Tuesday, June 17, 2008

Foreclosures on the Forefront of EveryOne's Mind

Can you believe Foreclosures are at up over 75% from last year(noted on various sources)

If you are living in one of the hard hit areas of California, Nevada or Florida, our prayers are with you. No doubt every homeowner in a neighborhood with 10% or more Foreclosures are suffering from nightmares of losing a job or being promoted at a new company location requiring a move.

Even if excellent markets, like Virginia Beach, Chesapeake and Norfolk, we have seen an increase in foreclosures. Though we are hearing numbers like 45% greater in May than in April, the numbers pale compare to the heavily hit markets. It has been report by CNN, Realtor News and other sources that the broader Hampton Road(or Tidewater, if you prefer) has weathered the storm well.

In the first quarter, values increased 1.7% and similar is expected in the second quarter. These increases were after a 4.4% increase in 2007. Without doubt, the buyer has an excellent selection of homes and is coming across some "time weary" sellers that have found their home taking longer to sell. Yet, did you know the average sales time still remains under 90 days???
Homes priced right for their condition, location and the market are selling.

If you are a seller on the market for a year or more, you need to talk with your Realtor. Perhaps there is a price issue, condition issue or an issue outside your control. Based on statistics provided weekly to Rose & Womble agents like myself, I know that homes priced over $500,000 have 18 or more months of available inventory based on current sale patterns. While homes under $300,000 are ranging from 6 months to 3 months.

Thus, if your home is at the higher price range for your market, Hampton Roads or otherwise, you will have to be the sharpest priced house with the most to offer is you are to garner the limited buyers shopping your "store".

But take heart, markets always change. With the builders scaling way back on production and building spec homes that could be available in 30 or 90 days, it is perceived that new home inventory will dry up as the year progress...opening the door for resale homes(your house).

So if interest rates stay in the 6% range, you might see the trends improve. Did you note the analysis on various financial websites and newscasts have the financial market/thinkers believing(perhaps hoping) the credit crisis may be waning or at least not dragging the economy down as far down as once thought.

We will all stay tuned for updates on this financing issues at present.
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