The number of homes for sale in Hampton Roads is increasing, which is a positive sign for area real estate agents.
Although there has been a significant shortage of existing homes over the past few years, Real Estate Information Network board chairman Gary Lundholm said the region’s housing supply is starting to improve.
“Comparing September 2024 to last year, our active listings have increased by almost 23%,” Lundholm said.
REIN, a regional multi-listing service, tallied 4,641 active residential listings in Hampton Roads in September. This number was down 3.5% from 4,811 people in August, but up 22.8% from 3,778 people last year.
Inventory shortages are contributing to friction in the local housing market, with sales in the January-September period falling 3.4% from a year ago.
Depending on who you talk to in the industry, Lundholm said four to six months worth of inventory is considered a balanced market.
“We currently have about 2.3 months’ worth of supply,” he said. “While this is a significant increase compared to last year, we have not yet reached a stage where the market is more balanced.”
Homeowners aren’t selling as fast as they used to, Bob McNabb, an economist at Old Dominion University, said in his annual report on Oct. 8. He said the number of existing homes sold in the area has fallen by more than 30% in the past two years. Vacancy rates nationally and in Virginia are at historic lows, he added.
“As interest rates come down, some homeowners who have been trapped in the housing market will start to move, and that will remove some of the friction,” McNabb said.
courtesy
George Kim, President of the Hampton Roads Association of Realtors (Photo provided)
Kim Georges, president of the Hampton Roads Association of Realtors, said he is feeling optimistic about the area’s real estate market for the first time in a while.
“At the end of the day, it’s always supply and demand,” Georges said. “I think the supply is increasing.”
Georges, vice president and managing broker at Howard Hanna in downtown Norfolk, said the home will be on the market a little longer, but there are no surprises. According to REIN data, homes were on the market for a median of 25 days in September. This is an increase from 21 days in August 2023 and 17 days in September 2023.
With demand still outpacing supply, Georges said he expects prices to continue rising from 2.35% on the Peninsula to 4.66% in South Hampton Roads.
According to REIN, the median sales price for existing homes sold from January to September was $335,000, up 5.35% from a year ago. The median sales price for new homes rose 2% to $423,895.
Georges said more buyers are putting in more pre-qualifications. Georges said it’s not unusual for this fall, but he’s really happy to see it this fall and it gives him a positive outlook.
Lundholm, a principal broker with The Real Estate Group, has been in the industry for 37 years. He said rising home values, increased inventory for sale and lower interest rates are showing promise in the real estate market. According to a survey by Freddie Mac, the interest rate for a 30-year fixed mortgage is 6.5% nationwide as of October 24th. This was down from 7.79% a year ago.
“If you find the right home and are in a position to buy it, I think I’d still go ahead,” he said. “As we look to 2025, we are confident that it will be a good year for everyone.”
Sandra J. Pennecke, 757-652-5836, sandra.pennecke@pilotonline.com
