Uncertainty among federal employees is likely putting a drag on Hampton Roads’ housing market.
That’s according to a new analysis from Realtor.com, which shows Hampton Roads has seen some of the biggest drops in the nation in pending home sales over the last year.
Southeastern Virginia saw 14.2% fewer homes under contract in March than a year before. That’s the second-biggest decline in the nation, behind Jacksonville, Florida.
Danielle Hale is the chief economist at Realtor.com. She says the trend is likely down to anxiety from federal workers.
“The general security that people feel in their jobs … may be one of the contributors to the slower pending home sales number that we see in the Virginia Beach market,” Hale told WHRO.
Hampton Roads boasts the second most federal workers as a percentage of its workforce in the nation, behind only Washington, D.C.
As President Donald Trump’s administration seeks to aggressively slash the federal workforce, those workers now seem hesitant to put down roots.
Despite the drop in pending sales, Hale said the market is sending mixed signals.
Among the 44 metro areas studied, the website flagged eight that saw increases in pending home sales. That’s despite substantial growth in new home listings, including a more than 20% jump in Hampton Roads.
“We have more sellers coming to market, and that lower pending home sales number indicates that buyers are being a little bit more hesitant this year than they were last year,” Hale said.
Listing prices in the region are up slightly from a year ago in Hampton Roads, with the median home listed for just shy of $400,000.
“Asking prices are still going up, but the data does suggest that sellers are a little bit more likely to have to lower their price today than they were at this time last year,” Hale said.
