Prices Climb as Summer Market Heats Up

VIRGINIA BEACH, Va. (July 2023) – For the second straight month, the Median Sales Price (MSP) of homes sold in Hampton Roads reached a new record high. Across the region during the month of June, the MSP was $345,000 – an increase of $10,000 over May’s MSP of $335,000.

June also saw the number of active listings increase from the month prior, as did the number of settled sales. However, according to data from the Real Estate Information Network (REIN), when compared to June 2022, both active listings and settled sales are down significantly.

“Seasonally, the month-over-month increases were expected, but they’re still important,” said Jon McAchran of AtCoastal Realty and President of REIN’s Board of Directors. “However, when we compare active listings and settled sales to last year, we’re still well below 2022 numbers, and inventory continues to be lower than where we need it to be for a healthy, balanced market.”

The Months’ Supply of Inventory (MSI) for June was 1.47, up both month-over-month from 1.37 in May, and year-over-year from 1.33 in June 2022. REIN calculates the MSI by dividing the total active listings for a month by the absorption rate, which is the total number of listings sold over the preceding 12-month period, divided by 12.

“The MSI is up mainly due to slowing sales, which in itself is being impacted by a lack of inventory causing price increases,” said McAchran. “But, all things considered, the Hampton Roads market is much healthier and more robust than markets in many other parts of Virginia and the United States.”

REIN is the multiple listing service in Hampton Roads, with more than 9,000 members and licensees, including brokers, agents, appraisers, and other real estate professionals.

June data points from REIN:

• Active residential listings for June were 3,366. That’s a 4.6% increase from 3,217 in May, but down 18.1% year-over-year from 4,114 in June 2022.
• Pending sales stood at 2,517. That’s down 11.8% from 2,856 in May and down 15.5% from 3,074 year-over-year.
• Settled sales during the month were 2,667. That’s a 6.6% increase from May, but down 19.7% from 3,320 in June 2022.
• Median sale price (MSP) of homes sold in the region rose to $345,000, a new record high. The MSP was $335,000 in May and $325,750 in June 2022.
• Months’ Supply of Inventory for June was 1.47. It was 1.37 in May and 1.33 in June 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 11, the same as it was in May. The DOM was nine at the same time last year.
• Residential new construction sold in the MLS during the month was 257. It was 252 last month and 292 last year.