VIRGINIA BEACH — An increase in inventory of homes for sale in the Hampton Roads region for June has resulted in a slight drop in sales prices from May’s record high according to data compiled by the Real Estate Information Network, Inc. (REIN).
According to REIN, a regional Multiple Listing Service (MLS) serving real estate professionals from Williamsburg east to Virginia Beach and south across the North Carolina border, active listings for June were up nearly 20% from a month prior. Also up from May to June were settled sales (4%). However, both active listings (-5.2%) and settled sales (-14.5%) were down year-over-year.
Inventory, while increasing, is nowhere near pre-pandemic levels, according to the service. June 2017 saw 11,069 active listings, with 10,133 in June 2018, and 9,308 in June 2019, compared to 4,114 in June 2022.
REIN surmises more competition among sellers and more choices for buyers likely contributed to the dip in the median sales price (MSP) of homes across the region. The MSP was down almost 1%, to $325,750 despite a month-over-month increase in settled sales of 4%. The MSP in May hit a record high of $328,795. In June 2021 it was $298,400.
“At this point in time additional inventory is a good thing,” said the President of REIN’s Board of Directors, Liz Moore, Broker/Owner of Liz Moore & Associates. “Right now, thanks to a few different factors, the real estate market is in a bit of a transition both locally and across the nation.”
Moore said mortgage rates, along with high home prices and the continuation of tight inventory, are softening the market slightly, but still driving some potential buyers to the sidelines.
“For the fifth straight month, the months’ supply of inventory (MSI) has increased,” Moore added. “We’re nowhere near a balanced market yet, but to get there inventory will need to continue trending up.”
MSI is a calculation of how long it would take for all inventory to be sold if no new properties came on the market. The MSI for June was 1.33, according to the service, compared to 1.10 in May.
- Active residential listings for June were 4,114. That’s up 19.73% month-over-month, but down 5.2% from 4,327 year-over-year.
- Settled sales during the month were 3,320, up 4% month-over-month, but down 14.5% from 3,885 in June 2021.
- Pending sales for June were 3,074, down 5.79% month-over-month, and down 17.5% year-over-year from 3,612 in June 2021. Pending sales from May to June also decreased slightly during the pre-pandemic years of 2017-2019. However, they increased by 19% from May to June 2020, and increased again slightly in 2021.
- New residential listings added to the market in June totaled 4,213, a month-over-month increase of 7.45%, but a year-over-year decrease of 5.33%.
- The MSI for June was 1.33, that’s up from 1.10 in May, but down slightly year-over-year from 1.35.
- Median days on market (DOM) for residential listings was nine for the month of June, up one day from eight in May.
- Residential new construction sold in the MLS during June was 292, down year-over-year from 333 reported in June 2021.