May 2021 Housing Market Trends in Hampton Roads
The real estate market stats are in for May 2021, and our experts have taken a look at the housing market trends in southside Hampton Roads. Virginia Beach and its neighboring cities have some data worth diving into this month:
Supply continues its slow trend upward:
Active supply, while still down 35.77% year-over-year, was up 2.5% in May compared to the month before.
The median list price was $300,000.
3,073 new listings were added to the market in May. This 25.30% increase from last year can be credited to the dichotomy of sellers exercising extreme caution last year and today’s loosening of pandemic restrictions.
Hampton Roads had a total of 368 new construction properties in its active listings in May.
The Hampton Roads market is fast and prices are high.
The average market time was down to 22 days last month. Compared to 38 days last May, this reflects the remarkable speed at which the housing market has been moving.
Median sales price in May 2021 was $295,000, which is up 7.27% from this time last year. This continues the rapid price growth we’ve been witnessing this year.
The absorption rate at the end of May was 1.25 months.
Sales are up significantly - BUT:
The number of homes sold in Hampton Roads this May increased by 31.87% year over year.
While the above statistic is astounding, it’s important to remember that May 2020 brought a huge market slowdown last year as the extent of the pandemic came to light.
Renters are struggling to find housing.
At the end of May 2021, there were 44% fewer rental listings than the year before in Hampton Roads.
There was also a 48% decrease in new rental property listings added to the market year over year.
The Bottom Line
Though year-over-year numbers this summer should be taken with a grain of salt as we emerge from global quarantines, housing affordability will continue to remain an issue for many buyers. The accelerated price growth over the last year, driven by increased demand, has pushed home values to new heights.
Looking forward, we anticipate a slow but steady market shift coming toward the end of the year, consistent with our forecast from earlier this year.