Real estate markets all over are on the rise, with both potential buyers and sellers flocking to either make money or nab their dream home.
Virginia’s urban real estate market in particular is one that has people clamoring, as it thrives in the south. Like many markets, Virginia’s urban home selling dropped off quite a bit during the pandemic. However, the October 2021 Homes Sales Report released by Virginia REALTORS noted it’s on the rebound.
According to recent reports, there were 12,570 home sales for October, which is down 6.4 percent from 2020, but the year-to-date home sales are up compared to last year.
Population is No Problem
Urban areas are often crowded, so potential buyers tended to stray from them in the height of COVID-19. However, interest has renewed in these areas as life swings the needle closer to normal and people are no longer afraid to be in densely populated areas.
More people were buying in rural areas, wanting more space as they began working from home. Commutes were not as necessary, and spacious neighborhoods were welcome.
Many workplaces are shifting to hybrid work schedules, so the need to be back in urban areas (at least sometimes) is on the rise.
This has led to the sales of more townhomes and condominiums.
Where is it Happening?
Take a look at Arlington real estate or places like Portsmouth. Some of the biggest increases in sales activity in 2021 have been in the urban markets of Fredericksburg, Williamsburg, Hampton, and Newport News as well.
Demand is Strong
In October, Virginia’s median home sales price was $350,000, up 5.1% over October 2020, and homes that sold were on the market an average of just 25 days.
Though it’s predicted housing costs will continue to rise, it will be more modest.
Local Economy is Rebounding
Many businesses were hurt by the pandemic, with some downright closing. Capacity was limited, and things just weren’t the same.
As the COVID stranglehold begins to loosen, businesses find their crowds and profits ticking up.
Many of the restaurants, entertainment venues, and retail businesses that make urban living vibrant and appealing are reverting to more normal operations.
Buyers May Be Having Their Moment Soon
Mortgage interest rates are trending up and are expected to continue that way, putting downward pressure on home prices because buyers will be more price-sensitive than they might have been previously.
Soaring home prices have led to affordability challenges in many markets. As bidding wars ease and homes are on the market for longer, list prices will likely continue to calibrate and become more competitive. This is fantastic news for buyers.
It’s Just A Great Place to Live
Virginia, on the whole, is attractive to prospective buyers. The state is ranked seventh in the nation for quality of life overall with its low crime, opportunities for advancement, and incredible education and healthcare systems.