J. Van Rose, Jr. MIRMPresident

Rose and Womble New Homes

Residential Market Review

If we build it, they will come.Sequestration took a serious bite out of the

Hampton Roads Market in 2014

If we build it, they will come.

$26.8B legislated cap on discretionary spending (sequestration relief)

The Military The Port

A $17.06M loss in 2013 to a $13.61M gain in 2015

Port of VA signs trade pact with Cuba

Tourism

$1.3 billion in VB

Hotel Revenue exceeded 2007 peak

Biomedical

More than 20,000 people in VB employed in health care field

New Construction SalesDetached 2015

City

< 20

0,00

0

200-

249,

999

250-

299,

999

300-

349,

999

350-

399,

999

400-

449,

999

450-

499,

999

500-

549,

999

550-

599,

999

600-

649,

999

650-

699,

999

700-

749,

999

750-

799,

999

800-

849,

999

850-

899,

999

900-

949,

999

950-

999,

999

> 1

mil City

Mkt Sh

2015 Total Sales

YTD Avg. Sales

Per Mo.

# Sales Chesapeake 16 57 57 84 142 178 84 21 7 5 1 0 0 1 0 0 0 0 37.59% 653 54.42

Virginia Beach 3 1 31 57 50 91 75 24 19 21 15 3 4 1 1 0 1 2 22.97% 399 33.25Suffolk 24 33 76 53 30 23 12 4 4 4 1 2 1 1 0 0 0 0 15.43% 268 22.33Norfolk 13 100 69 26 13 4 6 6 2 0 2 4 3 2 0 1 2 1 14.62% 254 21.17

Portsmouth 25 56 4 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 5.01% 87 7.25IoW/Smith 1 13 2 9 16 23 5 3 3 0 1 0 0 0 0 0 0 0 4.38% 76 6.33

Total 82 260 239 230 252 319 182 58 35 30 20 9 8 5 1 1 3 3 100.00% 1737 144.75Mos to Absorb

InventoryChesapeake 0.75 3.58 3.16 1.29 3.38 1.48 1.14 5.14 8.57 2.40 12.00 N/A N/A 0.00 N/A N/A N/A N/A

Virginia Beach 0.00 0.00 3.10 2.32 3.60 1.19 0.80 2.00 1.89 1.71 9.60 4.00 3.00 24.00 0.00 N/A 24.00 30.00

Suffolk 2.00 3.27 3.00 2.26 5.20 6.78 5.00 12.00 12.00 12.00 12.00 0.00 12.00 0.00 N/A N/A N/A N/A

Norfolk 3.69 5.16 4.70 2.31 3.69 0.00 0.00 4.00 18.00 N/A 12.00 12.00 4.00 0.00 N/A 0.00 0.00 24.00

Portsmouth 2.40 4.93 9.00 0.00 0.00 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

IoW/Smith 0.00 1.85 6.00 4.00 0.00 1.04 14.40 8.00 8.00 N/A 0.00 N/A N/A N/A N/A N/A N/A N/A

Resale Southside SalesDetached 2015

Pent up demand

Continued economic improvement

Interest rates still low

Rising prices due to low inventory & strong sales

Decrease in distress home sales

Predictions for 2016

E.V. Williams Center for Real Estate2088 Constant HallNorfolk, VA 23529

www.odu.edu/business/center/creed

2016 Hampton Roads Real Estate Market Review & Forecast