PORTSMOUTH, Va. (WABY) — The housing market across the commonwealth slowed in 2023, but economists expect it to improve heading into the new year. Despite the decline in sales, Hampton Roads fared better than the rest of the state, at least in some ways.
Military personnel account for the majority of home buyers in the seven cities. In Hampton Roads, home sales were down just 0.4%. Statewide, the decline was 7.5%. This is according to Jeremy Johnson, former president of the Hampton Roads Association of Realtors.
“This tells us we have a little more insulation,” he said.
In 2023, interest rates across the state continued to rise, hovering above 7%, making the situation ripe for a slowdown in sales.
“It was twice as slow and twice as competitive,” said Ryan Price, chief economist at Virginia Realtors. “Virginia's market is the weakest it's been in about a decade.”
Prices for first-time home buyers were soaring, and inventory showed no signs of improving.
However, in October, interest rates began to fall. Currently it is around 6%. Price called this good news for 2024.
“We think this will stimulate market activity on both sides of the table,” he said.
However, inventories remain stagnant.
“Low supply is really constraining the market,” Price said. “If you have more supply, more demand, and pent-up demand in the market, you're going to get more sales.”
Experts say the situation remains difficult for young people and new home buyers. Their advice is to be patient and remain flexible.
“There's a good chance you won't be able to buy your dream home,” Johnson said. “You may have to put some effort into what you buy and make some updates yourself.”
For those interested in selling their home, real estate agents 10 On Your Side spoke to said now is a good time to sell. Make sure you have somewhere to go afterwards.
