The US real estate market is ever-changing. These changes are usually more evident in cities where high demand and new developments take center stage. Roanoke, Virginia, is one such city. The housing market in Roanoke, VA, is booming and will likely remain strong in the near term.
Like in other markets, investing in the Roanoke, VA, real estate market requires you to be well-informed. This article will provide the Roanoke real estate market forecast for 2024 to help guide your decisions.
Median Home Price in Roanoke, VA: Forecast for 2024
The median home price in Roanoke, VA, is expected to increase from the current $173,421 to $176,716 by 2024. This represents a 1.9% increase, indicating a steady and stable market.
Buyers and sellers can capitalize on the rising prices. For sellers, it means a good return on investment. For buyers, it indicates that the value of their purchase is likely to appreciate in the future.
Factors That Will Affect Roanoke Home Prices in 2024
The following are some of the key factors expected to drive up home prices:
Population Growth
Real estate is subject to the forces of demand and supply. When the population grows, the demand for properties increases. If new developments fail to keep up, home prices rise.
Roanoke’s population is expected to increase in 2024, going by past trends. According to the US Census Bureau, the city had 97,032 residents in 2010, rising to 100,011 in 2020.
Economic Growth
Roanoke is a central hub for the financial, healthcare, education, logistics, and manufacturing industries in southwest Virginia. Its economy is thriving. Between 2020 and 2021, its gross domestic product rose by 8.3%, marking the largest growth in decades. This growth outpaced other metro regions.
The growth will translate to more job opportunities, leading to more people moving to the city for employment. The result will be an increase in demand for housing and, therefore, home prices. Salaries will also rise, increasing people’s ability to afford homes. Additionally, the rise of businesses increases demand for commercial real estate.
Lifestyle
Aside from economic factors, Roanoke offers a high quality of life. With its rural and urban balance, residents can enjoy a slower pace of life while still having access to modern amenities.
Its beautiful scenery, myriad outdoor activities, vibrant cultural scene, and family-friendly communities make it one of Virginia’s best places to live. In addition, the cost of living in Roanoke, Virginia, is 8% lower than the national average.
Inflation
Inflation is also expected to take a toll on real estate prices in Roanoke. The current inflation rate is 3.70%, more than the long-term average of 3.28%. Inflation levels will likely remain high in 2024.
As the general price level for goods and services increases, construction materials and labor costs also rise. Developers adjust their prices accordingly.
Roanoke Inventory Level Forecast for 2024
The number of Roanoke homes for sale has declined in the last several years, with only 341 active listings in July 2023. July 2022 saw more active listings at 390, while July 2021 had 478 active listings.
New developments in Roanoke are limited due to zoning restrictions and geographical limitations. Due to the increasing population, the lack of inventory will continue to put pressure on home prices.
What Types of Homes Are Most in Demand in the Roanoke, VA, Real Estate Market?
One- and four-bedroom homes are the most in-demand home types in the Roanoke market. True to this, Rocket Homes reported a 16.2% and 18.8% increase in prices for these types of homes between September 2022 and 2023.
These homes cater to different demographics. One-bedroom houses are popular among young professionals and couples, while four-bedroom homes are sought after by families.
Two-bedroom, three-bedroom, and five-bedroom homes saw a lower increase of 9.8%, 12%, and 7.2%, respectively.
How Long Are Roanoke Homes for Sale Staying on the Market?
Roanoke listings are staying on the market for an average of nine days. This is higher than 2022’s average of seven days but still lower than the national average of 48 days. It means that the housing market in Roanoke, VA, is a seller’s market where 35.9% of homes sell above the asking price.
Challenges and Advice for Buyers in the Roanoke, VA, Real Estate Market in 2024
The Roanoke, VA, real estate market is experiencing growth, making it a viable option for homebuyers. However, with its growth comes challenges.
Below are some of the challenges buyers navigating the Roanoke market in 2024 will likely face and some advice to overcome them:
Keeping Up With Market Trends
Keeping up with the latest market trends can prove challenging in a growing market like Roanoke. Changes in prices, regulations, and new developments are some of the factors buyers need to keep an eye on.
To remain informed, be proactive in your research by utilizing resources like real estate websites and local news outlets. For the best results, enlist a knowledgeable real estate agent who can provide up-to-date market information and guidance for home buying.
Competition
With low inventory and high demand, buyers face fierce competition during their home search. The result is multiple offer situations and bidding wars, driving up prices.
As a buyer, working with a reliable real estate agent with experience in the Roanoke market is essential. This way, you will have expert help during negotiations. You will also enjoy access to exclusive listings with less competition.
It is also essential to have a pre-approval letter from your lender if you are using financing. This will show sellers that you have the means to purchase their home, which makes a big difference.
Affordability
As with many growing real estate markets, affordability can be a challenge for buyers in the real estate market at Roanoke, especially first-time buyers. The current mortgage rates make Roanoke, VA, real estate even more expensive, worsening the situation.
Ensure you have an experienced real estate agent to help you find homes within your budget. Also, consider exploring affordable Roanoke neighborhoods. These include Scott’s Addition Historic District, Downtown Roanoke, and Old Southwest.
Home Hunting
Limited inventory means more legwork and hours of browsing online listings looking for a property that matches your needs and budget. This can be overwhelming and time-consuming.
Having a knowledgeable real estate agent by your side will streamline your home search. Your agent can help you focus on neighborhoods and properties that suit you better and even give you access to off-market listings.
Negotiations
Roanoke’s real estate market is fast-paced. This means there is little time for negotiations. You will need to be strategic and prepared to make quick negotiations. It’s crucial to have a skilled real estate agent who can help you navigate the negotiation process quickly and efficiently.
Challenges and Advice for Sellers in the Roanoke, VA, Real Estate Market in 2024
The Roanoke, VA, real estate market has great opportunities for sellers to make a profit, given it’s a seller’s market. However, selling in this market won’t be a smooth ride. The following are challenges you will likely face when selling a property in the Roanoke, VA, real estate market:
Competition
You will be one of many property owners looking to tap into the benefits of the current seller’s market. While some sellers may prefer to wait for even higher prices, others will take advantage of the current demand. You will have to work hard to make your property stand out.
The upside is that the competition will not be as fierce as among buyers, meaning you could still receive several offers. However, this will be contingent on you presenting a desirable property and setting the right price.
Consider making necessary repairs and upgrades, effective home staging, and professional listing and marketing. An experienced realtor can help you plan and execute these strategies.
Pricing
Listing your property at a higher price may be tempting due to the high demand. While it may work, there are high chances of you missing out on potential buyers. Remember that many buyers prioritize affordability, given the present economic climate. Tap into this market by setting a competitive price.
Your real estate agent will come in handy, helping you compare prices of similar properties in the neighborhood and setting a realistic price. It’s worth noting that a lower-than-market-value price doesn’t always work in your favor either, hence the importance of working with a professional. It could make buyers question the integrity of the property.
Market Fluctuations Leading to Timing Challenges
Market fluctuations also present sellers with a challenge. There are many factors at play. Prices could continue to rise, plateau, or drop. This uncertainty can make timing a challenge. A local real estate agent can provide up-to-date market trends, analysis, and reliable forecasts.
Quick Turnaround
Less days on the market means less time to prepare for a sale. You’ll have to juggle multiple offers, which can get confusing and stressful. You could also mishandle paperwork or make other costly mistakes.
A quick turnaround can also have tax implications. Virginia has a 5.75% capital gains tax rate, but it can be lower with planning. Home improvements and holding the house longer if you are at the brink of the 12-month mark are some strategies you can utilize.
If you sell your property quickly, you may lack enough time to plan for tax minimization strategies. Working with experienced professionals, including a realtor, tax advisor, and a real estate attorney, can help.
How Roanoke Housing Market Compares to Other Markets
Below is an overview of how the housing market in Roanoke, VA, compares to other neighboring markets:
Roanoke vs. Southwest Virginia Real Estate Market
As the largest city in Southwest Virginia, Roanoke has a diverse real estate industry catering to a wide range of buyers. Prices range from affordable to high-end luxury.
The rest of Southwest Virginia offers a more rural setting. It has larger land parcels, scenic landscapes, and lower prices. Market activity here is also lower with more days on the market and lower price appreciation.
Roanoke vs. the Blue Ridge Mountains Real Estate Market
The real estate market of the Blue Ridge Mountains differs significantly from that of Roanoke. The largely rural region has exquisite mountain properties, offering breathtaking views and tranquil living conditions.
The homes primarily appeal to those seeking vacation properties or a peaceful retirement haven. The market also has less activity, with properties often staying on the market for extended periods.
Roanoke: A Promising Real Estate Market
Roanoke is a growing city with a promising real estate market. Its forecast for 2024 is mainly positive, with demand, prices, and market activity expected to continue increasing. Inventory levels are expected to remain low.
Buyers can capitalize on its rising home prices. Sellers can benefit from its high demand for housing and high prices. But navigating the Roanoke market will require caution and professional advice.
Buyers will need to overcome competition and have their financing plan in place. Sellers will need to strategize for the best timing and pricing. Working with a knowledgeable and experienced agent will be the primary key to unlocking the potential of this dynamic market.
