A profound shift has occurred in Virginia's luxury real estate landscape, particularly in its southeastern corner. What was once a steady, quieter market has transformed into a booming sector, attracting a new wave of buyers seeking a unique blend of coastal charm, serene living, and a surprising degree of value. Ron Foresta Jr., President, and Rolston Audain, Director of Marketing and Luxury Collection at  Berkshire Hathaway HomeServices RW Towne Realty, provided an in-depth look at the forces driving this evolution and what discerning buyers can expect from this dynamic market. 

Virginia Housing Market Sees Steady Growth

Audain observed that the post-pandemic era has ignited a surge in Virginia's luxury real estate sector. This boom is not merely a fleeting trend but a fundamental shift in market dynamics. "We’ve seen a substantial increase in price points in certain areas," he noted, emphasizing the particular appreciation of waterfront properties. Unlike the volatile, ultra-high-end markets in places like Miami, Audain described Virginia's luxury market as one of "steady growth."

To illustrate this growth, he offered a compelling comparison. "We used to have, say, 50 houses over a million dollars on the market. Now, we’re starting to see 50 properties that are likely knocking on two million or two and a half million," he shared. This quiet appreciation is fueled by a unique blend of "old money, inheritance," and a new class of entrepreneurs, often with ties to government funding, a significant factor in this heavily military-influenced region.

Foresta quantified this dramatic escalation with striking figures. "In the five years before the pandemic, we had 670 houses sell for over a million. In the five years since, we’ve had 4,400 sell," he stated. This explosive growth extends to the upper echelons of the market as well, with properties in the three- and five-million-dollar range seeing a fivefold increase in sales. Beyond simple price appreciation, Foresta pointed to a "value-shopping" phenomenon along the East Coast. He explained that buyers realized they could acquire a "beautiful waterfront property for half the price" compared to markets like Florida or Charleston. For retirees or those seeking a second home, Virginia Beach has become a "very attractive area," he added.

A Unique Coastal Allure

What truly sets southeastern Virginia and the northeastern corner of North Carolina apart is a lifestyle that prioritizes a slower, more family-oriented approach to coastal living. Audain and Foresta are quick to differentiate their market from the hustle of other eastern regions such as Washington D.C., which they described as a "completely different market." Their focus lies in a region that stretches from the Outer Banks of North Carolina to the Richmond line, a haven for those seeking refuge from the fast-paced life of the Northeast.

“We are the first ‘family beach area’ south of the New York metroplex,” Audain noted—an intentional distinction. Instead of casinos, the oceanfront focuses on family-friendly attractions like boardwalks, open spaces, and low-key entertainment, creating a more relaxed and welcoming environment for visitors of all ages. This environment has proven to be a major draw for individuals from Connecticut, New York, Northern Virginia, and even as far west as Ohio, who are increasingly choosing this area for their second homes.

Waterfront living is a major draw for luxury buyers, offering both lifestyle and value. “The ability to have a big boat in my backyard at a fraction of the cost of other coastal cities is a powerful motivator,” Foresta said, noting that the area's appeal isn't driven by corporate relocation, but by a deliberate choice to embrace a more relaxed, nature-focused way of life. That choice often centers around outdoor living. “Certainly the outdoors,” Audain emphasized, describing a region where waterfront properties range from sandy bayfronts to winding rivers—each offering its own version of serenity.

This desire for tranquility often supersedes the demand for the latest tech gadgets or specific high-end finishes. However, there is a clear preference for homes that are "appointed nicely and don't require a whole lot of renovation," Audain shared. A home that is "light, bright, open, has a great view, and a good way to enjoy the lifestyle, wins 10 times over," he stated.

Foresta echoed this sentiment, noting that the most significant home improvements post-pandemic have been geared toward enhancing outdoor living spaces. "Everybody wanted to make their space at home as nice as possible," he observed. "So any improvements we saw by and large were to the outdoor living and leisure part of the home more than adding square footage, bedrooms, or kitchens." The demand for amenities like pools has also skyrocketed, with costs increasing as dramatically as home prices.

A Market of Insiders and Dream Homes

Interestingly, the most coveted and expensive properties in this region are often sold to Virginian natives. "With the uber high end, the majority of those are selling to local folks," Audain revealed. These are buyers who have "known the homes and watched them over time," he added. This intimate knowledge of the local real estate landscape creates a unique market dynamic. He shared a fascinating anecdote of a $12 million property that was sold, renovated by the new owners, and then repurchased by the original owner who "realized that they wanted to be back where they were." While not a daily occurrence, Audain said, "that sort of thing can happen in this market."

Insider knowledge is particularly relevant when it comes to waterfront properties. "The lots are so unique," Audain explained. A home on a peninsula with 270-degree views, for instance, becomes a neighborhood icon. "If it ever comes up for sale, people looking to buy," he said. Foresta added that for these truly special properties, "someone will step up before it even hits the market and try to make an offer once they hear something." For many local luxury buyers, it's about acquiring "the house they've dreamed about," a tangible piece of their personal history and aspirations in the area.

Navigating the Nuances of the Virginia Market

For those new to this market, Audain and Foresta offer some words of wisdom. The first, and perhaps most important, is to "be prepared to slow down a bit," Audain advised. It is not a sleepy town, but the pace is decidedly more relaxed than in major metropolitan areas. This is a community where "everyone kind of knows everybody," a characteristic he views as a positive, fostering a sense of familiarity. A crucial piece of practical advice from Foresta is that "all water is not equal." The vast and varied waterfront demands careful consideration. Another critical factor to be aware of is the presence of the military.  "Make sure you’re around when the jets are flying," he cautioned, as flight patterns can significantly impact different properties, even within the same neighborhood.

Audain also highlighted the personal nature of luxury transactions in this area. "The sellers themselves are particular about the sales process," he observed. "It’s not just a deal to them; it’s transferring their property, their family estate." This emotional component is a significant aspect of the high-end market. 

A unique geographical feature that buyers must contend with is the prevalence of tunnels. "You most likely will have to go through a tunnel to get to anything here," Audain stated. But this can be a positive. The Chesapeake Bay Bridge-Tunnel, the longest bridge-tunnel complex in the world, actually shortens travel time from the north by over two hours and offers a "really serene drive.”

Finally, Foresta emphasized the importance of exploring the entire region. Comprising of seven distinct cities, each with its own character, the area offers a remarkable diversity of lifestyles and environments. "I would tell somebody to explore the whole area because it really is different wherever you go," he advised.

A Future of Continued Growth and Dominance

Looking ahead, both Audain and Foresta are optimistic about the future of Berkshire Hathaway HomeServices RW Towne Realty. Foresta stated that their primary goal is to continue increasing their market share in the luxury sector, a goal that has "always been the reality." The company's overarching mission, he added, is "to be the most professional in the market."

Audain provided some impressive statistics to back up this confidence. With an average sales price of around $472,000, their agents are achieving an average productivity of $4.33 million. "That’s a huge number in today’s market," he asserted, “The power of the Berkshire Hathaway HomeServices brand has been instrumental in our success, allowing us to attract experienced agents and solidify their position as the ‘go-to’, especially for luxury sales."

Their market share in the region is just under 15%, a significant lead over their closest competitor. In Virginia Beach, where the luxury market begins at $900,000, their dominance is even more pronounced. This, Audain concluded, is a key differentiator and a testament to their deep understanding of the intricacies of the Virginia luxury market. As Foresta proudly stated, with 550 agents, they are "the biggest by far," yet they maintain an average sales price 20% higher than the market average, achieving what a boutique firm does on a much larger scale.