The median settled sales price of homes continued to fall in May 2011 when compared to May 2010. The number of homes that went under contract during May increased, the number of settled sales declined when compared to the same time last year.
Residential settled sales were down 6% when compared to May 2010.
Overall, the region saw a decline in the median residential settled sales price of 10.5%, the second largest monthly decline for the year 2011. decline of the median settled sales price is due to the volume of distressed homes that are selling at discount prices.
The number of homes put under contract during May 2011 increased 9.9% when compared to the same time last year. The Southside experienced large gains in Portsmouth, Suffolk, and Norfolk with increases of 27.3%, 18.75%, and 15.8% . The rise in the number of contracts written in May 2011 points towards positive results in the coming months. The number of homes for sale in the region fell by 6% in May 2011. Virginia Beach saw the largest drop of 13% when compared to May 2010. As the inventory falls, the market should feel the stabilizing effect in prices.
It is considered that a stable housing market should have a six to eight months’ supply of inventory.
Distressed homes (bank owned or short sales), comprised 21.6% of the active listings for sale while they were 31% of the settled sales in May 2011. If the current trends continue, the Hampton Roads region should be poised for an overall stabilization or even slight growth.
Virginia Beach: 7.5 month supply of homes on the market.
Chesapeake: 8.82 month supply of homes on the market.
Norfolk: 10.7 month supply of home son the market.
**NOTE: All statistics provided herein were provided by Real Estate Information Network (REIN)