Let's take a Look at the Hampton Roads Real Estate Market

Hello Hampton Roads,

Let's take a look at the Hampton Roads real estate market for August 2021.  The housing boom that has gripped the country since before the pandemic is still going strong in Hampton Roads. The sellers' market persists and continues to increase sales and  bolster home prices  In August, there were 12.5% fewer active listings than this time last year and 8.39% more closed sales.  This infographic summarizes the market showing that median home sold prices have increased 8% since August 2020.

REIN MLS Market Update Aug 2021

What's causing the housing boom? It's on the inforgraphic--New Construction is down 13.14%. The lack of inventory is a classic case of supply and demand.  Due to the housing bust in 2008, home builders shied away from building new homes and though since then building has increased, it still hasn't caught up and the previous lumbar shortage and ongoing labor shortage hasn't helped matters either.  Freddie Mac came out with a report that says the US needs 3.8 million more homes to meet demand.

What's playing out nationally is showing itself locally and I thought we would take a more granular view of the local market by looking at sales for both detached and attached properties for each of the 7 cities.  There are a few things that strike me about the table below:
  • The percentage of list price received (% LP Received) shows that in most cases sellers are receiveing over this asking price for their home.  Only for attached properties in Norfolk and Portsmouth do we see slightly less than 100% at 99.7% and 99.5% respectively.
  • Days on Market (DOM) is under 30 days. In the beginning of 2021, it was not uncommon to see single digit numbers but even though the DOM is increasing, it is still mostly under 3 weeks. 
  • Months Suply of Inventory indicates a strong seller's market. Six months represents a balanced market with equal buyers and sellers. Under 6 months is a seller's market and over 6 months is a buyer's market. The numbers here have been increasing but still favors sellers.
Hampton Roads Real Estate Market Aug 2021

  If you are thinking of buying a home in today's market, you really want to make sure that you understand what is happening with real estate locally and put yourself in the best position to buy.
I'm hosting a free home buyer's class coming up Thursday Oct 7th where I will be talking more about the local market, the steps to home ownership and avoiding 5 costly mistakes that can save you thousands! You can register here: https://freehomebuyerswebinar.com/

Thanks for Reading,


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