PORTSMOUTH, Va. (WAVY) — Residential real estate numbers across the commonwealth in October were downright ominous.
According to the latest report from Virginia Realtors, 7,764 homes were sold in Virginia last month, a 12% decrease compared to October of last year. Inventory shortages remain a problem.
than that As you proceed to the east, Homeowners who bought their homes when interest rates were low are staying put. said Ryan Price, chief economist at Virginia Realtors. Inventory conditions have been difficult for the past five to six years.
““It’s getting more and more tense,” Price said. “And we’ve noticed in recent data that the number of active listings continues to decline. But the pace of inventory reduction is decreasing. So it’s slowed down a little bit.”
With inventory low, sellers of the few homes on the market are enjoying 7% price increases, and some sellers are even offering closing assistance.
With Thanksgiving, Christmas, New Years, and the Super Bowl, it may be February before the perfect storm heads for sea.
“There is a lot of seasonality in the housing market in general,” Price said. “We typically see a slowdown around the holiday season, but then it picks up quickly.”
Price said the spring market typically begins to recover in February and March.
“As a result, sales are likely to be relatively slow over the next few months,” Price said. “As you know, there’s low inventory out there and there aren’t a lot of homes to choose from. Combine that with the interest rate environment that we find ourselves in.”
Get the latest news on WAVY.com.