Virginia Beach Real Estate Market 2019 Insight
If you’re keen to invest in your future in the Virginia Beach real estate market 2019 and buy before prices become out of reach, you must peruse till the end. Virginia Beach is a city in southeastern Virginia. It sits where the Atlantic Ocean and Chesapeake Bay meet. The city is best known for the three mile boardwalk on the Atlantic side. About 20 million visitors come to Virginia Beach each year. The city has just under half a million permanent residents.
If you are a home buyer or real estate investor, you may find mixed opinions about investing in Virginia Beach real estate. It may not have a good track record or hype for real estate investment but Virginia Beach has a good variety of housing available for investors, including single family homes, condominiums and rental apartments. Tourism results in some key beach front locations being used as vacation rentals for which the returns are very good.
Some investors might also argue that Virginia Beach real estate is not a good investment, but it is stable enough for the long term return on investment. Let’s take a close look at the Virginia Beach real estate market trends and forecasts for 2019 & 2020 find out why it is still one of best places to invest in Virginia.
Virginia Beach Real Estate Market Forecasts 2019, 2020 & 2021
The median home value in Virginia Beach is $266,400 on Zillow.com. Virginia Beach home values have gone up 3.4% over the past year and their Virginia Beach real estate market prediction is that the prices will rise 2.4% within the next year. The median list price per square foot in Virginia Beach is $165, which is higher than the Virginia Beach-Norfolk-Newport News Metro average of $143. The median price of homes currently listed in Virginia Beach is $309,900 while the median price of homes that sold is $250,900. The median rent price in Virginia Beach is $1,475, which is higher than the Virginia Beach-Norfolk-Newport News Metro median of $1,375.
According to LittleBigHomes.com, the Virginia Beach real estate market forecast for the 12 months ending with the 3rd Quarter of 2019 is positive. Their accuracy of the Virginia Beach real estate market trend prediction is 92%. Accordingly, they estimate that the probability for rising home prices in Virginia Beach is 92% during this period. If this Housing Market Forecast is correct, home prices will be higher in the 3rd Quarter of 2019 than they were in the 3rd Quarter of 2018.
Virginia Beach Housing Market Forecast 2019 – 2021
The Virginia Beach housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Virginia Beach housing market trend prediction for Virginia Beach is 87%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Virginia Beach is 87% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were
in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Virginia Beach Real Estate Market Forecast.
Virginia Beach Real Estate Market Trends
Virginia Beach real estate market trends indicate an increase of $750 (0%) in median home sales and a 0% rise in median rent per month over the past year, according to Trulia.com. The average price per square foot for this same period rose to $154, up from $153. Trulia has 2,333 resale and new homes for sale in Virginia Beach, VA, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median sales price for homes in Virginia Beach for Dec 28 to Mar 27 was $250,750 based on 1,262 home sales. Average price per square foot for Virginia Beach was $154, an increase of 1% compared to the same period last year. The median rent per month for apartments in Virginia Beach for Mar 2 to Apr 2 was $1,495.
As per the real estate company named Redfin, the Virginia Beach housing market is somewhat competitive. Homes in Virginia Beach receive 1 offers on average and sell in around 57 days. The average sale price of a home in Virginia Beach was $252,000 last month, up 0.8% since last year. The average sale price per square foot in Virginia Beach is $148, up 1.4% since last year. Homes typically receive 1 offer. Homes for sale in Virginia Beach, VA sell for about 2% below list price and go pending in around 57 days. Hot Homes for sale in Virginia Beach, VA can sell for around list price and go pending in around 24 days.
Virginia Beach Housing Market Statistics
- Median Sales Price: $250,750 (On Trulia)
- Price Per Square Ft: $154
- Median Rent Per Month: $1,495
- Median Household Income: $66,938
- Home Owners: 76%
- Single Residents: 28%
- Median Age: 37
- College Educated: 40%
- Transportation: 98% people commute by car
There are 2,127 homes for sale in Virginia Beach, VA, ranging from $3K to $7.5M on Realtor.com. Virginia Beach has affordable multi-families. 327 of which were newly listed within the last week. Additionally, there are 598 Virginia Beach rental properties for sale, with a range of – to $13K per month. The median list price of homes in Virginia Beach, VA was $270K in February 2019, trending up 3.9% year-over-year. The median listing price per square foot was $153.
The median list price in Virginia Beach is $350,000 on Movoto.com. The median list price in Virginia Beach was less than 1% change from March to April. Virginia Beach's home resale inventories is 1,943, which increased 0 percent since March 2019. The median list price per square foot in Virginia Beach is $170. March 2019 was $170. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in April.
Virginia Beach Single Family And Multi-Family Homes
As per the data from the real estate company called Neigborhoodscout.com, the median house price in Virginia Beach is $284,136 and it is well below the national average. Single family detached homes are the single most common housing type in Virginia Beach, accounting for 54.63% of the city's housing units. Other types of housing that are prevalent in Virginia Beach include row houses and other attached homes ( 20.42%), large apartment complexes or high rise apartments ( 18.17%), and a few duplexes, homes converted to apartments or other small apartment buildings ( 5.75%).
The most prevalent building size and type in Virginia Beach are three and four bedroom dwellings, chiefly found in single-family detached homes. The city has a mixture of owners and renters, with 62.34% owning and 37.66% renting. Currently, there are 1,863 single family homes for sale in Virginia Beach, VA on Zillow. These include upcoming potential listings. Additionally, there are 218 single family homes for rent in Virginia Beach, VA.
Virginia Beach VA Foreclosures And Bank Owned Homes
Foreclosures will be a factor impacting home values in the next several years in Virginia Beach. In Virginia Beach 1.5 homes are foreclosed (per 10,000). This is lower than the Virginia Beach-Norfolk-Newport News Metro value of 3.1 and also greater than the national value of 1.2. The percent of delinquent mortgages in Virginia Beach is 1.0%, which is lower than the national value of 1.1%.
With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Virginia Beach homeowners underwater on their mortgage is 13.9%, which is lower than Virginia Beach-Norfolk-Newport News Metro at 14.2%.
- Foreclosures in Virginia Beach = 334 (RealtyTrac)
- Homes for Sale in Virginia Beach = 1,704
- Recently Sold = 467
- Median List Price = $269,000 (2% ⇑ vs Jan 2018)
There are currently 334 properties in Virginia Beach, VA that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 1,704. In February, the number of properties that received a foreclosure filing in Virginia Beach, VA was 39% lower than the previous month and 37% lower than the same time last year.
Home sales for January 2019 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home in Virginia Beach, VA was $0. The median sales price of a foreclosure home in Virginia Beach, VA was $0, or 0% higher than non-distressed home sales.
Virginia Beach Home Prices And Real Estate Appreciation
Virginia Beach's real estate appreciation rate notably has been below the national average for the last ten years. The average annual home appreciation rate in Virginia Beach during the period has been just 0.11%, which is lower than 80% of US communities.
Over the last year, Virginia Beach real estate appreciation rates have trailed the rest of the nation. In the last twelve months, Virginia Beach's real estate appreciation rate has been 3.55%, which is lower than real estate appreciation rates in most communities in America. In the latest quarter, the house appreciation rates in Virginia Beach were at 1.44%, which equates to an annual appreciation rate of 5.91%.
The above statistics on real estate appreciation in Virginia Beach were taken from NeighborhoodScout.com. You can visit their page for more information. Relative to Virginia, their data shows that Virginia Beach's latest annual real estate appreciation rate is lower than 50% of the other cities and towns in Virginia.
10 Best Neighborhoods In Virginia Beach For Real Estate Investment
There are 128 schools in Virginia Beach, VA. There are 62 elementary schools, 15 middle schools, 15 high schools and 36 private & charter schools. There are 83 neighborhoods in Virginia Beach. North Virginia Beach has a median listing price of $769,000, making it the most expensive neighborhood. Level Green is the most affordable neighborhood in Virginia Beach, with a median listing price of $165,000.
These are the 10 best neighborhoods in Virginia Beach to invest in real estate because they have the highest real estate appreciation rates (List by Neigborhoodscout.com).
- Atlantic Ave / Cape Henry Rd
- Bay Island / Broad Bay Colony
- Sandbridge Beach / Sigma
- Salem Rd / Meadow Ridge Ln
- Sandbridge Rd / Princess Anne Rd
- Rudee Heights
- Gatewood Park
- Centerville Tpke / Livingston Oak Dr
- Oceana / Atlantic Park
- Rosemont
Should You Invest In The Virginia Beach Real Estate In 2019?
Investing in real estate is touted as a great way to become wealthy. Is Virginia Beach rental property good for investment? If you are looking to buy Virginia Beach investment properties, then you must read this. These things make Virginia Beach real estate market stand out when it comes to choosing a place to invest in 2019 and beyond. We have already discussed the Virginia Beach housing market forecast for answers on why to put resources into this sizzling market in 2019.
The home prices in the Virginia Beach housing market will be on an upswing all through 2019. The Virginia Beach home prices have been trending up 3.9% year-over-year. So you should consider investing in Virginia Beach rental properties sooner, to avoid higher home prices down the road.
Here are the top 10 reasons to invest in the Virginia Beach real estate in 2019.
1. The Relatively Affordable Beachfront Property
The town is notable for the hundreds of hotels and motels. Virginia Beach rental homes a short distance to the beach command a premium. For example, the median home price for Virginia Beach is less than $300,000. You can find homes on the water for less than half a million, if they’re cozy properties instead of mansions.
2. The Guaranteed Appreciation of Property
The Virginia Beach housing market is nearly certain to see long-term appreciation because there are limits to expansion. You can’t build on water. The city has run out of clear land north of the Green Line, their division between rural and urban areas. The city cannot expand onto open land around Naval Air Station Oceana.
In fact, the naval base asked for 3500 homes in its crash zone to be bulldozed to ensure that no one was killed if a plane taking off as part of their pilot training program crashed there. The only options are denser construction and infill development. Home values went up 3.4% in 2018 and are expected to go up at least 2.4% in 2019.
3. The Higher Than Average Rents
One of the benefits of owning Virginia Beach rental homes over property in the surrounding metro area is the higher rental rates. The median rental property in Virginia Beach rents for $1475. That’s a hundred dollars higher than the Virginia Beach-Norfolk-Newport News metropolitan area average rent of $1375.
This provides better rates of return on rental properties in the Virginia Beach real estate market over comparable ones in neighboring cities. Note that you can receive far more for Virginia Beach rental properties either close to the beach or with a view of the water.
4. The Strong, Diverse Job Market
Virginia Beach is part of the Hampton Roads metropolitan area. That area includes cities like Chesapeake, Hampton, Norfolk, Portsmouth, Newport News and Suffolk. The hybrid beach community and suburban nature of Virginia Beach makes it a popular place to live while working in other towns. (Around 100,000 people commute from Virginia Beach to Norfolk and Chesapeake.)
There are also many who work in Virginia Beach at corporations like the Christian Broadcast Networking, Regent University Amerigroup, STIHL, Busch, IMS Gear, and the three military bases in the area. This explains why Virginia Beach squeaked by in the top 50 of Forbes’ list of best places for careers and business.
The desire to live both close to work and natural attractions like the beaches and wilderness areas drives demand for Virginia Beach real estate market. Being able to drop by a farmer’s market to select from produce grown only a few miles away is a plus.
5. The Large Military Market
Every military base dumps a large number of renters into the local real estate market. The Virginia Beach housing market demand for rentals is high because there are three military bases in the area: Langley Air Force Base in Hampton, Oceana Naval Base in Virginia Beach, and the Joint Expeditionary Base Little Creek-Fort Story, commonly known as Little Creek. Little Creek alone employs around 15,000 people.
6. The Sizable Student Market
Students often come from all over the country to attend school. Virginia Beach contains a truly eclectic mix of higher learning institutions. Regent University is a private Christian college. Atlantic University is a New Age training center. Virginia Tech and the University of Virginia operate satellite campuses in Virginia Beach. Norfolk State University and Old Dominion University are located in nearby Norfolk.
Students in the area often attend the Tidewater Community College. Virginia Wesleyan College is located mostly within Virginia Beach, though its address is in Norfolk. The same is true for the East Coast Polytechnic Institute. All of these schools dump tens of thousands of students into the Virginia Beach real estate market and drive demand for Virginia Beach rental homes.
7. How Many Bargains Exist
Virginia Beach hit the top of Zillow’s fourth quarter 2018 list of communities with residential mortgages that are underwater. The community has a higher than average number of short sales. This means you might be able to snap up properties in the Virginia Beach housing market at a bargain price, whether they’re on the shore or further inland.
These homes have to be hunted for, since the foreclosure rate in Virginia Beach is in line with the national average. However, if you can offer someone who wants to get a vacation home they don’t visit anymore off their hands enough to break even, you could find real deals.
8. The Landlord Friendly State of Virginia
Virginia is incredibly landlord friendly. Virginia is one of 14 states that allow you to serve an unconditional quit notice to renters who violate the lease terms. That notice is generally used for serious breaches like criminal activity on the premises. There are no limits on late fees as long as they are written into the rental agreement. You don’t have to pay interest on deposits. There are no laws on re-keying.
The state doesn’t require you to have a permit to be a landlord, though cities may mandate this. The state allows landlords to forbid specific guests and visitors if their behavior violates the lease, too. If tenants in Virginia Beach rental homes make too much noise, tolerate drugs or give alcohol to minors, you can evict the tenant for the behavior of guests that they didn’t keep in compliance with the law.
A side benefit of the Virginia Beach real estate market is how it has come to accommodate the short-term rental market. You have to get a conditional-use permit if regularly renting the property out on a site like AirBnB, and hotel taxes are owed. You can only rent out single family houses and condos via short-term rental houses, not garage or carriage house apartments.
Rentals can only be rented out to two different people in the same week, something intended to minimize the disruption of guests coming and going. You must provide at least one parking spot for every bedroom occupied by tenants, and no more than three people per bedroom are allowed.
9. The Benefits of Investing Here Over Maryland
Homes in the Virginia Beach real estate market are in commuting distance of southern Maryland. Real estate investors may wonder why we recommend investing in the Virginia Beach housing market instead of just a few miles further north. The answer is how much worse Maryland’s rental real estate laws are. They limit security deposits to two month’s rent, and you have to pay interest on the security deposit.
Late fees cannot be more than 5% of the rent. Late fees can’t be charged until the rent is five days late. If you decide to end the lease, you must give them 60 days’ notice. Consider buying Virginia Beach rental homes instead and advertising the benefits of living in Virginia Beach to Maryland commuters.
10. The Better Tax Situation
Another reason to invest in the Virginia Beach real estate market is the better tax climate in the area. Virginia doesn’t have a state property tax. The effective property tax rate in the Virginia Beach housing market is 99 cents per $100 of assessed value, the lowest rate in the Hampton area.
However, Virginia Beach has several Special Service Districts that charge higher property taxes than the rest of the city, so Virginia Beach rental homes in these areas would be hit with a property tax rate as high as $1.50 per $100 of assessed value.
Virginia Beach Real Estate Investment
Maybe you have done a bit of real estate investing in Virginia Beach, VA but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. If you invest wisely, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments, you should focus on markets with relatively high population and employment growth. Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Virginia Beach, VA. 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 it solely as an income producing entity just like any other business.
Whether you are a beginner or a seasoned pro 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.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
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Here Are Some Other Markets To Invest In Real Estate
Apart from the Virginia Beach real estate market, you can also invest in another hot market in Atlanta, GA. Located in the state of Georgia, the city of Atlanta is a hotspot for any type of real estate investing. Atlanta has shown promising population growth and employment, which are two signs of a healthy real estate market. You can purchase investment properties in Atlanta for as low as $127,000. Comparing that to the national average, which is $152,000, that’s a pretty significant deal!
Atlanta real estate market trends indicate an increase of $18,000 (7%) in median home sales and a 3% rise in median rent per month over the past year. The average price per square foot for this same period rose to $211, up from $194. Trulia has 4,796 resale and new homes for sale in Atlanta, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
Another hot market to choose is the Los Angeles real estate market. The numbers may not make sense for many investors but if you ask savvy investors based in LA they would like to bet anytime on this expensive real estate market. The reason being that California has the 6th largest economy in the entire world. This is largely driven by its innovative production, the heavy tech sectors in the state, and more. The Los Angeles real estate market has many points in its favor beyond its sheer size. The strong market fundamentals make the Los Angeles housing market a good place to invest if you’re looking at buying real estate in California.
Los Angeles has an unemployment rate of around 4%. What makes Los Angeles unique is the employment market. Want to work in Hollywood? Move to L.A. Want to work for a production company or in fashion? Come to L.A. If rent is too high, share an apartment or single family home with friends.
The Los Angeles housing market has seen a bump in residential construction. This has helped to satisfy some demand from renters. However, due to increasing demand, the new supply hasn’t brought prices down. It simply means that the vacancy rate in Los Angeles remains around 3% instead of falling any lower. This also suggests that any new wave of construction will at most result in rental rates remaining steady instead of causing them to fall.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, 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, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
References:
Introduction to Virginia Beach
https://en.wikipedia.org/wiki/Virginia_Beach,_Virginia
Military
https://en.wikipedia.org/wiki/Joint_Expeditionary_Base%E2%80%93Little_Creek
https://en.wikipedia.org/wiki/Naval_Air_Station_Oceana
Guaranteed appreciation
https://en.wikipedia.org/wiki/Virginia_Beach,_Virginia
Job market
https://en.wikipedia.org/wiki/Virginia_Beach,_Virginia
Student market
https://en.wikipedia.org/wiki/Virginia_Beach,_Virginia
Bargains
https://pilotonline.com/inside-business/news/real-estate/article_7b1e0cce-9cbe-11e8-ad59-f322fcc4299e.html
Virginia is landlord friendly
https://www.valegalaid.org/resource/can-my-landlord-bar-my-guest-from-my-rental-p?ref=6Sje4
https://pilotonline.com/news/government/local/article_09c58ef4-19a4-11e9-b9e9-47934d4104e3.html https://www.rentcafe.com/blog/renting/states-best-worst-laws-renters https://www.avail.co/education/laws/virginia-landlord-tenant-law
Maryland isn’t this landlord friendly
Affordable beachfront property
https://www.zillow.com/homes/for_sale/Virginia-Beach-VA/pmf,pf_pt/41515_rid/beach-boardwalk_att/globalrelevanceex_sort/37.095169,-75.5365,36.494733,-76.49643_rect/9_zm/
https://www.zillow.com/virginia-beach-va/home-values
Taxes
https://www.bankrate.com/finance/taxes/state-taxes-virginia.aspx https://www.movoto.com/foundation/property-taxes/virginia-beach-property-tax-how-does-it-compare-to-other-major-cities
Market Data, Trends and Forecasts https://www.zillow.com/VirginiaBeach-va/home-values https://www.littlebighomes.com/real-estate-virginia-beach.html https://www.trulia.com/real_estate/Virginia_Beach-Virginia https://www.redfin.com/city/20418/VA/Virginia-Beach/housing-market https://www.realtor.com/realestateandhomes-search/Virginia-Beach_VA/overview https://www.movoto.com/virginia-beach-va/market-trends https://www.neighborhoodscout.com/va/virginia-beach/real-estate https://www.realtytrac.com/statsandtrends/va/virginia-beach-city-county/virginia-beach
