Region’s Homes Sitting on Market Longer

VIRGINIA BEACH, Va. (January 2023) – Median days on market (DOM) for homes in the Hampton Roads region reached a high point for the year in December, climbing to 24 — in sharp contrast to the median DOM in March and April, which was seven — the year’s lowest.

Just one year earlier, in December 2021, the DOM was 15. That’s a year-over-year increase of about 60%, while the month-over-month DOM rose from 20 in November, a 20% increase.

While days on market can help potential buyers identify which homes are newly listed and which have been there for a while, REIN Board of Directors President Jon McAchran of AtCoastal Realty, said that December’s DOM is indicative of a slowing market.

“Mortgage rates and inflation continue to impact the real estate market, and that’s apparent from data points such as days on market,” said McAchran. “However, it’s important to remember that this is the time of year when the real estate business typically slows a bit.”

He said that 2022 was essentially a story of two separate markets. During the first half of 2022, the market remained highly competitive with tight inventory and selling prices reaching record highs. However, July began a slow decline in the market, with the days on market doubling from 12 in July to 24 by December.

“Prices have corrected somewhat, and if mortgage rates can rebound, we could potentially see activity jump back up a bit this year,” McAchran said.

December’s data points from REIN:

• Active residential listings totaled 3,345. That’s 518 fewer than the month prior, but up year-over-year by 19%.
• Pending sales stood at 1,692, a drop from 1,913 for November. That’s also down year-over-year by 31% from 2,441 last December.
• Settled sales during the month were 2,004. That’s up 4% from 1,923 in November, but down 35% from 3,092 year-over-year.
• The median sales price (MSP) of homes sold across the region in December was $306,000, up from $302,000 last month and up 5.5% from $290,000 in December 2021.
• The Month’s Supply of Inventory (MSI) the month was 1.27, a drop from 1.42 in November, but higher than the 0.88 MSI recorded in December 2021. MSI is used to identify how long there would be homes for sale on the market if no new inventory were added.
• Median days on market (DOM) for residential listings was 24.
• Residential new construction sold in the MLS during the month was 277, that’s 77 more than last month, and 29 fewer than 306 last December.