Will Buyer Demand Stay Strong?
Last month we wrote that our big question for the spring is will buyer demand stay strong? Based on just the numbers from February 2017, the answer is yes!
Looking at year over year numbers (February 2016 compared to February 2017) the number of homes for sale decreased a little over 10%, while the number of homes under contract went up by 7.79%. Suffolk led the charge with 25.69% more homes under contract than in February 2016. A quick note, keep in mind this is just one month, and a winter month. Last year we had more snow which kept more buyers from looking, so our snow free February almost certainly helped to inflate the year over year numbers.
However, when you look at what happened just in February 2017 across Hampton Roads, you see that 3,497 new properties were listed but 3,807 went under contract or were sold. If you were looking for a home throughout the month of February the statistics say you actually had fewer homes to choose from by the end of the month.
So what does this all mean? Our honest answer is, it is too early to tell, but we still feel that our prediction of this being a glass half full and rising seller’s market will stay true. If you are looking to buy a home, or if you are looking to buy a higher priced home than what you currently own, it is time to start looking. Using rough math based on buying a $200,000 house, interest rates increasing by 1% on your home loan will cost a buyer approximately the same as the cost of the home you are buying going up 10%.
If you have read this newsletter before you already know that studies show now is the best time of year to list your house, and with the Federal Reserve announcing they are planning on raising interest rates two more times this year buyers should be actively looking as well.
Of course this email is focused on the overall market, which may or may not apply to your personal situation. We are happy to sit down and talk about how our current real estate market affects you and your future real estate plans. Please give us a call (757-726-SOLD) or email (LeeCross@CallCrossRealty.com, HarryCross@CallCrossRealty.com).
by: Lee Cross