Sales in Hampton Roads continue to outpace the number of listings coming onto the market. The region added 3,705 new listings (all property types) to the market between October 1-31, 2018, an increase of 9.32% year-over-year. Yet by the end of the month, a snap shot of the market recorded only 11,716 active listings vs. 12,502 for the same period of time in 2017, a year-over-year decline of 6.29%. Eight of the past 12 months have seen an increase year-over-year in the number of new listings being added to the market, even as the number of active listings continues to decline year-over-year. For now, Hampton Roads remains a seller’s market.
In October 2018, residential active listings for the region were down 5.98% year-over-year with 9,564 available homes, down from 10,172 in October 2017. This is the 39th consecutive month that active listings have declined year-over-year. Six of the region’s seven major cities (Norfolk, Virginia Beach, Portsmouth, Chesapeake, Suffolk, and Hampton) underwent decreased inventory, with Portsmouth and Virginia Beach experiencing the greatest declines at 16.34% and 10.23% respectively. Newport News was the only major city to realize an increase, though very modest at just .80%.
October’s supply of residential home inventory in the region is currently 4.12 months, down 10.43% from the same period of time last year. This marks the 42st consecutive time that the months’ supply of inventory has declined year-over-year, a trend that started in May 2015. All seven of the region’s major cities currently maintain inventories below 5 months, with Virginia Beach the lowest at 3.51 months. Industry experts typically agree that a 6 months supply of inventory is considered a balanced market, and anything below to be a seller’s market.
Despite a minor blip in September, pending sales remain steady in Hampton Roads. For October 2018, residential pending sales rose 7.47% year-over-year, continuing the trend where 52 of the past 53 months have exhibited increases. Each of the area’s major cities rose year-over-year, with Newport News experiencing the most dramatic rise at 35.95%. The remaining 6 cities had more moderate increases below 10% each.
Residential settled sales experienced a minimal year-over-year decline of .86% in October 2018. Among the major cities, Newport News and Virginia Beach saw the largest declines at 11.85% and 5.87% respectively, while Norfolk and Suffolk underwent significant increases at 13.94% and 13.67% each.
The median sales price has continued to rise for 50 consecutive months. In October 2018, the region’s residential median sales price rose 2.22% year-over-year to $235,000. Suffolk was the only major city to experience a decline at 3.85%. All others rose between .45% to 4.94%.
The number of distressed homes in the Hampton Roads region, those that are either short sales or foreclosures, has significantly decreased. In October 2018, distressed homes accounted for just 10.17% of all residential settled sales, down 2.06% year-over-year. Similarly, distressed homes accounted for only 8.76% of all residential active listings in October 2018, down 3.05% year-over-year.