Key Market Trends: May 2023 - Sluggish Sales, Cooling Pending Sales, and Rising Prices in WAAR Region

Dated: June 20 2023

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WAAR REGION: Williamsburg, James City County, York County, New Kent County, Charles City County VIRGINIA

Hot off the presses is the latest real estate market report for the WAAR (Williamsburg Area Association of Realtors) region coming out of May 2023. A few key market trends have emerged, offering insights into the current state of the housing market. This blog post will delve into the data, shedding light on the sluggish sales activity, cooling pending sales, climbing prices, and shifting listing trends within the region. Let's take a closer look at the numbers and analyze what they mean for buyers, sellers, and investors.

Sluggish Sales Activity: The month of May witnessed a continuation of sluggish sales activity in the WAAR region. A total of 328 sales were recorded, reflecting a decline of 17.2% compared to the previous year. This equates to 68 fewer sales with the largest drop in sales occurring in James City County, which experienced a significant decline of 31.6% with 59 fewer sales compared to May of the previous year. However, in contrast, Williamsburg saw a modest increase in sales, with eight more sales than the same period last year, representing a growth rate of 26.7%.

Cooling Pending Sales: Pending sales in the WAAR area also cooled down during May, pointing to a continuation of slower market conditions. There were 349 pending sales recorded, reflecting a decline of 3.3% compared to the previous year. This translates to 12 fewer pending sales, despite buyer demand. New Kent County experienced the most substantial decrease in pending sales, with a decline of 15.7%. James City County and York County also saw declines of 4.6% and 6.7%, respectively. Notably, Williamsburg bucked the trend with a significant jump in pending sales, boasting 14 more pending sales than the previous year, representing a remarkable increase of 53.8%.

Rising Prices Amid Tight Inventory: Despite the decrease in sales and pending sales, prices continued their ascent in the WAAR housing market, primarily due to tight inventory conditions. The median sales price in May reached $435,000, marking a gain of $17,000 or 4.1%. James City County witnessed a noteworthy median price of $484,830, showcasing an impressive price increase of $34,839 or 7.7%. However, it is essential to note that the median sales price in Charles City County experienced a significant decline of 64.7%, plummeting by $347,500 to reach $190,000. Such volatility in home prices within the county can be attributed to low transaction volume.

Shifting Listing Trends: In terms of listing trends, the month of May saw a decrease in new listings, while active listings grew within the WAAR region. The end of May witnessed 581 active listings on the market, reflecting an increase of 34 listings compared to the previous year, representing a gain of 6.2%. James City County experienced the most significant growth in listings, with 35 more active listings than the previous year, indicating an impressive growth rate of 18.2%. Conversely, New Kent County observed a decline in listings, with 11 fewer active listings than the prior year, equating to a decrease of 8.5%.

Conclusion: May 2023 presented a mixed bag of market trends in the WAAR region. Sluggish sales activity and cooling pending sales indicate a slightly challenging market for all, while rising prices highlight the persistent demand and limited housing supply. The shifting listing trend further emphasizes the changing dynamics within the region. As buyers, sellers, and investors navigate these market conditions, it is crucial to stay informed and adapt strategies accordingly. By keeping a close eye on these key market trends, individuals can make more informed decisions to achieve their real estate goals in the ever-evolving WAAR housing market. If you have questions about the information, or wish to sell or buy real estate, please contact Tia Stanley Real Estate - RE/MAX CAPITAL 757-243-3245 cell/text (7 Days a Week) to get individual data for your needs. Services also available in Gloucester County, West Point and other areas if appropriate.

Resource: Virginia REALTORS as of June 15, 2023 Freddie Mac

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Tia Stanley

Like you, I am a consumer of goods and services. My goal is to provide you with the kind of service that I want to receive to earn your business and referrals for years to come. A full-time REALTOR s....

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