Boom or Bust: Unveiling Hampton Roads Housing Market
Many people currently have been sitting on the fence waiting to buy or sell a house. You might be considering finally making that move to Hampton Roads, Virginia. However, is it a buyers or sellers market in Hampton Roads, Virginia?
As a general rule, currently, Hampton Roads is a Seller's Market. There are many factors at play that make this market positive for sellers. Prices are still rising, the amount of inventory is low, and interest rates are showing signs of decline. However, all that could change very quickly.
Keep reading to learn about the median sales price for Hampton Roads, how much inventory currently is on the market, and what the interest rates are doing.
Hampton Roads, Virginia Median Sales Price
The median sales price is an excellent indicator of what the market is currently doing in Hampton Roads, Virginia. The median sales price is the middle of the highest and lowest prices of houses sold in a given period. When I say Hampton Roads for this article, I'm discussing Norfolk, Chesapeake, Suffolk, Virginia Beach, and Portsmouth on the south-side, and Newport News, Hampton, and Poquoson on the Penisula.
We can determine the median sales price using information from our local MLS, Real Estate Information Network. The median sales price in Hampton Roads for November 2023 is $317,900. This amount is an increase of 9.6% versus a year ago and is down 0.7% compared to the month prior.
Typically, during the months leading into the holidays, we see a slight drop in completed sales. This appears to be the case this year, as there were 1,353 settled sales which is down 9.6% versus the previous month and 15.6% compared to a year ago. Historically we will see an increase in inventory and sales after the holidays, as most people are focused on spending time with their families during the holidays.
Housing Inventory in Hampton Roads, Virginia
One of the leading indicators of whether the housing market is a buyer or seller's market would be the months of supply. Months of supply show how long it would take to sell all the inventory if nothing came on the market. It is a balanced market when you see 4-6 months of supply. If you see less than that, it indicates a seller's market; hence, more than 4-6 months is a buyer's market.
In Hampton Roads, currently, the months of supply sit at 2.6 months. If nothing came on the market today, selling the remaining inventory would take 2.6 months. This clearly indicates that Hampton Roads is in a seller's market. The amount of inventory also affects pricing, as less inventory usually drives up demand and pricing. One thing to keep an eye out for is current trends. Compared to last year, the months of supply are up 19.1% and 9.4% compared to the previous month. If this trend continues, we could start seeing a more balanced market.
Another item impacted when we're in a seller's market is the amount of concessions sellers give buyers. Some concessions include price decreases, closing cost assistance, repairs, and timelines for closing. With high demand, buyers have to make their offers as competitive as possible, and therefore, the sellers are generally at an advantage.
Why There Are So Many Buyers in Hampton Roads
Hampton Roads has an abundance of buyers looking for houses. One indicator of this is how long the houses stay on the market. The shorter time indicates that there is high demand for the properties. Currently, the median days on the market sit at 22 days, up 15.8% compared to a year ago. While the number of days is starting to creep up, this shows that in correlation with the months of supply, there is still a strong buyer demand for housing in Hampton Roads.
One of the main reasons the Hampton Roads area is seeing a solid flow of buyers would be the military presence in our area. Hampton Roads is home to the largest naval base in the world, Norfolk Naval Base, and large bases such as Oceana, Little Creek, Damneck, Langley, Fort Eustis, and several smaller installations.
Some other benefits of our area would be the beaches in Virginia Beach, Norfolk, and Hampton. Virginia Beach has some of the most popular and desirable beaches, but each city offers a lot of fun for everyone. There are also low living costs in some cities and generally positive crime rates.
Mortgage Interest Rates
The mortgage interest rates are another significant factor in the housing market. During covid, we saw interest rates dip down to historical lows; however, over the last 18-24 months, interest rates have gone the opposite way to levels we haven't seen in over 20 years. This has slowed the market down as potential buyers have decided to wait for lower rates. The Hampton Roads area isn't impacted nearly as much as other areas, though, as previously mentioned, with the strong military presence.
According to Mortgage News Daily, currently the 30-year conventional Rate sits at 6.68%. This is an increase of .36% versus a year ago, however, it's lower than the 8% we saw in October 2023. For VA loans, which are reserved for those who have served in the Military, the rates are slightly lower. The current VA loan rate is 6.13%, which is up .23% compared to a year ago but down from this year's high of 7.44%.
When deciding whether you would like to make the largest purchase of your life, in buying a home, you should consider mortgage rates as they greatly affect your budget. Before making that decision it's best to speak with a mortgage professional to review your options.
Overall all these housing market indicators point to one thing. Currently, in Hampton Roads, we're still in a seller's market. This could definitely change if the mortgage rates continue to rise as we will see less demand on purchasing houses.
If there is anything you think I missed or you have any questions about the Hampton Roads, please comment below or reach out to me here.
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YOUR LOCAL REALTOR
DJ Parker is your local Realtor and guide to Hampton Roads, Virginia. As a native of Chesapeake and Virginia Beach, Virginia for over 30 years, he has the local knowledge you need. He has helped clients with Real Estate throughout Chesapeake, Virginia Beach, Norfolk, Suffolk and all of Hampton Roads Virginia.