Thinking about buying or selling a home in Virginia Beach? You're probably wondering what's going on in the Virginia Beach housing market right now. Well, here's the short answer: It's a competitive market with rising prices and homes selling relatively quickly. But that's just the tip of the iceberg. Let's dive into the details and explore the current trends shaping the real estate scene in this coastal city.
Current Virginia Beach Housing Market Trends
Virginia Beach is a very competitive market. Keep reading to learn why.
Home Sales
Let's start with the basics: home sales. How many homes are actually changing hands?
According to Redfin, in December 2024, 452 homes were sold in Virginia Beach, according to the data. That's a significant jump of 18.0% compared to the same time last year. This suggests that despite any economic headwinds, people are still actively buying homes in the area. This increase indicates that demand hasn’t waned that much.
Home Prices
Now, for the million-dollar question (or, perhaps, the $377,000 question!): What are home prices doing?
The median sale price of a home in Virginia Beach in December 2024 was $376,500. That's an increase of 4.6% compared to December 2023. This means homes are, on average, worth more than they were a year ago. In addition, the median sale price per square foot in Virginia Beach is $230, up 6.7% since last year.
Are Home Prices Dropping?
This is a question on everyone's mind, especially potential buyers. While there can be localized areas where you can find cheaper homes, the data indicates that home prices in Virginia Beach are not dropping overall. In fact, they're still trending upward, albeit at a slower pace than we saw in previous years. It's always wise to check with a local realtor, as they will have the most up-to-date information.
Comparison with Current National Median Price
How does Virginia Beach stack up against the rest of the country?
The current national median price is $407,500, with a year-over-year change of +6% (December 2024). This means that Virginia Beach's median home price of $376,500 is slightly below the national average. While the increase is not as high as the national price, it is still substantial. It is important to take into consideration that the real estate in this area is extremely valuable.
Here's a simple table to illustrate the comparison:
| Location | Median Sale Price (Dec 2024) | Year-over-Year Change |
|---|---|---|
| Virginia Beach, VA | $376,500 | +4.6% |
| United States | $407,500 | +6% |
Housing Supply
Housing supply is a crucial factor influencing the market. It refers to the number of homes available for sale. The inventory is currently not mentioned in the details, but a lower number of houses for sale would cause the housing market to become more competitive.
Is It a Buyer's or Seller's Housing Market?
This is the question everyone wants to know! Based on the data, Virginia Beach leans towards a seller's market. Why?
- Homes receive an average of 2 offers.
- Homes sell in around 31 days.
That means sellers can expect to see interest in their property and sell relatively quickly. The Redfin Compete Score gives Virginia Beach an 80 out of 100, labeling it as “Very Competitive.”
Homes are even selling for around the list price, with 36.7% of homes sold above list price, up 5.9% year-over-year. However, the sale-to-list price is 99.7%, which is down -0.18% year-over-year. Overall, these percentages are solid.
Market Trends
Several market trends are shaping the Virginia Beach real estate scene:
- Migration: Interestingly, while 69% of Virginia Beach homebuyers are looking to stay within the metropolitan area, 31% are searching to move out of Virginia Beach. Within the state of Virginia, popular destinations for those leaving Virginia Beach include Roanoke, Harrisonburg, and Lynchburg. People are moving to Virginia Beach from Washington, DC; Richmond, VA; and New York, NY.
- Speed of Sales: Homes are selling quickly. On average, they go pending in around 28 days, indicating strong demand.
- Above List Price: A good percentage of homes are selling for above list price, showing that buyers are willing to pay a premium to secure a property.
- Offers: Multiple offers on homes mean the competition to purchase a home is fierce.
Impact of High Mortgage Rates (Around 7% as of Feb. 2025)
The elephant in the room is mortgage rates. With rates hovering around 7%, how does this impact the Virginia Beach housing market?
- Affordability: Higher mortgage rates make it more expensive to buy a home. This can price some potential buyers out of the market or force them to lower their budget.
- Cooling Effect: High rates can cool down the market slightly by reducing buyer demand.
- Inventory: Some potential sellers may be hesitant to list their homes, especially if they have a low mortgage rate on their current property. This can keep inventory tight and support prices.
In my opinion, while higher mortgage rates certainly have an impact, the Virginia Beach housing market has shown resilience. The area's desirability, driven by its beautiful beaches, military presence, and quality of life, continues to attract buyers.
My expertise and opinion is to wait for the rates to go down or purchase now. If you wait and prices go up, you might lose out. Be sure to consult with a financial professional to determine what is right for you.
Virginia Beach Housing Market Predictions 2025-2026
Thinking about buying or selling a home in Virginia Beach? You're probably wondering what the future holds for the housing market. Based on the latest Zillow forecast, home values in Virginia Beach are expected to increase modestly. The forecast suggests a 0.3% rise by January 2025 and an overall 3% increase by the end of 2025. Let's dive deeper into what this means for you.
As someone who keeps a close eye on the real estate scene, I know how important it is to have reliable information. These forecasts aren't crystal balls, but they do give us a good indication of where things are headed. Zillow's data provides a valuable snapshot, even though the market can change quickly.
Here's a breakdown of the price appreciation forecast for Virginia Beach and other Virginia Metropolitan Statistical Areas (MSAs):
| Region | Predicted Price Change by January 2025 | Predicted Price Change by December 2025 |
|---|---|---|
| Virginia Beach, VA | 0.3% | 3.0% |
| Richmond, VA | 0.3% | 3.5% |
| Roanoke, VA | 0.5% | 4.3% |
| Lynchburg, VA | 0.5% | 4.2% |
| Charlottesville, VA | 0.5% | 2.9% |
| Blacksburg, VA | 0.4% | 2.8% |
| Winchester, VA | 0.5% | 3.3% |
Virginia Beach Housing Market vs. Other Virginia Cities
You'll notice that Virginia Beach's projected growth is slightly lower compared to some other areas in Virginia, such as Roanoke and Lynchburg. This could be due to several factors, including differing levels of demand, new construction, and local economic conditions. Despite the slightly slower growth, the forecast still indicates a positive trend for homeowners in Virginia Beach.
Will Home Prices Drop or Crash in Virginia Beach?
Based on current forecasts, a major price drop or crash in the Virginia Beach housing market seems unlikely for 2025. The predicted moderate growth suggests a stable market, not a bubble about to burst. However, keep in mind that unforeseen economic events (like a major recession) could always change the picture. Always do your own research with a professional.
What About the Virginia Beach Real Estate Market in 2026?
Predicting the housing market beyond a year is tricky. However, if the current trends continue, we can expect a similar pattern of modest growth in 2026. Factors to watch include:
- Interest rates: Higher rates can cool the market, while lower rates can stimulate it.
- Economic growth: A strong local economy attracts new residents, increasing demand for housing.
- New construction: More housing supply can ease price pressures.
My Take on the Virginia Beach Housing Market
Having lived in Virginia for a while, I've seen the Virginia Beach area consistently attract people due to its beautiful beaches, military presence, and quality of life. While the forecast is just that – a forecast – the underlying factors supporting the Virginia Beach housing market seem strong. If you're considering buying or selling, now is a good time to connect with a local real estate professional who can give you tailored advice.
In conclusion, the Virginia Beach housing market forecast for 2025 points towards moderate growth. While not as explosive as some other markets, this stability can be reassuring for both buyers and sellers. Keep an eye on interest rates and the local economy, and you'll be well-positioned to make informed decisions.
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 $349,273, with an annual increase of 4.6% (December 31, 2024). Additionally, homes in Virginia Beach typically go to pending status in around 32 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.
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