Closings and Pending Sales Rise

Closings and Pending Sales Rise

VIRGINIA BEACH, Va. (March 2023) – According to data compiled by the Real Estate Information Network (REIN Inc.), both settled sales and pending sales of residential real estate were up in February across the Hampton Roads region when compared to the month prior. With the rise in closings and pending sales, active listings fell from January, but only slightly, while selling prices also increased.

“A lot of factors impact the real estate market, not just mortgage rates,” said REIN Board of Directors President Jon McAchran. “While mortgage rates are important, having a good selection of homes for buyers to choose from is also extremely important.”

McAchran pointed out that active listings were up 25% from February 2022, with 629 more homes on the market for buyers to choose from. Even though mortgage rates have risen, median sales prices across the region were up both month-over-month and year-over-year.

“For most consumers, buying makes more sense than renting, and when they need to buy, they’re willing to pay the right price for the right home,” he said, adding that despite the recent rise in mortgage rates, he expects consumers to remain active.

“We expect 2023 to be similar to pre-pandemic years where inventory increases in the spring and summer, and as long as buyers have inventory to choose from, they’re going to shop for homes,” he said. He added that while mortgage rates might feel high compared to the past few years, our region remains very affordable when compared to many other parts of Virginia.

February’s data points from REIN:

  • Active residential listings for February totaled 3,130. That’s down by 136 listings, or 4.16% month-over-month, but up 25.14%, or 629 listings, year-over-year.
  • Pending sales stood at 2,058. That’s up 5.92% month-over-month, but down 19.9% year-over-year.
  • Settled sales during the month were 1,684. That’s up 12.10% month-over-month and down 22.65% year-over-year.
  • The median sale price (MSP) of homes sold in the region was $313,650. That’s up 3.5% from $303,000 last month, and up 7.9% from $290,500 last year.
  • The MSI for February was 1.24. That’s down from 1.27 the month prior, but yearover-year is well above the record low MSI of 0.78 recorded in February 2022.
  • Median days on market (DOM) for residential listings was 20. That’s a monthover-month decrease of seven days. The median DOM had increased each month since March 2022, before dipping in February.
  • Residential new construction sold in the MLS during the month was 228, compared to 244 for February of last year.