Virginia REALTORS, the professional realtors’ association in the state, reported that the market continues to show improvement despite slowing sales last month.

While there were fewer homes were sold last month than the same time last year, home sales activity for 2024 has overall outpaced the first half of 2023, according to the association’s June 2024 Home Sales Report. This is despite mortgage rates being higher than the first half of last year.

Ryan Price, chief economist with Virginia REALTORS, said this may be a sign of some areas of the state getting used to higher prices.

“This year’s rise in home sales could suggest that some portions of the buyer pool are getting more acclimated to the higher rate environment,” Price explained in a Tuesday press release.

Home buyers are facing prices that continue to rise alongside mortgage rates. The median home sales price for the state reached $431,380 in June, marking a five percent increase from June 2023. This is an increase of over $20,000, showing a strong increase in demand, according to the release.

This reflects median price increases across the commonwealth, with 68 percent of Virginia’s county and city markets reporting higher median sales last month, according to the report.

Terrie Suit, CEO of Virginia REALTORS, said the increases have caused some buyers to be priced out of certain markets.

“Price growth continues to be a widespread trend in Virginia, and affordability challenges are brewing in some of our larger regional markets,” Suit said in the release. The association noted major price increases in the state’s Southside region, parts of Northern Virginia, and the Richmond metro area, according to the release.

Tom Campbell, the association’s 2024 president, added that there may be a silver lining for some buyers.

“One bright spot for Virginia home buyers comes in the significant inventory gains we are seeing across the state,” Campbell said in the release. “This growing inventory is providing more options for those buyers who are able to afford the combination of higher prices and mortgage rates.”

By the end of June, more than 18,000 home listings were active on the market across the state — over 3,600 more than last year. This is an increase of almost 25 percent, according to the release.

The full report is available on Virginia REALTORS’ website.