The Hampton Roads regional Multiple Listing Service, reports that residential sales in December remained strong and showed no signs of slowing down in the new year.
The region’s residential pending sales rose 41.26% year-over-year, with 2,722 homes going under contract, up from 1,927 units last year. Residential settled sales also increased by 31.70% from December 2020 vs. 2019, with 3,199 homes going to closing.
Further evidence of a continued strong market is that December 2020’s residential median sales price rose 11.75% year-over-year. December 2020’s median sales price was $274,900 compared to 2019’s $246,000.
The only blip in an otherwise great real estate market is the decline in available inventory. Residential active listings were down 40.59% year-over-year for December 2020, with just 3,818 homes on the market as compared to 6,426 last year. This low inventory is despite the addition of 2,605 new properties being added to the MLS during the month of December, an increase of 20.49% year-over-year.
Similar to the trend with low inventory, the region’s months’ supply of inventory also dipped significantly, currently at 1.36 months, down from 2.58 months last year – a decrease of 47.29% year-over-year.
“As I begin my 48th year in the Real Estate Business, I am confident of one thing: we will continue to experience changes in the marketplace,” says Harry Cross, REIN’s President of the Board. “As with all housing markets, ours is controlled by Supply [listings], Demand [buyers], the Cost of money [financing], and the general Economy. As these factors change, the Market does too. Currently, it’s a Sellers’ Market with diminishing Supply and a fairly steady Demand. The Cost of money is very favorable for buyers. Looks like we will stay in a Sellers’ Market for now. The Covid environment is predictably stifling Supply. It will probably take a lot more vaccine shots to change the number of listings in the market place. Keep a watch on the number of listings to see where the market is headed next.”
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