On a national level, the National Association of Realtors (NAR) is reporting declines in sales, while locally ,
the Hampton Roads, Virginia real estate market is experiencing significant gains in sales. For April 2018 (the most
current month’s statistics available at this time), NAR reported pending home sales as down 1.3%, and
existing home sales with a drop of 1.4% year-over-year. In comparison, for April 2018, Real Estate Information
Network, Inc. (REIN) reported an increase of 19.30% year-over-year in residential pending sales, and a 9.36%
increase in settled sales of residential existing (resale) homes. Nationally, the decline in sales is attributed to
inventory shortages. While locally our inventory continues to decline, our sales remain strong – both in April
and May 2018.
Residential active listings for the region were down 6.62% year-over-year in May 2018, with 9,974
available homes. Despite this being 315 more available listings than the prior month, the area’s active
inventory has declined year-over-year for 34 consecutive months. Each of the region’s seven major cities
(Norfolk, Virginia Beach, Portsmouth, Chesapeake, Suffolk, Hampton and Newport News) experienced
decreased inventory, with Norfolk and Hampton registering the largest declines at 12.94% and 12.67%
May’s supply of residential home inventory in the region is currently 4.39 months, down 10.41% from the
same period of time last year. This marks the 37th consecutive month that the supply of inventory has declined
year-over-year, a trend that started in May 2015. Of the region’s seven major cities, six exhibit inventories
below 5 months (Suffolk was the only major city above at 5.05 months), with two of those below 4 months.
Residential settled sales also experienced year-over-year growth in May 2018, up 3.64% for the region.
Of the area’s major cities, Suffolk and Newport News were the only areas to experience a decline in settled
sales for May, down 17.61% and .50% respectively. Norfolk experienced the greatest year-over-year gain for
the month, up 13.95%.
The region’s residential median sales price rose to $240,000 in May 2018, up 4.35% from $230,000
recorded a year ago. Of the major cities, Norfolk’s median sales price rose the most at 10.70% year-over year
(now $212,000), and Newport News was the only area to experience a decline of 1.32% (now 183,000).
The number of distressed homes, those that are either short sales or foreclosures, have significantly
decreased over the years. In May 2018, distressed homes accounted for just 9.42% of all residential
active listings locally. This is the lowest percentage since REIN began tracking the data in August 2009.
Similarly, distressed homes accounted for only 9.39% of all residential settled sales in May, a decrease of
2.04% from the same period of time last year. When REIN began tracking distressed vs. total residential sold
units in June 2008, the percentage was 5.25%, and peaked at 42.8% in March 2011.
Psst, I’m a real estate agent.
This post was authored by local resident and REALTOR, John Womeldorf. John is known around town as Mr. Williamsburg, for both his extensive knowledge of the Williamsburg/ Hampton Roads/ Richmond VA area and his expertise helping buyers and sellers in the local real estate market.
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