Virginia’s Housing Market Strong Ahead of COVID-19

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Virginia’s robust economy likely to fuel recovery from COVID-19’s impact

According to the February 2020 Home Sales Report released by Virginia REALTORS, the Commonwealth’s housing market was strong in the early part of 2020, with robust demand and low inventory. That strength will help mitigate the potential impacts of COVID-19.

In February 2020, Virginia’s housing market was thriving—home prices were steadily increasing as demand continually grew. There were 7,383 total sales statewide in February 2020, up 5.6% from a year ago. The numbers of home sales were up strongly in the Commonwealth’s biggest markets, including the Northern, Central, and Hampton Roads regions.

The median sales price in February was $292,000 statewide, up 8.3% over February 2019. The biggest increase in sales was among those with a closed price of between $600,001 and $800,000.

The biggest challenge Virginia’s housing market faced in February was the dwindling lack of inventory. At the end of February 2020, there was a total of 27,903 active listings across the Commonwealth, down 20.6% compared to one year ago.

Going into March 2020, consumer confidence remained high; however, it is likely these consumer confidence measures will fall this spring. Says Virginia REALTORS Chief Economist Lisa Sturtevant, PhD, “Heading into the spring, local housing markets across Virginia were strong, and February was a good month for the market. While the full impact of COVID-19 is not yet certain, strong economic fundamentals in the Commonwealth can help support a quick recovery. We’ll know much more when March housing market data are available in mid-April.”

For resources and updates regarding the impact of COVID-19 on Virginia’s housing market, click here.

The Virginia Home Sales Report is published by Virginia REALTORS. Click here to view the full February 2020 Home Sales Report. Current and past reports are available to members, media, and real estate-related industries through the organization’s website.