Housing Market Conditions
There were 1,206 home sales in our region during the third quarter of 2022. This is 192 fewer sales than this time last year, which is a 14% drop. The market has been slowing down in the Greater Charlottesville area for five straight quarters.
Home prices continue to climb in the region. The third quarter median sales price in the Greater Charlottesville market was $405,000, rising 11% from a year ago, which is a surge of $40,000.
Inventory continues to build up in the Greater Charlottesville region. There were 829 active listings on the market at the end of the third quarter, 226 more listings than a year ago, a 37% increase.
Virginia’s job market continues to expand. The state added 16,700 jobs between July and August and is now only about 5,300 jobs short of pre-pandemic levels. Most of the growth continues to be in the Leisure and Hospitality sector.
The unemployment rate remains very low. In August, the unemployment rate was 3.2% in Virginia and was 2.9% in the Charlottesville region. Both are down from a year ago.
Mortgage rates climbed rapidly over the past month. In the second week of October, the average rate on a 30-year fixed mortgage rose to 6.92%, up from 6.02% a month ago.
New residential construction permitting in 2022 continues to outpace 2021 through August. There have been 1,247 total building permits issued in the Charlottesville MSA through August of 2022, which is 37% higher than permit levels were through August of 2021. The surge in permits this year is being driven by more duplex/multifamily permits, which are up 80% year-to-date through August compared to a year ago (+225 permits). Permits for single family detached homes are up 18% so far in 2022 (+112 permits) compared to last year.