It’s time for my Virginia Beach Real Estate Market Update for June 2016! June was a busy month for real estate in Hampton Roads, and Virginia Beach in particular.
Virginia Beach Real Estate Market Update for June 2016
There was an decrease in total units sold in June, with 743 sold this month in Virginia Beach City versus 769 last month, a loss of 3%. This month’s total units sold was higher than at this time last year, an increase of 3% versus June 2015.
Versus last year, the total number of homes available this month is lower by 186 units or 6%. The total number of active inventory this June was 2,729 compared to 2,915 in June 2015. This month’s total supply of available listings was about the same as last month.
Median Sales Price
Last June, the median sale price for homes in Virginia Beach was $250,000. This June, the median sale price was $261,315, an increase of 5% or $11,315 compared to last year. Our current median sold price is 8% higher than in May 2016 — no matter which way you cut it, that’s a lot of money!
New Listings & Current Contracts
This month there were 1,048 homes newly listed for sale in Virginia Beach compared to 1082 in June 2015, an decrease of 3%. There were 719 current contracts pending sale this June compared to 685 a year ago. The number of current contracts is 5% higher than last June.
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 June, there was 3.7 months of supply available in Virginia Beach (a big drop compared to the previous month), compared to 4 in June 2015. That is a decrease of 9% versus a year ago. In plain English: homes are selling faster, and for more money.
Sale Price to List Price Ratio
In June, the average sale price in Virginia Beach City was 98% 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 54, lower than the average last year, which was 63, a decrease of 14%.
The Bottom Line: the trend for 2016 has been faster home sales for a lot more money, and that trend accelerated in the summer after an abnormally fast spring.
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 June 2016. See you next time!
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