Saturday, December 2, 2023

Area Closings and Pending Sales Rise in February


VIRGINIA BEACH — Both settled sales and pending sales of residential real estate were up in February across the Hampton Roads region when compared to the month prior.

That is according to data compiled by the Real Estate Information Network (REIN Inc.), a regional Multiple Listing Service (MLS) with coverage extending from Williamsburg east to Virginia Beach and south across the North Carolina border.

With the rise in closings and pending sales, active listings fell from January, but only slightly, it said, while selling prices also increased.

“A lot of factors impact the real estate market, not just mortgage rates,” said REIN Board of Directors President Jon McAchran. “While mortgage rates are important, having a good selection of homes for buyers to choose from is also extremely important.”

McAchran noted active listings were up 25% from February 2022, with 629 more homes on the market. Even with a rise in mortgage rates, median sales prices across the region were up both month-over-month and year-over-year.

“For most consumers, buying makes more sense than renting, and when they need to buy, they’re willing to pay the right price for the right home,” he said, adding that despite the recent rise in mortgage rates, he expects consumers to remain active.

“We expect 2023 to be similar to pre-pandemic years where inventory increases in the spring and summer, and as long as buyers have inventory to choose from, they’re going to shop for homes,” he said.

He added that while mortgage rates might seem high compared to recent years, the region remains very affordable when compared to many other parts of Virginia.

February’s data points:

  • Active residential listings for February totaled 3,130. That’s down by 136 listings,
    or 4.16% month-over-month, but up 25.14%, or 629 listings, year-over-year.
  • Pending sales stood at 2,058. That’s up 5.92% month-over-month, but down
    19.9% year-over-year.
  • Settled sales during the month were 1,684. That’s up 12.10% month-over-month
    and down 22.65% year-over-year.
  • The median sale price (MSP) of homes sold in the region was $313,650. That’s up
    3.5% from $303,000 last month, and up 7.9% from $290,500 last year.
  • The MSI for February was 1.24. That’s down from 1.27 the month prior, but year-over-year is well above the record low MSI of 0.78 recorded in February 2022.
  • Median days on market (DOM) for residential listings was 20. That’s a month-
    over-month decrease of seven days. The median DOM had increased each month since March 2022, before dipping in February.
  • Residential new construction sold in the MLS during the month was 228,
    compared to 244 for February of last year.

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