Homes sales in Virginia see sharpest decline since the pandemic

As prices soar, many are “pressing pause” on searching for a new home. Ryan Price, president of Virginia Realtors, says home sales dropped over 19% last month c
Published: Jul. 21, 2022 at 4:48 PM EDT|Updated: Jul. 21, 2022 at 5:27 PM EDT
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RICHMOND, Va. (WWBT) - With home prices through the roof, potential home buyers are being turned away.

“With listings, you know, normally you’d get anywhere between 20 to 30 showings in a weekend, and I’d say that’s probably dropped down to like 10,” Phillip Skaggs with Maison Real Estate Boutique said.

Offers have dwindled even more. Drastic changes stemming from the pandemic are hurting potential buyers and realtors.

“A house in Richmond used to cost around [$250,000], now that’s all the way up around $400,000,” Skaggs said. It’s a big jump he’s noticed in the last 2-4 years.

As prices soar, many are “pressing pause” on searching for a new home. Ryan Price, chief economist with Virginia Realtors, says home sales dropped over 19% last month compared to June 2021.

“Last year around this time, it was a record housing market. Record sales,” Price said.

High prices on top of record inflation driving up mortgage rates are behind the drop in sales.

“Interest rates have been increasing over the past few months, and so, what this is doing is reducing the purchasing power that people have,” Price said.

It’s forcing families to stay put or find a rental property. Unlike most of Virginia, the availability of homes in the Richmond area is shrinking, and construction hasn’t quite bounced back.

“Another big issue is with the stock market dropping as well. You know people aren’t feeling like they have as much money at the moment,” Skaggs said.

Unfortunately, prices aren’t expected to plummet anytime soon for potential buyers.

“I think the price growth is going to slow down in the coming months, likely for the rest of the year, but we don’t see evidence of widespread falling of prices like we did have in the housing crisis in 2008-2009,” Price said.

If you’re really looking to buy now, Price recommends checking neighborhoods around your dream home and adjusting your budget to make these new prices work.

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