Home sales in Virginia are slowing, but prices aren’t falling

Home prices continued to climb in Virginia even as the state saw its biggest one-month drop in sales in almost a decade.

Driving the news: There were nearly 26% fewer homes sold in Virginia last month compared with July 2021, while the median sales price in the state rose 6.9% from the same time last year, according to a report out Tuesday from the Virginia Realtors Association.

• Home sales dropped nearly 15% from June.

Why it matters: The slowdown in sales activity could lead to a buildup of inventory, which would be welcome news to folks trying to buy a house, noted Ryan Price, the association's chief economist, in the report.

• Chesterfield and Hanover counties saw a slight increase in inventory, year over year, according to a Richmond Association of Realtors report.
• Henrico and Richmond saw a decline.

What they're saying: "In most price segments, homes are still selling for more than the listing price, on average," said Denise Ramey, president of the association, in a statement.

Yes, but: The association is seeing fewer bidding wars, which was a big driver of over-asking prices.

Zoom in: Sales in the metro area dropped nearly 21% year over year in July, while median sales prices jumped 13.4% to $380,000.

What we're watching: Home sellers, mostly in pandemic "boomtowns" like Boise, Tampa and Salt Lake City, began dropping list prices in July by big percentages, according to a report from Redfin.

• Richmond was included in the report, but the change was small: An estimated 35% of homes listed last month saw a price drop, compared to just under 25% last July.