Bacon's Rebellion

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Virginia’s Median Home Price Jumps $100K in Four Years

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by

James A. Bacon
in

Despite the slowing market frenzy, home prices continue rising across all price points

According to the April 2022 Virginia Home Sales Report released by Virginia REALTORS®, the statewide median home sales price was $390,000 in April. This is $100,000 higher than April of 2018, just four years ago. Compared to last year at this time, Virginia’s median sales price is up just over 9%, a gain of $32,500.

In Virginia, the steady upward trajectory of home prices has not been hindered by the slowdown in sales activity or the recent spike in mortgage rates. In April, homes sold for 3.4% higher than list price, on average. In all price segments, the average sold-to-list price ratio was at least 100%.

In total, there were 11,991 home sales in Virginia in April 2022, down 11.6% from a year ago. Sales have been down year-over-year for five consecutive months. This slowdown reflects the very busy 2021 market but is also indicative of buyers pulling back due to high home prices, elevated inflation, and rising mortgage rates.

In the coming months, Virginia could see a change in the speed of price growth. “As the Federal Reserve continues targeting inflation by raising rates, it is likely that mortgage rates will keep increasing over the coming months,” says Virginia REALTORS® 2022 President Denise Ramey. “In turn, housing demand will cool in the year ahead, slowing down price growth. However, higher mortgage rates and home prices will continue posing a challenge to buyers.”

Regarding the stability of Virginia’s housing market, Virginia REALTORS® Chief Economist Ryan Price says, “While higher mortgage rates and prices will have a dampening effect on housing demand in the months to come, underlying economic and demographic fundamentals—such as strong job growth and low unemployment rates—will support a stable housing market here in the commonwealth.”

The Virginia Home Sales Report is published by Virginia REALTORS®. Click here to view the full April 2022 Virginia Home Sales Report. This article has been republished with permission from The Roanoke Star.

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25 responses to “Virginia’s Median Home Price Jumps $100K in Four Years”

  1. Eric the half a troll Avatar
    Eric the half a troll

    Another real estate bubble… not sustainable… between this a commercial real estate glut the coming crash will definitely suck… but that is what greed will get you…

    1. David Wojick Avatar
      David Wojick

      Posted separatelyby mistake.Bubble yes, greed not so much. Markets move.

      1. Nancy Naive Avatar
        Nancy Naive

        Well if you buy an asset at 20% over market value with no inspection, then if you wind up underwater for 10 years, don’t be surprised.

        Houston 1990… such a deal.

      2. Eric the half a troll Avatar
        Eric the half a troll

        Most, if not all, real estate bubbles are built on greed. Speculative buying to flip a house inside a year to net double digit ROI is the basis of the bubble typically. Greed… aka get rich quick…

        1. Matt Hurt Avatar
          Matt Hurt

          Or federally guaranteed loans….

    2. Stephen Haner Avatar
      Stephen Haner

      Rich is what greed gets you if you are good at it….This is pretty sweet for those who own a house (wealth building) and quite a problem for those who do not (housing poverty.) In this inflationary cycle, it is also important to look at some of this data adjusted for inflation, which this presentation does not. Yeah, gas prices are at “record” highs, but probably not if you look at past price spikes and adjust for inflation.

      1. Eric the half a troll Avatar
        Eric the half a troll

        “This is pretty sweet for those who own a house (wealth building)…”

        You’ve got to live somewhere…🤷‍♂️

        1. Nancy Naive Avatar
          Nancy Naive

          2nd Mortgage or even reverse mortgage.

      2. Nancy Naive Avatar
        Nancy Naive

        What’s it get you if you suck at it? Broke, and in debt to the IRS. Not a position to be in if you don’t normally have lawyers and accountants on retainer.

        Wish the price of gas would drop. These feather-footed drivers are driving me crazy. Takes a mile for ’em to get to 45 and they only get caught at the next light. They ain’t saving gas at that light.

  2. David Wojick Avatar
    David Wojick

    I agree it is a normal bubble, but do not see that greed is involved.

  3. LarrytheG Avatar
    LarrytheG

    Well… used to be… or I thought… that rental prices were not really connected to home prices but the latest surge in home prices seems to also include rental prices.

    Can’t really convert most rentals to home sales so what is really driving the price increases?

    Part of it is increased assessments which increase real estate taxes which then get folded into the rental costs.

    It appears the pandemic has altered the way the economy works and/or the way we understand (or not) how the economy works.

    I’m not a gloom and doom guy but my bet is this is not a good thing….and we’re probably going to find out soon.

    😉

  4. James Wyatt Whitehead Avatar
    James Wyatt Whitehead

    The lighting company I have been working at stocks the P87 recess can like cord wood. They are not ordering anymore. The P87 is the first light to go in a new house after framing. The late summer and early fall new home starts are on hold. Buckle up! The stock of this light has proven to be a reliable bell weather.
    https://uploads.disquscdn.com/images/4b1c670c51b0aa2df3e1d5400baa507039fd9b89db1a0ec0f89e26573eba6f04.jpg

    1. Lefty665 Avatar
      Lefty665

      An enlightened leading indicator?

      1. James Wyatt Whitehead Avatar
        James Wyatt Whitehead

        Bad news for men who pour foundations, carpenters, electricians, plumbers, roofers, the carpet guy, the tile guy, the appliance people, trim hangers, and the list goes on. One house puts a lot of people to work.

    2. LarrytheG Avatar
      LarrytheG

      One simple change in the tax law could change the idea of houses building “wealth”.

      Imputed Rent.

      What are the largest tax expenditures? (Ten year, FY2022-2031 estimates)

      Exclusion of employer contributions for medical insurance premiums and medical care ($3,005,860 million)

      Exclusion of net imputed rental income ($1,673,960 million)

      Capital gains (except agriculture, timber, iron ore, and coal) ($1,362,850 million)

      Defined contribution employer plans ($1,353,740 million)

      1. James Wyatt Whitehead Avatar
        James Wyatt Whitehead

        President Reagan would agree. Cut those taxes!
        https://uploads.disquscdn.com/images/9a55336aaa0a28fc5de79fabbb99bc9664de31dba6ed3aa6c21967489b9bb82c.jpg

        1. LarrytheG Avatar
          LarrytheG

          and so, let renters also deduct the rent they pay from their taxes?

  5. Nancy Naive Avatar
    Nancy Naive

    Oh boy! Oh boy! More RE tax, leading to tax defaults, auctions, and Urban Renewal**!

    Flippity, flippity, flip-flop…

    **AKA Minority Removal…

  6. Ronnie Chappell Avatar
    Ronnie Chappell

    The air is leaking out of this bubble.

    1. Nancy Naive Avatar
      Nancy Naive

      Starting at the top too.

      Been looking in one particular location over the last two years. Fewer and fewer high priced homes on the market there. They ain’t selling. A lot of lower priced homes still moving like hotcakes. A lot of those are older homes that have a tons of gray paint, fake wood floors, gray carpet, and new countertops… aka flips.

  7. Dick Hall-Sizemore Avatar
    Dick Hall-Sizemore

    A house down the street from me went on the market earlier this spring. While checking it out during an open house, I chatted with the listing agent. He told me that they expected to have at least 10 offers to discuss with the owners that night. The house sold for somewhere around $450,000, at $81,000 above the list price! If anyone had told me even 10 years ago that I would be living on a block with a house worth half a million dollars, I would have said they were crazy.

    By the way, the president of the Virginia Realtors apparently does not share the Youngkin administration’s (and that of some on this blog) view of the Virginia economy. According to her, “Underlying economic and demographic fundamentals—such as strong job growth and low unemployment rates—will support a stable housing market here in the commonwealth.”

  8. f/k/a_tmtfairfax Avatar
    f/k/a_tmtfairfax

    A key factor in housing prices, both purchase or rental, is the fact that housing construction crashed during the Great Recession and has not recovered. Data shows that the units not constructed then have never been constructed.

    This is not to argue that we should ignore the need for more housing to have more infrastructure to support it. Otherwise, everyone’s quality of life and sometimes safety deteriorates.

  9. Dick Hall-Sizemore Avatar
    Dick Hall-Sizemore

    A house down the street from me went on the market earlier this spring. While checking it out during an open house, I chatted with the listing agent. He told me that they expected to have at least 10 offers to discuss with the owners that night. The house sold for somewhere around $450,000, at $81,000 above the list price! If anyone had told me even 10 years ago that I would be living on a block with a house worth half a million dollars, I would have said they were crazy.

    By the way, the president of the Virginia Realtors apparently does not share the Youngkin administration’s (and that of some on this blog) view of the Virginia economy. According to her, “Underlying economic and demographic fundamentals—such as strong job growth and low unemployment rates—will support a stable housing market here in the commonwealth.”

    1. LarrytheG Avatar
      LarrytheG

      One WOULD think that people who are paying these higher prices are actually employed and earning the money necessary as opposed to the prior housing collapse which was based on sub-prime loans, it does not appear to be the case today from what I read.

    2. DJRippert Avatar
      DJRippert

      What would you expect the president of the Virginia realtors to say?

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