Virginia Beach & Hampton Roads

The Hampton Roads real estate market has shown resilience and growth throughout October 2024. With rising home prices, an uptick in settled sales, and a steady increase in available inventory, the region remains a hotspot for buyers and investors alike. Market OverviewIn October, the Hampton Roads market continued to thrive, driven by strong buyer demand. The focus on waterfront and luxury properties has intensified, highlighting a trend towards high-value investments. As buyers explore opportunities, the market is witnessing a healthy balance between supply and demand, although competition remains fierce. Market InsightsThis month brought a slight shift in dynamics. Properties are taking a bit longer to sell compared to previous months, with homes remaining on the market for an average of 25 days—up from 21 days in August. Despite this increase, competitive pricing strategies have enabled sellers to achieve close to their asking prices. New Listings: The rise in new listings has provided buyers with more options, contributing to a more balanced market. Home Values: Overall home values continue to rise, reflecting a stable yet dynamic environment that appeals to various buyers, including military families and first-time homeowners. Looking AheadAs we approach the holiday season, some moderation in market activity is anticipated. However, demand is expected to remain steady. Sellers can still capitalize on favorable conditions; well-priced homes are likely to attract serious buyers. For buyers, the expanding selection of homes makes this an opportune time to make a move. Would you consider selling for 10% more than your Zestimate? Text your answer to 757-703-1590. In summary, the Hampton Roads real estate market is positioned for continued growth as we move into the end of the year. Whether you're looking to buy or sell, understanding these trends can help you navigate this vibrant market effectively.

You may have heard chatter recently about the economy and talk about a possible recession. It’s no surprise that kind of noise gets some people worried about a housing market crash. Maybe you’re one of them. But here’s the good news – there’s no need to panic. The housing market is not set up for a crash right now. Real estate journalist Michele Lerner says: “A housing market crash happens when home values plummet due to a lack of demand for homes or an oversupply.” With that definition in mind, here are two reasons why this just isn’t on the horizon. 1. Demand for Homes Is Higher than SupplyOne of the biggest reasons the housing market crashed back in 2008 was an oversupply of homes. Today, though, it’s a very different story. It’s a general rule of thumb that a market where supply and demand are balanced has a six-month supply of homes. A higher number means supply outpaces demand, and a lower number means demand outpaces supply. The graph below uses data from NAR to put today’s situation into context. The graph compares housing supply during three different periods of time. The red bar shows there were 13 months of supply before the 2008 crisis, which was far too much. The gray bar shows a balanced market with six months of supply, for context. And the blue bar shows there are only 4.2 months of supply today. Put simply, there are more people who want to buy homes than there are homes available to buy right now. So, demand is greater than supply. When that happens, home prices stay steady or rise – the opposite of a housing market crash. It’s important to note that inventory levels differ from market to market. Some areas may be more balanced, while a few could have a slight oversupply, which can impact prices locally. However, most markets continue to experience a shortage of homes. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says: “We simply don’t have enough inventory. Will some markets see a price decline? Yes. [But] with the supply not being there, the repeat of a 30 percent price decline is highly, highly unlikely.” 2. Unemployment Is Still LowWhen people are unemployed, they’re more likely to have trouble making their mortgage payments and may be forced to sell or face foreclosure. That was a big problem during the 2008 financial crisis. Today, the employment situation is much more stable (see graph below): Again, this graph shows three different periods of time, but this one is the unemployment rate. The red bar represents the 2008 financial crisis when unemployment was very high at 8.3%. The gray bar shows the 75-year average of 5.7%. And the blue bar shows the unemployment rate today, and it’s much lower at just 4.1%. Right now, people are working, earning an income, and making their mortgage payments. That’s one reason why the wave of foreclosures that happened in 2008 isn’t going to happen again this time. Plus, since so many people are employed right now, many are actually in a position to buy a home, and this demand keeps upward pressure on prices. Today’s Housing Market Is Stronger than in 2008While it’s understandable to be concerned when you hear talk of a recession and economic uncertainty, but know this: the housing market is in a much better place than it was in 2008. According to Rick Sharga, Founder and CEO at CJ Patrick Company: “Literally everything is different about today’s housing market dynamics than the conditions that led to the housing crisis.” Demand for homes still outpaces supply, and unemployment remains low. And these are two key factors that will help prevent the housing market from crashing any time soon. Bottom LineThe housing market is in a much better place than it was in 2008, but it’s important to remember that real estate is very local. October 9, 2024/by KCM CREW

Hampton Roads's residential real estate market is showcasing noteworthy trends as we move through September 2024. Here’s a closer look at the current landscape: Market Overview    Median Sales Price: The average home price in the region is now $356,500, reflecting a modest 0.4% increase. This stability suggests that the market is holding steady despite various economic pressures. Settled Sales: A total of 1,122 homes were sold this month, marking a significant 17.9% decline from the previous year. This drop indicates a slowdown in market activity, which may be attributed to rising interest rates and economic uncertainties. Active Inventory: The number of homes available for sale has decreased by 16.3%, with only 2,598 properties currently on the market. This reduction in inventory is likely contributing to increased competition among buyers. Median Sold Price per Square Foot: Prices remain consistent at $207 per square foot, showing no significant fluctuations, which reinforces the notion of price stability in the market. Days on Market: Homes are selling more quickly, averaging 21 days on the market, a decrease of 10.5% compared to last year. This trend signals heightened urgency among buyers. New Listings: There has been a 5.4% reduction in new listings compared to last year, which limits options for potential buyers and intensifies competition. Investor Insights:Interestingly, while the number of homes listed has decreased, the months' supply of inventory has increased by 13.1%, suggesting that sellers are still achieving nearly 99.8% of their asking price. This indicates that even with fewer listings, sellers maintain substantial control over pricing. With stable prices and quicker sales, now may be an opportune time for buyers and sellers alike to engage with this competitive market. Are you considering selling your home for 10% more than your Zestimate? If so, feel free to text your answer to 757-703-1590!