Rainy Weather But A Sunny Housing Market!
The ten day forecast is showing that we are in for a lot more rain. While we can’t make the clouds go away, we can report a bright and sunny outlook for the housing market.
Statics from the Real Estate Information Network (our local MLS) showed that of all of the homes that sold last month, only 7.89% were labeled as distressed sales. A distressed sale is either a bank foreclosure (the bank owns the property and has listed it for sale through the MLS) or a short sale. A short sale is when the owner of the property owes more on the house than what it is worth today and the lender agrees to accept less to allow the owner to sell the property. The highest percentage Hampton Roads had was in March of 2011 at 42.8%. June’s number of 7.89% was the lowest since August of 2008.
Along with the positive news of the lower distressed sales, the number of homes pending (under contract) went up for the 49th straight month when comparing year over year sales (June 2018 to June 2017). Also, the number of homes listed for sale is down for the 35th straight month based on year over year numbers. The median sales price increased to $248,000 last month and that is 2.06% higher than in June 2017.
In other news, we are hiring! There is a real estate assistant position available and the job description is posted on our Facebook page and Indeed.com. Check it out there if you or someone you know is interested. Cross Realty is a great place to work!
If we can be of service, give us a call Lee 757-726-SOLD (7653), Harry 757-434-9084 or email us, email@example.com or firstname.lastname@example.org. And don’t forget to follow us on Facebook!
Lee and Harry
Summertime and the Housing Market is Fine!
I love summertime. The days are longer, kids are out of school, people seem to be happier overall, and houses are selling.
Across Hampton Roads 9.36% more homes were sold in May 2018 than in May 2017, and even more impressive, the number of homes that went under contract in May 2018 was up 19.30% from May 2017. These numbers are from the Real Estate Information Network (our local MLS), and the ones under contract match last months numbers. In fact, in Hampton Roads this is the 48th month in a row that the year over year numbers have increased in the number of homes under contract each month.
Inventory (the number of homes for sale), continues to get tighter and Suffolk was the only city last month that had more than five months of inventory, though that number was only 5.05 months. Five to seven months is considered average, and when it fall below five months economists say we are leaning towards a “seller’s market.” Locally, the inventory shortage is mostly in homes priced below $225,000.
In more good news for sellers, our area’s residential median sales price increased 4.35% when comparing May 2018 to May 2017. If you are thinking about buying, we would sugguest that it is definitely time to get the ball rolling right away. With both prices and interest rates going up, buyers will most likely be paying more in future for the same house. However, every situation is different, so give us a call Lee 757-726-SOLD (7653), Harry 757-434-9084, or send us an email (email@example.com or firstname.lastname@example.org) and we can help you decide what might work for you!
Enjoy the summer days! Lee and Harry
Hampton Roads is a Rising Market!
The Hampton Roads real estate sales statistics from April continue to show a rising market. According to numbers from the Real Estate Information Network (our local MLS), 19.30% more homes went under contract (pending) in April 2018 than in April 2017. This continued what is now a four year trend of the year over year pending numbers rising (comparing the same month in different years to allow us to compare apples to apples).
But, interestingly enough, Suffolk was the only city in Hampton Roads to go down in pending sales. The 19.30% was Hampton Road’s average. Newport News had the largest increase at 34.24%, and Suffolk’s fell 0.62%. A tiny decline, but still well below the average for the area. It is our opinion that part of this large difference in numbers is that buyers are having trouble finding the house that they want.
If you are thinking about selling don’t wait! Sellers often make the mistake of waiting until summer to list their houses (studies show that July is the second most popular month to list your home). It is true that more people typically move over the summer, but that is because the buyer found and put the home under contract 30 to 60 days earlier. August is one of the slower times of year for sales because no one wants to move during the first few weeks of the school year.
We are happy to come out and give you a free comparative market analysis so you can know what your home can sell for in our current market. Give us a call Lee 757-726-SOLD (7653), Harry 757-434-9084, or reply back to this email.
Enjoy your weekend,
Lee and Harry
April Update and win a gift card!
Last month we were worried about sounding like a broken record. This month, it is the same song, but a different tune.
The recognizable part is the year over year numbers continue to swing towards a seller’s market. According to numbers from the Real Estate Information Network (our local MLS) there were 9,244 homes for sale in March 2018, which is 8.67% less than in March 2017. March 2018 is the 32nd consecutive month of a decline in the number of homes for sale when looking at year over year numbers. The number of homes under contract (pending) has also increased based on year over year numbers for the last 46 months.
The change has occurred in the absorption rate. The absorption rate, also called the months’ supply of inventory, 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. From December 2017 through February 2018, the absorption rate decreased each month, but it went up some in March 2018 to 4.11 months. However, when you compare the year over year March 2018 is 12.37% less than March 2017.
We have been writing this monthly update for a couple of years now and are looking for some feedback. We would love to hear what you like about the newsletter and what you think we should change. Is there other information you think we should include? In an effort to get you to hit reply and tell us, we will send Starbucks gift cards to the first five people who give us their thoughts. We will put in everyone else who responds and draw out five more names to send Starbucks cards to as well.
Good luck, and even if you are like Harry and don’t like Starbucks coffee please respond as we can always send you to Sweet Frog instead.
By: Lee Cross
It’s Cold Outside, but Sales are Warm!
The end of the year numbers are in for 2017, and they continue to show a positive trend for sellers. The number that sellers care the most about, the median sale price across Hampton Roads, was $230,000 for 2017 which is up roughly 2.2% from 2016, according to numbers from the Real Estate Information Network (our local MLS). More exciting for sellers is that the number of homes for sale has declined for 29 straight months when comparing year over year numbers (December 2017 to December 2016). December 2017’s supply of homes for sale was down to 3.90 months. An average market is between 5 and 7 months, and average days on market for homes across Hampton Roads dropped to 87 days in 2017. The average days on market was 108 in 2016.
While we don’t have a crystal ball, 2018 is looking like a year in which the average sale price for houses should continue to drift upwards. Demand is very strong in the $150,000 to $300,000 price range. In fact, we have several buyers looking that can’t find what they want. If you are thinking about selling give us a call (Lee: 757-726-SOLD (7653) or Harry: 757-434-9084
by: Lee Cross