T
he Hampton Roads real estate market is showing signs of improvement, with an increase in homes for sale and a more balanced supply-demand ratio. According to Gary Lundholm, president of the Real Estate Information Network's board of directors, active listings have risen by almost 23% compared to last year, reaching 4,641 in September. While this number is down from August, it still represents a significant increase over last year's total.

    The region's housing market has been experiencing friction due to a lack of inventory, leading to lower sales numbers. However, Lundholm notes that four to six months of inventory is considered a balanced market, and the current supply of 2.3 months is an improvement from last year but still not ideal.

    Old Dominion University economist Bob McNab attributes the decline in home sales to homeowners being hesitant to sell due to low interest rates and high demand. However, as interest rates continue to decrease, McNab expects to see more homeowners entering the market, which will help alleviate some of the friction.

    Kim Georges, president of Hampton Roads Realtors Association, is feeling optimistic about the region's real estate market, citing an increase in supply and a slight decrease in days on market. Despite this, demand remains strong, leading to continued price increases. The median sales price of existing homes sold from January to September was up 5.35% from last year, while new construction homes saw a 2% increase.

    Lundholm and Georges both express confidence that the real estate market will continue to improve in 2025, with Lundholm noting that rising home values, increasing for-sale inventory, and decreasing interest rates are all positive signs.