PORTSMOUTH, Va. (WAVY) — If you’re shopping for a new home this fall, be sure to pack your patience.
There’s been a slight increase in listings, but new numbers from the Real Estate Information Network (REIN) indicate the increase is not enough to move the needle for would-be home buyers in Hampton Roads.
Jon McAchran, of AtCoastal Realty, is REIN’s Board President.
“We’ve had a slight uptick, but we are still very low — drastically low. When I looked at the numbers earlier today, in 2019 we had about 10,000 active listings prior to COVID this time of year. Now, in 2023, we are still at about 4,000, so less than half of what we had prior to the pandemic,” said McAchran.
It was the Wild Wild West in the real estate market during the pandemic as buyers went on a shopping spree while interest rates hovered around 3%.
Now, with interest rates hovering around 8% homeowners are holding on to the properties they bought when rates were low, rather than selling and buying another home at a higher interest rate and a higher price.
The September Median Sales Price of $333,000 in Hampton Roads is up nearly 7.5% from a year ago.
McAchran says that the trend, coupled with a slowdown in the construction of new homes, leaves buyers with few options.
“The inventory just fell off a cliff and it just never fully rebounded,” said McAchran.
McAchran says the industry was looking forward to a return to seasonal trends. Typically, the market picks up in the spring due to military transfers. But now all bets are off because of the war in Israel. All aspects of the Hampton Roads economy could take a hit as some 15,000 people deployed with two carrier strike groups.
Click here to view the full September 2023 Virginia Home Sales Report.