RICHMOND, Va. (WAVY) – A report released by Virginia REALTORS showed more than a 30% decline from last January.

According to the January 2023 Virginia Home Sales Report, 5,609 homes were sold across the state last month. Virginia REALTORS says this marks the slowest January market the state has seen in eight years.

“This cooling has been a result of rising interest rates coupled with rising home prices and a lack of homes available on the market. This has led to more potential buyers choosing to sit on the sidelines,” says Virginia REALTORS Chief Economist Ryan Price.

Since homes remain on the market longer, the Commonwealth’s supply of homes continues to increase for the fourth month in a row.

Although the market is still considered a “seller’s market”, agents say Virginia’s overall market dynamics shift in favor of the buyer.