Hampton Roads Housing Market 2022: A Detailed Report
The Hampton Roads housing market in 2022 was marked by both dramatic highs and notable shifts. As a seasoned real estate professional specializing in appraisals, I’ve closely followed the trends that shaped this dynamic market. This report provides a detailed breakdown of the Hampton Roads real estate market in 2022, highlighting the significant trends and shifts that defined the year. Whether you’re a buyer, seller, or homeowner, understanding these trends is crucial for making informed decisions.
A Year of Contrasting Halves: The Hampton Roads Market in 2022
The year began with strong momentum from 2021, driven by high demand and tight supply. However, as the year progressed, market conditions began to change due to rising mortgage rates and inflation. Let’s explore how the market transitioned from a seller’s paradise in the first half of the year to a more balanced (and even slowing) market by the year’s end.
The Start of 2022: Strong Demand, Tight Supply
At the start of 2022, the Hampton Roads housing market was characterized by extremely low inventory levels and high demand. The Month’s Supply of Inventory (MSI) hit record lows, reflecting a market where buyers had limited choices, and sellers benefited from rising prices.
Here are the key stats from the first half of the year:
-Settled Sales: Over 16,872 homes were sold between January and June.
-Median Sales Price (MSP): The year started with an MSP of $291,000 in January and quickly surged to an all-time high of $328,797 in May—an impressive 13% increase in just four months.
-Days on Market (DOM): Homes were selling fast, with a Median DOM as low as 7 days in March, April, and May.
This rapid increase in sales and prices reflected a strong seller’s market. However, as we entered the second half of the year, the market began to slow due to several economic factors.
The Second Half: Slower Sales, Rising Inventory
As mortgage rates climbed and inflation impacted consumer buying power, the Hampton Roads housing market saw a shift. Inventory levels rose, and the pace of home sales slowed.
Here’s how the second half of the year unfolded:
-Settled Sales: 14,875 homes were sold between July and December, a 12% decrease compared to the first half.
-Median Sales Price: The MSP fell to $302,000 in November before closing at $306,000 in December. Overall, the MSP for the year was $312,000, marking a 7.2% increase from January to December.
-Active Listings: Listings increased by 27%, with 23,602 active listings from July to December compared to 18,555 in the first half of the year.
-Days on Market: Homes lingered longer on the market, with DOM rising from 7 days in April to 24 days by December.
This shift signaled a cooling of the market, influenced by rising mortgage rates and inflation.
Market Slowdown: What Caused the Shift?
Several factors contributed to the Hampton Roads housing market slowdown in the second half of 2022:
-Rising Prices: By mid-year, prices had peaked, making homeownership less affordable for many buyers.
-Inflation: The inflation rate jumped from 7.5% in January to 9.1% in June, directly impacting consumer purchasing power.
-Rising Mortgage Rates: Mortgage rates surged from historic lows of around 3% for a 30-year fixed-rate loan at the start of the year to over 7% in parts of October and November. By the end of 2022, the 30-year fixed-rate averaged 6.42%.
Despite these challenges, the market remained resilient. The region saw a total of 31,747 closings—making 2022 the third-highest year in Hampton Roads real estate history.
Key Data Highlights from 2022
Let’s break down the key data points for a clearer snapshot of how the market evolved over the year:
First Half of 2022 (January – June)
Settled Sales: 16,872
Median Sales Price (MSP): $328,797 in May (peak)
Days on Market (DOM): 7 days (April and May)
Second Half of 2022 (July – December)
Settled Sales: 14,875 (down 12%)
Median Sales Price: $306,000 in December
Days on Market (DOM): 24 days (December)
What This Means for Buyers and Sellers in Hampton Roads
Despite the challenges faced in 2022, the Hampton Roads real estate market remained resilient. Here’s what this means for you moving into 2023:
For Buyers:
With inventory on the rise and demand cooling slightly, buyers may have more opportunities to negotiate on price in 2023. This is particularly true in higher-demand areas like Virginia Beach or Chesapeake Bay, where properties are traditionally competitive but may offer more favorable conditions as supply increases.
For Sellers:
The price growth in early 2022 allowed many sellers to achieve higher-than-expected returns, particularly in sought-after neighborhoods like Sandbridge and Oceanfront. Even though the market cooled toward the end of the year, sellers remain in a good position due to the overall desirability of the region.
Conclusion: Resilience Amidst Change
Despite a challenging second half, the Hampton Roads housing market in 2022 demonstrated remarkable resilience. As a real estate appraiser, it’s crucial to stay informed about these trends to offer clients the most accurate and timely valuations. Whether you’re looking to buy, sell, or refinance, having an accurate appraisal is key.
At Capital Valuations, we specialize in providing expert home appraisals in the Hampton Roads area, ensuring you have the insights needed to make informed real estate decisions.
Get Expert Appraisal Services in Hampton Roads
Ready to get a professional appraisal? Contact Capital Valuations today for a consultation. Our team is ready to help you navigate the Hampton Roads housing market with confidence.
Phone: 757-831-6234
Email: capitalvaluationsva@gmail.com
Location: 857 24th Street, Virginia Beach, VA
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