Median days on market (DOM) for homes in the Hampton Roads region reached a high point for the year in December, climbing to 24 — in sharp contrast to the median DOM in March and April, which was 7 — the year’s lowest.

Just one year earlier, in December 2021, the DOM was 15. That’s a year-over-year increase of about 60%, while the month-over-month DOM rose from 20 in November, a 20% increase.

During the first half of 2022, the market remained highly competitive with tight inventory and selling prices reaching record highs. However, July began a slow decline in the market, with the days on market doubling from 12 in July to 24 by December. However, it’s important to remember that the real estate business typically slows a bit during this time of year.

 

December’s data points from REIN:

• Active residential listings totaled 3,345. That’s 518 fewer than the month prior, but up year-over-year by 19%.
• Pending sales stood at 1,692, a drop from 1,913 for November. That’s also down year-over-year by 31% from 2,441 last December.
• Settled sales during the month were 2,004. That’s up 4% from 1,923 in November, but down 35% from 3,092 year-over-year.
• The median sales price (MSP) of homes sold across the region in December was $306,000, up from $302,000 last month and up 5.5% from $290,000 in December 2021.
• The Month’s Supply of Inventory (MSI) the month was 1.27, a drop from 1.42 in November, but higher than the 0.88 MSI recorded in December 2021. MSI is used to identify how long there would be homes for sale on the market if no new inventory were added.
• Median days on market (DOM) for residential listings was 24.
• Residential new construction sold in the MLS during the month was 277, that’s 77 more than last month, and 29 fewer than 306 last December.

 

Real estate is local; contact me for specific information and the market stats for your neighborhood and what that means for YOU!

As talk about a potential recession grows, you may be wondering what a recession could mean for the housing market - including home prices, mortgage rates, housing supply and more. That’s not an easy task considering how sensationalized headlines are today.

The graph above shows historical data illustrating that home prices don't fall every time there's a recession, and it helps prove why you shouldn’t be afraid of what a recession could mean for the housing market today. Looking at recessions going all the way back to 1980, home prices appreciated in four of the last six of them. So, historically, when the economy slows down, it doesn’t mean home values will always fall.

Most people remember the housing crisis in 2008 (the larger of the two red bars in the graph above) and think another recession would be a repeat of what happened to housing then. But today’s housing market isn’t about to crash because the fundamentals of the market are different than they were in 2008 -read more below on that. According to experts, home prices will vary by market and may go up or down depending on the local area. But the average of their 2023 forecasts shows prices will net neutral nationwide, not fall drastically like they did in 2008.

Fortune explains mortgage rates typically fall during an economic slowdown:

“Over the past five recessions, mortgage rates have fallen an average of 1.8 percentage points from the peak seen during the recession to the trough. And in many cases, they continued to fall after the fact as it takes some time to turn things around even when the recession is technically over.”

In 2023, market experts say mortgage rates will likely stabilize below the peak we saw last year. That’s because mortgage rates tend to respond to inflation. And early signs show inflation is starting to cool. If inflation continues to ease, rates may fall a bit more, but the days of 3% are likely behind us.

The big takeaway is you don’t need to fear the word recession when it comes to housing. In fact, experts say a recession would be mild and housing would play a key role in a quick economic rebound. As the 2022 CEO Outlook from KPMG, says:

“Global CEOs see a ‘mild and short’ recession, yet optimistic about global economy over 3-year horizon . . .

 More than 8 out of 10 anticipate a recession over the next 12 months, with more than half expecting it to be mild and short.”

 

Bottom line: 

While history doesn’t always repeat itself, we can learn from the past. According to historical data, in most recessions, home values have appreciated and mortgage rates have declined.

If you’re thinking about buying or selling a home this year, let’s connect so you have expert advice on what’s happening in the housing market and what that means for your homeownership goals.

There’s no doubt today’s housing market is very different than the frenzied one from the past couple of years. In the latest Real Estate Forecast Summit, Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), drew the comparisons above between today’s housing market and the previous cycle. 

In the second half of 2022, there was a dramatic shift in real estate, and it caused many people to make comparisons to the 2008 housing crisis. As the graphic above shows, there may be a few similarities, but looking at key variables now compared to the last housing cycle, there are significant differences.

Thank you to all my clients, friends and colleagues who have supported me along the way; 2023 marks a milestone as my 15^th year selling real estate. It has been my privilege and pleasure to be of service and help so many people successfully buy and sell their homes and investment properties, and this places me in the top 18% of all real estate agents in Hampton Roads / Coastal Virginia and in the top 12% of agents in the entire Berkshire Hathaway HomeServices network nationally. 

 

I am also honored to continue to be among the luxury collection home specialists in the Berkshire Hathaway HomeServices network, and in 2022, I also earned my Certified Luxury Homes Marketing Specialist designation from the globally recognized Institute for Luxury Home Marketing. Continuing my education and training is extremely important to me and something I enjoy, and it provides a greater advantage and benefits to all my clients. Thank you for your continued support and trust! 

 

RESULTS FOR MY CLIENTS IN THE LAST 12 MONTHS:

 - Number of Listings Taken vs Number of Listings Sold  - 100%

 - Average List Price to Sales Price Ratio - 100%

 - Average Days on Market - 18

 - Median Days on Market - 7

 - 100% of Buyer Contracts Closed Successfully

 

Click to read what my clients have to say in my online reviews

 

Found out what YOUR home is really worth! 

My complimentary valuation includes: an estimate of the current value of your home, comparable properties that sold nearest you, and a suggested listing price. I can confidently say my expert valuation has higher accuracy than any online valuation source. I have resources available to help buyers determine their buying power too!

 

For all the property listings in your area, visit http://www.ashleyswindell.com 

Please don't hesitate to contact me whether you are thinking of buying or selling, have general real estate questions or have a referral. I am always grateful to be of service.

 

 

Enjoy Coastal Virginia Living! 

Visit my website AshleySwindell.com

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Call / Text: 757-377-1490     Email: Ashley@AshleySwindell