Inventory Up Slightly, Prices Remain Steady

VIRGINIA BEACH, Va. (May 2023) – April saw both active listings and Month’s Supply of Inventory (MSI) increase slightly from March, while year-over-year, active listings were down, and the MSI was up. Active listings continue to remain significantly below pre-pandemic levels.

Both pending sales and settled sales were down in April from the month prior. However, while there are reports of selling prices falling in many markets across the nation, they remained strong across Hampton Roads. For the second straight month, the Median Sales Price (MSP) for all homes sold stood at $320,000.

The MSP on the Southside was $330,000, compared to $297,512 on the Peninsula and $365,750 for outlying areas of Virginia and North Carolina. Virginia Beach had the highest MSP on the Southside at $365,000, while James City County recorded an MSP of $480,000 on the Peninsula. This is according to data from the Real Estate Information Network (REIN), the multiple listing service in Hampton Roads.

“Interest rates continue to fluctuate and that’s causing hesitation for some potential buyers, but the lack of inventory remains our biggest challenge here in Hampton Roads,” said Jon McAchran of AtCoastal Realty and President of REIN’s Board of Directors.

“Consumers are still looking to buy. They just need more homes, and the right homes, for them to choose from.”

McAchran pointed out that despite a dip in closings and pending sales, the median number of days homes were sitting on the market did decrease from March (15) to April (12).

"Buyers are becoming increasingly discerning in their choices, mostly due to the increased costs due to the higher interest rates, but they’re also acting quickly when a home that matches their criteria comes on the market," said McAchran.

April data points from REIN:

• Active residential listings for April were 3,156, up slightly from March’s 3,124. That’s down slightly from 3,187 when compared to April 2022.
• Pending sales stood at 2,363, down 11.8% month-over-month from 2,578 in March, and down 21% from April 2022.
• Settled sales during the month were 2,053, down 9.9% from 2,277 in March, and down 27% year-over-year.
• Median sale price (MSP) of homes sold in the region remained steady at $320,000, up year-over-year from $319,375.
• Month’s Supply of Inventory (MSI) for April was 1.32, up slightly from 1.27 in March and up year-over-year from 1.01 in April 2022. MSI is a calculation of how long there would be homes on the market if no new inventory was added.
• Median days on market (DOM) for residential listings was 12, down from 15 in March, and up year-over-year from seven last April.
• Residential new construction sold in the MLS during the month was 277, compared to 296 last month and 306 last year.