The number of homes sold increased in many areas of the Hampton Roads region last month including a 35 percent increase in Newport News City, according to the Long & Foster Real Estate Market Minute report. Median sale prices rose by 8 percent in Norfolk City and 3 percent in Newport News City. Meanwhile, active inventory continued to fall in the region, with declines ranging from 35 percent in Norfolk City to 41 percent in the cities of Chesapeake and Newport News.

The Long & Foster Real Estate Market Minute report for the Hampton Roads region includes Chesapeake, Hampton, Newport News, Norfolk and Virginia Beach cities.

Lately, industry headlines have been touting increasing inventory of homes for sale, but they don’t tell the whole story, said Gary Scott, president of Long & Foster Real Estate. When broken down by geographic area or price point, consumers may see a very different picture.

“Inventory is up nationwide but, looking at areas like Hampton Roads, you can see that doesn’t apply to every market and much of the new inventory is priced at the higher end,” Scott said. “Every area has its own unique factors, which is why it’s so critical to work with a hyperlocal expert who can help peel back the layers of information.”

He said while builders want to create more entry-level housing they’re in a difficult spot.

“We all know we need to deliver new housing at an affordable level, but the cost of land, the cost of labor and the cost of supplies are a problem,” Scott said. “Those variables we don’t have control over are putting us in a place where building lower cost homes is hard to do.”

In the last months of 2018, real estate industry experts were predicting rising mortgage rates for this year. Instead they’ve remained low, causing many to revise their projections.

“There are two things that motivate people when it comes to interest rates,” Scott said. “One is low interest rates rising, and the other is trending upward decline. Back when mortgage rates were 3.25 percent and trending downward, people were holding off on buying because they thought rates were going to go under 3. The minute they rose to 3.5 people jumped to lock in their rate.”

“The stock market has also leveled to some degree, and the more that stabilizes the better off we’ll be,” Scott said.

To learn more about your local market conditions, visit Long & Foster’s Market Insights. You can also learn more about Long & Foster and find an agent at LongandFoster.com.