The Virginia Beach housing market has been on a rollercoaster ride in 2024. Early on, it mirrored the national trend with hot demand and rising prices. But buckle up, because things have shifted recently. Let's dive into the current state of the Virginia Beach housing market and see what it holds for buyers and sellers.
How is the Virginia Beach Housing Market Doing?
The Virginia Beach housing market is known for its high level of competitiveness. On average, homes in Virginia Beach receive 3 offers and sell in approximately 18 days. Redfin rates the competitiveness of Virginia Beach at a high level, indicating that many homes get multiple offers, some with waived contingencies.
Virginia Beach House Prices and Trends
In May 2024, the median sale price of a home in Virginia Beach was $399,000, reflecting a 7.8% increase compared to the previous year. The median sale price per square foot also increased by 7.6%, reaching $233 per square foot.
Comparison with Nearby Cities
When comparing the Virginia Beach housing market to nearby cities, it remains highly competitive. For example:
- Homes in Virginia Beach sell for about 1% above list price and go pending in around 18 days.
- Hot homes in Virginia Beach can sell for about 3% above list price and go pending in around 10 days.
Sale-to-List Price Ratio
The sale-to-list price ratio for all home types in Virginia Beach is 100.9%. This indicates that homes are selling for nearly the asking price, underscoring the market's competitive nature.
Virginia Beach Migration and Relocation Trends
Virginia Beach continues to attract homebuyers from various regions:
- Approximately 0.97% of homebuyers searched to move into Virginia Beach from other metro areas.
- Washington, DC homebuyers showed the most interest, followed by those from Richmond and Philadelphia.
- Within the region, 74% of Virginia Beach homebuyers searched to stay within the metropolitan area
Virginia Beach Housing Market Predictions 2024
The Virginia Beach housing market, like many across the country, has seen a period of significant change in 2024. While early months mirrored the national trend of high demand and rising prices, recent data indicates a shift.
Current Market Snapshot
- Price Trends: The average Virginia Beach home value currently sits at $404,997, reflecting a healthy 6% increase over the past year.
- Inventory: Homes are going pending quickly, averaging around 17 days on the market. This suggests continued buyer interest, but not at the frenetic pace of the seller's market seen earlier in 2024.
- Pricing Power: A balanced median sale-to-list ratio of 1.00 indicates a market transitioning from favoring sellers to a more even playing field for both buyers and sellers.
Looking Ahead: A Moderating Market Forecast
The Virginia Beach Metropolitan Statistical Area (MSA) forecast paints a picture of a moderating market over the next few quarters. Here's a breakdown of the predicted changes:
- June 2024: A slight price increase of 0.2% is expected by Zillow.
- August 2024: A small dip of 0.4% is anticipated, suggesting a plateauing of prices.
- May 2025: A more significant price decrease of 1.9% is projected, which could indicate a buyer's market taking hold.
Crash or Boom? Neither Likely
The forecast suggests a gradual cooling down, not a dramatic crash. Several factors support this:
- Stable Local Economy: Virginia Beach boasts a healthy economy driven by tourism, military presence, and growing tech industries. This provides a strong foundation for the housing market.
- Limited Inventory: While inventory has increased compared to earlier in the year, a shortage of available homes could prevent a significant price drop.
What Does This Mean for You?
- Buyers: Patience might be rewarded. Prices are expected to moderate, offering potential buying opportunities in the coming months.
- Sellers: While the market remains active, the days of bidding wars may be behind us. Strategic pricing and a focus on curb appeal could be crucial for attracting buyers.
The Bottom Line
The Virginia Beach housing market is in a state of transition, shifting from a seller's market to a more balanced landscape. While prices may cool down over the next year, a significant crash seems unlikely. Understanding these trends can empower both buyers and sellers to navigate the market successfully.
Remember, this is a forecast, and real estate markets can be unpredictable. Consulting a local realtor is always recommended for the most up-to-date information and guidance specific to your needs.
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 $351,095, with an annual increase of 6.1%. Additionally, homes in Virginia Beach typically go to pending status in around 20 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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