NORFOLK, Va. — If you're looking for a new neighborhood to call home, there's a lot to consider — home prices are still going up across the United States and new data from Virginia Realtors suggest that the housing market is changing.
"Everything in real estate is cycles,” said Kimberly Plourde who has been a realtor in Hampton Roads since 1998.
Plourde is also the Broker of EXIT Realty Central, and the Vice President of the Real Estate Information Network (REIN) in Hampton Roads.
Heading into summer, she said sellers are outnumbering prospective homebuyers.
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"The one thing that is really starting to help us is we're getting increased inventory," Plourde said. "We have about 30% more choices this year than last year. So that's really starting to help the buyers have a little more of a negotiating power than they've had for the last several years.”
Plourde added that if buyers can afford it, they are able to negotiate more and don't need to be as aggressive with offers. Fewer people are waiving home inspections, prompting sellers to lower costs and offer incentives.
For perspective on the numbers, Ryan Price, chief economist at Virginia Realtors said, “the market is very fluid. It's very local for sure.”
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He explained further that what's happening in Hampton Roads differs from regions like Northern Virginia.
The statewide median price is about $425,000, while Hampton Roads sits in the mid to upper $300,000 range.
"[There are so many factors that go into calculating a mortgage so it’s tough to say, but] back of the envelope, you're probably looking at, at least a six-figure household income to afford that, probably a bit more," Price said, highlighting the challenge of affordability in homeownership for many Americans.
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A home is considered affordable if monthly payments don't exceed 30% of household monthly income.
"Housing is becoming more expensive faster than people are increasing their wages. And couple that with interest rates near 7% on average, the affordability piece is still a challenge for many places," Price said.
This dynamic impacts the entire community, not just buyers and sellers in the market. Increased market activity often leads to more construction, creating jobs and higher demand for services.
Changes in the market also affect property values, which can influence property taxes. If taxes go up, all residents will pay more.
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Price acknowledges the uncertainty is another factor impacting home sales.
“There's a lot of uncertainty out there, particularly in Hampton Roads, Northern Virginia. When people are nervous about their job situation, they tend to, you know, pull back on major purchases, like a home,” Price said.
So, people are reevaluating their budgets, waiting to see what happens next.
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"If you're able to be in the market, sellers need to be realistic on their price points, and buyers should be ready for more competition,” Price said.
Here are local resources for anyone looking to buy a home:
- Virginia Housing Development Authority offers programs for first-time homebuyers, including down payment assistance and low interest loans.
- Virginia Housing helps people create plans to pay their mortgage and offers programs to help manage and maintain homes.
- Hampton Redevelopment and Housing Authority teaches the key steps to homebuying.
- Virginia Department of Housing and Community Development provides a homeownership down payment assistance program.
- Urban League of Hampton Roads offers counseling and workshops designed to safeguard homeownership and prevent homelessness in underserved communities.
This article was researched, reported, and written by a WTKR News 3 journalist. AI was used to minimize typos and ensure style continuity.
