Numbers are going up and down in our local market! Interest rates, days on the market, year over year median sale price, and months supply of inventory are all up while active listings, year over year pending and settled sales, and median sales price from May 2022 to August 2022 are all down. What does this mean for our market? Let’s start with a chart of the year over year August numbers from Real Estate Information Network (REIN, our local MLS) to visualize the data:
Judging by the chart, you would think we are in a seller’s market that is heating up but that isn’t necessarily the case. In May 2022 the median sales price was $328,795 and it went down to $315,900 in August 2022. That is a difference of about 4%. Keep in mind that most national studies over the years show that homes sell for a couple of percent more in the spring than other times, so we shouldn’t put too much stock in the change over the last couple of months.
The mortgage rates have made a major jump, almost doubling within the last year. Nine months ago, home buyers could get a 30 year loan for around 3% and now the average is around 6%, greatly reducing buying power. For example, if a buyer was financing a $250,000 home at 3% a year ago, their principle and interest payment would be about $1,050 a month. At a 6% rate, that same $250,000 loan will cost a buyer about $1,500 a month, or if the buyer wanted a payment of $1,050 they would only be able to get a loan for $175,000. The interest rates will continue to have a huge impact on buying power and exert a major influence on our local real estate market.
Last month we wrote that the months’ supply of inventory (MSI) is the best way to tell the direction of our local market. (Click HERE if you want to read what we wrote last month). That number went up to 1.39 from 1.37 in July, and last year in August 2021 it was 1.41. Remember, economics say that an average market has a MSI of between 5 and 7 months.
While we do feel like the market is slowing some, we have a long way to go to get back to an average market. Most experts think interest rates will continue to rise so, if you are thinking about selling, this fall is a good time to put your house on the market. The demand from buyers is still high and the number of homes for sale is still low. If you would like a free, no-obligation market analysis on your home, give us a call (757-726-7653 for Lee, 757-434-9084 for Harry) or reply back to this email.
Lee and Harry
Last week Lee was the speaker for the downtown Suffolk Rotary Club meeting and gave a talk on our local real estate market. He managed to keep everyone in the room awake and would welcome the opportunity to speak to other groups! Lee can tailor the presentation to the interests of your group. If you are part of a group that would be interested, please reply back to this email or give Lee a call (757-726-7653).
What’s Happening in Suffolk
14th Annual Mutt Strut Festival
The 14th Annual Mutt Strut Festival will be held at Bennett’s Creek Park on Sunday, September 24, 2022, from 2-8pm, and will showcase exciting new pet-related activities and fun for the entire family, including dog agility courses, a frosty paws eating contest, children’s activities, a lure course, and a performance by fan favorite, Soul Intent.
Kick back at the Holland Ball Field and watch the 1992 classic movie, Ladybugs! Concessions will be available and the movie will begin promptly at 8:15pm. This event is free and open to the public, just be sure to bring a chair or a blanket to sit on.
n challenging times, honoring peace, and tranquility through art is the focus of this exhibit. Artists’ works will feature two-and three-dimensional pieces that project their visions of peacefulness, whether it be a bright and cheerful landscape, a colorful floral, or a portrait of someone in a tranquil pose.
Fall Exhibit: “I Have to Go: Landscapes and Dreamscapes” by Jenny Bonner and Katey Morrill
The Suffolk Art Gallery invites you to the Fall Exhibit, “I Have to Go: Landscapes and Dreamscapes” by Jenny Bonner and Katey Morrill. Through acrylic paint, mixed media, and photography, both artists describe space as a moment of place and a record of time.
Last month we wrote about commonly asked questions as we head into what many (including us) believe is a changing real estate market. Interest rates are going up and buyer demand is going down but by just about all other market measures, we are still in a strong seller’s market. So, is the market slowing down? Yes, but in the same way people tap their brakes on the interstate when they pass a state trooper… just a little.
REIN (our local multiple listing service) recently released the data to the right that provides an interesting comparison of the data from the first halves of 2019 and 2022. As you can see from the numbers, other than the number of active listings, the rest of the numbers are all in the same ballpark. The real estate market works just like any other market; when you have limited supply, the price increases. This assessment helps delineate why we are still in the midst of a strong seller’s market.
In the second graphic below, comparing June 2021 to June 2022, you see the impact of the reduced buyer demand. Here is the chart:
Despite the fact that sales fell, the median sale price was up 9.17% in June 2022 to $325,750 when compared to June 2021. As one more point of reference, back in June 2019 the median sale price was $255,575. In our mind one of the most important statistics is the months supply of inventory. This number is calculated by dividing the total number of homes listed for sale by the number of homes that go under contract. For example, if 100 homes are listed and 10 go under contract, that months’ supply of inventory would be 10 months. A balanced market is between 5 and 7 months. In June 2022 it was 1.33 months, which is up from 1.10 months in May 2022.
While the last couple of months show a trend away from a seller’s market, based on the months supply of inventory we still have a long way to go before we get to what would be considered a balanced market.
As the market changes, different price ranges and neighborhoods are starting to trend away from the rest of the market. Each price range and neighborhood are different, so give us a call (757-726-7653 for Lee, 757-434-9084 for Harry) or reply back to this email. We love talking real estate and are happy to give you a no-obligation market analysis on your home.
What’s Happening in Suffolk
TGIF Summer Concert Series: Buckshot
The summer is here and Suffolk Parks & Recreation wants you to kick off your weekend right with the TGIF Summer Concert Series of 2022, at Bennett’s Creek Park. The park will open at 6pm and the bands will take the stage at 6:30pm. The music will …
The Suffolk Art League will present “Mindscapes,” a one-person show by John Alan Stock, winner of the SAL 2021 Annual Juried Exhibition. The show brings together several series, all of which are derivative of the brain/mind/sensing, and will be…
Two-day Native American cultural celebration including music, dance, food, and crafts. The pow wow is located at the end of Pembroke Lane which runs off Godwin Boulevard (across from Oakland Elementary School) in the Chuckatuck area of Suffolk….
The Great Dismal Swamp is anything but dismal. The narrated Swamp Safari, one of Suffolk’s most popular attractions, fills up quickly. This three-hour tour is led by a biologist specializing is the unique habitat of the Great Dismal. Learn about…
See Suffolk through the eyes of years gone by! Suffolk’s rich heritage dates back to the early 17th century, when Captain John Smith first encountered the Nansemond Indians on the Nansemond River. Even now, you can trace Suffolk’s legacy through…
Explore the tidal wetlands along Bennett’s Creek while viewing a variety of bird and plant species. Guided kayak excursions are facilitated by a water adventures outfitter with years of experience. All equipment is included with registration fee. …
An official Virginia Civil War Trail site, Cedar Hill Cemetery has long been an attraction for history buffs and even walking groups. The Suffolk Division of Tourism offers a guided stroll through the pleasant 32-acre cemetery, rich in history…
A hair-raising encounter with the spirited side of Suffolk. Follow a costumed guide through the shadows of historic Main Street discovering stories, legends and “unexplained occurrences” by lantern light. Tales of unsolved mysteries and…
Suffolk Farmers’ Market Season Opening Celebration
The Suffolk Farmers’ Market kicks off the 2022 season on Saturday, May 7, in the Suffolk Visitor Center Pavilion at 524 North Main Street. The weekly market is enjoyed by locals and visitors searching for fresh locally grown fruits and…
Rates have been rising for all of 2022 and they took another step up this month. The most frequently asked question now is: what does this mean for the local real estate market? Lee was recently interviewed by a local paper about his thoughts on our local market and the questions they asked were interesting and timely enough that we thought we would share them below. But before we do, two quick points. First, here is the monthly chart you are used to seeing:
As you can see the number of listings and sales are down year over year, but prices are way up. Keep in mind, these are May 2022 numbers, so 99% of these homes that closed in May 2022 went under contract in March and April. We have a couple of months to go before we start seeing the effect (if any) the recent interest rate increase will have.
Here are some of the questions (in bold) Lee was asked along with his answers:
Over that time, has Suffolk experienced a stable housing market? If so, why? If not, why? Was there a “best” year? Why?
Cross Realty has been helping Suffolkians buy, sell, and manage real estate for over 65 years and during that time, Suffolk has experienced all types of different markets. In my twenty-year career I have seen Suffolk experience two very strong seller’s markets (2004-2007 and our current market), and one very strong buyer’s market (2010-2014), so a “best” year really depends on your real estate needs at that time. The local real estate market functions like most other markets. It is all about the supply (listings – sellers wanting to sell) versus the demand (number of buyers), combined with the local and national economy. Calling one year the “best” year really depends on if you are a buyer or a seller.
What outside influences affect Suffolk’s housing market?
The national and local economy plays a large role and, of course, interest rates have an influence as well. My father, Harry Cross III, remembers selling houses with 17 to 18 percent rates! Also, the zoning laws across Hampton Roads impact the number of homes that can be built in neighboring cities. Most of the developable land in Virginia Beach, Norfolk, Chesapeake, and Portsmouth has already been developed, which is driving more people and developers towards Suffolk. Additionally, while I am certainly biased, I feel Suffolk has a better value for your dollar. For the same amount you would spend in Virginia Beach, you can get a larger, nicer home on a bigger lot in Suffolk.
Do those same influences also affect Suffolk’s commercial market?
Yes, along with the number and location of businesses looking to relocate.
What do you predict the future, over the next five to 10 years, holds for Suffolk’s housing market?
I think our current seller’s market will cool down and most likely swing back to a buyer’s market at some point over the next 10 years. I don’t see our local market hitting the lows of 2011, when a third of every home that sold was a bank foreclosure or short sale, unless a highly unlikely event like the Navy leaving Norfolk or a major economic depression were to occur.
Any other observations or comments you’d like to make.
Suffolk is a very unique market because of its size and location, the exponential growth we have experienced in the past decade, and the variety of real estate offerings. A solid knowledge of the nuances of the Suffolk market and the ways that it differs from surrounding cities is necessary when pricing Suffolk properties.
Last month, we closed our newsletter stating that if you have been thinking of selling but have been holding off thinking prices will continue to rise, it is probably time for us to at least talk. That advice holds true for this month as well. We can give you a free estimate of what your home is worth in our current market. Each price range and neighborhood are different, so give us a call (757-726-7653 for Lee, 757-434-9084 for Harry) or reply back to this. We love talking real estate and are happy to have a no obligation conversation.
What’s Happening in Suffolk
Suffolk Art League’s Open Members Show
Suffolk Art League invites you to the Annual Open Members Show, on exhibit from June 14 to July 15, 2022. This open show features artwork by current members of the Suffolk Art League.
Celebrate Pride month and the Suffolk LGBTQIA+ community with SPL at Parking Lot Pride! There will be informational tables, local resources, including the LGBT Life Center and PFLAG, grab-and-go activity kits, open mics to share your stories, and …
TGIF Summer Concert Series: The Original Rhondelsncert Series:
The summer is here and Suffolk Parks & Recreation wants you to kick off your weekend right with the TGIF Summer Concert Series of 2022, at Constant’s Wharf Park & Marina. The park will open at 6pm and the bands will take the stage at 6:30pm.
Join Suffolk Parks & Recreation on Monday, July 4, 2022, as the skies of Suffolk light up with a fireworks show over the beautiful Nansemond River at Constant’s Wharf Park and Marina. The park will open at 5:30pm with entertainment, bounce…
The Great Dismal Swamp is anything but dismal. The narrated Swamp Safari, one of Suffolk’s most popular attractions, fills up quickly. This three-hour tour is led by a biologist specializing is the unique habitat of the Great Dismal. Learn about…
Think you know every nook and cranny in Suffolk? Come prove it at the library’s 7th annual Amazing Peanut Chase! This year’s citywide scavenger hunt will start at Morgan Memorial Library and have you road tripping all over Suffolk solving clues….
See Suffolk through the eyes of years gone by! Suffolk’s rich heritage dates back to the early 17th century, when Captain John Smith first encountered the Nansemond Indians on the Nansemond River. Even now, you can trace Suffolk’s legacy through…
See Suffolk through the eyes of years gone by! Suffolk’s rich heritage dates back to the early 17th century, when Captain John Smith first encountered the Nansemond Indians on the Nansemond River. Even now, you can trace Suffolk’s legacy through…
An official Virginia Civil War Trail site, Cedar Hill Cemetery has long been an attraction for history buffs and even walking groups. The Suffolk Division of Tourism offers a guided stroll through the pleasant 32-acre cemetery, rich in history…
A hair-raising encounter with the spirited side of Suffolk. Follow a costumed guide through the shadows of historic Main Street discovering stories, legends and “unexplained occurrences” by lantern light. Tales of unsolved mysteries and…
Explore the tidal wetlands along Bennett’s Creek while viewing a variety of bird and plant species. Guided kayak excursions are facilitated by a water adventures outfitter with years of experience. All equipment is included with registration fee. …
The popular “Storytime at the Station” series has returned to the Seaboard Station Railroad Museum! Ideal for children ages three to seven, this interactive program is scheduled for 10:30am on Tuesday, June 28, 2022. Different…
The Suffolk Center is partnering with Wall Street Café to expand Open Mic and collaborate with local businesses. Based upon the popular Showtime at the Apollo, SHOWTIME at the Suffolk Center will be held on June 30, 2022, from 7-10pm, and…
Suffolk Farmers’ Market Season Opening Celebration
The Suffolk Farmers’ Market kicks off the 2022 season on Saturday, May 7, in the Suffolk Visitor Center Pavilion at 524 North Main Street. The weekly market is enjoyed by locals and visitors searching for fresh locally grown fruits and…
Do Buyers Care about Interest Rates? The short answer is yes – but the rise in rates hasn’t done much to slow down the market yet because the number of buyers is still disproportionately higher than the number of sellers.
As you take a look at the chart from the Real Estate Information Network (our local MLS) showing the changes in year over year numbers (comparing April 2022 to April 2021), note that the numbers are more a reflection of homes closing in April, so the majority went under contract in February and March before some of the larger interest rate increases occurred.
As you can see, we have double digit percentage changes across the board, which is unusual. The median sale price of $319,900 for April 2022 is an all-time high, and significantly greater than the previous high of $300,000 which occurred in March 2022 and July 2021. With our advice, our sellers continue to be able to command high prices for their homes and buyers continue to pay.
Last month we focused on interest rates and the impact they have on buyer’s monthly payments and buying power, and while the numbers don’t yet show that buyers are impacted enough to change their behavior, it will be interesting to see the direction our local real estate market takes over the next few months.
If you have been thinking of selling, but have been holding off thinking prices will continue to rise, it is probably time for us to talk. We can give you a free estimate of what your home is worth in our current market. Each price range and neighborhood are different, so give us a call (757-726-7653 for Lee, 757-434-9084 for Harry) or reply back to this email. We love talking real estate and are happy to have a no obligation conversation customized to your own personal needs.
May is shaping up to be a busy month in Suffolk! Expect lots of family fun, outdoor concerts, guided tours and so much more! Here’s a glimpse of what you can expect: The Suffolk Farmers’ Market season kicked off Saturday, May 7, 2022, in the…
Join the Suffolk-Nansemond Historical Society as they present a new exhibit, “The History of Education,” featuring schools and educators spanning the years in Suffolk and old Nansemond Cou…
Spring Exhibit: “Threaded: An Invitational Exhibit…
The Suffolk Art Gallery and Suffolk Art League invite you to visit our invitational exhibit, “Threaded: An Invitational Exhibit Showcasing Fiber and Textile Art.” Fiber techniques including hook rugs, yarn-bombing, natural dyes, and embroidery…
The Great Dismal Swamp is anything but dismal. The narrated Swamp Safari, one of Suffolk’s most popular attractions, fills up quickly. This three-hour tour is led by a biologist specializing is the unique habitat of the Great Dismal. Learn about…
Annual Holland Ruritan Club’s Custom Car, Truck &…
On-site registration: 8-10am / Awards presented: 1:30pm Join the Holland Ruritan Club for their Annual Custom Car, Truck & Motorcycle Show on Saturday, June 11, 2022, from 8am to 2pm, at the Holland Village Ball Field 3 (rescheduled from May 14). …
Victorian Suffolk: Dying To Be There, A Guided Discovery …
This 75-minute walking tour explores the hidden meanings buried in Suffolk’s Historic Cedar Hill Cemetery. The tour will feature Victorian-era symbolism, burial practices, funerary industries, and mourning rituals. This intriguing and educational …
An official Virginia Civil War Trail site, Cedar Hill Cemetery has long been an attraction for history buffs and even walking groups. The Suffolk Division of Tourism offers a guided stroll through the pleasant 32-acre cemetery, rich in history…
Suffolk Farmers’ Market Season Opening Celebration
The Suffolk Farmers’ Market kicks off the 2022 season on Saturday, May 7, in the Suffolk Visitor Center Pavilion at 524 North Main Street. The weekly market is enjoyed by locals and visitors searching for fresh locally grown fruits and…
While this increase feels dramatic, historically, 5% is still a low rate for a 30-year mortgage, and as you can see from last month’s year-over-year numbers (March 2021 to March 2022) sales are still going strong in our region. Despite the rate increases, we are still in a very strong seller’s market. Prices are rising and most sellers are receiving multiple offers on their homes. It will be interesting to see over the coming months if the rising rates do anything to slow down the market – if you are considering selling, now is the time to get started!
While this increase feels dramatic, historically, 5% is still a low rate for a 30-year mortgage, and as you can see from last month’s year-over-year numbers (March 2021 to March 2022) sales are still going strong in our region. Despite the rate increases, we are still in a very strong seller’s market. Prices are rising and most sellers are receiving multiple offers on their homes. It will be interesting to see over the coming months if the rising rates do anything to slow down the market – if you are considering selling, now is the time to get started!
By putting our years of experience and innovative marketing and negotiating techniques to work, we have proven success in helping both buyers and sellers in this market. Give us a call (757-726-7653 for Lee, 757-434-9084 for Harry) or reply back to this email to find out more. We love talking about real estate and are happy to have a no-obligation conversation.
Join the Pinner House for a fantastic lineup of 25+ local artisans and small businesses. There will be multiple activities, including live music by Olivia Dyer & Dustin Furlow, spring minis with Emily Conner Photography, specialty food and…
All events at the Great Dismal Swamp Birding Festival are free. Pre-registration required for Guided Walks and Bus Tours. Scheduled Events: Guided Bird Walks – 7am Approx. 2 hours; registration required Locations: Jericho Lane Trailhead (1330…
Join the Suffolk Farmers’ Market for a Tea Tasting and Spring Plant Sale on Saturday, April 30, 2022, from 10am to 1pm, at the Suffolk Visitor Center Pavilion. The plant sale will feature gorgeous cut flowers, vegetable seedlings, herbs, potted…
Monday, Tuesday, & Thursday: 10am-2pm; Friday by appointment only Exhibit: “The History of Education” Join the Suffolk-Nansemond Historical Society as they present a new exhibit, “The History of Education,” featuring schools and educators…
This exhibit depicts the beauty of wildlife throughout our region and the world. The exhibit features highly collectible decoys, wildlife, and waterfowl art, all while showcasing wildlife artists working in woodcarving, paints, sculpture,…
A hair-raising encounter with the spirited side of Suffolk. Follow a costumed guide through the shadows of historic Main Street discovering stories, legends and “unexplained occurrences” by lantern light. Tales of unsolved mysteries and…
The Great Dismal Swamp is anything but dismal. The narrated Swamp Safari, one of Suffolk’s most popular attractions, fills up quickly. This three-hour tour is led by a biologist specializing is the unique habitat of the Great Dismal. Learn about…
Suffolk Public Library’s 6th annual, multi-fandom event, IconiCon is BACK IN PERSON! Join us on Saturday, April 30, 2022, from 10am to 3pm at North Suffolk Library, for the biggest free gathering of sci-fi, fantasy, comic, and anime fans in the…
Victorian Suffolk: Dying To Be There, A Guided Discovery …
This 75-minute walking tour explores the hidden meanings buried in Suffolk’s Historic Cedar Hill Cemetery. The tour will feature Victorian-era symbolism, burial practices, funerary industries, and mourning rituals. This intriguing and educational …
Kayak Excursion of the Great Dismal Swamp’s Lake Drummond
Experience the unusual and breathtaking Lake Drummond, a 3,108-acre bowl-shaped lake located near the center of the Great Dismal Swamp. Guided kayak excursions are facilitated by a water adventures outfitter with years of experience. All…
The Suffolk Farmers’ Market will kick off the 2022 season on Saturday, May 7, in the Suffolk Visitor Center Pavilion. The market is a hometown favorite, and features fresh locally grown fruits and vegetables, baked goods, meats and eggs, jams and …
Our theme for last month was, “Can our local real estate market have cake and eat it too?” but “Are we running out of cake to eat?” might be a better question to ask this month. The number of active listings dropped by 25% over the last two months based on year-over-year numbers (comparing February 2021 to February 2022) suggesting that there might be less “cake.” To help address that question, take a look at the chart below that compares year-over-year numbers (February 2021 to February 2022):
As you can see, active listings, pending sales, and settled sales are all down, but a great number of homes were sold last month. So the short answer is no, we aren’t out of cake, but due to the laws of supply and demand buyers are certainly paying more for their piece of cake. Houses are selling very fast and as spring rolls around more homes will be coming on the market.
By putting our years of experience and innovative marketing and negotiating techniques to work, we have proven success helping both buyers and sellers navigate this market. Give us a call (757-726-7653 for Lee; 757-434-9084 for Harry) or reply back to this email to find out more. We love talking about real estate and are happy to have a no-obligation conversation.
What’s Happening in Suffolk
Suffolk Tourism, VA
Join the Suffolk Art Gallery as they host the 38th Annual Juried Photography Exhibit, the largest and oldest juried photography exhibit in Hampton Roads. The artwork of professional and amateur photographers will be on display March 5 through…
The Suffolk Visitor Center reopened to the public on Monday, March 15, 2021, at 9am. Our hours of operation will remain Monday-Saturday, 9am-5pm, and Sunday 1-5pm, through April 4. Hours will return to 9am-5pm daily beginning on April 5. The…
Join the Suffolk Literary Club and the Suffolk Public Library as they welcome Earl Swift, author of Chesapeake Requiem: A Year in the Watermen of Vanishing Tangier Island, on Tuesday, March 29, 2022, beginning at 5:30pm. This event is free and…
Vinyl Radio comes at you with a wash of vocal power and a righteous regard for the great rock-n-roll music of the 70s. These music city pros combine their considerable talents in an experience that captures the essence of an era when guitars,…
This exhibit depicts the beauty of wildlife throughout our region and the world. The exhibit features highly collectible decoys, wildlife, and waterfowl art, all while showcasing wildlife artists working in woodcarving, paints, sculpture,…
The Great Dismal Swamp is anything but dismal. The narrated Swamp Safari, one of Suffolk’s most popular attractions, fills up quickly. This three-hour tour is led by a biologist specializing is the unique habitat of the Great Dismal. Learn about…
An official Virginia Civil War Trail site, Cedar Hill Cemetery has long been an attraction for history buffs and even walking groups. The Suffolk Division of Tourism offers a guided stroll through the pleasant 32-acre cemetery, rich in history…
The Suffolk Farmers’ Market will kick off the 2022 season on Saturday, May 7, in the Suffolk Visitor Center Pavilion. The market is a hometown favorite, and features fresh locally grown fruits and vegetables, baked goods, meats and eggs, jams and …
Do you know what makes an agent successful? We do. Cross Realty welcomes queries from those who are interested in joining our award-winning team. Call Harry today at 757-434-9084 to schedule a confidential meeting.
Specializing in properties in South Hampton Roads, Virginia.
