The real estate market in Virginia is experiencing a strong rebound and adding much needed economic relief to the Commonwealth. Housing is a strong indicator of the financial stability of our area, as well. We have been the exception in statistics since the beginning of the COVID-19 crisis.
Economic conditions
» Like the rest of the Commonwealth, the Lynchburg region experienced job losses during the spring. There is evidence, however, the regional economy is improving as we head into summer.
» Consumer confidence in the economy rebounded after plummeting in March and April. Expectations about future economic conditions have been improving during the last two months.
» Record low mortgage rates have driven a refinance boom and helped sustain the for-sale market during the COVID-19 pandemic and economic downturn. Low rates will continue throughout 2020 and into 2021.
Housing market conditions
» Sales activity expanded in the Lynchburg Association of Realtors market in the second quarter. There were 1,110 sales in the second quarter in the association’s footprint, 8% more than one year ago for an increase of 78 sales. The association’s regional housing market was the only area in Virginia to have sales growth all three months in the second quarter.
» Home prices continue to rise in the association’s area. At $202,750, the second-quarter median sales price climbed 7 % from this time one year ago for an increase of $12,750.
» The shrinking inventory trends accelerated this quarter, which reflects the uncertainty of many would-be sellers due to the ongoing pandemic. There were 688 active listings on the market in the Lynchburg Association of Realtors’ area at the end of the second quarter, 40% fewer listings than one year ago.