(Virginia Beach, Virginia – September 2020) Real Estate Information Network Inc. (REIN), the regional Multiple Listing Service, reports that the region’s supply of inventory stood at just 1.97 months for August 2020, down 46.90% year-over-year from August 2019, and the lowest recording since REIN began tracking this metric in September 2008. Simply stated, if no new listings were added to the market after August 31st, it would take less than two months for the current inventory to sell out. New listings are added to the market every day, so the risk of running out of inventory is unlikely, but this does help to gauge if the market is balanced or if it favors buyers or sellers. The region had just 5,105 residential active listings in August 2020, down 42.15% from the 8,824 listings in August 2019.
While news of such reduced inventory may sound daunting, the region’s sales tell a much more positive story regarding our local market. Residential pending sales (homes that went under contract) for August 2020 rose a significant 34.78% year-over-year, up to 3,600 units vs. last year’s 2,671. Residential settled sales also rose considerably, up 15.37% with 3,385 homes closed as compared to 2,934 last year. The residential median sales price increased 7.84% year-over-year, up to $275,000 from $255,000 in August 2019.
“Usually the real estate market begins to slow as the summer months wind down, vacations wrap up, and kids head back to school,” said Barry Nachman, President of REIN. “But if 2020 has taught us anything, this year is not ‘usual.’ Our region’s sales remain strong and there is no sign of a market slow down in terms of how quickly homes sell once listed in the MLS. Demand from buyers coupled with a low availability of homes on the market suggests that 2020’s current sales trends will continue through the end of the year.”
In August 2020, distressed homes (foreclosures and short sales) in the Hampton Roads region accounted for 3% of all residential settled sales, down 2.34% year-over-year and the lowest recording since REIN began recording distressed statistics.