Virginia Beach Real Estate Market Update – Dec 2024

Virginia Beach Real Estate Market Update – December 2024

As we approach the end of 2024, the Virginia Beach real estate market presents a fascinating mix of trends shaped by economic factors, regional dynamics, and shifting buyer and seller behaviors. This update offers a comprehensive analysis of the latest developments, providing valuable insights for prospective buyers, sellers, and investors.

Stay updated on the Virginia Beach real estate market trends for December 2024. Learn about rising home values, increased inventory, and strategies for buyers, sellers, and investors.

Why the Virginia Beach Real Estate Market Matters

Virginia Beach, with its unique combination of coastal charm, strong military presence, and a high quality of life, has long been a desirable destination for homebuyers. Its real estate market reflects national trends while also showcasing distinct local characteristics.

Key Points:

Steady increase in home values signals sustained demand.
Shifts in inventory levels present opportunities for buyers and challenges for sellers.
Regional factors like military activity and retiree interest significantly influence market dynamics.

Key Trends in the Virginia Beach Real Estate Market

Home Prices: A Consistent Rise

Median Home Value: The average home value in Virginia Beach reached $400,880 in December 2024, marking a 4.2% year-over-year increase.
Median Sale Price: In October, the median sale price stood at $375,000, up by 2.7% compared to the same period last year.
These figures highlight the market’s resilience despite broader economic challenges.

Inventory Levels and Market Activity

Rising Inventory: Active listings are up by 25.9% compared to December 2023, providing buyers with more options than in previous years.
Days on Market: Homes are spending an average of 28 days on the market, slightly longer than last year, indicating a stabilizing market.
Buyer’s Market Indicators: Virginia Beach has recently shifted closer to a buyer’s market, with supply beginning to exceed demand in some segments.

Mortgage Rates and Affordability

Mortgage rates remain a key factor influencing buyer activity. While rates have hovered near 7% throughout the year, experts predict potential decreases in 2025, which could enhance affordability and stimulate market activity.
The affordability index indicates that while home values have risen, strategic financing options can help buyers navigate the market effectively.

Regional and Economic Influences

Military and Defense Impact

Virginia Beach’s significant military presence, including the largest concentration of personnel outside Washington, D.C., drives stable housing demand. Military families and defense-related personnel contribute to consistent market activity.

Retiree Appeal

The area’s coastal amenities and peaceful environment make it a top choice for retirees, adding to the steady demand for properties.

Broader Economic Factors

Rising insurance premiums and property taxes remain challenges for some buyers, yet the area’s strong employment base and economic opportunities continue to attract residents.

Strategies for Buyers, Sellers, and Investors

For Buyers:

Lock in mortgage rates if favorable terms are available.
Explore neighborhoods with rising inventory for better negotiating opportunities.
Prioritize affordability and essential features when selecting a property.

For Sellers:

Price homes competitively to attract offers in a cautious market.
Highlight unique property features to stand out in a growing inventory landscape.
Work with a local agent to leverage their expertise in marketing and negotiations.

For Investors:

Focus on areas with growing demand, such as neighborhoods popular with retirees or near military installations.
Monitor rental trends to identify opportunities in the multifamily housing segment.

2025 Outlook for Virginia Beach Real Estate

The forecast for 2025 indicates moderate growth in home values, with an estimated 2.6% rise. Existing-home sales are expected to reach 4.3 million nationwide, slightly up from 2024. Virginia Beach is poised to remain a vibrant market, with increased inventory likely balancing demand and providing opportunities for both buyers and sellers.