To-date, the Hampton Roads real estate market has avoided the pitfall of too few listings, as experienced in other parts of the country. In fact, residential active listings increased significantly in May 2014 from the prior year. Unfortunately residential pending and settled sales have not kept pace, and experienced declines for May. Good news for the sales statistics is that distressed sales activity is dropping as well.
Last month’s residential active listings increased 9.54% when compared to May 2013. Each of the region’s seven major cities (Chesapeake, Hampton, Newport News, Norfolk, Portsmouth, Suffolk, Virginia Beach) saw year-over-year increases in the number of residential homes for sale. Suffolk and Chesapeake were dominant contributors to this jump, with increases of 17.82% and 17.05% respectively. The months’ supply of inventory of residential homes for sale is currently 6.9 months, up 4.86 % from May 2013 when it was 6.58.
Residential pending sales decreased year-over-year for the second time in 2014, with a slight 1.83% decline for the region in May. Despite the regional drop, Newport News, Portsmouth and Virginia Beach saw gains in pending sales of 35.37%, 20.49% and .33% respectively. Suffolk and Hampton experienced the largest declines of 15.03% and 11.04%.
For the fifth consecutive month residential settled sales have declined from the prior year. Norfolk and Virginia Beach were major contributors to the region’s drop, with year-over-year declines of 12.99% and 10.89%. Going against this trend, Suffolk, Newport News and Hampton saw increases of 28.70%, 9.09% and 7.56% respectively. While May’s sales may be down, the region’s median sales price for a residential home is currently $210,000, up 2.44% from May 2013’s median sales price of $205,000.
Distressed homes, those that are either short sales or foreclosures, had considerably less impact on the region’s real estate market during May 2014. Distressed homes accounted for only 17.97% of all
residential homes for sale in May 2014, down 4.44% from May 2013. The percentage of distressed homes as active listings has steadily declined each month in 2014, and has now reached its current level which is the lowest reading in 4 years, when it was 17.39% in May 2010. In the arena of residential settled sales, distressed homes accounted for 21.26% of all sales during May 2014, which is down 4.99% from May 2013, and down 8.23% from the beginning of the year.
May 2014 Summary
All Categories May 2014 May 2013 Percent Change
Total Property Active Listings 15,019 13,753 9.21%
Total Residential Active Listings 12,173 11,113 9.54%
Total Property Pending Sales 2,319 2,322 -0.13%
Total Residential Pending Sales 2,204 2,245 -1.83%
Total Property Sales 2,044 2,123 -3.72%
Total Residential Sales 1,953 2,030 -3.79%
Total Residential New Construction Sales 217 236 -8.05%
Median Residential Sales Price $210,000 $205,000 2.44%
Months’ Supply of Inventory 6.9 6.58 4.86%
* Total Property statistics include all property types (Residential, Commercial, Duplex, Apartment and Land & Farms), resale and new construction.
* Months’ Supply of Inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months average sales activity.
Real Estate Information Network, Inc., (REIN) serves real estate brokers in the Tidewater / Hampton Roads area of Virginia from Williamsburg east to Virginia Beach and south to the North Carolina border. REIN is an independent MLS owned by broker stockholder members. Currently there are approximately 530 real estate firms with 650 offices, 6000 real estate agents, and 155 appraiser members using REIN. For more information visit http://www.REINMLS.com
All my best,
Myra Spano, REALTOR®
About the Author:
Myra Spano is a service and results oriented real estate agent with her client’s goals as top priority. Myra is recognized as a top producing agent in her office in Virginia Beach and enjoys working with both buyers and those selling their homes.
For information about purchasing a home in Virginia Beach, visit her website. This site is focused on homes available for sale in Hampton Roads, Virginia. Email, call or text to make an appointment begin your home search.
If you are considering selling your home in Virginia Beach or one of the surrounding areas, visit the seller’s website to request a Free Market Analysis of your property.
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