July brought an increase in median sale price and number of homes sold, according to the Long & Foster Real Estate Market Minute Report. Newport News City experienced a 17% increase in sale price, while Hampton City saw an 11% increase. Similarly, year-over-year units sold increased ranging from 12% in both Hampton City and Newport News City to 19% in Virginia Beach City. Inventory continued to drop region-wide and time on market ranged from 35 to 46 days.
The housing market has recovered remarkably this summer and despite the current economic climate, is expected to continue 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.