All data & info is provided by our local MLS REIN.

As with just about any year in real estate, the 2022 market had its highs and its lows. However, this year more than most, it may have been a tale of two very contrasting halves.

Thanks to the momentum during 2021, the year started off with high demand and extremely tight supply:

The Month’s Supply of Inventory (MSI) was at all-time lows in January (0.79), February (0.78), and March (0.88).

Three of the year’s first six months saw settled sales top 3,000: March (3,050), May (3,191), and June (3,320) each did, while none of the year’s final six months hit or surpassed that total.

Total settled sales for January through June were 16,872. For July through December, they totaled 14,875. That’s a difference of about 12%.
As is typical with any product, high demand and short supply pushed prices up.

The Median Sales Price (MSP) of homes in the Hampton Roads region was $291,000 for January, but quickly jumped up to a record high for the region of $328,797 in May.

That was a 13% increase in just four months.

The MSP dropped steadily after May, falling to $302,000 in November, before rebounding a bit to $306,000 in December.

For the year, the MSP for the region overall was $312,000, a 7.2% increase from January to December.

While they are impacted by different factors, the total number of active listings recorded during the first six months was much lower than they were during the last six months.

For January through June, there were 18,555 active listings recorded.
For July through December, the number was 23,602, a difference of 27%.
The other data point that is often used to gauge the health of the market is Median Days on Market (DOM).

For the first six months of 2022, the Median DOM looked like this: 16, 11, 7, 7, 8, 9.

For July through December, they were 12, 15, 18, 19, 20, 24. Clearly, the market slowed as the year went along - and for fairly obvious reasons.

First of all, prices climbed and peaked during May and June, pushing some potential buyers out of the market.

Inflation rates also impacted consumers. The inflation rate was 7.5% in January, jumped to 9.1% in June, and it ended the year at about 6.3% for December.

Finally, after dropping to historic lows in 2021, mortgage rates started 2022 as low as about 3% for a 30-year fixed-rate loan. However, rates climbed throughout the year. They were 4%-5% by March and hit 6%-plus in September, before topping out at more than 7% during parts of October and November. According to Freddie Mac the 30-year fixed rate averaged about 6.42% as 2022 ended.

Despite the challenges, 2022 still saw approximately 31,747 total closings take place. That’s the third highest in the region’s history – fewer than only 2021 (38,276) and 2020 (33,697).

For December 2022: Median days on market (DOM) for homes in the
Hampton Roads region reached a high point for the year in December, climbing to 24 — in sharp contrast to the median DOM in March and April, which was seven — the year’s lowest.

Just one year earlier, in December 2021, the DOM was 15. That’s a year-over-year increase of about 60%, while the month-over-month DOM rose from 20 in November, a 20% increase.

While days on market can help potential buyers identify which homes are newly listed and December’s DOM is indicative of a slowing market.

Mortgage rates and inflation continue to impact the real estate market, and that’s apparent from data points such as days on market. However, it’s important to remember that this is the time of year when the real estate business typically slows a bit.

Prices have corrected somewhat, and if mortgage rates can rebound, we could potentially see activity jump back up a bit this year.

December’s data points from REIN:
● Active residential listings totaled 3,345. That’s 518 fewer than the month prior, but up year-over-year by 19%.
● Pending sales stood at 1,692, a drop from 1,913 for November. That’s also down year-over-year by 31% from 2,441 last December.
● Settled sales during the month were 2,004. That’s up 4% from 1,923 in
November, but down 35% from 3,092 year-over-year.
● The median sales price (MSP) of homes sold across the region in December was $306,000, up from $302,000 last month and up 5.5% from $290,000 in December 2021.
● The Month’s Supply of Inventory (MSI) the month was 1.27, a drop from 1.42 in November, but higher than the 0.88 MSI recorded in December 2021. MSI is used to identify how long there would be homes for sale on the market if no new inventory were added.
● Median days on market (DOM) for residential listings was 24.
● Residential new construction sold in the MLS during the month was 277, that’s 77 more than last month, and 29 fewer than 306 last December.


Tein Hlwa - Digital Realty Team with LPT Realty
"Give your home the marketing it deserves"

Cell: 757-996-5886
Email: [email protected]