How is the Real Estate Market in Hampton Roads?

We have good news & bad news! The good news is our inventory is steady getting smaller. We are at about 8 months which is 2 months away from a normal market. The bad news is distressed properties (short sales, foreclosures, and bank owned homes) have been steadily increasing since July 2011. So, in the spring, when typical sales hit the market and if we continue to see a flow of distressed properties come on the market, our inventory will climb back up.  In fact, the experts are predicting that a dam is going to break – causing the nation to be flooded with bank owned and foreclosed properties.  The banks have been holding onto Shadow Inventory for a while now.

 

 

REIN, our local MLS, reports that distressed homes continued to rise as a percentage of active resale homes in November 2011 surpassing 25% for the first time since tracking began. The percentage distressed homes comprise of the active market has steadily climbed since July 2011. The increased percentage of distressed homes on the active market points toward further price declines in the near future, though this is not a certainty.

 

 

November 2011 Highlights

Listings

Residential active listings decreased, 17.3% year-over-year, to 12,162 (November 2011) from 14,698 (November 2010).  Inventory is down-phenomenal news! 

Under Contract (Pending) Residential Sales

Total residential under contract sales increased by 34.8% as compared to November 2010 (1,510 vs. 1,120).  More people are out making offers.

Sales

Total property sales and total residential sales increased when compared to November 2010 showing increases of 9.4% and 9.3% respectively.  Local sales are up-YAY!

Inventory

There is currently 8.15 months’ inventory of residential homes on the market in the Hampton Roads area, a slight decrease from the previous month and down 20.95% from November last year.  Inventory is significantly down in comparison to last year.  

November 2011 Summary

All Categories

November 2011

November 2010

Percent Change

Total Active Listings (Homes for Sale)

14,909

17,665

-15.6%

Total Pending Sales (Under Contract)

1,593

1,171

36.04%

Total Residential Pending Sales

1,510

1,120

34.8%

Total Property Sales (Sold)

1,420

1,298

9.4%

Total Residential Sales

1,362

1,246

9.3%

Median Residential Sales Price

$190,000

$212,500

-10.59%

Months’ Supply Inventory

8.15

10.31

-20.95%

* Months’ Supply Inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months average sales activity.  So, if we sold everything on the market and nothing else came on, it would roughly take 8 months to do it.  

You might be asking, if I put my house on the market, how long is it going to take?  We are “averaging” about 140 days locally.  But, remember there are some homes that sit on the market 2-3 years and others that still sell in 1 day.  Each neighborhood is different and what it really comes down to is how good of condition the house is in and if it is priced competitively.

For seller representation, please contact suzinoyes@williamewood.com.

 

 

 

 

 

 

 

 

 

 

 

 

Hampton Roads is made up of 7 cities: Virginia Beach, Chesapeake, Norfolk, Portsmouth, Suffolk, Hampton, and Newport News.

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