The 2021 housing market will be one for the history books, with record-breaking high sales prices and demand coupled with rock bottom inventory. November didn't want to be left out: demand officially outpaced supply for the first time all year. Don't miss our forecast for the 2022 housing market, either!
Demand hasn’t cooled off with the weather.
After seeing supply increase over the summer months, November 2021 saw 2,086 homes sold but only 2,034 new listings added to the market.
From January to November of this year, the total number of homes sold has risen 14.00% compared to the same period in 2020.
There were 2,086 homes sold in Virginia Beach and surrounding cities last month, which is a 5.46% increase compared to November 2020.As a result, prices continue to rise.
November saw historically low inventory in Hampton Roads.
After seeing supply increase over the summer months, only 2,034 new listings were added to the market in November 2021. (Take note: that’s less than the number of properties sold!)
This left only 2,297 active listings on the market at the end of November - a 20.22% decrease year-over-year. It was also the largest monthly drop in available properties for sale since the pandemic began.
The month's supply of inventory (MSI) dipped to its lowest level in REIN-recorded history. November’s MSI indicated that if no new listings were added to the market, southside Hampton Roads would run out of available properties in 1.03 months.
Amazingly, the MSI for the city of Virginia Beach specifically fell to a mere .78 months - likely because real estate in this area is a great investment.
There are still signs of supply doing its best to keep up with the demand. January through November of this year saw 5.96% more listings added to the market compared to the same stretch in 2020.
As a result, prices continue to rise.
The average price a home was listed for was $299,900 in November 2021.
The median sales price (MSP) was $300,000 - a 6.76% increase when compared to November 2020.
For the entire year of 2021, the MSP has ballooned 11.34%.
The Bottom Line
Extremely low inventory has once again made it a tough month for buyers. Buyers crafting competitive offers guaranteeing to pay appraisal values, offering $10,000 or more over list price, and committing to not asking for repairs after a home inspection still find themselves beat by an even better offer. Buyers need patience, persistence, and a realistic perspective of where the market stands to purchase the right property.
Whether you are looking to buy or sell, working with a real estate professional you can trust is a game-changer. Contact associate broker, Scott Westfall, for a free consultation before you buy, sell, or invest.
Check out our latest yearly forecast: 7 Housing Market Trends Coming in 2022!