Chesapeake Homes: Another Voice Heard from: Time to Buy

Keeping Current Matters

Speaks!

As I just posted yesterday, it could be a big mistake not to buy a home in 2015.  I had discussed the key factors for making that home purchase now:

   1.  Low low interest rates

   

   2.  Much Improve Mortgage Availability

   3.   Home prices rising

You will see that this highly respected Real Estate resource backs up my thoughts on a national level.  I was specifically addressing the Chesapeake Real Estate Market and that of Hampton Roads in general. 

If after reading this blog, call me!!  I know you will be ready to go!

757 580-6546.

Why Waiting to Buy Might Not Make Sense

Be Quiet Chicken Little. The Sky is NOT Falling

The title of this KCM blog says it all!



I had to share



Be Quiet Chicken Little. The Sky is NOT Falling



So what do you say Chicken Little???



Call me today  if you have questions:  757 580-6546

The News is A Buzz On Mortgage Rates

See the latest CNBC story on Mortgage Rates and Home Prices??

Have I said it is time to get off the fence?   I know I am a Realtor that may only be looking to list and home or get a buyer.  But that isn't why...it is for your benefit!

Listen to this article produced by Matthew J. Belvedere. 

CNBC Mortgage and Housing Discussion

Now you heard from CNBC.....you know that moving, if you need to move to that larger or smaller home, is a smart move NOW!!

Call your Realtor today!

Optimistic Start to 2013: Facts and Figures

      From the source!!  The Real Estate Information Network is the local MLS service for Hampton Roads(Chesapeake, Virginia Beach, Norfolk, Portsmouth, Suffolk, New Port News, Hampton and Smithfield).  

Great news for the start of 2013!  This start continues a trend present since Fall 2011.                                              


             



                             An Optimistic Start to 2013 
                                                     (Virginia Beach, Virginia – February 2013)  

The Hampton Roads real estate market is off to an optimistic start for 2013. The number of
residential homes for sale significantly dropped when compared to January 2012, resulting in a lower
month’s supply of inventory. Residential settled sales and residential under contracts both experienced
double digit percentage year-over-year increases.  

The number of residential homes for sale in January 2013 was down 10.75% when compared to
the same time last year. Of the regions seven  major cities (Chesapeake, Hampton, Newport News,
Norfolk, Portsmouth, Suffolk, Virginia Beach) Chesapeake and Virginia Beach experienced the largest
year-over-year declines in residential active listings at 19.01% and 16.87% respectively. Portsmouth was the only city not to experience a year-over-year decline as residential active listings increased 2.05%.  The drop in active listings has resulted in a low 6.18 months’ supply inventory which is down 17.6% from January 2012 when it was 7.5 months.

Residential under contracts showed promising numbers during January 2013 with an increase of
14.14% when compared to January 2012. Suffolk and Chesapeake saw the largest year-over-year
increases of 39.74% and 25.54% respectively, while Hampton experienced the smallest year-over-year increase of 3.74%. Portsmouth was the only city not to see a year-over-year gain, with residential under contracts down 14.12%.

Residential settled sales round off the month’s positive trend.  January 2013’s residential settled
sales increased 20.66% when compared to January 2012. Suffolk and Hampton substantially contributed to this increase as they saw year-over-year gains in residential settled sales of 59.26% and 40% respectively. Norfolk experienced the smallest year-over-year gain of 3.87% and Portsmouth saw no gain at all as residential settled sales dropped 1.18% year-over-year. The median residential sales price is currently $193,000, a 10.63% increase from $174,450 in January 2012.  

The distressed homes market, those that are either bank owned or short sales, continue to
impact the region’s real estate market. Distressed homes accounted for 34.88% of residential settled
sales during January 2013. This is the highest percentage since February 2012 when distressed homes
accounted for 36.39% of residential settled sales. As for residential homes for sale, 27% of the listings in January 2013 were distressed properties. This percentage has fluctuated between 22% and 28% over.

The last 18 months. There appears to be an upward trend in both active and sold distressed residential
properties starting in August 2012.
   
January 2013 Highlights
                                                    Listings
Residential active listings decreased, 10.75% year-over-year to 10,169 (January 2013) from 11,394 (January  2012).  

                                     Under Contract (Pending) Residential Sales
Total residential under contract sales increased by 14.14% when compared to January 2012 (1,663 vs. 1,457).
 
                                                      Sales
Total property sales and total residential sales increased when compared to January 2012 showing increases of  21.23% and 20.66% respectively.

                                                   Inventory
There is currently 6.18  months’ inventory of residential homes on the market in the Hampton Roads area, an increase  from last month (5.91) and down 17.6% from January 2012 when it was 7.5 months.
   
January 2013 Summary All Categories

                                                       January 2013  January 2012    Percent Change

Total Property Active Listings              12,623          13,959              -9.57%
Total Property Pending Sales                  1,755            1,521              15.38%
Total Residential Pending Sales             1,663             1,457              14.14%
Total Property Sales                               1,405             1,159              21.23%

Total Residential New Construction Sales      185          147               25.85%
Total Residential Sales                                1,349        1,118               20.66%
Median Residential Sales Price              $193,000     $174,450          10.63%
Months’ Supply Inventory                              6.18          7.5                 -17.6%
 
* Total Property statistics include all property types (Residential, Commercial, Duplex, Apartment and Land & Farms), resale and new construction.
* Months’ Supply 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 530 real estate firms with 650 offices, 5700 real estate agents, and 150 appraiser members using REIN.

It has happend: Rising Home Prices and Rising Rates

Well it is happening!!  Due to improving economy, interest rates are on rise.  Improving sales with sellers not taking advantage of improving home prices has resulted in housing shortage.   Nationally, it is reported below that absorption rate(defined as average time for all homes to sell if current rate maintains) is only 4.9 months!

A healthy market is 6 month absorption.  Thus over all we have a better than normal market with fewer homes and rising interest rates.  

IT IS TIME TO ACT!!!

Keeping you updated on the market! For the week of  February 4, 2013 MARKET RECAP New homes are suffering from the same affliction as existing homes – a dearth of inventory. The supply of new homes stands at only 151,000 units. With so few homes to offer, sales have suffered, dropping 7.3% in December to an annual rate of 369,000 units. The percentage drop in new-home sales, though mildly discouraging, shouldn't be fretted over. Sales were actually revised up by 22,000 units in November, so the 7.3% drop is from a much higher base than originally reported. That said, at the current sales pace, inventory is still only 4.9 months. The upside is that tight supply nearly always leads to higher prices. That's the case today: the national median price for a new home increased 1.3% to $248,900 in December to post the highest median price in five years. On the existing-home front, the pending sales index fell 4.3% in December to pull the year-over-year comparison, which had been trending in the double digits, down to a plus 6.9%. Until more inventory avails itself, establishing an uptrend in existing-home sales will be difficult. The good news is that prices – new and existing – should continue to trend higher, which will eventually draw more inventory and more buyer interest into the market. In fact, home prices increased 0.6% in the S&P/Case-Shiller Home Price Index for November. The year-over-year increase is now over 5%, the largest percentage year-over-year price increase since 2006. The most encouraging news in the index is that gains were found in nearly all the metropolitan areas Case-Shiller covers. Economic growth should also trend higher in 2013. We say this despite gross domestic product posting a surprising 0.1% contraction in the fourth quarter of 2012. We not concerned, because fewer government expenditures were the cause of the shortfall. Less government spending isn't necessarily bad, because resources government spends are resources taken from the private sector. As for the private sector, we expect it to pick up the slack. Residential investment will likely lead the way, which is also good news. Because residential investment is a leading economic indicator and a strong force for economic growth, it appears very unlikely the economy will slip back into a recession. Indeed, it appears much more likely economic growth will accelerate through the year. As economic growth accelerates, we should expect interest rates to move higher. They already have. The 30-year fixed-rate mortgage rose to a four-month high this week. Market forces appear to be overriding the Federal Reserve's strategy to hold rates near the all-time lows set in late November. With the stock market moving higher, we expect more pressure for rates to rise. We say this because investors are growing increasing confident, and when they grow confident they pull money out of bonds and put it into stocks. This asset rotation pressures interest rates and yields to rise. Last week, we said that the market shouldn't fear higher interest rates, because higher rates are a sign the economy is improving. On the other hand, this also means the risk of holding out for lower rates will only increase. Economic Indicator Release Date and Time Consensus Estimate Analysis Factory Orders (December) Mon., Feb. 4, 10:00 am, ET 0.9% (Increase) Moderately Important. Low inventory points to rising business activity in coming months. Mortgage Applications Wed., Feb. 6, 7:00 am, ET None Important. Rising mortgage rates have stalled application activity, but the trend still remains higher. Productivity & Costs (4th Quarter 2012) Thurs., Feb. 7, 8:30 am, ET Productivity: 1.4% (Increase) Costs: 1.2% (Increase) Moderately Important. Rising productivity and higher utilization rates could lead to a pick up in hiring in the first quarter of 2013. Consumer Credit (December) Thurs., Feb. 7, 3:00 pm, ET $15 Billion (Increase) Important. The rising trend in credit use is reflective of rising economic activity. The Best Time Ever For the past year, we've been urging potential buyers to take the plunge. Low lending rates and a low-cost-basis on homes significantly raise the probability of entering a profitable transaction. We continue to urge buyers to take the plunge. We've also noted that the sin of procrastination means many of the better deals have been taken. Fortunately, there are still many good deals left. The market remains a buyer's market. We are not alone in our sentiment. The online financial Website Business Insider offers a detailed slide show that buttresses our argument. When interest rates, home affordability, wage growth, and the widening gap between rents and mortgage payments are aggregated, Business Insider opines convincingly there has never been a better time to buy a home. Seeing where the market has been over the past year and seeing where it is expected to go in the future, we'd be hard pressed to disagree with their opinion.