Virginia Realtors: Housing prices soar, sales drop

Published: Aug. 23, 2022 at 4:49 PM EDT
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CHARLOTTESVILLE, Va. (WVIR) - According to a report by the Virginia Realtors Group, there was a nearly 26% drop in homes sold last month compared to July 2021.

It says this is the biggest decrease in sales in more than seven years.

This follows national trends, as across the US, the Department of Housing and Urban Development and the U.S. Census Bureau report that newly-built home sales dropped by nearly 12.6% in July compared to the previous month.

“It’s likely driven by the fact that interest rates are higher than they were, and so a lot of buyers are potentially pulling back because of that. It’s likely also because of a lack of options out there, and the lack of inventory,” Chief Economist for the Virginia Realtors Ryan Price said.

The average interest rate for a 30-year, fixed mortgage was above 5% for the whole month of July.

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