VIRGINIA BEACH, VA. (June 2021) – Past trends tell us that the Hampton Roads real estate market picks up in the warmer months. If recent sales have any true ties to the weather, this summer is going to be a hot one. Concerns of historically low inventory have plagued local and national markets for some time now, but in May 2021, all new listings in Hampton Roads were up 24.74% year-over-year in our region. According to REIN, Southeastern Virginia’s Multiple Listing Service (MLS) and the source of statistical real estate data in Hampton Roads, new listings, pending sales, and settled sales all experienced year-over- year growth.
In May 2021, settled sales saw a 33.57% increase year-over-year, with 3,378 homes sold in May 2021 versus 2,529 homes sold in May 2020. Residential properties labeled as pending (or under contract) rose 26.14% in May 2021 to 3,682 homes from 2,919 homes in May 2020. Likewise, REIN saw another jump in the right direction last month for new residential listings coming into the market, a trend that we’re certain will be watched closely by many.
In May 2021, there were 3,834 active listings on the market compared to 3,780 homes in April 2021, and even fewer homes for sale in March 2021 at 3,552 homes. While this subtle increase is still much lower than the 6,348 homes for sale from May of 2020, this continued uptick is a good start toward a more balanced market.
“I believe this trend will stay the course through the summer and into the fall,” said Harry Cross, REIN’s Board President. “But my crystal ball rolled off my office desk and shattered about 20 years ago,” he joked. “With low inventory, and multiple offers pushing the median sales price higher and higher, agents are working double time for their clients right now. This is definitely not the time to think you can brave the real estate market on your own. What a fantastic time to be a seller though! Just a few weeks ago, the weekly REIN Report advertised a median days on market of eight days. Eight days, can you believe that?”
Cross went on to say, “Another issue we’re seeing is new construction. Construction simply has not kept up with the demand for years. And it’s even more of a challenge now with the unpredictable prices of lumber and materials. It does not appear that construction will catch up with the demand for years to come.” REIN data, which is not a complete representation of new construction in the area, shows a very small percentage increase of .97% in new construction sales year-over-year.
The median sales price for residential properties in the Hampton Roads region for May 2021 was $290,000, an 8.61% increase from this time last year, and a 1.75% increase from April 2021.