As mortgage rates continue to rise, many are curious about what lies ahead for the Virginia Beach housing market. With rising home prices and changing trends, it's important to stay informed. In this article, we'll explore the current state of the market, trends to watch, and forecasts for 2023. Whether you're a buyer or seller, this information can help guide your decisions in the year to come.
“Virginia Beach” Housing Market Trends
Based on the data by Redfin, the Virginia Beach housing market continues to be highly competitive, with homes receiving multiple offers and selling quickly. In this section, we will explore the latest trends and statistics in the Virginia Beach housing market, including house prices and market competitiveness.
House Prices and Trends
In April 2023, the median sale price of a home in Virginia Beach was $370,000, representing a 4.2% increase compared to the previous year. The median sale price per square foot in Virginia Beach is $211, indicating a 2.9% growth since last year. These numbers demonstrate a steady appreciation in home values within the Virginia Beach area.
Virginia Beach is known for its competitive housing market. Homes in the area sell quickly, spending an average of 19 days on the market, compared to 13 days the previous year. The Redfin Compete Score, which rates the competitiveness of an area on a scale of 0 to 100, shows that Virginia Beach is highly competitive. Many homes receive multiple offers, some with waived contingencies. On average, homes sell for about 1% above the list price, and hot homes can sell for approximately 4% above the list price.
Migration and Relocation Trends
Virginia Beach attracts homebuyers from various locations. According to Redfin data, 0.77% of homebuyers searched to move into Virginia Beach from outside metros. The top three metros with homebuyers interested in moving to Virginia Beach are Washington, D.C., New York, and Richmond. Additionally, 74% of Virginia Beach homebuyers prefer to stay within the Virginia Beach metropolitan area. The most popular destinations for those leaving Virginia Beach include Jacksonville, Orlando, and Miami.
Virginia Beach Housing Market Forecast 2023-2024
The Virginia Beach housing market continues to show positive growth and resilience. According to Zillow, with an average home value of $326,739, the market has seen a 3.8% increase over the past year. Looking ahead, the forecast for the next year indicates a 3.1% growth in home values. These statistics reflect the stability and attractiveness of the Virginia Beach-Norfolk-Newport News area for homebuyers and real estate investors.
The median sale-to-list ratio for homes in Virginia Beach as of March 31, 2023, stands at 1.000, indicating a balanced market where homes are typically selling close to their list price. Furthermore, 36.3% of homes sold in Virginia Beach have been sold above the listing price, demonstrating a competitive market environment. On the other hand, 31.6% of homes have been sold below the listing price, allowing potential buyers to find opportunities for negotiation.
Quick Sales and Market Competitiveness
One notable aspect of the Virginia Beach housing market is the speed at which homes go pending. With a median of 18 days to pending as of April 30, 2023, homes are selling relatively quickly. This highlights the high demand for housing in the area and the competitive nature of the market.
Virginia Beach Real Estate Investment Overview
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 $313,229, with an annual increase of 5.4%. Additionally, homes in Virginia Beach typically go to pending status in around 26 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.
Let us know which real estate markets you consider best for real estate investing! If you need expert investment advice, you may fill up the form given here. One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
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.