Declining home inventory drove median sale prices higher in the Hampton Roads region in December, according to Long & Foster Real Estate’s Market Minute Report.  

Median sale price increases ranged from 5% in Chesapeake City to 14% in Norfolk City.  Inventory continued its downward spiral across the region ranging from a 30% dip in Norfolk City to 43% in Virginia Beach City. Units sold rose throughout most of the region with Virginia Beach City experiencing the largest year-over-year rise of 35%. The only area experiencing a drop in units sold was Hampton City with a 1% decline. 

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

 

Low housing inventory was more challenged in December and, generally, will remain a challenge in 2020, according to Gary Scott, president of Long & Foster Real Estate. “The low inventory environment we are experiencing today is in part, caused by the population aging in place,” said Scott. “At some point in time in the near future, we predict aging in place will lead to selling at a robust pace for a 10-year period. When will that start? Probably not in 2020.”   

Scott noted that his 33 years in the real estate business suggests the spring real estate market begins each year on January 15. “With the holidays over, and the kids back in school, people traditionally begin to focus on selling or buying now,” said Scott.  “Although the shortage of inventory will cause the number of homes sold this year to be off, we expect good healthy appreciation for homeowners.” 

For those considering buying a home this year, Scott gave some insight on the pros and cons of buying versus renting. “Buying provides a sense of pride and stability, while renting provides flexibility,” said Scott. He added that buying a home builds equity and has tax advantages while renting keeps cash liquid. “There is no metric nor algorithm to determine if and when you should buy a home – it’s really about personal preference,” said Scott. “If you know you are going to be in living in your current location for at least two or more years, I recommend you buy a home.” 

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.