The residential real estate market in Hampton Roads finished 2011 strong. Settled residential

sales and under contract residential sales each posted healthy results in the final month of the year.

Settled residential sales for the region increased 21% in December 2011 when compared to

December 2010 (1,589 vs. 1,311). It was the most settled residential sales for the month of December

since 2006 with 1,914. James City County had the largest year-over-year percentage increase in units

settled, 138%, from 39 units in 2010 to 93 units in 2011. Of the seven major cities in Hampton Roads,

Virginia Beach had the lowest year-over-year increase at 10% (444 vs. 403).

Another positive sign was the median settled sales price for these homes. Though down 3% to

$197,500 when compared to the 2010 median settled sales price in December of $203,000 this 3% was

the lowest year-over-year decline for any month in 2011 and could point to stabilizing prices. James City

County had the largest year-over-year percentage increase in median settled sales price, 12%, to

$319,000. Suffolk had the next largest median settled sales price increase at 8%. The median settled

sales price in Norfolk for December 2011 decreased, year-over-year, 15%.

The number of active residential listings for sale declined 19% to 11,095 in December 2011 as

compared to the same time in 2010. This marked the tenth consecutive month with a decrease in the

number of homes for sale and was the lowest measure for the month of December since 2006 when

there were 9,960 homes for sale. Coupled with the solid increase in settled sales, the drop in active

listings for sale pushed the months’ supply of inventory to 7.3 months, the lowest reading since REIN

began measuring in 2008. Norfolk, Virginia Beach, Portsmouth and Newport News each saw a drop in

homes for sale of at least 22% when compared to December 2010.

Looking forward to the residential real estate market of 2012, the under contract sales of

December 2011 show promise. Residential under contract sales grew by 18% in December 2011 when

compared to December 2010. The areas with the largest year-over-year percentage increases were

James City County, Portsmouth, Norfolk and Chesapeake with gains of 57%, 45%, 36% and 34%

respectively. However, Virginia Beach, Suffolk, Hampton and Newport News all experienced gains of

5% or less in December 2011.