It’s time for my Virginia Beach Real Estate Market Update for May 2016! May was a busy month for real estate in Hampton Roads, and Virginia Beach in particular.
Virginia Beach Real Estate Market Update for May 2016
There was an increase in total units sold in May, with 745 sold this month in Virginia Beach City versus 666 last month, an increase of 12%. (That’s the second straight month of double digit growth in units sold.) This month’s total units sold was higher than at this time last year, an increase of 14% versus May 2015.
Versus last year, the total number of homes available this month is lower by 169 units or 6%. The total number of active inventory this May was 2,702 compared to 2,871 in May 2015. This month’s total of 2,702 is lower than the previous month’s total supply of available inventory of 2,742, a decrease of 1%.
This is great news for people who want to sell. It means that increased demand from buyers may lead to a better negotiating position for sellers.
Median Sales Price
Last May, the median sale price for Virginia Beach City Homes was $239,900. This May, the median sale price was $243,000, an increase of 1% or $3,100 compared to last year.
New Listings & Current Contracts
This month there were 1,026 homes newly listed for sale in Virginia Beach City compared to 963 in May 2015, an increase of 7%. There were 793 current contracts pending sale this May compared to 607 a year ago. The number of current contracts is 31% higher than last May.
Months of Supply
Months of supply is calculated by dividing current inventory by current sales. It tells us how many months would be needed to sell all of the available homes at the current rate of demand.
In May, there was 3.6 months of supply available in Virginia Beach City (a big drop compared to the previous month), compared to 4.4 in May 2015. That is a decrease of 18% versus a year ago. In plain English: homes are selling a LOT faster, and for more money.
Sale Price to List Price Ratio
In May, the average sale price in Virginia Beach City was 97.8% of the average list price, which is similar compared to a year ago.
Days on Market
This month, the average number of days on market was 60, lower than the average last year, which was 66, a decrease of 9%.
The Bottom Line: the trend for 2016 has been faster home sales for a lot more money, and that trend accelerated in May after an already supercharged April.
Comparison to the National Market
So how does this compare to the national market? Well, existing home sales jumped to their highest increase in almost 10 years this May. All regions except the Midwest saw big sales surges in May.
The National Association of Realtor’s Chief Economist, Lawrence Yun, believes that the lower mortgage rate has encouraged existing homeowners to use their equity to either trade-up or downsize. “With first-time buyers still struggling to enter the market, repeat buyers using the proceeds from the sale of their previous home as their down payment are making up the bulk of home purchases right now,” he added.
Meanwhile, inventory – the numbers of homes available for sale – has lagged across the country. This is pushing prices higher. “Existing inventory remains subdued throughout much of the country and continues to lag even last year’s deficient amount,” Yun said. “While new home construction has thankfully crept higher so far this year, there’s still a glaring need for even more, to help alleviate the supply pressures that are severely limiting choices and pushing prices out of reach for plenty of prospective first-time buyers.”
That’s my Virginia Beach Real Estate Market Update for May 2016. See you next time!
Questions? Comments about this Virginia Beach Real Estate Market Update for May 2016?
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