In its monthly real estate report for the region for the month of January, the Real Estate Information Network (REIN) recorded 1,502 settled sales, or closings, for the Hampton Roads region, the lowest recorded number of monthly closings since February 2017.
The number isn’t a surprise, however, since January is traditionally among the slowest months for real estate activity. Jon McAchran of AtCoastal Realty, president of REIN’s board of directors, isn’t too worried.
Additionally, REIN reported that pending sales in January 2023 were up month-over-month from December 2022. That’s a good sign, according to McAchran.
“Pending sales are often used as a forecasting tool for closings in the coming months,” he said. “We like to see pending sales numbers increase since they usually represent a closed sale in the next month or two.”
In a release, McAchran added he’s seen activity increase pretty dramatically from the first half of January into the second half. He’s uncertain the increase is being driven by interest rates alone.
“I think buyers are getting used to the interest rate environment and that the market is starting to heat up due to the lack of inventory,” he said, adding that the spring market typically sees increases month-over-month. “Perhaps we are more in line with a typical pre-pandemic spring market, and, if interest rates do decrease, this year’s spring market could gain even more momentum.”