We have all been overwhelmed by numbers in 2020. The stock market went up, then way down, and now back up again. COVID cases were going up, then down, and now are on the rise again. The local real estate market also has had its share of fluctuations, but thankfully they are little less confusing. The news for sellers is good – houses are selling fast and prices are increasing! Here is a chart of the real estate stats for Hampton Roads based on numbers from June:
As you can see, there were 37.20% fewer homes listed for sale in June 2020 than in June 2019. Additionally, 31.25% more homes went under contract (pending) in June 2020 than in June 2019. In May 2020 there was only 2.54 months of inventory, and that reduced to 2.33 months in June. An average market typically has between 5 and 7 months of inventory. The median sale price was up almost three percent in June, and we expect that number to keep going higher based on our July transactions.
We are interested to see what the month of August will bring. Traditionally August is one of the slowest months of the year for new listings and properties going under contract. However, it wouldn’t be surprising if the normal slow down doesn’t happen this year. Low inventory combined with cancelled vacations because of COVID could lead to a busier than usual August.
Finally, for a little fun; we have a summer real estate trivia question! Based on data from REIN (our local MLS), there is a single feature of some homes that is showing an extra 16% rise in sales for homes that have this feature. What is it? You can reply back to this email and the first three people with the correct answer will get a prize.
If you would like to discuss your real estate needs; please email us @ firstname.lastname@example.org or call us at (757)726-7653 (for Lee) or (757) 434-9084 (for Harry). We love real estate and are always happy to talk!
Lee and Harry
At the end of March and early April we saw a number of loan programs disappear overnight due to the economic fallout over Covid-19. Thankfully, we have started to see some of these loan programs return. There are Jumbo lenders that have slowly started to return to the market. However, their guidelines have tightened up on credit scores and debt ratios. We also received some good news this week from the Virginia Housing Development Authority, now known as Virginia Housing. They have brought back their reduced down payment Conventional loan. The benefits of this program are a low 3% down payment, a reduced mortgage insurance premium and the possibility of obtaining a 2% grant to be used towards the down payment.
Interest rates have remained at historic lows making a housing payment more affordable than ever. If you’re interested in finding out how much you would qualify for, or what loan program would be a good fit for you – give us a call. We would be happy to walk you through the process and help identify the best program for you.
Give us a call, or shoot us an email if you’re in the market to purchase a home, or a refinance.Bill Duggan, Sr. Mortgage Banker at 757-615-5172 or email email@example.com .
It’s HOT HOT HOT
Keeping cool when the heat is on can be hard. So here are a few tips to help you keep your cool inside:
Be reasonable in your expectations: In this region, the summer design temperature for cooling equipment is about 95°. That means when it hits that temperature outside, your AC unit will run full tilt to keep your house cool. Higher outside temps may cause your house to be a little bit warmer than what you’d really prefer. Most AC units can only offer a 20-degree difference from outside to inside.
Do NOT crank the thermostat down: Leave it set where you normally have it. Moving the dial from 76° to 72° will not change the temperature of the air coming out of the registers; it just makes the unit run longer to reach the desired temperature. If your unit is already running full time to keep the house at 76°, moving the dial down will not make the house any cooler.
Make sure the filter is clean: Take a look and change it or clean it if you even THINK it’s dirty. A dirty filter will make your AC unit work harder than it needs to. That costs you extra money and you won’t be as cool.
Close your curtains, shades, or blinds and don’t block vents or returns: Keeping the sunshine out will help keep the rooms as cool as possible. If you don’t like feeling like you are in a cave, then just close them on the east side in the morning and the west side in the afternoon. If you have south-facing windows, you may want to keep them closed all day to keep the heat down in those rooms. The key to comfort is to keep the air flowing. Move furniture around so that you are not blocking any supply or return registers.
Check the outdoor unit: Make sure that air can move freely around your unit. Be sure it’s free of grass clippings, leaves, pet hair, and other things. Having the unit cover clear allows the air to flow better and the unit to dissipate the heat it is pulling from your house.
Avoid using your dryer and oven in the hottest hours of the day: We all can use a break from laundry and cooking chores from time to time. A dinner of cold salads, sandwiches or take-out might be just the thing.
Now, did someone say ice tea?