The Virginia Beach housing market is dynamic, with a surge in prices, high competition, and a mix of residents moving in and out. Here is the latest update on the evolving trends in the Virginia Beach housing market.
“Virginia Beach” Housing Market Trends
Current Market Scenario
The Virginia Beach housing market is experiencing robust activity, characterized by intense competition and rapid turnover. On average, homes in Virginia Beach receive 3 offers and sell in a mere 25 days. This competitiveness is reflected in the Redfin Compete Score™, which rates Virginia Beach as very competitive, with a score of 22 days for homes to sell.
Price Surge in November 2023
In November 2023, Virginia Beach witnessed a remarkable surge in home prices, with a 10.6% increase compared to the previous year. The median sale price reached $365,000, and homes sold in an average of 25 days on the market. However, the number of homes sold decreased slightly to 354 compared to 448 in the same period last year.
Sale-to-List Price Ratio
The sale-to-list price ratio for all home types in Virginia Beach stands at 99.6%, showcasing the competitiveness of the market. Homes are selling for nearly the full list price, indicating a strong demand that often leads to multiple offers and swift sales.
Migration and Relocation Trends
Virginia Beach is attracting homebuyers from various metros, with 0.87% of homebuyers searching to move into the area from outside metros. The top three metros contributing to this influx are Washington, DC, Richmond, VA, and Philadelphia, PA. On the other hand, Jacksonville, FL, Orlando, FL, and Knoxville, TN, are the most popular destinations for residents leaving Virginia Beach.
Virginia Beach Housing Market Forecast 2024
According to Zillow, in the Virginia Beach-Norfolk-Newport News area, the average home value stands at $334,034, reflecting a 6.0% increase over the past year. Homes are moving swiftly, with an average time to pending status being around 24 days. The data provided is accurate up to November 30, 2023.
One-Year Market Forecast
The 1.1% decrease in the market forecast for the year ending November 30, 2023 suggests a subtle shift in dynamics.
Inventory and Listings
- For sale inventory: 4,970 (as of November 30, 2023)
- New listings: 1,816 (as of November 30, 2023)
Sale and List Prices
- Median sale to list ratio (October 31, 2023): 1.000
- Median sale price (October 31, 2023): $312,982
- Median list price (November 30, 2023): $340,833
Market Dynamics
- Percent of sales over list price (October 31, 2023): 45.7%
- Percent of sales under list price (October 31, 2023): 26.6%
Is Virginia Beach a Buyer’s or Seller’s Housing Market?
With the median sale to list ratio being 1.000, it indicates a balanced market where neither buyers nor sellers hold a significant advantage. Despite the slight dip in the 1-year market forecast, the 6.0% increase in average home value suggests overall stability rather than a significant drop in prices.
Will the Virginia Beach Housing Market Crash?
The data does not indicate an imminent market crash. However, it’s essential to monitor future trends and economic factors for a comprehensive assessment. Considering the balanced market conditions and the 1.1% projected decrease, it could be a reasonable time for prospective buyers, though individual circumstances should be taken into account.
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 $334,034, with an annual increase of 6%. Additionally, homes in Virginia Beach typically go to pending status in around 24 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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References:
- https://virginiarealtors.org/
- https://www.zillow.com/VirginiaBeach-va/home-values
- https://www.neighborhoodscout.com/va/virginia-beach/real-estate
- https://www.realtor.com/realestateandhomes-search/Virginia-Beach_VA/overview
- https://www.nvar.com/realtors/news/market-statistics
- https://www.redfin.com/city/20418/VA/Virginia-Beach/housing-market
