New River Valley Housing Market Trends

The housing market in the NRV is shifting, with some noticeable changes compared to last year. While fewer homes actually closed in November 2024, there’s still plenty of interest from buyers, as seen in the increase in pending sales. This means that people are still looking to buy, but for various reasons, not all deals are making it across the finish line as quickly as before.

One of the biggest trends is that home prices continue to rise. The median price for a home in the area is now around $335,000, which is a significant jump from last year. While that’s great news for sellers looking to cash in on their investments, it also means affordability is becoming a bigger challenge. Land prices, on the other hand, have actually dropped by about 10 percent, which could present opportunities for those considering building instead of buying an existing home.

At the same time, homes are taking longer to sell. The average time a home sits on the market is now about 40 days, an increase from last year. This suggests that buyers are being more cautious and taking their time to make decisions. It could also mean that some homes are priced too high for what buyers are willing to pay, leading to longer wait times before a sale goes through.

There are also more homes available now than there were a year ago, which gives buyers more options to choose from. However, just because there’s more inventory doesn’t necessarily mean homes will get cheaper. In fact, affordability is becoming a bigger issue because of rising home prices and higher mortgage rates. The housing affordability index dropped significantly, meaning that compared to last year, it’s now harder for the average buyer to afford a home in the region.

Looking ahead, the market is still competitive, but it’s definitely cooling off from the red-hot conditions of the past few years. Prices are still rising, but at a more measured pace, and buyers aren’t rushing into purchases as quickly. Sellers may need to be more flexible on pricing or expect homes to take longer to sell. If interest rates continue to rise, affordability could become an even bigger hurdle, which may slow down demand further.

Overall, the New River Valley market is still strong, but it’s shifting toward a more balanced environment where buyers have more choices and aren’t feeling as much pressure to make fast decisions. Whether you’re looking to buy or sell, patience and strategy will be key moving forward - give me a call with questions!