Virginia Beach, VA (June 2023) – The Hampton Roads real estate market is heating up, with prices rising and inventory remaining tight.
According to data released by Real Estate Information Network (REIN), the median sales price (MSP) of homes sold in the region rose to $335,000 in May, up from $320,000 in April. This is the highest MSP on record for the region.
The increase in prices is being driven by a number of factors, including strong demand from buyers and limited supply of homes on the market.
“The local real estate market remains relatively strong,” said Jon McAchran, President of REIN’s Board of Directors. “Prices have been steady over the past few months, whereas a number of markets across the nation have seen their selling prices weaken.”
What’s lacking, he said, is enough inventory to meet the needs of potential buyers.
“Even with mortgage rates up and the price of homes higher, people are buying,” said McAchran. “If there was more inventory, consumers might be more likely to find the home they need, regardless of the price.”
Month’s Supply of Inventory (MSI) is a calculation of how long there would be homes on the market if no new inventory was added. For May, the number was 1.37. Typically, a market is considered “healthy” if the MSI is between 5.0-7.0 months of supply. Since January 2021, the highest the MSI has been was 1.47, which was in July 2021.
“Needless to say, it has been a seller’s market in Hampton Roads for a number of years, and prices are likely to remain high until inventory increases again,” said McAchran.
If you’re thinking about buying or selling a home in Hampton Roads, now is the time to act. With prices rising and inventory tight, it’s important to work with a qualified real estate agent who can help you find the right home for your needs.