Today the president of our local MLS, Mr. Art Zachary, released his analysis of real estate market conditions in Virginia Beach. Below you will find the relevant portions for Virginia Beach.
“…sales activity is still sizzling in the Hampton Roads region during this summer selling season. Both pending and settled sales were marked by notable year-over year gains of 23.93% and 11.51%, respectively. The total number of active listings took a marginal dip of 0.12% when compared to this time last year.”
Translation to plain English: Sales are way up. The total number of active listings is down.
After a brief examination of some trends in Norfolk and Portsmouth, Zachary commented that “With 5.28 months’ supply, Virginia Beach continues to maintain the lowest [inventory] in the region. As a whole, the region’s month supply of inventory is currently 6.68 months, down from July 2014 when it was 7.14 months…”
Translation to plain English: Virginia Beach has the smallest supply of homes to buy. This would indicate that demand is high (and re-iterates the first paragraph; i.e., that sales are up).
Aside from Virginia Beach, the entire Hampton Roads region “maintains strong pending sales momentum. For the month of July, the region’s residential pending sales swelled 23.27%…”
That’s truly remarkable.
Furthermore, “[Chesapeake, Virginia Beach & Suffolk] generated considerable year-over-year [pending sales] increases as well, ranging from 15.22% to 28.49%. From January through July this year, 2015 has seen a 16.57% increase over last year in under contract pending sales.
Translation to plain English: The gains we’ve seen so far are not isolated. If they are currently pending, most of those pending sales will settle in the next 60 days, meaning the sales data for August and September will be just as robust as the first months of the 2015.
“Residential settled sales continued to rise year-over-year in July 2015, up 11.49% from July 2014. All of the region’s seven major cities experienced positive advancements in residential settled sales, with the exception of Portsmouth which regressed more than 30%.”
Sales are up for everybody, except in Portsmouth. Now let’s talk about prices. “The median residential sales price in the region is $229,700, up 4.46% from July 2014’s median sales price of $219,900. This marks the 10th consecutive month with year-over-year increases in the median residential sales price.”
Translation to plain English: Home values continue to rise, which is great news for sellers. For buyers, the longer you wait, the more likely you are to pay more for a home.
If you are an investor, or if you have an eye to make a great deal on a short sale or a foreclosure, I have some bad news for you: the supply of distressed properties is low, and getting lower: “Steady declines in distressed activity persists for Hampton Roads. The number of distressed properties (those that are either short sales or foreclosures) available for sale dropped 11.29% to 1,627 units from July 2014 when it was 1,834 units. These distressed properties only accounted for 15.08% of the overall residential active units, which is 2.07% less than this time last year.”
The Bottom Line: If you live in Virginia Beach or Chesapeake, this is a great time to sell your home while demand is high. If you live in Portsmouth, this isn’t a good time to sell.
If you would like to buy or sell a home in Virginia Beach, give me a call: 757-685-4400, or email me at Katie@katiezarpas.com.
If you would like to search for homes for sale in Virginia Beach, click here.