Virginia Beach is located in the southeastern part of Virginia, within the bustling metropolitan of Hampton Roads. This quaint resort town is one of the most popular tourist destinations in the state, especially for families who are looking for some surf, sand, and sun during the hot summer months.
The city’s relaxed pace and casual atmosphere don’t just lure in restless summer vacationers—they also hold immense appeal for homeowners, renters, and real estate investors. With its robust foodie scene, rich culture and history, and family-friendly attractions, Virginia Beach’s property market is undoubtedly thriving.
Real Estate Market
Virginia Beach is a seller’s market this year, which means there are more potential homebuyers than there are available homes for sale. Although the prices of homes in the city haven’t seen the same exponential increase as other markets in the country, properties still tend to sell very quickly.
Here are the key market statistics you should be aware of:
- On average, homes in the city sell after only 44 days on the market. For those who can’t wait and may need to sell their homes quickly, selling a house as is Virginia Beach to cash buyers and investors is also an option. The prices they offer are still relatively high, and sellers can avoid the stress and costs of traditional home selling.
- The median list price of homes is USD$377,070. This is 8% more than the median list price in the previous year.
- Single-family homes have a median list price of USD$499,900, while condos and townhomes have a median list price of USD$272,000.
- The median list price per square foot is USD$189.
- Green Run is the city’s most affordable neighborhood, with a median listing price of USD$202,000.
- With a USD$867,000 median listing price, North Virginia Beach is the city’s most expensive neighborhood.
- On average, homes in Virginia Beach tend to sell for a little more than their asking price, with a sale-to-list price ratio of 101%.
Population And Employment
More than half of the residents are baby boomers and millennials, which means that the city is the ideal market for those who are looking to invest in real estate. Since the population growth has remained comparatively flat in the past five years, long-term market performance is stable and predictable. This steady growth means that investors can expect to see significant returns if they’re practicing the buy-and-hold strategy.
Below are some significant population statistics.
- The rate of population growth has stayed at 0.274 for the past few years.
- Virginia Beach is the largest city in the state. There are 1.73 million residents in the metro and approximately 500,000 in the city.
- 52% of the city’s population are in the 20-59 age range. The median age of the residents is 36.8.
- Although job growth has dropped by 0.14%, the unemployment rate is down to only 5.9%.
- According to the Bureau of Labor and Statistics, the employment sectors that are exhibiting the fastest signs of growth are hospitality and leisure, trade and transportation, and construction.
- The city has a per capita income of USD$35,032, while the median household income is USD$69,329.
Trends And Outlook
Demand in the US real estate market, including Virginia Beach’s housing market, has far outpaced the supply. Prices have soared to record levels, and approximately half of all properties are selling for considerably more than their list price and even more if a new coat of paint is applied. If the market were balanced, homebuyers can expect at least six months of supply. In contrast, a seller in Virginia Beach may not even have to wait a day before their property gets snapped up.
Because Virginia Beach is mostly a seller’s market in 2021, a lot of buyers may be wondering if the outlook for next year is better. According to Zillow, there are indications that 2022 may be a better year for homebuyers. For instance, although inventory has plummeted in the first half of this year, the numbers have started creeping back up in the third quarter.
The increase in inventory may eventually help with lowering the escalating prices. However, home list prices show no signs of dropping right now, so buyers may need to wait for things to cool down before they can see any significant price reductions.
Takeaways
Real estate experts rank Virginia Beach as one of the best markets in the country for renters and investors due to the high quality of life, overall affordability, and lively real estate market activity. Sellers also don’t have to wait too long before their properties get taken off the market by eager buyers. Buyers, however, may have to hold back until next year to see better prices and housing options.
