PORTSMOUTH, Va. (WABY) — As the weather gets warmer, Virginia real estate agents are reporting the commonwealth’s housing market is heating up. Virginia real estate agents said sales in April were the biggest increase in nearly three years.
But are we really seeing more for-sale signs popping up in front of homes in Hampton Roads?
“It’s all about context,” said Ryan Price, an economist at Virginia Realtors. “Sales in April definitely increased from a year ago.”
The Virginia Association of Realtors reported 9,416 homes sold in April, a 14% increase from last spring.
“Virginia Beach has really seen an increase in crowds over the last month,” Price said. “[The] “There’s been a really strong surge in sales in the Portsmouth market since April last year and then we suspect new builds are happening on the Isle of Wight as well.”
However, if you look at the 10-year trend line, the region is well below average. Also, during his first four months of 2024, the Hampton Roads market was generally flat.
“It’s really surprising how much of a negative impact these interest rates have on many of the monthly payment calculations,” Price said.
Affordability remains a key concern.
With the median home price soaring to $416,548, interest rates are still hovering around 7%, making monthly payments unaffordable for many.
“In the short term, we’re really stuck with inventory,” Price said.
While home sellers can potentially make a lot of money in this market, many who are ready to upsize or downsize are choosing to stay in their current homes at much lower interest rates (often around 3%). Selected.
That leaves little inventory for first-time homebuyers, many of whom are millennials and worried about whether they can afford a home.
“This is a comment I hear all the time,” Price says. “However, no matter how many surveys we conduct, the desire to own a home still points to a desire to own a home. To stabilize home prices, we either need to increase inventory or lower interest rates, both of which are likely to occur in the near future.” It’s highly unlikely.”
