Roanoke, VA, is among the most fascinating places to live in the Blue Ridge Mountains. Named after the earliest town established in the Americas by British settlers, Roanoke has long been a cultural and financial hub in Southwest Virginia. For years, the local economy and residents here have enjoyed a laid-back way of life that, nevertheless, is full of social activities and things to do.
Yet the Roanoke real estate market is perhaps even more interesting to look at. If you’re keen to learn more about market prices, trends, and a real estate forecast for the coming years, you’ve found the right place. Let’s dive in!
Roanoke Real Estate Market Forecast 2023
In general, the market for real estate in Roanoke (especially the market for high-end luxury property) has been stable and even increasing year over year for the last decade or so. But more recently, the data tells a different story. Read the forecast for 2023 below.
Home values increasing
Real estate professionals in Virginia and the Roanoke area are remarking that the market looks to be on an upward swing again after the interest rate hike in late 2022. Local realtors expect an increase in home values of 3% annually, an encouraging trend that is sure to return the market to form after a slight drop off in buyer demand and affordability during the height of the pandemic. The Roanoke real estate market remains one of the most competitive in the state, with a sold-to-list ratio of over 105% and among the shortest days on the market data for homes in the area.
Lowering interest rates
The aim of the Federal Reserve raising interest rates on mortgages was to stave off some of the undesirable effects of inflation in late 2022. The Fed’s decision certainly slowed the Roanoke real estate market over the short term. However, experts predict that rates will continue to stabilize and eventually fall in the coming months. This will bring more competition back to the area and fuel the market over the next 18 months.
Investing indicators will favor landlords
There are several elements of the real estate market that indicate whether or not a particular area is ripe for investment from landlords. Roanoke is a part of the country that could prove to be ideal for landlords and property managers. Why? For one, the job markets in neighboring metropolises are on the rise. Also, experts project that lowered interest rates will allow a wider variety of people to move to Roanoke and join the market, especially renters.
Positive net population migration
Since 2020, it’s become more and more common to see population data changing in ways that haven’t been observed for decades. One of the most interesting trends is the net population migration away from coastal communities in California, Washington, and New England to other parts of the country. Roanoke has grown about 0.45% year over year since 2020 (3.1% since 2010), which tells us that demand for housing and jobs should continue to drive up the market after 2023.
Housing Market Trends in the Roanoke, VA Area 2023
As an independent city in the state of Virginia, Roanoke has a distinct administration from the counties surrounding it. However, it’s still possible to gather more general information about the housing market in the area by looking at the market in neighboring cities.
How COVID-19 affected the Roanoke area real estate market
The data above detailed the effects of the pandemic on Roanoke in particular. When we turn our attention to Southwest Virginia as a whole, a similar trend emerges. Population figures are up by as much as 5%, as are the average income of households in the area (up nearly 10% since 2022). The neighboring cities of Franklin, Craig, Botetourt, and Salem are worth investigating because they have had a similar upward trend in their own housing markets since 2022.
Roanoke Foreclosure Statistics 2023
Given the improvement in demand for housing of all price ranges in Roanoke, it’s no wonder that the foreclosure statistics are so positive. As of July 2023, there are no homes in active foreclosure in Roanoke and 25 properties in pre-foreclosure.
Roanoke median home prices 2023
Now that you have read more about some of the market trends in Roanoke in 2023 and the surrounding parts of Southwest Virginia, it’s time to summarize the rest of the data. The median sales price for all homes in Roanoke as of July 2023 is $129,500. That figure is down slightly since 2022, which echoes the patterns in the market that experts have noted ever since the interest rate hike. However, the average list price jumped 4% over the same period, which is a good sign that interest in real estate in Roanoke is stabilizing. Once the current inventory of homes finally sells, it’s expected that the median home price will start to climb even quicker.
Roanoke real estate market: should you invest?
All told, Roanoke appears to be a great location for investment. Over the short term, more affordable housing will be in greater demand since mortgage financing can be complex for potential homeowners seeking competitive interest rates. However, all the market indicators show that Roanoke and Virginia, in general, will be a target for high-end luxury homeowners more and more, given the population data and the job market. The healthcare and retail industries are worth keeping your eye on in the future as Roanoke gets on the map as a leading site for real estate investment.
Reach out to a local real estate agent today
With that, you’re now up to date with all the details of the Roanoke real estate market for 2023. If you have any questions or comments to share about where the market is going to head in the near future, or you’d like to learn more about buying and selling luxury homes and condos in the surrounding area, get in touch today! Contact The Crouch Team for more information.