PORTSMOUTH, Va. (WAVY) — The housing market throughout the Commonwealth slowed down in 2023, but economists expect improvements as we move into the new year. Despite a drop in sales, Hampton Roads fared well compared to the rest of state, at least in some ways.
The military population makes up a big chunk of home buyers in the seven cities. Home sales went down by just 0.4% in Hampton Roads. Statewide, it was down by 7.5%. This is according to Jeremy Johnson, former chairman of the Hampton Roads Realtors Association.
“That shows you we do have a little bit more of that insulation,” he said.
In 2023, the interest rates kept climbing across the state, hovering at more than 7%, ripe for slowing down sales.
“Two fold, it was slow and competitive,” said Ryan Price, chief economist with Virginia Realtors. “We had the slowest market in Virginia that we’ve had in about a decade.”
First-time home buyers were getting priced out, and inventory did not show signs of improving.
But by October, those interest rates started coming down. It is now at around 6%. Price called this good news for 2024.
“We think that’s going to boost market activity on both sides of the table,” he said.
That said, inventory is still at a standstill.
“The low supply really constrains the market,” Price said. “If we had more supply out there, the demand is there, the pent up demand is there in the market, we would have more sales.”
As for younger generations and new home buyers, the experts say it is still tough. Their advice — stay patient and stay flexible.
“You’re not going to get your dream home, more than likely,” Johnson said. “You may have to put a little sweat-equity into what you buy and do some updates yourself.”
For anyone interested in selling their homes, the realtors 10 On Your Side spoke with said it is a good time to sell. Just make sure you have somewhere to go afterward.
