Record High Sales and Falling Inventory Continue the Tight Market
VIRGINIA BEACH, Va. (November 2021) – The real estate market in Hampton Roads is not only seeing a record-high volume in home sales, but also a continual drop in the number of active listings. This is a combination that has created low supply and rising prices for home shoppers in the region.
Residential active listings fell again in November, down to 3,484, the lowest total since February 2021. That’s a year-over-year decline of almost 21% in the number of homes for sale, and a drop of 13% compared to 4,002 active listings in October.
According to data compiled by the Real Estate Information Network (REIN), Hampton Roads’ multiple listing service, the Month’s Supply of Inventory (MSI) now stands at just 1.09 - the lowest not only of the year, but the lowest since 2009 when REIN began track this information.
MSI is a calculation of how long it would take for all inventory to be sold if no new properties came on the market.
“Any time the number of active listings is this low, while demand remains steady, you’re going to have a strong seller’s market,” said Harry Cross, President of REIN’s Board of Directors. “But our market isn’t really behaving any differently than the real estate markets in the rest of the nation.”
Cross pointed to the Median Sales Price, which increased to $295,000 in November, up from
$290,000 the month prior, and up from $276,000 year-over-year.
“As with any product that is for sale, when supply is low and demand remains strong, you’ll see prices being driven up,” he said.
- Settled sales were 2,987 in November, up 5.4% year-over-year, but down 7.8% when compared to October.
- Pending residential sales for the month were 3,027, up by 10.4% year-over-year, but down by about 4% compared to October.
- Residential new construction sales listed in the MLS sold in November was 269, down 13.2% year-over-year, but up from 266 the month prior.
- The number of residential active listings in 2021 peaked in July, when there were 4,621 homes on the market. Month’s supply of inventory also reached its high point that month at 1.47.