year sales declined, decreasing 12.4% from August 2022, but month-over-month sales increased as the summer reaches its end. In July, 1,444 units sold compared to the 1,535 sold in August.

“Finding a home to buy remained challenging in August with limited options and higher prices, but we are seeing positive signs, including a less drastic drop in home sales,” NVAR Board Member Stacy Holscher, a real estate agent for Redfin, said in a statement. “It’s important that homebuyers are prepared so they can make quick and appropriate decisions, including getting pre-approved for a mortgage, knowing what they want and working with a professional to help navigate the process.”

The average home stayed on the market 17 days in August, two days longer than in July and two days less than in August 2022. Inventory also remained tight, with 1.08 month’s supply, down 1.4% from August 2022 and also down from the five-year average of 1.2 months of inventory.

The tight supply pushed prices even higher as the median selling price for a home in August reached $700,000, an increase from July, when prices hit $691,000.

NVAR reports on home sales for Fairfax and Arlington counties as well as the cities of Alexandria, Fairfax and Falls Church and the towns of Vienna, Herndon and Clifton. According to NVAR:

• The sold volume in August was $1,270,936,173, up 0.6% compared to August 2022 and slightly up compared to July, when the sold volume was $1,151,230,998.
• The average sold price for a home in August was $831,968, an increase of 15.8% from August 2022 and up from July, when the average sold price was $806,574.
• The number of active listings in August was 1,492, a 30.7% decrease compared to August 2022.
• The total number of new pending sales in August was 1,304, a 16.7% decrease compared to August 2022.

HAMPTON ROADS

House prices also remain high in Hampton Roads, and the number of homes listed for sale reached its highest point of the year in August, according to the Real Estate Information Network, the multiple listing service for the region.

The median sale price of homes sold during August was $341,100. That’s up slightly from $340,000 in July, and up 7.95% from $315,990 in August 2022, but a decrease from June, when MSP for homes across Hampton Roads hit a record $345,000. Active residential listings for August were 3,680, up 6.6% from 3,452 in July, but down 10.6% year-over-year from August 2022.

“There are a lot of factors that impact the local housing market, not the least of which is available inventory,” REIN Board of Directors President Jon McAchran, principal broker and co-founder of Virginia Beach-based AtCoastal Realty, said in a statement. “Likewise, the median sales price is still near the record set in June, and mortgage rates remain stubbornly high.” 

The month’s supply of inventory also reached its highest point since October 2020, at 1.68, according to REIN. That’s an increase over July, when the MSI hit 1.54, and also a jump from 1.39 in August 2022. Homes spent a median 14 days on the market in August, up two days compared to July but a decrease of one day when compared to the same month in 2022.

“Despite current mortgage rates and a somewhat limited number of properties for sale, people are still willing to buy when the right home comes along,” said McAchran. “If inventory continues to rise, it will level off prices. However, we’re still historically low, and we don’t anticipate anything drastic.” 

REIN covers an area from Williamsburg to Virginia Beach and extends to the North Carolina border. It includes more than 9,000 members and licensees, including brokers, agents, appraisers and other real estate professionals. 

According to August data from REIN:

• Pending sales stood at 2,289, a 1.06% month-over-month increase compared to 2,265 in July, but down year-over-year by 15.66%.
• Settled sales during the month were 2,478. That’s up 6.99% when compared to July’s 2,316, but down 17.15% compared to 2,991 last August.
• Residential new construction sold in August was 249, compared to 202 in July and 285 in August 2022.

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