As the warmth of summer gracefully fades this year, the coastal Virginia real estate market presents dynamic trends and compelling opportunities. A complex interplay of factors such as supply, demand, and pricing trends is shaping the landscape.
Despite a recent dip in the median home sales price statewide in March, the real estate market in coastal Virginia remains resilient. The low inventory has kept the market highly competitive, with properties selling swiftly and often above the listed price.
In this article, we will journey through coastal Virginia’s bustling real estate landscapes, exploring the current trends, housing supply, and overview of the Virginia summer real estate market.
Virginia Housing Market Overview
According to a Home Sale report released by Virginia Realtors, Virginia saw the slowest housing market in April 2023 in more than ten years. In April, property owners in the state sold only 8,252 homes, a 31.2% decline compared to April 2022.
Generally, the number of fresh listings tends to rise from March to April as the spring market gains momentum. However, this pattern has deviated as fewer homeowners are putting their properties up for sale across various housing markets in Virginia.
In April, the total number of new listings statewide was 11,174, marking a substantial decrease of 4,458 compared to the same period in the previous year. This represents a reduction of 28.5%.
Despite the deceleration in property transactions, the limited housing supply has caused the median sales price in Virginia to remain steady. After a slight decline in the previous month, the median sales price in Virginia for April was $391,000, marking a marginal increase of $1,000 compared to last year.
For the second consecutive month, the average ratio of the sold-to-list price in Virginia exceeded 100% in April. The high ratio indicates that, on average, house sellers are selling the properties at a higher value than the asking price.
Homes over $800,000 sold in April boasted an average sold-to-list price ratio of 102.2%. On the other hand, homes sold for less than $200,000 had an average sold-to-list price ratio of 98.2%, making it the only price bracket in Virginia below 100%.
According to Ryan Price, Chief Economist at Virginia Realtors, sellers who price their homes competitively will likely receive multiple offers in the current market. Given the strong demand in the market, he believes this trend will persist into the summer.
Coastal Virginia Housing Market Overview
Narrowing down the focus to the coastal region, the trends in the housing market reflect the statewide trends to some extent, especially concerning the increasing median sale price. For example, in Newport News, the median sale home price is trending upward, reaching $265,000 in April 2023. In Hampton, the sale price was slightly higher at $279,000.
As Zillow reports, home values in coastal Virginia are increasing yearly. The average home value for the Newport News area is currently $260,815, a 5.2% increase from last year. In Hampton, the value has increased by 4.7% over the past year to reach $250,155.
In areas like Williamsburg, Yorktown, and Poquoson, the average home value is slightly higher, at over $400,000. Yorktown homes have the highest value at $432,108, a 3.1% increase from 2022.
The coastal Virginia housing market remains competitive, with homes selling in 18 and 19 days in Newport News and Hampton, respectively. However, in some areas like Williamsburg and Poquoson, houses stay on the market longer, at 30 and 29 days, respectively. The sale-to-list price ratio for most homes is 100%, indicating that, on average, homes sell for their listing price.
Seasonal Prospects
This trend of increasing home values will likely continue into this summer and after, and here is why: Coastal Virginia is a popular vacation destination thanks to its numerous tourist attractions, such as museums, parks, and historical institutions like Christopher Newport University.
The area also offers other entertainment and activities such as golfing, boat riding, and dining joints. With so much to see and do in the summer, many people may be willing to invest in real estate in the area. The price of short-term rentals in the area will likely increase due to high demand.
Furthermore, people from other states may be interested in making coastal Virginia their second home destination, attracting buyers from other states and overseas. This demand will put significant upward pressure on house prices.
Is Coastal Virginia in a Seller's Market?
As shown by Realtor.com, the housing supply in coastal Virginia is currently high in most areas. Some areas, like Williamsburg, have 618 homes for sale on the market, and Poquoson, which has the lowest number, has 80 available houses.
This means the coastal Virginia housing market is not currently in a seller’s market. A seller’s market in real estate refers to a condition in which sellers have the advantage over buyers due to high demand, limited supply, or both. This is typically characterized by higher home prices, quicker sales, and less lenient terms in purchase agreements—all favoring sellers over buyers.
Given the high supply of houses, the housing market in Virginia is currently favoring buyers because there are more available properties for sale than demand. Buyers have more homes to choose from, so they can afford to be picky about their purchase decisions.
This is an opportune time for those looking to buy in the area. You may have more negotiating power and can take advantage of the large inventory to find a home that best fits your needs and preferences. You can carefully evaluate your options and make an informed decision without feeling the pressure typically associated with a red-hot seller’s market.
Conclusion
Given its unique coastal charm and current market conditions, the Virginia real estate market promises ample opportunities for both buyers and sellers. However, it’s best to work with an experienced real estate agent to navigate this dynamic market effectively.
Whether buying or selling, partnering with an experienced real estate team like Hutchison & Co. can make all the difference. Our team brings local knowledge, expertise, and a personalized approach to ensure you make the best possible decisions. Contact us today to get the help you need through your real estate journey in coastal Virginia.
