NRV Housing Market: Slowing Sales & Rising Prices

The housing market in the New River Valley remained relatively stable in the fourth quarter of 2024, with a slight decline in sales activity but continued price growth. The regional economy showed resilience, with unemployment ticking up slightly and mortgage rates rising past seven percent. Inventory levels expanded, giving buyers more options, but affordability remains a challenge as home prices continue to rise.

Home sales dipped slightly, with 654 total transactions in the region, marking a two percent decline from the previous year. While some counties, such as Montgomery and Carroll, saw modest increases in sales, others experienced sharp declines, with Grayson seeing a forty-four percent drop and Giles down eleven percent. Despite the dip in sales, home prices continued to rise, with the median home price reaching $260,000, a thirteen percent increase from the previous year. Radford was the only area to see a decrease in home prices, dropping eighteen percent, while Galax saw the most significant growth, with prices rising twenty-eight percent.

Inventory levels grew by fifteen percent, with 863 active listings on the market by the end of the quarter. Some areas, such as Radford and Galax, saw inventory more than double, giving buyers more choices and reducing the competition that has driven prices higher in recent years. However, rising mortgage rates continue to be a concern. The average thirty-year fixed mortgage rate climbed to 7.04 percent in January 2025, compared to 6.60 percent a year earlier. These higher borrowing costs may slow demand, particularly among first-time buyers who are already facing affordability challenges.

Homes also took longer to sell, with the median days on market increasing to 44 days, up from 37 days a year ago. This trend suggests a cooling market where buyers have more time to consider their options, and sellers may need to adjust their pricing expectations. While the rapid price increases of past years are slowing, the market remains competitive. Rising interest rates and increased inventory are likely to shift conditions toward a more balanced market in 2025, giving buyers more opportunities while still offering stability for sellers.