Tuesday, October 4, 2022

Second quarter real estate sales: Inventory remains tight

VIRGINIA BEACH — One thing is for certain when it comes to real estate in this oceanfront city: It’s a seller’s paradise.

The real estate market in Virginia Beach remains busy, with 2,172 homes sold between April 1 and June 30, an increase of 1.54 percent over the same quarter last year.

According to the second quarter settled sales report by the Real Estate Information Network, last year’s total units sold during this same quarter were 2,139.

The report also shows that the median price of homes being sold in Virginia Beach is up, from $260,000 in April-June 2017 to $265,000 this year. The average second quarter sales price also increased from last year, from $307,865 to $317,359.

And, the average number of days homes are sitting on the market is down during the second quarter, from an average of 53 days last year to just 46 this year.

So what do the numbers mean for the local real estate market?

Lonnie Bush, broker/CEO, of Lonnie Bush Real Estate, said the second quarter was “a little crazy.”

With a tight inventory in the city, median sales prices are up and buyers are sometimes competing for homes. There are often multiple bidders for a single property, he said, because there’s not as much inventory.

While that may present challenges for buyers, who might need to be more aggressive and attentive, it is pretty good for sellers.

“There’s never a better time for sellers than when the inventory is low,” he said. “It’s very uncommon to have rates be pretty good and for inventory to be low.”

It’s a perfect time to sell, Bush said. Although rates are creeping up a bit, they’re still pretty good. His guess is that many current homeowners are still cautious and opting to stay where they are, remembering the housing and lending crash from a decade ago.

“I always tell people that the best time to buy and to sell is now, because you know what’s going on now,” he said. Next year there could be volatility in the housing market or in the stock market, he added, leading to fluctuations or other factors that could affect home values.

Lonnie Bush, broker/CEO of Lonnie Bush Real Estate, said inventory remains tight in the Virginia Beach market (Southside Daily photo/Courtesy of Lonnie Bush Real Estate)
Lonnie Bush, broker/CEO of Lonnie Bush Real Estate. (Southside Daily photo/Courtesy of Lonnie Bush Real Estate)

Bush said the increase in both median and average sales price is good. An increase of between one and two percent represents a steady rise, and not a significantly large increase that might lead to temporary volatility.

“Obviously we want appreciation, but we don’t want it to be a temporary thing,” he said. “As long as we’re moving in the right direction, that’s good.”

REIN numbers from the second quarter of 2018 (Southside Daily photo/Courtesy of the Real Estate Information Network)
REIN numbers from the second quarter of 2018 (Southside Daily photo/Courtesy of the Real Estate Information Network)

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