The Virginia Beach housing market is a dynamic and competitive one, with significant changes and trends. If you're interested in buying or selling a home in this beautiful coastal city, it's essential to stay informed about the current market conditions. In this blog post, we'll explore the latest trends, statistics, and forecasts for the Virginia Beach housing market based on data from Redfin.
“Virginia Beach” Housing Market Trends
Current Market Trends
Based on the data by Redfin, the Virginia Beach housing market is currently experiencing some interesting trends that can greatly impact both buyers and sellers. Let's take a closer look at the data:
Median Sale Price
The median sale price of homes in Virginia Beach has seen a substantial increase, up 7.6% compared to the previous year. In September 2023, the median sale price was $355,000, reflecting a robust real estate market.
Days on Market
Homes in Virginia Beach are selling faster than ever, with an average of just 19 days on the market, compared to 25 days the previous year. This quick turnover indicates high demand and competitiveness in the housing market.
Number of Homes Sold
While the number of homes sold in September decreased from 673 to 509 compared to the previous year, this decline is attributed to the competitive nature of the market. Buyers need to act swiftly to secure their dream home.
Virginia Beach is known for its competitive real estate market. The Redfin Compete Score rates the area at a high 100, reflecting the intensity of the competition. Many homes receive multiple offers, some with waived contingencies, making it essential for buyers to be well-prepared.
The sale-to-list price ratio in Virginia Beach is impressive, with homes typically selling for about 1% above the list price. This further emphasizes the competitive nature of the market and the willingness of buyers to pay a premium for their desired properties.
Migration & Relocation Trends
Virginia Beach continues to attract homebuyers from outside metros. Washington, D.C., tops the list of metros with the highest number of homebuyers searching to move into Virginia Beach. The city's appeal to those looking to relocate within the region remains strong, with Jacksonville being a popular destination for outbound moves.
The Virginia Beach housing market is currently vibrant and competitive, with rising home prices and quick sales. Buyers and sellers alike need to stay well-informed about the latest market trends to make sound decisions. As we move forward, it's essential to keep an eye on the ever-changing landscape of Virginia Beach's real estate market.
Virginia Beach Housing Market Forecast 2023-2024
The Virginia Beach-Norfolk-Newport News housing market, as forecasted by Zillow, is showing significant trends and insights. Here's an overview of the key data points and the current state of the real estate market:
- Average Home Value: As of September 30, 2023, the average home value in the Virginia Beach-Norfolk-Newport News area is $334,506. This figure reflects a notable 5.5% increase over the past year, indicating a positive trend in home values.
- Pending Time: Homes in this area go to pending in approximately 19 days, suggesting a moderately paced real estate market with a slightly longer time to pending compared to some other areas.
- 1-Year Market Forecast: Zillow's market forecast for the Virginia Beach real estate market projects a 1.1% increase in home values over the next year, with data as of September 30, 2023.
- Median Sale to List Ratio: As of August 31, 2023, the median sale-to-list ratio in the Virginia Beach area is 1.003, indicating that, on average, homes are selling very close to their list prices.
- Sales Over List Price: On August 31, 2023, approximately 54.1% of home sales in Virginia Beach were over the list price, indicating a competitive segment of the market.
- Sales Under List Price: During the same period, about 20.8% of home sales were under the list price, providing opportunities for price-conscious buyers.
- Median Days to Pending: As of September 30, 2023, the median time it takes for a home to go pending in Virginia Beach is 19 days, reflecting a moderately paced market.
How Is the Virginia Beach Real Estate Market?
The Virginia Beach real estate market is experiencing positive trends, with a 5.5% increase in home values over the past year. The 1-year market forecast also suggests a further 1.1% increase in home values, indicating a stable and potentially appreciating market. The median sale-to-list ratio of 1.003 suggests that, on average, homes are selling very close to their list prices, which can be advantageous for both buyers and sellers.
Additionally, a significant portion of homes (54.1%) are selling over the list price, reflecting competitive conditions in the market. However, there are also opportunities for buyers, with 20.8% of homes selling under the list price. This variety in pricing dynamics provides options for a range of buyers.
Are Homes Selling Fast in Virginia Beach?
Homes in Virginia Beach are selling at a moderately fast pace, with a median time to pending of 19 days. While this is slightly longer than some other markets, it still indicates a market where homes move relatively quickly, especially considering the competitive conditions with a significant proportion of homes selling over the list price.
Overall, the Virginia Beach real estate market offers a mix of opportunities for both buyers and sellers. The market is characterized by increasing home values and competitive dynamics, making it an interesting landscape for those looking to buy or sell properties in the area.
Is Virginia Beach a Good Place to Invest in Real Estate?
Virginia Beach is a popular destination for real estate investment due to its robust and competitive housing market. The city offers a diverse range of properties, including beachfront homes, condos, townhouses, and single-family homes. The average home value in the Virginia Beach-Norfolk-Newport News area is $336,140, with an annual increase of 3.0%. Additionally, homes in Virginia Beach typically go to pending status in around 17 days.
Here are the top reasons to invest in the Virginia Beach MSA for the long term:
Sure, here's more information on each point:
- Strong economy: Virginia Beach has a strong and diversified economy, with major industries including military, tourism, healthcare, and education. The military presence is particularly significant, with several military bases and facilities located in the area, including Naval Air Station Oceana and Joint Expeditionary Base Little Creek-Fort Story. This helps to provide stability to the local economy and job market.
- Population growth: Virginia Beach has seen steady population growth over the years, with a current population of over 450,000 people. This growth is expected to continue in the coming years, which bodes well for real estate investors. With more people moving to the area, there will be increased demand for housing, which can drive up prices and rental rates.
- Rental market: Virginia Beach has a strong rental market, with a high percentage of renters in the area. This is due in part to the large military population, many of whom prefer to rent rather than buy. Additionally, the area's strong tourism industry means that there is a steady demand for short-term rentals, such as vacation homes and Airbnb.
- Affordable housing: Despite its many amenities and strong economy, Virginia Beach is still relatively affordable compared to other coastal cities. The median home value in the area is around $313,000, which is significantly lower than the median home value in cities like San Francisco or New York. This makes it a more accessible market for real estate investors who may not have the capital to invest in more expensive cities.
- Quality of life: Virginia Beach is consistently ranked as one of the best places to live in the United States, thanks to its high quality of life. The area boasts miles of beautiful beaches, excellent schools, and a wide range of cultural and recreational amenities. This makes it an attractive place for people to live and work, which in turn makes it an attractive place to invest in real estate.
- The Landlord-Friendly State of Virginia: Virginia is generally considered a landlord-friendly state due to its laws and regulations that tend to favor landlords over tenants. This means that if you decide to invest in rental property in Virginia, you can expect a relatively smooth and hassle-free process of managing and renting out your property. Some examples of landlord-friendly laws in Virginia include allowing landlords to charge non-refundable fees, enforcing strict lease terms, and relatively quick eviction processes. These factors can make Virginia a desirable state for real estate investors looking to maximize their rental income while minimizing their risks and legal liabilities.
Overall, these factors combine to make Virginia Beach a strong real estate investment market. With a strong economy, growing population, strong rental market, affordable housing, and high quality of life, it's easy to see why investors are drawn to the area. The Virginia Beach real estate market presents an ideal mix of high demand, constrained supply, and a large number of renters who won’t go buy a house if interest rates drop.
The diverse local economy allows you to cater to tourists knowing you can rent the property out to locals, as well. Buying an investment property is different from buying an owner-occupied home. Investment properties are designed to make money as rentals, which means you must look at them solely as an income-producing entity just like any other business.
Whether you are a beginner or a seasoned investor, you probably realize the most important factor that will determine your success as a real estate investor is your ability to find great real estate investments. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities.
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Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.