NORFOLK, Va. (WAVY) — If you’re on the hunt for a new home in Hampton Roads, you may need to act fast. Homes sell without inspection and sometimes without being seen.
This frenetic market movement begs the question: how long will it last? An overview of local real estate requires an out-of-town perspective.
Nicole and Kevin Franqui moved to Norfolk just over a year ago from San Diego.
“We realized how much we were spending on an apartment in Southern California, and we started looking for what we could get for a lot less here,” Kevin Franqui said.
The couple paid $283,000 for their Norfolk home, without seeing them, and $3,000 more than the list price, and they have plenty of company.
“It’s the wild Wild West out there,” said real estate agent Taylor Lennox of COVA Collective Realty in Chesapeake. “It’s a multiple supply situation. People who need to put more appraised value. But people who bought around this time last year could then turn around and sell their properties this year at a pretty good profit.
That’s because inventory, or the number of homes for sale, is at historic lows. the Hampton Roads Realtors Association said that our area only had a month and a half supply of homes in November. This is a decrease of 12.5% compared to the same period a year ago. The median price of a single-family home is $300,000, up 6.4%.
“You can sell your house and make a fortune. I don’t care who you are,” said Barbara Gatewood Sgueglia, president of the Hampton Roads Realtors Association. “But where are you going?”
For Deb and Brian Kraus of Norfolk, the answer was across town, and it was not an easy trip.
“So you speak on sight, not inspection, that kind of stuff,” Deb Kraus said. “They wanted an offer on the table before you could even get an appointment to view a house.”
They ended up renting for four months. The Krauss got their new home when a previous buyer pulled out.
So why is the market so hot? Dr. Robert McNab, an economist at Old Dominion University, blames a combination of tight supply and cheap money. “That means people are there to raise, refinance, buy, who may not have bought in the past because it was cheaper than renting, that will change in the coming year as that interest rates will rise,” he said.
McNab said you can thank inflation at a 40-year high for the upcoming interest rate hikes.
“It’s going to chill the market somewhat, but we’re still not building enough housing for the population growth in Hampton Roads, Virginia, and the United States.”
Having a visiting military population means there are homes for sale in Hampton Roads, there are just fewer to choose from.
“I think in the end we got a good deal based on what we would have paid for a house a few months down the line,” Deb Kraus said.
Related Link: HRRA Market Indicators Report | November 2021
As for the infamous “housing bubble” that led to the financial crisis of the late 2000s, several experts have said that too many unqualified buyers got loans they shouldn’t have. to receive. They agree, this time the market is driven by insufficient supply and too much demand.