Hampton Roads 2022 Real Estate Market Statistics [Quarter 1]
Updated: Apr 21
The real estate market in Hampton Roads continues to be as competitive as ever at the end of Q1 in 2022. Will the housing market crash soon? Will home prices go down or continue to rise? Read on for our analysis of 2022’s first quarter housing statistics.
1. Home prices and interest rates swelled.
The median home sold for $302,000 in Q1, which was a 9% increase compared to a $277,000 MSP in 2021.
The average 30-year fixed mortgage rate jumped from 3.22% in January to 4.67% by the end of March. This is the largest and fastest increase in mortgage rates since the 1980s.
2. The inventory crisis might have finally peaked in Q1.
The Hampton Roads housing market saw a total of 1,903 active listings at the end of March 2022. This is down 21% from 2021 - and an unbelievable 67% from 2019.
To put this in perspective: there are currently fewer homes for sale on the southside of Hampton Roads than the average attendance to a Norfolk Admirals hockey game.
3. New listings added to the market sank to a four-year low.
6,571 homes (resale and new homes combined) were added to the market from January through March 2022. This is almost 8% less than last year, over 13% less than 2020, and 18% less than 2019.
The decline in new listings added to the market in the first quarter of the year is significant - indicating a continued tight inventory.
4. The rise in rates pressured buyers to move quickly, causing market times to creep back to historic lows.
After steadily increasing from October 2021 through February of this year, market times sharply decreased from 28 days in February to 23 days in March as buyers rushed to secure a home before they were priced out by rising mortgage interest rates.
The average market time for the entire first quarter was 26 days.
Planning to buy a house in 2022? Read this first.
2022 First Quarter Housing Market Summary:
The stats from Q1 on the Hampton Roads real estate market suggest that it’s going to be an incredibly tough year to buy a home. Rising interest rates combined with astonishingly low housing inventory is causing prices to skyrocket and creating barriers for many people looking for a home.
Normally, increased mortgage rates will soften demand, which allows the market to resupply with new inventory. This dampened demand and bolstered supply tends to stabilize inflation. However, we are experiencing historical demand (explained further in our 2022 Housing Market Outlook) combined with very few new homes being built, resulting in the lowest available housing inventory we’ve seen in decades. The housing market in Virginia Beach and across the country will still take some time to recover from our inventory woes.
Thinking of selling? Here’s our breakdown of figuring out how much you can make selling your property.
Real Estate Predictions for the rest of 2022:
There will be fewer homes sold in 2022 than 2021 in Hampton Roads. The slow down in homes sold can already be seen when you look at sales data from the first quarter. Pending sales in Hampton Roads were down a little over 2% year-over-year for the first quarter, while the total number of homes sold for the quarter was down 3%. We expect to see this negative trend continue over the remainder of 2022.
Available inventory should increase by the end of the year. We do expect to see available inventory begin to rise over the next few months. In fact, sources suggest that 65% of Americans who want to sell their home this year plan to list it in May-July. However, progress will be slow because rising interest rates also mean that it’s more affordable for many would-be sellers to stay in their current homes rather than relocate.
Prices will steadily rise. Even with fewer houses selling and active listings increasing throughout 2022, home prices will steadily rise for the remainder of the year. This will not stop until we have a more balanced supply and demand.
Sellers will experience fewer bidding wars. With rising interest rates, buyers will be more cautious and less eager to jump at the first enticing listing. They will begin to start putting more down on their mortgages to lower their monthly payments.
For a more successful buying process, plan to make your offer on a home competitive.
The Bottom Line:
As anticipated, the housing market in Hampton Roads and across the United States proved to be competitive and fast-paced. Though a paradigm shift may be upon us, the continued need for housing across many demographics means that low inventory and rising prices will be here for a while.
Rising interest rates will begin to price some buyers out of the market, and we anticipate a slow increase in inventory over the next year. But in high-demand areas like Virginia Beach, which was recently ranked 8th in the nation for the most bidding wars, partnering with a real estate professional you can trust will be essential for procuring a home in 2022.
Need to buy or sell this year? Contact Scott Westfall and his CGP team for a real estate partner who has your bottom line in mind.