HAMPTON ROADS, Va. — Real Estate Information Network (REIN) released new numbers showing a significant increase in the median sales price (MSP) of homes sold from nearly 5% from April to May.
REIN says MSP has reached a record high of $335,000 for the Hampton Roads region.
The previous high MSP, recorded in May of 2022, was at $328,773.
Inventory remains tight heading into the summer season, according to REIN.
Many consumers who would choose to sell their homes have appeared unwilling to do so, as both home prices and mortgage rates are higher than they have been in recent years, according to Jon McAchran of AtCoastal Realty and President of REIN’s Board of Directors.
“The local real estate market remains relatively strong,” McAchran said. “Prices have been steady over the past few months, whereas a number of markets across the nation have seen their selling prices weaken.”
McAchran says inventory is lacking in order to meet the need of potential buyers, leading to less people wanting to sell their home.
“Even with mortgage rates up and the price of homes higher, people are buying. If there was more inventory, consumers might be more likely to find the home they need, regardless of the price,” McAchran said.
Month’s Supply of Inventory (MSI) is a calculation of how long there would be homes on the market if no new inventory was added. For May, the number was 1.37.
Typically, a market is considered “healthy” if the MSI is between 5.0-7.0 months of supply, according to REIN.
Since January 2021, the highest the MSI has been was 1.47, which was in July 2021.
Below are REIN’s May data points.