Maggi’s Monthly Real Estate Update, April, 2014

Real Estate Market Update, April, 2014

 

In the first quarter of 2014, the Southside Hampton Roads real estate activity continues to show a very slight increase in activity when compared to the previous two years. This year the “sold” time has decreased to 93 days from the date of listing to the date being under contract. In 2013, this number was 101 days, and in 2012, 107 days. What is very interesting though, is that we are beginning to encounter multiple offers occurring for the most desirable and favorably priced homes as they come on the market. In my inventory of homes available, I have had three listings go under contract in less than 30 days during this past month.

As expected the inventory of homes available has increased this spring, but not a rate that would indicate a huge increase in the inventory. In this first quarter, the inventory increased by 5.42% compared to last year. And the “supply” (how long, in months, it would take to sell all the current inventory of homes available) is 5.83 months as this quarter ended. Industry experience suggests that a balanced market shows a supply of about 6 months. For a better understanding about what this means, you can read my article, Buyer’s Market or Seller’s Market?

As of the end of March, 2014, the total residential active listings shows a small increase compared to last year. The number of active residential listings was 11,180 at the end of March compared to 10,605 for the same time March, 2013. The increase of 575 residential listings is an increase of 5.42%. These statistics are summarized from the reports available from the REIN MLS reports. You can review the full summary report here.

In summary, the real estate activity suggests pretty much the same results as last year. Check my Real Estate Market Update next month for the latest information.

Additional Resources

To get specific information about market conditions in all Hampton Roads cities, please contact Maggi Davis, Associate Broker, Keller Williams. Get general information about current housing trends and other demographic data from my Market Insider Reports. You can request regular alerts to stay current with the market activities on your desired neighborhood as a Market Insider Subscriber.

Want information about homes that you drive by? We have an APP for that! Install an app on your Apple or Android mobile device that will enable to search and view homes. Provided as a service by Maggi Davis, your local agent serving all neighborhoods in Virginia Beach, VA, and all Hampton Roads cities.

If you already own a home in Virginia Beach or Hampton Roads, Virginia and want information on it’s current value, ask Maggi for a FREE, no obligation home value analysis!

Buyer’s or Seller’s Market?

A good understanding of market conditions for residential home buyers and sellers is essential for making the best decisions in a home purchase or sale. We have all heard the terms “Buyer’s market”and “Seller’s Market”. Perhaps you have come across the term “Balanced Market”. What do those terms mean and more importantly how do they affect your home purchase or sale decisions?

Like most technical terms, if you ask a dozen ‘experts’, you’ll get at least that many definitions. Basically the terms suggest who has the negotiating advantage in the current market. For example, a common definition of the terms says that when the average market time is 30 days or less then you have a Seller’s Market; when the average market time is more than 90 days, a Buyer’s Market; and in between 30 and 90 days you have a Balanced Market. Those are AVERAGE times, and of course, there will be some homes with much shorter market times, and some with much longer times.

Most of us have also heard the term, “Location, Location, Location”, and understand that this emphasizes the importance of location elements in determining the value of a specific home. These location factors might include: the city, the neighborhood, the schools that serve the home, as well as amenities associated with the location (water, access to open space, parks, recreation venues, etc.). Location factors also will affect the market times associated with home sales and should be included in an analysis of the home value.

Overall in the South Hampton Roads area (SHR: Virginia Beach, Chesapeake, Portsmouth, Norfolk, and Suffolk) the market time for homes sold in January and February, 2014 was 89 days. That compares favorably to the 97 day market time for the same period in 2013. Note in the table below there is considerable variation in the market time for the settled sales in the five cities for the year to date results for 2013 and 2014 as well as in the current market indicators for Inventory and Absorbtion Rate.

Having a good understanding of the current market conditions is one important factor to use in making your decision when you are considering a home purchase or sale. You can easily track market conditions in your zip code area by subscribing to my Market Insider report. This report is emailed monthly and will give general information about the listings and sales in your desired zip code area. The Market Insider report is provided as a no obiligation service, click here for more information and to subscribe to the report.

Here’s another general informative report about the Great Neck area of Virginia Beach that shows “single family homes in the Great Neck corridor of Virginia Beach” that have sold in the past 12 months, listing prices under 1M.  There are many homes with days on market less than a week (and days on market includes inspection periods).  The average for the 219 closed sales is 60 days on market, and the median is only 34.  This would constitute a “seller’s market” by any definition!It is important to realize, too, that these reports are general in nature, and, just like the general weather report, may not predict the rain in your neighborhood. And like the weather, the real estate market can change quickly. I read a Facebook post recently that said, “I don’t often experience all 4 different seasons in the space of 2 calendar days, but when I do it’s in Virginia!!” Remember the 60 degrees and sun AND 13 inches of snow in in February and March! Hopefully we won’t experience those wild swings in the real estate market this year! You can rest assured though that I will be tracking those real estate trends and will be prepared to provide you with the latest, up-to-date information when the time is right for your home sale or purchase.

Additional Resources

To get specific information about market conditions in all Hampton Roads cities, please contact Maggi Davis, Associate Broker, Keller Williams. Get general information about current housing trends and other demographic data from my Market Insider Reports. You can request regular alerts to stay current with the market activities on your desired neighborhood as a Market Insider Subscriber.

Want information about homes that you drive by? We have an APP for that! Install an app on your Apple or Android mobile device that will enable to search and view homes. Provided as a service by Maggi Davis, your local agent serving all neighborhoods in Virginia Beach, VA, and all Hampton Roads cities.

If you already own a home in Virginia Beach or Hampton Roads, Virginia and want information on it’s current value, ask Maggi for a FREE, no obligation home value analysis!

 

Search homes by High School District

I have received many request to be able search for homes in specific high school areas.  To make that convenient, I created search by High School districts in Virginia Beach, Chesapeake, Norfolk, Suffolk, and Portsmouth.

Just go to www.hamptonroadshomesearch.com and look for your desired High School on the left side menu of Communities Served.

Additional Resources

For a more personal assistance in your home search, you can contact Maggi Davis directly with an email or text a message to 757-288-5547, with Home Search Info as the message.

Get general information about current housing trends and other demographic data from my Market Insider Reports. You can request regular alerts tailored to your specific desires in order to stay current with the market activities as a Market Insider Subscriber.

Want information about homes that you drive by? We have an APP for that!  Install an app on your Apple or Android mobile device that will enable to search and view homes. From inside the app you can register for a $50,000 drawing.  Provided as a service by Maggi Davis, your local agent serving all neighborhoods in Virginia Beach, VA and Norfolk, VA.

If you already own a home in Virginia Beach or Hampton Roads, Virginia and want information on it’s current value, ask Maggi for a FREE, no obligation home value analysis!

Recent Home Financing News

Increased VA Guaranty for Loans in Hampton Roads

The Department of Veterans Affairs (VA) Loan Guaranty program does not set a maximum amount that an eligible Veteran may borrow using a VA-guaranteed loan. The VA publishes a table, and provides regular updates, for the maximum guaranty amount by geographic area. The latest table shows updates to limits that apply to all loans closed February 28, 2014, through December 31, 2014. VA loan limits are based on median home values estimated by the Federal Housing Administration (FHA). These values are the basis for which VA calculates limits for the program. For 2014, some limits increased, some stayed the same, and a few decreased.

The maximum guaranty amount (available for loans over $144,000) is 25 percent of the 2014 VA loan limit shown in the table. Therefore, a Veteran in Hampton Roads with full entitlement available may borrow up to the 2014 VA loan limit shown below and VA will guarantee 25 percent of the loan amount. If a Veteran has previously used entitlement that has not been restored, the maximum guaranty amount available to that Veteran must be reduced accordingly. Lenders nay set their own investor requirements regarding guaranty amounts and down payments. Lenders may make loans to Veterans over the calculated maximum loan limit; however, lenders may require Veterans to make a down payment in these types of transactions.

Questions about VA loans in a particular case may be directed to the VA Regional Loan Center for the local area.  For the Hampton Roads Area the VA Regional Benefit Center is in Roanoke.  For the Hampton Roads area the Maximum Guaranty for a VA Loan is $458,850 for loans closed between February 28, 2014 and December 31, 2014. Review the full list of maximum guaranty limits by area here.

Reverse mortgages can now be used to purchase a new primary residence.

Reverse mortgages have become increasingly popular for seniors in the last few years, but few people realize a reverse mortgage can be used in the purchase of new home. This type of transaction might be especially useful for a senior purchaser who is downsizing from a larger home and may have a significant amount for a down payment. The big upside is that there will be no monthly mortgage payment as long as the home remains the primary residence. There are still payments for real estate taxes, utilities, and insurance. Of course, there will be continuing costs for maintenance and upkeep.

Read more details about this creative use of the reverse mortgage financing here.

Additional Resources

Get general information about current housing trends and other demographic data in Hampton Roads from my Market Insider Reports. You can request regular alerts tailored to your specific desires in order to stay current with the market activities as a Market Insider Subscriber.  For more specific information about buying or selling your home, please send Maggi an email directly.

Want information about homes that you drive by? We have an APP for that!Install an app on your Apple or Android mobile device that will enable to search and view homes.  From inside the app you can register for a $50,000 drawing.  Provided as a service by Maggi Davis, your local agent serving all neighborhoods in Virginia Beach, VA and Norfolk, VA.