HAMPTON ROADS HOUSING MARKET

Published On: July 4, 2014


Many have been asking what is the market like? Are property values going up?  And many more. It has been an unusal time.  There is still a lower inventory than normal, making it somewhat of a seller's market, but....our housing market is unique with our military families so prevelant.  

So, what does that mean.  There are less homes to choose from, but the price range or market that is really being affected is the $300,000 and under.  Anything that is either priced really low, and needs work or has been redone and is new top to bottom.  They are flying off the shelf, so to speak.  

The real key to winning in our Market today, is to be sure that first and foremost  you price it right. What is right? Price it within the sold range in the last 6 months, moving over the top only slightly for additional square footage, upgrades, waterfront, and pools.  If it need work price it accordingly, not just how much it would take to fix but the labor that goes into it as well.  Remember, most fixers are being bought by professional contractors who are "flippers" and if you don't want to sell at a flip price (buying costs, repair/upgrade costs, holding costs, selling costs, capital gains taxes and profit), you need to repair, upgrade, and stage the home.  

Our market is improving, somewhat in the Hampton Roads area by about 2.5% 2013 over 2012 with Northern and Central Virginia.  Real Estate is still one of the best investments as you are making money on the Bank's money.  When the values go up 2.5% it is on the value of the home, most of which belongs to the Bank.  2.5% of $205,000 equals $5,125.  Most of us don't have that much money to put in an investment account or bank.  But even 10% return on a $5,125 investment is approximately $512 huge difference. 

Rents are averaging $1200 per month.  That payment is equivalent to a mortgage of approximately $190,000.  At a rate of 2.5% (and it may go higher) over a 5 year period, would yield approximately $24,967.  Over that 5 year period you would be paying about $72,000 for someone else's home.  It does make numbers sense.  The key is that you must be willing to hold the property at least 5 years, and if the market substantially improves, you can  adjust your plan.

http://www.varealtor.com/sites/default/files/2014_Pieces%20of%20Home-Year%20End%20Home%20Sales%20Report_sm.pdf