Williamsburg’s housing market continues to show signs of growth. According to the Williamsburg Area Association of REALTORS®, there were 1,171 sales in the region during the fourth quarter of 2020 which is 294 more than a year ago.
The 34 percent spike is the largest influx of sales activity in more than five years and reflects the pent-up demand from earlier in the year. Sales activity surged all three months in the fourth quarter. The number of home sales statewide was up 28 percent in the fourth quarter compared to a year ago.
Key takeaways from the WAAR Home Sales Report showed that:
- Consumer confidence dropped in December, reflecting uncertain political and economic conditions at the end of 2020.
- Mortgage rates remained at historically low levels throughout the fourth quarter, fueling strong sales activity.
- Regional home prices rose sharply in the fourth quarter. At $335,000, the median sales price in the WAAR footprint increased by 16 percent from last year, a gain of $45,000.
- The supply of homes for sale is tight and continues to dwindle. There were just 680 active listings in the WAAR market at the end of the fourth quarter, a 35 percent reduction from a year ago. The overall supply of homes in the WAAR footprint has now dipped below two months for the first time in more than five years.
- Economic conditions continued to improve both in Virginia and Williamsburg. There have been steady gains in employment and a consistent decline in the unemployment rate since the summer.
- Homes sold faster on average in the fourth quarter, reflecting the strong demand. Many of the homes that were sold received multiple offers.
Information for this article was provided by the Williamsburg Area Association of REALTORS®