The first-quarter data from Metrostudy shows a slow spring selling season in the first-quarter for the shoreline market, particularly in new-home sales. Closings overall in the Virginia Beach market from 6,337 to 5,827 year-over-year from 1Q13 to 1Q14. For existing sales the decline was not as dramatic, where from 5,784 to 5,451. In new-home closings, however, sales fell 553 to 376, a far more significant drop. New-home sales in the market peaked in 3Q13 in the last year at 693.
Median closing prices in the Virginia Beach market are relatively stable, and the market remains both affordable and without the extreme price appreciation being experienced in many markets nationwide. Overall median closing price dropped between 1Q13 and 1Q14 from $194,400 to $186,700. Existing home median closing price fell from $182,400 to $177,600 year-over-year. The peak existing closing price during the last year occurred in the second-quarter of 2013, when prices crept closest to $200,000 at a median $199,200. New-home closing median prices are, as to be expected, significantly higher than existing homes. However, they are still within the ballpark of $300,000. Median new-home price hit $301,800 in the first-quarter, up from $274,000 in 1Q13. This price appreciation for new homes may account for some of the slowdown in sales during the winter and spring. Virginia Beach also relies on summer business, which will cause the market to see potential growth in new-home sales during summer.
The price per square foot in the market came in at an overall median $122 for the first-quarter, down year-over-year from $123. For existing homes and new homes individually, however, the median price per square foot still increased from $119 to $121 for existing homes and $147 to $151 for new homes.
Learn more about markets featured in this article: Virginia Beach, VA.