Is Virginia’s real estate market heating up?

PORTSMOUTH, Va. (WAVY) — As the weather gets warm, Virginia Realtors report the housing market is heating up in the Commonwealth. Virginia Realtors say they saw the largest increase in sales in nearly three years in the month of April.

But are we really seeing more for-sale signs pop up in front of homes in Hampton Roads?

“It’s all a matter of context,” said Virginia Realtors Economist Ryan Price. “We definitely had a lot more sales in April then we did a year ago.”

In April, 9,416 homes were sold, up 14% from last spring, according to a Virginia Realtors report.

“This past month really saw a surge in Virginia Beach,” Price said. “[The] Portsmouth market really had a lot of sales from last April, and then also Isle of Wight County which I suspect is new construction.”

Looking over a 10-year trend line however, the region is well-below average. Also, in the first four months of 2024, the Hampton Roads market remains flat overall.

“It’s really remarkable how much these interest rates have really thrown a wrench in a lot of the monthly payment calculations,” Price said.

Affordability remains the key concern.

Interest rates are still hovering at around 7%, making monthly payments out of reach for many, as the median price for a home has soared to $416,548.

“For the near-term, it’s really locking up the inventory,” Price said.

Home sellers could make a killing in this market, but many who are ready to upsize or downsize are choosing to stay put in their current homes, with much lower interest rates — many around 3%.

That leaves little inventory for first-time homebuyers, many of whom are millennials, wondering if they’ll ever be able to afford to home.

“That is the sentiment we hear all the time,” Price said, “but in survey after survey after survey, though, it continues to point to the desire to own a home. In order to stabilize home prices, we need more inventory and or lower interest rates. Both seem very unlikely in the near future.”