Happy New Year!  In this month’s edition of the Market Trends Report, we will re-cap the market activity from 2007 and take a look at the real estate forecast for 2008.

On a national level, existing-home sales rose slightly in November, indicating a stabilization in housing in the wake of mortgage disruptions earlier in the year, according to the National Association of Realtors®.

Looking ahead to 2008, Lawrence Yun (Senior NAR Economist) predicts “near term, existing-home sales should continue to hover in a narrow range, just as they have since September, and that’s good news because it’ll be a further sign that the housing market is stabilizing.”  In further good news, he noted “mortgage interest rates are near historic lows, and the most current data shows decelerating price declines along with a modest reduction in the number of homes on the market.”

Yun reminds us, however, that “just like the weather, there are large local variations in home prices” and sales.  Let’s take a look at the yearly totals for the Hampton Roads area in 2007 to see what the market looked like when compared with 2006:

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In Virginia Beach, the number of sold listings decreased by 12% from 2006 to 2007.  The average sales price, meanwhile, continued to rise 6%, bringing it to $322,728.  The average home was on the market for 60 days – 15 days longer than in 2006.

Virginia Beach 2007
 Sold Listings 6,928
 Median Sales Price 257,000
 Avg. Sales Price 322,728
 Days on Market 60
 
Virginia Beach 2006
 Sold Listings 7,892
 Median Sales Price 249,900
 Avg. Sales Price 304,557
 Days on Market 45
 

The same trend held true in Norfolk in 2007.  Sales declined 18%, and the average sales price increased 3% to $248,652.  Market times were up by 11 days.

Norfolk 2007
 Sold Listings 2,526
 Median Sales Price 205,000
 Avg. Sales Price 248,652
 Days on Market 66
 
Norfolk 2006
 Sold Listings 3,063
 Median Sales Price 197,900
 Avg. Sale Price 241,852
 Days on Market 55
 

Sales in Portsmouth decreased by 15% in 2007.  The average sales price saw a modest decrease of about 1%, bringing it to $185,139.  Homes were on the market 16 days longer than in 2006.

Portsmouth 2007
 Sold Listings 1,345
 Median Sales Price 169,900
 Avg. Sales Price 185,139
 Days on Market 63
 
Portsmouth 2006
 Sold Listings 1,582
 Median Sales Price 168,900
 Avg. Sales Price 187,724
 Days on Market 47
 

Chesapeake experienced greatly reduced market activity in 2007, compared to 2006.  Sales were down 14%, and the average home price dropped 2% to $296,750.  Homes were on the market 22 days longer than they were in 2006.

Chesapeake 2007
 Sold Listings 3,375
 Median Sales Price 270,000
 Avg. Sales Price 296,750
 Days on Market 68
 
Chesapeake 2006
 Sold Listings 3,921
 Media Sales Price 271,000
 Avg. Sales Price 301,977
 Days on Market 46
 

In Suffolk, sales declined 14% in 2007.  The average sales price, meanwhile, remained almost the same as in 2006.  Average market times increased by 22 days.

Suffolk 2007
 Sold Listings 1,460
 Median Sales Price 283,462
 Avg. Sales Price 313,424
 Days on Market 75
 
Suffolk 2006
 Sold Listings 1,697
 Median Sales Price 293,000
 Avg. Sales Price 314,931
 Days on Market 53