Local Real Estate Diverges From National Trends For Now (Virginia Beach, Virginia – September 2018)9/12/2018
August’s supply of residential home inventory in the region is currently 4.29 months, down 13.16% from the same period of time last year. This marks the 40th consecutive time that the months’ supply of inventory has declined year-over-year, a trend that started in May 2015. Of the region’s seven major cities, six maintain inventories below 5 months (Suffolk was the only major city above at 5.21 months). Statistics like these do not suggest a softening to the inventory shortage for the immediate future.
Despite low inventory, the region’s sales continue to progress. Residential pending sales have risen yearover-year for 51 consecutive months (since May 2014). August 2018 recorded a moderate 3.59% increase, with 2,652 homes going under contract vs. 2,560 in August 2017. When comparing August 2017 with August 2016, residential pending sales rose a more robust 7.94% year-over-year, suggesting that the size of the increases may be waning. Four of the region’s seven major cities experienced year-over-year increases, with Norfolk undergoing the most dramatic upswing at 22.73%, and Newport News (-12.99%), Chesapeake (- 12.15%) and Hampton (-3.13%) experiencing year-over-year declines.
Similarly, residential settled sales experienced modest year-over-year growth in August 2018, up 1.85% for the region. Three of the region’s major cities underwent year-over-year increases, with Virginia Beach being the highest at 15.80%. Four cities (Portsmouth, Suffolk, Chesapeake & Norfolk) saw year-over-year
declines in settled sales. In recent months (June and July 2018), all seven major cities had year-over-year
increases, while August is split down the middle. As a region, sales are up, but for some individual cities,
sales are starting to temper.
The region’s residential median sales price rose to $238,000 in August 2018, up 2.15% from a year ago.
Of the major cities, Norfolk’s median sales price rose the most, up 14.07% year-over-year, and Chesapeake
exhibits the highest median sales price at $280,500.
The number of distressed homes in the Hampton Roads region, those that are either short sales or
foreclosures, have significantly decreased. In August 2018, distressed homes accounted for just 7.97% of all
residential settled sales, down 2.11% year-over-year. Similarly, distressed homes accounted for only 8.89%
of all residential active listings in August 2018, the lowest recording since REIN began tracking the data in