Hampton Roads Real Estate Market Info

In an encouraging monthly report on “Pending Home Sales”, Lawrence Yun, chief economist for the National Association of Realtors,  states that œThe housing market is healing with sales fluctuating at times, depending on the flow of distressed properties coming on the market.

The report for January shows that pending home sales eased moderately in January for the second straight month, but remain 20.6 percent above the cyclical low last June.   The Pending Home Sales Index,* a forward-looking indicator, declined 2.8 percent to 88.9 based on contracts signed in January from a downwardly revised 91.5 in December. The index is 1.5 percent below the 90.3 level in January 2010 when a tax credit stimulus was in place.

Pending home sales eased moderately in January for the second straight month, but remain 20.6 percent above the cyclical low last June, according to the National Association of Realtors ®.

œWhile home buyers over the past two years have been exceptionally successful with historically low default rates, there is still an elevated level of shadow inventory of distressed homes from past lending mistakes that need to go through the system, Yun said. œWe should not expect the recovery to be in a straight upward path “ it will zig-zag at times.

The pace of January existing-home sales, 5.36 million, is slightly higher than NAR™s annual forecast for 2011. If contract activity stays on its present course, there should be an 8 percent increase in total existing-home sales this year.

œThe broad fundamentals for a housing recovery are developing, Yun said. œJob growth, high housing affordability and rising apartment rent are conducive to bringing more buyers into the market. Some buyers may be looking to real estate as a hedge against potential future inflation.”

This all bodes well for an improving real estate market in Hampton Roads, VA for 2011.

If I can help you with YOUR real estate needs in 2011, please contact me by phone or email!

Here’s to the spring home buying season!

Maggi Davis
Associate Broker
Keller Williams Realty, Hilltop
Virginia Beach, VA
Cell:   757-288-5547
e-mail:   maggi@maggidavis.com
websites:  
www.buyersrealty.com
www.maggidavis.com  
www.hamptonroadshomesearch.com
www.hampton-roads-homes.com

(Reprint from Real Estate Information Network press release February 11, 2011)
 
The first month of the New Year ended with real estate market measures showing strength. The number of residential under contract sales, residential settled sales, and newly listed residential sales all showed improvement on a year-over-year basis. Distressed homes continued to adversely affect the overall real estate market as they continue to comprise a growing percentage of both active and settled sales totals.

January 2011 Summary

All Categories  January 2011  January 2010  Percent Change
Total Active Listings  16,839  16,234  9.2%
Total Pending Sales  1,385  1,212  14.3%
Total Residential Pending Sales  1,319  1,156  14.1%
Total Property Sales  1,113  910  22.3%
Total Residential Sales  1,062  857  23.9%
Median Residential Sales Price  $190,000  $200,000  .5%
Months’ Inventory  9.8  8.6  14%
* Months’ Inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months average sales activity.
# # #
About REIN
Real Estate Information Network, Inc., (REIN) serves real estate brokers in the Tidewater / Hampton Roads area of Virginia from Williamsburg east to Virginia Beach and south to the North Carolina border. REIN is an independent MLS owned by broker stockholder members. Currently there are approximately 490 real estate firms with 600 offices, 6050 real estate agents, and 190 appraiser members using REIN. For more information visit: www.reinmls.com.

For more information about how this trend affects your purchase or home sale, contact

Maggi Davis
Keller Williams Realty, Hilltop, Virginia Beach
http://www.maggidavis.com       maggi@maggidavis.com

 In a growing atmosphere of the do-it-yourself mentality, some wonder should I take on the homebuying process on my own. It’s certainly been done, but, more often than not, homebuyers turn to the experts when it comes time to making, what will often be, their most expensive purchase.Here are just a few reasons why it’s a good idea to use an expert real estate agent to help you navigate the homebuying process.

1. Knowledge is power. Real estate agents work in the field every day. They’re immersed in markets that buyers, likely, have less opportunity and time to study. Working with the right expert can not only speed up the homebuying process but also help you easily transition from your current living space to the home of your dreams.

You can also learn information that’s not readily available from, say, an open house sign or a listing you may view on the Internet. Elizabeth Weintraub, About.com Guide, writes, “For example, you may know that a home down the street was on the market for $350,000, but an agent will know it had upgrades and sold at $285,000 after 65 days on the market and after twice falling out of escrow.”

2. Help with paperwork chaos. If you’ve bought a home then you know that the paperwork is enormous. If you’ve never purchased one, get ready to be overwhelmed. But using an agent, helps you to understand what the paperwork is, when it needs to be in (so that you don’t miss important deadlines), and its importance in the transaction.

3. Network of support. Real estate agents have a professional network of service providers to help with the homebuying process (and selling, of course, too). When it comes time to purchase your home, you’ll find that being able to tap into that service provider network can be invaluable. Everything from reputable vendors to retail outlets that offer the best pricing for home decor, are often in the agent’s contact list.

4. Negotiation. This is the area where an expert agent can really shine. For buyers, it can be difficult to negotiate (from a non-emotional standpoint) because they’re really invested in the outcome. A top-producing real estate agent can represent buyers’ needs and still stay emotionally removed enough to ensure the best outcome.

Negotiation is often the least favorite part of the transaction but the most important. Having an expert on your side, who is working for your success, can reduce the amount of frustration that can potentially arise during this process. Also, in sellers’ markets, agents are tasked with helping position buyers in the best possible light to sellers in order to help the deal close for their client.

5. Pricing and value. Agents don’t determine what buyers should pay for a home but they can show you the best value based on their price point. They have visited many more homes than most buyers because this is their job. They’re in the market daily and they know when a home has recently been reduced or fallen out of escrow.

It’s the knowledge, the experience, and the effort and dedication to helping you find your dream home, that ultimately is the reason most people seek out that expert real estate agent to help them navigate the homebuying process.

I am here to help you navagate YOUR homebuying process, when can we get started?

Maggi Davis
http://www.maggidavis.com

In a nutshell:  

Recent asking prices for homes are down 10% from this time in 2009, and homes are selling for close to their asking prices.

Homes actively listed as distress sales, which are either bank owned or short sales, represent about 25% of the market, whereas they represent 30% of sales, indicating that home buyers (and investors)are willing to accept the risks of “as is” sales in exchange for what they perceive as a “good deal”.

Home sales in November were stronger than in October, and, although December sales figures have not yest been reported, my observation is that December sales were stronger than November.

All of this portends good news for the real estate market in Hampton Roads, VA for the start of 2011!

For more detailed information and opinions, contact:

Maggi Davis
Associate Broker, Keller Williams Realty
Virginia Beach, VA

http://www.maggidavis.com
Direct line:   757-288-5547

Home sales in Hampton Roads, VA declined again in August, following the surge of sales earlier in the year attributed largely to the federal homebuyers™ tax credit. Other  real estate market indicators in the cities of Hampton Roads, VA  exhibited further signals of a soft housing market overall and point towards a continuation of low numbers in the coming months. These indicators include the numbers for active listings for sale, newly under contract sales, and the amount of distressed properties sold.   Distressed properties are defined as bank owned homes (also REO, short for Real Estate Owned) and sales known as “Short Sales”.

Residential settled sales were down 17% in August 2010 as compared to August 2009 (1,446 vs. 1,740). The number of homes sold last month is the lowest number of residential sales during any August since 1993 when the total was 1,336. Each of the seven major cities (Virginia Beach, Norfolk, Portsmouth, Chesapeake, Suffolk, Hampton, and Newport News) had a year-over-year decline in sales ranging from 13% to 44%. The median sales price of residential settled sales in the region was also down by 2.5% during the same timeframe. This decline follows two consecutive months of slight median sales price appreciation on a year-over-year basis. For the year, the median sales price for all homes sold in the Hampton Roads area is down 1.8% when compared to the same time period last year.

The under contract sales of homes in August 2010 continued to lag behind the 2009 measures, dropping 10.3%. All seven major cities experienced declines with Portsmouth down the least at 2%. This fall in under contract residential sales was expected, though the magnitude was less severe than anticipated, especially when compared to July™s decline of 17%. After July™s large drop, some economists had expected that August would experience a similar level of decline. A portion of the decrease may be explained by the normal end of summer seasonal decline.

Distressed homes, those that are either short sales or bank owned, made up 25% of all   residential sales in August for the second consecutive month. This measure follows two months where distressed sales comprised 20% of all residential sales. Distressed listings climbed for the second month in a row as a percentage of active listings during August, now accounting for 19.3% of all residential homes for sale.

During August, the nominal discount, the difference between the median sales prices of distressed and non-distressed homes, rose to the highest level of the year “ 36%. Combined with the percentage of homes both on the market and those selling that are in a distressed status, these statistics show that the increased presence of distressed homes in the Hampton Roads market has negativelyimpacted the median sales price and added to the already high level of homes available for sale.

August 2010 Highlights:

Listings:   Residential active listings increased 9.4% year-over-year, to 15,774 (August 2010) from 14,417 (August 2009). On a month-to-month basis, there was a no measureable change from July 2010.

Under Contract (Pending) Residential Sales:  Total residential under contract sales decreased by 10% as compared to August 2009 (1,609 vs. 1,793).
Sales:  Total property sales and total residential sales declined when compared to August 2009 showing drops of 17% each.

Inventory:  There is currently 10 months™ inventory of residential homes on the market in the Hampton Roads area, a 1.2% increase from the previous month, but down 1.9% from August last year.

Stay tuned till next month when we find out if the down trend continues, or if the market turns bak up again.

Maggi Davis
Associate Broker
Keller Williams Realty
www.maggidavis.com

The federal government is now implementing a rebate program for appliances, in hopes to rev up energy efficiency. Just like cash for clunkers consumers can swap out their old clunky appliance for new energy efficient models, which will save them electricity and saving on monthly bills. For example a 20 year old fridge can use three times as much energy as the new Energy Star approved fridge. Ensure that you know the age of your appliances because that will impact your overall actual savings. A few other things you will need to know; the plans vary by state, you can check out energysavers.gov for details. Also know that the program is much like cash for clunkers in that it only has a certain amount of federal money allocated to it. There is only $300 million in the program and it is expected to run out quickly.

Maggi Davis
Associate Broker
Keller Williams Realty  
www.maggidavis.com

Last month home sales in South Hampton Roads have rebounded in a big way, according to a report recently released. It may have been the start of spring or the approaching end of the first-time homebuyer tax credit, or a little of both.   It was reported by the Real Estate Information Network Inc, a multiple listing service based in Virginia Beach, that 963 existing homes were sold in March, up 66 percent from 580 homes in February and about 21 percent from 799 sold in March 2009.  

  March marked the sixth month since September that sales volume has rose at least 20 percent from the same month a year earlier. Economist believe that the recent growth in sales activity is due to the $8000 first-time homebuyer federal tax credit. As well as the $6500 credit for individuals who have owned their current or latest home for five years. Buyers must have signed a contract by April 30 to qualify for the current credits. These credits were originally set to expire in November has buoyed sales across the country last fall. During the winter months sales activity began to taper off but then Congress extended and expanded the credit which created more activity once again. During the spring and summer months sales will typically pick up. But with the tax credit set to expire this month sales may begin to taper off this summer unless the credits are extended or another incentive is offered.  

The multiple listing service had also reported that the median price for existing home in March was $206,000, down about 3.7 percent from a year ago. An economist from Old Dominion University said falling prices are good news for a market that is still saturated with homes. œThis shows that at least the sellers are adjusting to market conditions.  

The report also showed that the number of homes on the market last month in all of Hampton Roads, rose 6.6 percent to 14,783 from 13,951 in February. This number of homes is up 6.4 percent from last year. Currently the average time on the market for homes in Hampton Roads is 94 days, compared to last year which was 95 days. It would take 91/2 months to sell all of the homes on the market at this current sales pace. Usually 6 months of inventory is considered normal. The inventory of homes in Hampton Roads has steadily increased in the past three months. As sales pick up for the spring and summer more homeowners will put their properties on the market.  

The reported also included that foreclosures and distressed sales accounted for 25 percent of sales across Hampton Roads, which was about 17 percent last year.  

Maggi Davis
Associate Broker
Keller Williams Realty
www.maggidavis.com  

The trend right now is to œgo green, many of the steps that are taken to go green can increase the quality of your life as well as reduce your carbon footprint.

Here are ways in which you can reduce your environmental impact and save money:

Save energy to save money

â—¦ Setting your thermostat a few degrees lower in the winter and a few degrees higher in the summer can save on heating/cooling cost  

â—¦ As your old light bulbs burn out begin to install compact fluorescent light bulbs (CFLs)

â—¦ Use a smart power strip for appliances or unplug appliances when not in use to avoid œphantom energy use.  

â—¦ When washing clothes use cold water as much as possible because most of the energy used to machine wash clothes is due to heating the water

â—¦ Use a drying rack or clothesline to save the energy otherwise used during machine drying.    

 Save water to save money

â—¦ Taking shorter showers will reduce water use and will lower water and heating bills

â—¦ Installing a low-flow showerhead will cut down energy use and reduce the amount of water used  

â—¦ Installing a faucet aerator on each faucet will conserve heat and water while keeping water pressure high  

â—¦ Planting drought-tolerant native plants will reduce water usage because  

they require minimanl watering.    

Less gas = more money  

  â—¦ Walking or biking to work will save on gas while improving cardiovascular health.  

â—¦ Consider telecommuting if you live far from your work. Or move closer. Even if this means paying more rent, it could save you money in the long term.

â—¦ Lobby your local government to increase spending on sidewalks and bike lanes. With little cost, these improvements can pay huge dividends in bettering your health and reducing traffic.    

Eat smart  

â—¦ Eating one meatless meal a week will save you money at the grocery store while improving the related environmental and health costs.

â—¦ Buying local organic meat, eggs, and dairy will keep money in the local economy.

â—¦ Watch videos about why local food and sustainable seafood are so great.

â—¦ Whatever your diet, eat low on the food chain. This is especially true for seafood.

Skip the bottled water

â—¦ Instead of buying bottled water purchase a filter to purify tap water. Not only will you save money but it will reduce the amount of container waste

â—¦ When traveling or going to work bring a reusable water bottle, preferably aluminum rather than plastic

 Think before you buy â—¦ Use services like craigslist or free cycle to find furniture, appliances and other items to find new or gently used secondhand products for lower costs or no cost at allâ—¦ Check out garage sales, thrift stores, and consignment shops for clothing and other everyday items.â—¦ Do your research when purchasing products    

Borrow instead of buying  

â—¦ Instead of buying books and movies borrow from libraries. This will save money and the paper and ink that go into printing new books

â—¦ Share power tools and other appliances. Get to know your neighbors while cutting down on the number of things cluttering your closet or garage.    

Buy smart  

â—¦ Buying in bulk can save money and packaging

â—¦ Wearing clothes that don™t require dry-cleaning will save money and cut down on toxic chemical use

â—¦ Invest in high quality, long lasting products. You might pay more now, but you’ll be happy when you don’t have to replace items as frequently which means less waste    

Keep electronics out of the trash.

â—¦ Keep your cell phones, computers, and other electronics as long as possible.

â—¦ Donate or recycle them responsibly when the time comes.  

â—¦ Ask your local government to set up an electronics recycling and hazardous waste collection event.    

Make your own cleaning supplies.  

â—¦ Most people are not aware that you can make very effective, non-toxic cleaning products whenver you need them. All you need are a few simple ingredients like baking soda, vinegar, lemon, and soap.

â—¦ Making your own cleaning products saves money, time, and packaging-not to mention your indoor air quality.    

Continue to stay informed with way to go green !!

Maggi Davis
Associate Broker
Keller Williams Realty
check out my website: www.maggidavis.com

If you or someone you know is struggling to make mortgage payments, you are far from alone.   At the end of 2009, nearly one is six homeowners had defaulted on their mortgage.   This means that millions of Americans will need help in stabilizing their financial situation.   Unfortunately, it also means that many are falling victim to those looking to take advantage of this situation by exploiting homeowners who need real solutions.

The Obama administration has brought increased attention to mortgage modification as an alternative to foreclosure.   The federal government has offered incentives for these modifications through its Home Affordable Modification Program (HAMP).   Many lenders are now responding to the incentives by adjusting their polices on foreclosure avoidance.

But homeowners aren’t the only ones looking to benefit fromthis push to increase mortgage modifications.   Scammers and con artists have come up with new and innovative schemes to benefit from vulnerable homeowners, and you need to know the red flags for such practices.

Only a select few homeowners can actually qualify for a mortgage modification, and such modifications are generally offered for only a trial period to see if the homeowner can actually keep up with the new payment.   Here are some of the “Red Flags” to look out for in mortgage modification offers:

1.   Always avoid offers to modify your mortgage in exchange for upfront fees.    Any legitimate fees should only be paid after a successful modification has been completed.

2.   Be suspicious of anyone who guarantees you a mortgage modification.   Any such guarantee is unrealistic, and a fraudulant party will sometimes make this promise to make it appear as though they are providing a rare opportunity.

3.   Certain frauds present themselves as government agencies or other authoratitive entities by creating websites with official-looking seals and content.   Be sure to check the source out with the official website:   http://makinghomeaffordable.gov.

4.   Beware of people who pressure you to sign papers immediately, or who try to convince you that they can “save” your home if you sign or transfer over the deed to your house.   Always seek legal counsel before proceeding with any action like this.

If you have any questions about avoiding mortgage scams, or if you need legitimate, professional help with avoiding foreclosure, please contact me, or visit my special website:   http://www.hamptonroadshomerescue.com.

Maggi Davis                
Associate Broker
Keller Williams Realty
1709 Laskin Road
Virginia Beach, VA 23454
(757) 288-5547
www.maggidavis.com