Median sale prices rose in July across Virginia’s Eastern Shore Region, according to Long & Foster Real Estate’s Market Minute Report. In Northampton County, sale prices increased by 25% and Accomack County experienced a 13% increase.
Northampton County experienced a significant 131% uptick in the number of units sold compared to last year at this time, while Accomack County saw a 4% decline. Inventory continued a downward trend throughout the Virginia Eastern Shore region.
Despite the current economic climate, the housing market has recovered remarkably this summer and is expected to continue its upward trend into the fall. “We’ve seen different buying patterns with so many people working from home now,” said Gary Scott, president of Long & Foster Real Estate.
The pandemic has caused many people living in urban centers to flock to the suburbs to have more space and be away from crowds. Since more people are working remotely, the need for a place with separate areas for work and relaxation have become essential.
“People are purchasing vacation homes within driving distance of their primary homes,” said Scott. “Real estate sales at the beaches are at or near an all-time high.” Demand for homes in other areas is also incredibly strong, while purchasing power has never been better.
Average fixed mortgage rates continue to be historically low and the risk of a foreclosure crisis is unlikely, since most people have significant equity in their homes. During the economic recession of 2007 and 2008, many people had put little to no down payment on their homes. In today’s climate, “people have a lot more equity in their home, so the chances of foreclosure are low,” Scott explained.