Existing homes sales in Virginia fell by 4.2% in June as a tight inventory supply continues to constrain the market. June existing home sales fell from 14,186 existing-home sales in June 2017 to 13,596 in June 2018. Annualized existing-home sales, a measure of the preceding 12 months of activity, totaled 122,652 sales at the end of May.
Statewide median sales price increased year over year 2.3%, rising to $306,945. This is the 28th straight month that median sales price has risen year over year. The ask-to-sell ratio stayed at 100.0% in June, the third straight month at that level. Tight inventory and increasing demand continue to push prices upward. The median number of days on the market remained at 32 days in June, down from 36 days in June 2017. This is the 27th straight month of year over year declines in median days on market.
June 2018 existing home sales volume (the sum of all sales) decreased 3.1 percent over the same period in 2017, from $5.161 billion in June 2017 to $4.999 billion in June 2018. Annualized home sales volume, a measure each month of the total sales volume for the previous 12 months, totaled $42.188 billion for existing-home sales for the twelve months preceding June 30, 2018. This marks the first time in 24 months that annualized existing home sales volume has fallen.
The average 30-year fixed mortgage interest rate for June decreased slightly to 4.55 percent. Despite rate increases over the past year, financing remains historically affordable and, coupled with Virginia’s low 3.2% unemployment rate and high consumer confidence, continues to encourage market entry.
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