The strong Virginia Peninsula economy slowed somewhat at the end of 2018, with job growth fueled primarily by the relatively lower-wage Accommodation & Food Services and Administrative & Building Support Services sectors.
Interest rates are even lower now than they were at the beginning of the year, and there is no indication of significant increases in the months to come.
Housing Market Conditions
Home sales continue to increase in the Virginia Peninsula region and were up 5% in the 2nd quarter compared to last year. Hampton led all jurisdictions in sales growth, with 73 more sales than a year ago, representing a 13% gain.
After moderating during the start of the year, home prices in the region are back on the rise, continuing a trend that has been relatively consistent for more than two years. At $212,000 the median sales price in the Virginia Peninsula footprint is $12,000 higher than last year, a 6% increase.
Overall, the inventory of active listings is expanding slowly; however, the growth is only occurring in York and Isle of Wight Counties. The number of active listings in other jurisdictions in the region continues to shrink, which is having an impact on pricing in some local markets.
View the full Report Here: VPAR 2019-Q2 Housing Market Report
Virginia Peninsula Realtors® Market Report Key Takeaways
Housing Market Conditions
October 2016 residential real estate sales performed steadily relative to prior year benchmarks, re balancing from a third quarter balloon and still reflecting high buyer demand. The value of transactions for October 2016 was $2.815 billion, up 1 percent from the same month in 2015 ($2.787 billion). Volume through the end of October 2016 exceeded $31.970 billion, a gain of 6.4 percent from last year’s accumulation of $30.050 billion.
As high demand overcame typical seasonal trends, October median price was unchanged month-over-month and was 5.0 percent higher than in the same month last year ($262,500 over $250,000 in October 2015). Typically, price drops month-to-month from June through the end of the year. Average length of time on the market decreased markedly year-over-year, by 16.7 percent (from 78 days last October to 65 this year). The number of October transactions in 2016 was slightly fewer than in 2015, declining 0.9 percent from 8,870 to 8,789. October sales reflect buyer eagerness to absorb inventory and take advantage of continued low financing rates.
The Virginia residential real estate market brought opportunity to both buyers and sellers in the third quarter of 2016. Both the total number of sales and the value of transactions rose from the same period last year, to 32,949 units and $10.821 billion, respectively. Volume – the sum of all transactions for July, August, and September of 2016 – was 5.8 percent higher than the same period last year, and 17.6 percent higher than the third quarter of 2014. Aggregate median sales price for this quarter was $270,000, an increase of 1.9 percent from the third quarter of 2015 ($265,000). The average number of days on the market dropped from prior year benchmarks to an average of 61 for the 2016 third quarter, 10.3 percent lower than last year’s third quarter average (68 days). Atypical of industry seasonality, the average length of time on the market decreased from the second quarter to the third. Historically, the second quarter, with peak summer sales activity, exhibits the fastest pace from listing to close. The decrease in days on the market year-over-year and from the preceding quarter reflects strong buyer motivation, compelled by limited inventory and continued access to low-cost financing.
“Virginia’s third quarter housing market performance illustrates opportunity for both buyers and sellers,” said 2016 VAR President Bill White. “It’s a great time to list, as demand is still high from buyers who weren’t satisfied with limited summer inventory and prices are buoyed by their motivation. For buyers, more options are coming onto the market while they can still take advantage of historically low interest rates.”