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Virginia Housing Market 2022
Virginia’s housing market jumped 13.6% year over year, with the average home value rising to $353,130. At the same time, the number of homes sold decreased by 8.8% and the number of homes for sale fell by 44.9%. With nearly half of the housing supply gone, this has led to housing shortages that will likely persist through 2022.
According to the Virginia Association of Realtors, despite high inflation and rising interest rates, Virginia’s economy is well positioned to grow in the months ahead. This will fuel the housing market across the state. Homes are selling faster than last year in Virginia. In fact, homes in Virginia are selling almost twice as fast as they were in January two years ago as competition in local markets across the Commonwealth has intensified.
House prices will continue to rise in most parts of the Commonwealth as supply is tight and demand remains high. This causes homes to sell faster, on average. As a result, there is currently less than a month’s supply statewide, making terms extremely competitive in most markets around Virginia.
How do I calculate my mortgage payment?
We recommend using our Virginia Mortgage Calculator. The formula to calculate by hand is quite complex. It looks like this:
To calculate your monthly mortgage payments in Virginia, enter your estimated mortgage amount, the term of your loan, and the rate you think you qualify for. The term of your loan is the number of years you have to pay off your mortgage. Keep in mind that the higher your credit score, the more likely you are to get the most competitive rate available.
In addition to principal and interest, you will need to add monthly insurance fees, taxes and other fees. Property taxes and assembly fees are sometimes incorporated into the loan. Our Virginia Mortgage Calculator also lets you add taxes and insurance to your monthly payment.
The Mortgage Calculator for Virginia also has an option to enter your down payment amount. The more you invest, the less you will need to borrow and the lower your monthly mortgage payments will be.
What other fees do I have to pay?
There are other monthly expenses you’ll need to consider, such as home insurance and property taxes. When using our Virginia Mortgage Calculator, keep in mind that property taxes paid as a percentage of owner-occupied homes average 0.86%. Property taxes may change depending on your county.
Homeowners can also be part of a homeowners association (HOA) and must pay a monthly HOA fee in addition to their mortgage payment. HOA fees typically cover maintenance of common areas and often include services such as garbage removal. To enter these additional costs into the Virginia Mortgage Calculator above, simply click on “Additional Entries” (under “Loan Type”).
You may also need to consider private mortgage insurance (PMI). Homeowners will have to pay PMI if they don’t put down at least a 20% down payment on their home. With all of these potential costs, it’s worth using our Virginia home loan calculator. Our tool will help you break down your costs so you can see what your monthly mortgage payments will look like under different scenarios. If you’re looking to refinance an existing mortgage, our Virginia mortgage calculator can also help you figure out your monthly payment — and you can check out our list of the best refinance lenders to start that process.
What to know before buying a home in Virginia
Before buying a home in Virginia, it’s important to make sure your finances are in order. You will need:
There are also specific issues you should be aware of when buying a home in Virginia. Virginia is very diverse. Virginia has thousands of miles of coastline, beautiful rivers, and the Appalachian Trail. While the average home price is lower than the national average, homes near Washington DC and the coast are among the highest in the country. Homes in Great Falls, Virginia cost $1,390,338 more than 3.7 times the national average. The average home price in Richmond, Virginia’s capital, is $310,042, about 20% below the national average.
Due to Virginia’s geography, Virginia is no stranger to tropical storms and hurricanes. Along with many types of storms, 2,900 dams, and four major rivers flowing through the Commonwealth, Virginia is prone to flooding. It is important to be informed of the impact that bad weather can have on the region you are interested in.
Learn more: Homebuyer’s Checklist
Tips for First Time Home Buyers in Virginia
Here are some important tips for first-time home buyers in Virginia. There are several programs available to first-time home buyers through the Virginia Department of Housing and Community Development (DHCD) and the Virginia Housing Development Authority. Virginia DHCD offers the Down Payment and Closing Cost Assistance (DPA) program for homeownership.
DPA provides flexible financing for first-time home buyers below a certain income level with down payment assistance. An eligible homebuyer can receive a grant of up to 10% or 15% of the selling price of the home, plus up to $2,500 to pay for closing costs.
Loans and programs for home ownership
Here are other homeownership programs that homeowners can consider:
- FHA loans are mortgages repaid by the Federal Housing Authority and require a 3.5% down payment.
- VA loans are for military service members and require a 0% down payment.
- USDA loans are government guaranteed loans for qualifying properties and require a 0% down payment.
- Fannie Mae and Freddie Mac are conventional loans that require a 3% down payment.
Decide on a home buying budget
Once you’ve decided on the best program and shopped around with different lenders, it’s important to decide on a home buying budget. Many experts recommend that your monthly house payment (including additional costs) not exceed 30% of your monthly income. You must also have enough money saved for closing costs (eg attorney fees, title insurance, taxes, etc.). Other costs such as loan fees, inspections and processing fees are generally not covered by the loan.
Read more: Best mortgage lenders for first-time home buyers
Still have questions ?
Here are some other questions we answered: