Is the Hampton Roads Housing Market tightening up?
edit: Market reports lag a 2-3 weeks, so the data presented in this May 2015 update, reflect data from April 2015.
Like most things in life, real estate is impacted by supply and demand. Here in Hampton Roads, the real estate market has been comparatively stable when compared to some areas in the US that were hit hardest by the bust that occurred a few years back. One dynamic that resulted from the bust, was a strong inventory of distressed properties for sale. Bank owned, and short sale inventories went up which drove prices down creating a buyer's market for families that could still buy. Not a few of which were military families.
Hampton Roads has a strong military presence, with several naval bases, Oceana Naval Air station, Langley Air Force base, Fort Eustis, Fort Story and a couple coast guard bases. The military, while not immune to economic turbulence, still has a mission to perform, and that mission involves staffing bases all over the world. It comes as no surprise with so many bases in the area, that we see lots of military turnover, which means that families have to buy, sell or rent homes. Military families aren't immune to economic cycles either, but many do take comfort that they will have continued employment, and used that security to take advantage of the buyer's market that was created after the bust.
This month's press release by the Real Estate Information Network (REIN), our local board, sheds light on how the supply of distressed housing still impacts our housing market today. This report though, unlike the news we were hearing in 2009-2011, shows that the volume of distressed sales is slowing down, reducing inventories leading to modest price increases. It is the supply and demand cycle at work. This trend coupled with the almost certain prospect of rising interest rates in the future, suggests that buyers will have to look harder and need to be more scrappier to get the good deals. For sellers, it means that they are building equity at a better pace, and if they can time the market and interest rates right should do well when they sell their home.
If you, or anyone you know is looking to buy or sell real estate in the Hampton Roads area, please consider referring them to a Trustworthy Agent. We will be sure that you get a good report back, on our level of service!