RICHMOND, Va. (CBS19 NEWS) -- Home prices across Virginia are continuing to climb, crossing the $400,000 mark for median prices.

Virginia REALTORS released its May 2022 Home Sales Report on Thursday, finding that prices are still climbing rapidly despite less demand.

According to a release, the statewide median sales price for a home in May was $401,082, up 8.7 percent from a year ago.

The organization reports that this is the first time the median price has surpassed the $400,000 mark.

The housing market is also still moderating compared to last year’s pace, with more than 13,000 homes sold in May 2022.

That was down by 8.5 percent from 2021.

The release says that sales activity rose 8.8 percent between April and May, but this is considered a typical seasonal bump.

Nearly every region in the Commonwealth has been experiencing a cooling housing market during the first five months of the year.

“The moderating trend we are seeing reflects not only a return to more normal levels, but also a cooling of demand from home buyers,” said Virginia REALTORS® Chief Economist Ryan Price. “Buyers are feeling the weight of surging home prices, high inflation, mortgage rate jumps, and an extremely competitive market with few options to choose from.”

Meanwhile, inventory rates remain low, which means the price of homes is unlikely to drop.

“Because the state’s inventory is so low and demand remains relatively strong, we do not expect that Virginia home prices will fall,” said Virginia REALTORS® 2022 President Denise Ramey. “Rather, the price growth will likely moderate from the rapid pace of the last couple years as interest rates continue climbing, pushing more buyers on the sidelines.”

The release says the overall supply in Virginia’s market is getting smaller, but the shrinking trend appears to be changing.

By the end of May, there were 16,785 active listings, which was down 5.6 percent from 2021, though it was still nine percent higher than the end of April.

Virginia REALTORS reports this is the smallest decline it has seen in three years.

To view the full report, click here.