Virginia’s housing market projected to rebound in summer 2020

Posted: Jun 24, 2020 / 10:08 PM EDT / Updated: Jun 24, 2020 / 10:43 PM EDT

Model homes and for sale signs line the streets as construction continues at a housing plan in Zelienople, Pa., Wednesday, March 18, 2020. U.S. home sales jumped in February to their highest level in 13 years, a trend that will almost certainly be reversed as the viral outbreak keeps more people at home. (AP Photo/Keith Srakocic)

RICHMOND, Va. (WAVY) — According to a recent report, there is some hope that Virginia’s housing market will rebound after a challenging spring due to the coronavirus pandemic.

According to the May 2020 Home Sales Report released by Virginia REALTORS, there were 10,411 total sales statewide in May 2020, down 20.5 percent from a year ago.

The report indicates that sales activity was down in regions throughout the state, with the biggest drop in the state’s northern region.

Statistics show the inventory of available homes across the state continued to drop. At the end of May 2020, there were a reported total of 26,828 active listings throughout Virginia, down nearly 14,000 compared to the end of May 2019, a decline of 34 percent.

Despite the challenging spring market, Virginia REALTORS said several factors suggest that Virginia’s housing market will see a significant upturn over the summer.

The data indicates that in May, in most markets across Virginia, homes sold in an average of 38 days, which is more than a week (nine days) faster than last year at this time.

Realtors believe as businesses begin to reopen under Gov. Ralph Northam’s phased plan the housing economy will get back to normalcy.

“This will create a sense of confidence among both buyers and sellers, which should increase market activity in June,” says Chief Economist Lisa Sturtevant. “Also, the strong demand in the market that we saw prior to COVID-19 will still be present. Those who delayed purchasing their home this spring will be back in the market this summer.”

Click here for more information and to view the full May 2020 Home Sales Report.