This market report covers the month of December 2013.
December 2013 key takeaways:
- We continue to see that almost 30% of residential sales are distressed – meaning short sales or foreclosures. This is still high compared with the national average which saw decreases in major metropolitan areas.
- Distressed sales contribute to the slowing of our real estate market recovery compared to the rest of the nation. When these short and foreclosed sales are reduced we could still see an upswing in home prices in Virginia Beach and Hampton Roads. Distressed sales as a norm should only be about 6-7% of all sales versus the 30% that Virginia Beach and Hampton Roads are now experiencing. Thus, buying real estate today could result in good upside in out years once distressed sales are reduced or substantially eliminated.
- Sales were up almost 12% from December 2012 (one year prior).
- We are at 5.45 months of inventory which is a good thing. A normal market is considered six months. As months of inventory decrease then it becomes more of a sellers market which may drive prices higher for real estate.
- Read the entire Real Estate Information Network market report December 2013 below for specifics on Hampton Roads cities.
- Summary – the market in Virginia Beach and Hampton Roads is improving. Recent budget deals completed in Congress should bode well for the area providing continuity for the civilian workforce and contractors. This will provide confidence in the real estate market and help with improving sales. Interest rates continue to stay at great levels as of this posting (under 5%). Buyers and sellers should keep in mind that a 1% increase in interest rates results in 10% less buying power.
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Contact us here and we will prepare the report for you. The report is beneficial to both buyers wanting to see neighborhood comparables and sellers seeking similar information prior to listing their home for sale.