Harry’s Monthly Real Estate Insight

GOOD NEWS FOR OUR MARKET

Statistics are giving the Suffolk market more good news! According to REIN MLS, pending sales for the month of May have increased by 27.18%, compared to May of 2012. Residential sales increased 5.73% and the medium price is up 1.23% to $205,000.00. Other good news is that the listings are down by 13.42% with a supply of 6.58 months, which is approaching normal. Are we at a “tipping point”? What does this mean?

I think it means we are going in the right direction a little quicker than earlier this year. Distressed sales are 22.41% of our market and that is still negatively affecting our sales prices, but buyers love it because they are buying at the bottom of the current market. Interest rates are creeping up, so if you are considering a purchase best start that process. To have a leap to an accelerating market would take lots of good economic news. Families are still skeptical of the economy but there is an attitude of improvement, overall.

Another factor is, with home prices creeping up, less people are underwater. According to Corelogic, 19.8% of all home owners are underwater in their home’s value. That would be 9.7 million households. They owe more than the home is worth. That number is down almost 20% from the first of the year across the Nation. Now some of the states like Florida and Arizona, lost 45% of value, so their markets have improved greatly and have helped this number. This points to a built up demand for homes that will need to hit the market sometime in the future. It will be interesting!

Have a good 4th of July, God bless America, we are fortunate people to live where we do!

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Specializing in properties in South Hampton Roads, Virginia.