As the number of homes for sale declined across the Hampton Roads region, the median sale price rose last month, according to Long & Foster Real Estate’s Market Minute Report. Newport News City experienced the largest sale price increase, rising by 6% followed by 5% in both Norfolk City and Virginia Beach City. Year-over-year active inventory fell dramatically throughout the region, with declines ranging from 27% in Chesapeake City and Norfolk City to 40% in Hampton City.
In looking toward fall, Gary Scott, president of Long & Foster Real Estate, expects a solid market, despite inventory challenges. “We’re experiencing incredibly low interest rates, a healthy rate of home price appreciation, full employment, a rising stock market and a large segment of millennials who desire homeownership and will try to achieve it,” Scott said.
He also talked further about mortgage rates, which are having an effect on the overall market since they remain the lowest they have been in a few years. “Many people who are thinking about buying now are doing so because rates are so low,” said Scott. “About 80% of mortgages in the United States have interest rates less than 5%. If the magic refinance number is 1% less than your current rate, the buy-now (and refi-now) trend will continue for a while.”