September 2020’s residential median sales price rose 10.04% year-over-year, the largest annual increase in over six years! Homes are selling quickly, and often for above list price due to multiple offers. September 2020’s median sales price was $275,000, compared to 2019’s $249,900.
The region’s residential active listings continue to drop at a significant rate. In September 2019 8,384 homes were available for sale, compared to September 2020 with just 4,839 units for sale, which is a decrease of 42.28% year-over-year. The area’s months’ supply of inventory also dipped at a similar rate, currently at 1.82 months, down from 3.49 months last year, and a decrease of 47.85%. An encouraging note, September had an 8.89% year-over-year increase in new listings being added to the MLS system.
Inventory may be low, but sales remain strong. September saw a 41.90% increase in residential pending sales, with 3,417 homes going under contract this year as opposed to just 2,408 in September 2019. Residential settled sales also continue to rise. September 2020 saw 3,248 homes go to closing, up 34.10% from 2,422 units during the same period of time last year.
“Housing has been one of the strongest economic performance sectors in this Covid-19 Era. Homes placed under contract and closings (settled sales) continue to skyrocket with impressive year-over-year gains in almost every area of Hampton Roads. This has also had a strong effect on median sales prices which continue to escalate year-over-year across our region,” states Barry Nachman, President of REIN and REIN.com.
“This trend is expected to continue throughout the fall and winter months due to a large pipeline of buyers with mortgage pre-approval applications as a result of unprecedented low interest rates. This is great news for property owners, but homebuyers trying to take advantage of these rates will find they need to come to the market with realistic expectations regarding prices as our inventory of available housing is at its lowest point ever percentage-wise,” said Nachman.
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