RICHMOND, Va. (CBS19 NEWS) -- Fewer homes were sold across Virginia in March, but home prices are still going up.

Virginia Realtors has released its March 2024 Virginia Home Sales Report, which says sales activity in the housing market slowed down in March, dropping 7.3 percent.

According to a release, the areas with the sharpest drops in sales activity were the Lynchburg region, Northern Virginia and the Richmond Metro area.

Meanwhile, the statewide median sales price increased 7.3 percent over a year ago, jumping $27,000 to $397,000.

The low availability of homes for sale is still putting pressure on home prices, and about 65 percent of localities reported higher median sales prices this March compared to March 2023.

The release says there were more new listings available in March compared to February, but that inventory bump is still lower than a typical February-to-March increase.

This year, the increase was just 18 percent while in other years, the increase has been between 30 and 50 percent.

"This pivot to a slowdown we're seeing could signal hesitation with sellers who are watching interest rates just as closely as buyers," said Virginia Realtors CEO Terrie Suit. “Mortgage rates have jumped back above the seven percent mark for the first time since early December 2023.”

Additionally, the number of active listings in Virginia is growing. At the end of March, there were nearly 15,000 active listings on the market, up 10.3 percent over last year.

“This is the fourth consecutive month that the overall inventory of active listings has expanded in Virginia, which is welcome news for buyers in this competitive market,” said Virginia Realtors President Tom Campbell.

The release adds that affordability is still a key concern with rising rates and home prices pushing out many potential buyers.

To view the full report, click here.