Home-buyers across Virginia are being hobbled by the double-whammy of low inventory and high prices and interest rates.
That’s according to new data from the monthly “flash survey” of members conducted by the Virginia Realtors trade group.
The most recent installment, which took responses online Nov. 22-30, reports the views of 787 member Realtors, including 528 who participated in at least one transaction in the preceding month.
The reported Buyer Activity Index for the month stood at 27 on a 0-to-100 scale, unchanged from late October and the first time since April that didn’t record a month-to-month decline from 2023’s peak.
Only 11 percent of responding Realtors reported buyer activity as “high” or “very high” for their regions, while 57 percent reported it as “low” or “very low.”
High interest rates and lack of inventory were seen as the two major obstacles from buyers making a connection and purchasing their next home.
Sellers continue to sit on the sidelines, content to enjoy rock-bottom mortgage-interest rates achieved in the 2020-21 period.
The Seller Activity Index for the month was a mere 14 on the 0-to-100 scale, although that was up four ticks from 10 a month before.
Only 3 percent of Realtor respondents viewed market activity among sellers in their jurisdiction as “high” or “very high,” with 74 percent calling it “low” or “very low.”
In addition to an unwillingness to part with their current mortgages, some sellers decline to put properties on the market out of concern of finding a home to purchase in the interim.
For more, see the Website at virginiarealtors.org under “Research” then “Reports.”
