It’s been fascinating to observe the ebb and flow of Central Virginia’s residential real estate market. Let’s take a closer look at the first quarter of 2023, a period that has seen a mix of promising growth and some slowdown in certain areas.
The overall real estate market in Virginia has seen moderate growth over the past year, with the average home valuing at $360,873. This is an increase of 4.6% over the past 12 months and is a marker of a generally healthy real estate market. The 2023 median home price in Virginia has been forecasted to increase by almost 3% versus 2022, which is a continued upward trajectory, albeit at a slower pace. That being said, the start of 2023 did see a slowdown, with a giant 30% decline in home sales in January compared to the previous year. Those numbers marked the weakest January market in eight years. By March, the number of homes for sale was down by 12.1% year over year, signaling a decrease in available options for buyers.
When we compare these figures to the same period in 2022, we can see contrasting trends. Home prices in Virginia were down 2.6% year-over-year in March 2022, the number of homes sold fell by 22.2%, and the number of homes for sale fell by 16.0%. This reveals a significant turnaround in home prices between 2022 and 2023, while the decrease in homes sold and homes for sale has intensified in 2023.
As a creative finance specialist, our team observes these trends as an opportunity for both sellers and buyers. For sellers, the increase in home values signals increased equity and the potential for profitable sales. For buyers, particularly those struggling with conventional financing options, the slowdown in sales might open up space for creative financing strategies. While the market remains competitive due to the reduced inventory, the current scenario also calls for innovative financing solutions to help navigate the landscape. As we move further into 2023, it will be interesting to see how these trends evolve and shape the real estate market in Central Virginia.
