What’s new? Here is the latest Virginia Beach Real Estate Market Conditions and nearby cities.
According to the Real Estate Information Network (REIN), pending and closed sales in Virginia Beach and Hampton Roads this month has outpaced the amount of homes being added to the region’s active inventory. (Note: this may vary based on price point of home…for instance my particular neighborhood has more active listings than ever before).
For the first time in a little over two years, active listings in the area dropped year-over-year. However, the region continues to produce double-digit gains in both the pending sales and settled sales.
Virginia Beach Real Estate Market Conditions (continued)
The seven major cities (Norfolk, Virginia Beach, Portsmouth, Chesapeake, Suffolk, Hampton, and Newport News), Portsmouth, Hampton, and Chesapeake were the only 3 cities to record increases in the number of homes available for sale when compared to August of 2014.
Portsmouth generated the greatest growth in active residential listings with a 12.53% year-over-year rise. Hampton and Chesapeake followed with 9.68% and 2.54% of growth, respectively. The remaining major cities experienced declines in the number of homes for sale from the same time last year, with Suffolk showing the largest drop of 9.12%.
Virginia Beach Real Estate Market Conditions (continued)
Good news, the region’s months’ supply of inventory has been trending downward.
The current months’ supply of inventory for the area is 6.47 months. This represents a year-over-year drop of 8.74% from August 2014 when it was 7.09 months, and a month-to-month drop of 3.14% from July 2015 when months’ supply was 6.68 months.
The Hampton Roads region has maintained a months’ supply of inventory between 5 and 7 months over the past year, which is optimistic since a healthy real estate market tends to maintain a months’ supply of 5 or 6 months. An inventory of less than 6 months benefits sellers and over six months buyers. Pending residential sales in the region continued to escalate in August with a 26.59% year-over-year growth.
Suffolk was the only major city that experienced a decline in the number of homes under contract, dropping 2.48% from the same time last year. Chesapeake generated an astounding 37.11% more pending sales when compared to August 2014, the highest in the region.
Virginia Beach trailed not too far behind with a 34.69% year-over-year increase. The remaining 4 cities all saw advancements that ranged between 5.07% and 28.97%. Improvements in residential settled sales for Hampton Roads held firm in the month of August. Overall, the region was able to produce 11.96% more settled sales than August of last year.
Virginia Beach Real Estate Market Conditions (summary)
All of the major cities saw year-over-year increases in settled sales when compared to the same time last year, with the exception of Hampton which experienced a 10.81% decline. Chesapeake and Virginia Beach experienced the most significant lifts of 26.48% and 20.45%, respectively, while Norfolk, Suffolk, Newport News and Portsmouth experiences varying rises between 6.01% and 16.49%. The region’s median residential sales price for August 2015 was $226,000, which is 6.48% greater than August 2014 when it was $212,256.
Distressed home sales (short sales and foreclosures) and listings continue to impact the local market, but with decreasing significance. While still notable, the percentage of residential sold units attributable as a distressed property dropped to 14.57% in August, a low not seen since December 2008. This is a 4.04% dip from August 2014 when distressed homes accounted for 18.61% of the total residential sold units. Distressed listings made up only 15.28% of the total residential active listings, down 2.03% year-over-year. (Note: getting rid of distressed inventory will eventually result in home values raising).
For a personalized particular neighborhood or Virginia Beach Real Estate Market Conditions contact me and I will gladly generate you a Comparable Market Analysis (CMA).
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