Directors Message Hampton Roads Real Estate Market Review and - PDF document

Old Dominion University Director’s Message Hampton Roads Real Estate Market Review and Forecast John R. Lombard, PhD 2007 Assistant Professor, Department of Urban Studies and Public Administration, College of Business and Public Administration Director, E. V. Williams Center for Presented by: Real Estate and Economic E.V. Williams Development Center for Real Estate and Economic Development A Message from the Dean Executive Committee Executive Committee Chair: Joyce Hartman Executive Director: John Lombard Vice Chair: Tom Dillon Nancy Bagranoff, DBA Programs Chair: Stephanie Sanker Dean, College of Business Publications Chair: Brian Dundon Membership Chair: Craig Cope & Public Administration, Curriculum Co-Chairs: John Crunkleton, Brad Sanford Old Dominion University Sponsorship Chair: Cliff Moore By-Laws Chair: Andrew Keeney Past Chair: William E. King At Large: Jonathan Guion Aubrey Layne Sponsorship Committee Sponsorship Committee Program Committee Program Committee Stephanie Sanker, GVA Advantis Joyce Hartman, Sperry Van Ness Cliff Moore, W.M. Jordan Peggy Koch, GVA Advantis Brad Sanford, Dominion Realty Advisors David Chapman, Old Dominion University Larry Colorito, Axial Advisory Group 1

Our Proud Sponsors Research Committee Atlantic Mortgage & Investment Axial Advisory Group Bank of America Brian Dundon, Brian J. Dundon & Assoc. BB&T The Breeden Company Burgess & Nipple John Lombard, PhD, ODU Cavalier Land, Inc. CB Richard Ellis Beth Hancock, City of Chesapeake Chesapeake Economic Development Cherry, Bekaert & Holland, LLP Clancy & Theys Joy Learn, Resource Bank Clark Nexsen CMSS Architects Collins Enterprises Sandi Prestridge, City of Norfolk Continental Realty Services, Inc. CoStar Group CREW Maureen Rooks, Thalhimer Creative Office Environments Davenport - Lefcoe Development Dominion Realty Advisors Bradley Sanford, Dominion Realty Advisors Drucker and Falk, LLC Emporia - Greensville Industrial Development Corp. Lane Shea, Harbor Group First American Title Insurance Company First Potomac Realty Trust Great Atlantic Management Company Kristi Sutphin, City of Portsmouth GVA Advantis Hampton Economic Development Harbor Group International Our Proud Sponsors Special thank you to Hayes, Seay, Mattern & Mattern, Inc. Kaufman & Canoles LandMark Design Group Laureate Capital Mortgage Bankers Liberty Property Trust McDonald Development Company Inside Business Mideastern Builders The Morgan Real Estate Group NAI Harvey Lindsay Nancy Chandler & Associates, Realtors Newport News Economic Development Authority Norfolk Economic Development for their sponsorship Portsmouth Economic Development Resource Bank Rose and Womble Realty Co. Runnymede Corporation S.L. Nusbaum Realty Company over the past five Sam Segar & Associates Sperry Van Ness Commercial Real Estate Advisors Suffolk Economic Development Sun Trust Real Estate Finance Group Thalhimer Cushman Wakefield years. Towne Bank Tri City Developers, LLC Virginia Beach Economic Development Vanasse Hangen Brustlin, Inc. Williams Mullen W.M. Jordan Company Wall, Einhorn & Chernitzer, P.C. Wexford Science & Technology, LLC 15 Year Residential Market Review New Construction and Resale History J. Van Rose, Jr. MIRM President Rose & Womble Enterprises 2 50 0 0 Principal Owner of Rose & Womble Realty 2 0 0 0 0 150 0 0 Lifetime Teacher & Motivator 10 0 0 0 Travels the country sharing his knowledge 50 0 0 and unique perspective. 0 19 9 2 19 9 3 19 9 4 19 9 5 19 9 6 19 9 7 19 9 8 19 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 Resale NC 2

January New Home Sales Hampton Roads Housing Stats 1994 - 2007 450 • Average Price of SF New Home 400 350 $445,316 N u m b e r o f S a le s 300 • An Increase of $38,048 or 9.3% in 250 one year 200 1 50 • Average Price of SF Existing Home 1 00 $270,511 50 • An Increase of $45,317 or 7.8% in 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 one year Year 2006 Southside Average Closing Prices 2006 Southside Average Closing Prices Resale and New Construction Resale and New Construction Single Family Detached Homes Single Family Detached Homes $600,000 Resale NC Diff Resale NC Diff $430,514 $450,000 $399,538 $470,764 $448,731 $500,000 $557,004 $400,000 $350,000 $305,931 $400,000 $346,963 $270,955 $300,000 $301,537 $281,289 $221,057 $300,000 $250,000 $184,406 $210,041 $178,481 $200,000 $169,227 $167,442 $124,583 $200,000 $150,000 $89,549 $100,000 $100,000 $50,000 $0 $0 VB Ches Suff Ports Norf I/W 2006 Peninsula Average Closing Prices 2006 Peninsula Average Closing Prices Resale and New Construction Resale and New Construction Single Family Detached Homes Single Family Detached Homes $450,000 Resale NC Diff Resale NC Diff $390,943 $404,194 $444,199 $400,000 $500,000 $465,010 $350,000 $450,000 $363,733 $400,000 $357,686 $300,000 $334,388 $337,119 $350,000 $250,000 $300,000 $200,000 $212,773 $250,000 $193,421 $191,102 $150,000 $200,000 $53,256 $140,967 $100,000 $107,324 $150,000 $50,000 ($40,461) $100,000 $0 $50,000 $0 ($50,000) Hamp NN YC JCC WMSB 3

Sales By Month Jan 2005 through Nov 2006 A 3000 2500 Market 2000 Units per Month 1500 1000 In Transition 500 0 Jan 05 Feb 05 Mar 05 Apr 05 May 05 Jun 05 Jul 05 Aug 05 Sep 05 Oct 05 Nov 05 Dec 05 Jan 06 Feb 06 Mar 06 Apr 06 May 06 Jun 06 Jul 06 Aug 06 Sep 06 Oct 06 Nov 06 New Construction Date Resale New Construction Price Points Growth of Home Sizes & Price Per S. F. 100.00% 2 0 0 3 $ 2 6 0 K $ 1 0 4 SF >$1000K 90.00% 2 ,5 7 0 SF $901K-$1000K 80.00% 2 0 0 4 $ 3 2 7 K $ 1 2 3 SF 70.00% $801K-$900K 2 ,6 7 3 SF 60.00% 2 0 0 5 $ 4 1 6 K $ 1 4 9 SF $701K-800K 50.00% 2 ,7 8 1 SF $601K-$700K 6 1 % 40.00% 2 0 0 6 $ 4 4 5 $ 1 6 1 SF 30.00% $501K-$600K 2 ,6 7 2 SF 20.00% $401K-$500K 2 0 0 7 $ 3 9 4 $ 1 5 2 SF 10.00% <$401K 2 ,5 8 9 SF 0.00% New Construction Product Mix Current Active Listings by Month 1% 100% 2004 2005 2006 3% 8% 90% 12,000 80% 10,000 31% 70% Mixed Use 8,000 High Rise 60% Tow nhome 4% Units 6,000 Att Condo 50% 7% SFD Condo 40% 4,000 SFD Custom 46% SFD Production 30% 2,000 20% 0 January February March April May June July August September October November December 10% Month 0% 1 4

Average Market Time By Month Existing Homes – Sales and Listings by Month December 2005 – November 2006 Sales Listings 90 3500 80 3000 70 A verag e M arket T im e 2500 60 2000 50 1500 40 1000 30 500 20 0 10 Dec 05 Jan 06 Feb 06 Mar 06 Apr 06 May 06 Jun 06 Jul 06 Aug 06 Sep 06 Oct 06 Nov 06 2004 0 2005 Jan Feb M ar Apr May Jun Jul Aug Sep Oct Nov Month 2006 Future of Hampton Roads SOUTHSIDE MLS ACTIVE DETACHED LISTINGS BY PRICE RANGE - FEBRUARY 2007 750 699 700 650 New Construction Resale 600 608 545 550 500 463 447 450 400 Number of Active Listings 350 264 300 219 250 199 200 137 120 97 100 150 52 59 43 29 100 33 43 39 28 5 30 14 16 15 9 7 112 50 113 61 60 65 76 70 65 0 44 44 50 29 20 36 18 8 -50 0 0 4 12 5 3 4 6 6 5 4 $950K - $1MIL $1MIL - $1.1MIL $1.1MIL - $1.2MIL $1.2MIL - $1.3MIL $1.3MIL - $1.4MIL $1.4MIL - $1.5MIL $1.5MIL - $1.750MIL $1.750MIL - $2MIL > $2MIL < $100K $100K - $150K $150K - $200K $200K - $250K $250K - $300K $300K - $350K $350K - $400K $400K - $450K $450K - $500K $500K - $550K $550K - $600K $600K - $650K $650K - $700K $700K - $750K $750K - $800K $800K - $850K $850K - $900K $900K - $950K Price Range PENINSULA MLS Defense Budget in Billions 2005-2008 ACTIVE DETACHED LISTINGS BY PRICE RANGE - FEBRUARY 2007 280 258 260 240 New Construction Resale 229 217 220 500 200 180 480 165 160 Number of Active Listings 138 140 460 126 120 100 73 440 64 80 60 420 39 34 61 36 28 40 25 49 14 19 15 10 13 44 44 2 11 10 4 8 20 6 0 5 31 36 4 400 19 21 25 18 0 13 6 3 2 0 1 2 2 0 0 3 0 1 1 2 0 0 -20 380 $950K - $1MIL $1MIL - $1.1MIL $1.1MIL - $1.2MIL $1.2MIL - $1.3MIL $1.3MIL - $1.4MIL $1.4MIL - $1.5MIL $1.5MIL - $1.750MIL $1.750MIL - $2MIL > $2MIL < $100K $100K - $150K $150K - $200K $200K - $250K $250K - $300K $300K - $350K $350K - $400K $400K - $450K $450K - $500K $500K - $550K $550K - $600K $600K - $650K $650K - $700K $700K - $750K $750K - $800K $800K - $850K $850K - $900K $900K - $950K 2005 2006 2007 2008 Year Price Range 5