On Trend, Median Sales Price Takes Seasonal Dip

VIRGINIA BEACH, Va. (September 2021) – As past seasonal trends indicated they might, the median sales price (MSP) of residential homes sold in Hampton Roads took a very slight dip in August – by just 1.0% to $297,000. This represents the first drop in MSP since January of this year.

REIN, Southeastern Virginia’s Multiple Listing Service (MLS), reported that the trend follows the past three years, which showed a similar drop from July to August. The MSP in January 2021 was $264,900, making August’s MSP an increase of 12.1% since the beginning of the year, with a peak MSP for 2021 of $300,000 reached in July.

Year-over-year, the residential median sales price increased 8%, from $275,000 in August 2020.

“Data from past years show that the median sales price tends to level off at this time of the year, so what we’re seeing is a normal trend,” said Harry Cross, President of REIN’s Board of Directors. “The local market is still very active, with pending sales up nearly 3% for the month.”

With active listings down and pending sales up, Cross said it’s no wonder the Month’s Supply of Inventory dropped from 1.47 to 1.41, which is also a 26% drop from 1.91 in August 2020.

“Again, this matches historical yearly trends and doesn’t necessarily indicate a big shift in the market,” Cross said.

• The number of residential active listings for the month was 4,467, down year-over, compared to 5,105 in August 2020 and also down slightly from 4,621 recorded in July.
• Settled sales were up 8.39% year-over, with 3,667 in August 2021, compared to 3,383 in August 2020.
• The number of days on market (DOM) for homes in Hampton Roads crept up from 11 in July to 12 in August. 
• Residential new construction sales listed in the MLS for August were 304, compared to 329 in July and 350 at the same time last year.
• Pending residential sales for the month were 3,645, a slight increase from 3,544 in July and a 6.67% increase over 3,417 in August 2020.
• Homes priced in the $200,000-$299,000 range make up about 31.8% of all active residential properties and remain the hottest sellers.