NORFOLK, Va. — The idea of finding your dream home is becoming a distant reality for many new homebuyers in Virginia.
A new report from Virginia Realtors is shedding light on the ongoing struggles in the housing market.
Gone are the days of abundant inventory, balanced negotiation, and reasonable mortgage rates.
Today, the housing market is more like a warzone, with buyers fighting over homes they normally wouldn’t even consider.
"We haven't kept pace with the demand, in terms of new supply,” said Simon Stevenson with Old Dominion University’s E.V. Williams Center for Real Estate.
Home prices continue to rise in Virginia and here in Hampton Roads.
According to the March Virginia Home Sales Report, the average cost of a home in the Commonwealth has increased by $27,000 in just one year.
The culprits are inflation keeping mortgage rates high, and tentative homeowners who are staying put and keeping inventory down.
"It's not just 'build more houses,’” said Stevenson. “That's not necessarily [going to] solve the problem. It's 'build the right houses in the right locations.’"
Despite sky-high home prices, some experts say, depending on your situation, staying in the fight, and not waiting for the market to shift, may still be your best option.
"Home prices could go up if you wait because if interest rates come down, that could maybe encourage more people to come into the market,” said Ali Wolf from housing market research firm Zonda. “It really needs to come down to why are you buying? Are you buying because you need stability?... Well, then maybe you want to buy now if you find a house that you like and refinance later."
According to Virginia Realtors, if the current housing trends continue, the spring housing market will likely be slower than last year, which was one of the slowest seasons in the last decade.