Category Archives: Market Update

Which Value Do You Want?

What your home is worth depends on why you ask the question. It could be one value based on a purchase or sale and an entirely different value for insurance purposes.Values-250.png

Fair market value is the price a buyer and seller can agree upon assuming both are knowledgeable, willing and unpressured by extraordinary events. This value is generally indicated by a comparable market analysis done by real estate professionals.

Insured value is determined for insurance coverage. Homeowner policies typically have replacement clauses in them and the cost of demolition, new construction and the added complexities of matching existing construction could exceed the cost of new construction.

Investment value is based on the income it can generate during its useful life. This value is dependent on what kind of yield an investor requires to capitalize the value over time. The formula for this is to divide net operating income by the capitalization rate required by the investor.

The assessed value of a home is used to determine the property taxes the owner must pay. This value is determined by the responsible state government agency.

Homeowners are generally more familiar with their home’s market value. Since it can be lower than the replacement cost, owners should review the insured value with their property insurance agent periodically.

There can be a surprising difference in each of these separate values. It is important to know the purpose that it is going to be used for the value.

All my best,
Myra Spano, REALTOR®

About the Author:
Myra Spano is a service and results oriented real estate agent with her client’s goals as top priority.  Myra has over 10 years of experience and is recognized as a top producing agent in her office in Virginia Beach and enjoys working with both buyers and those selling their homes.
For information about purchasing a home in Coastal Virginia, visit her website.  This site is focused on homes available for sale in Hampton Roads, Virginia.  Email, call or text to make an appointment begin your home search.
If you are considering selling your home in Virginia Beach or one of the surrounding areas, visit the seller’s website to request a Free Market Analysis of your property.
Myra Spano & Berkshire Hathaway HomeServices Towne Realty is awaiting to provide the real estate guidance you need.  Contact us now to make your home dreams come true!
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REAL Trends March 2016 Market Report

Just getting back to posting weekly… Here’s the market update for across the country.
All my best,
Myra Spano, REALTOR®
 

About the Author:
 
Myra Spano is a service and results oriented real estate agent with her client’s goals as top priority.  Myra is recognized as a top producing agent in her office in Virginia Beach and enjoys working with both buyers and those selling their homes.
 
For information about purchasing a home in Coastal Virginia, visit her website.  This site is focused on homes available for sale in Hampton Roads, Virginia.  Email, call or text to make an appointment begin your home search.
 
If you are considering selling your home in Coastal Virginia or one of the surrounding areas, visit the seller’s website to request a Free Market Analysis of your property.
 
Myra Spano & Berkshire Hathaway HomeServices Towne Realty is awaiting to provide the real estate guidance you need.  Contact us now to make your home dreams come true!

Tips for Buying in a Tight Market

Plus-or-minus-house-on-stairsIncrease your chances of getting your dream house in a competitive housing market, and lower your chances of losing out to another buyer.

  1. Get prequalified for a mortgage. You’ll be able to make a firm commitment to buy and your offer will be more desirable to the seller.
  2. Stay in close contact with your real estate agent to find out about the newest listings. Be ready to see a house as soon as it goes on the market — if it’s a great home, it will go fast.
  3. Scout out new listings yourself. Look at Web sites such as REALTOR.com, browse your local newspaper’s real estate section, and drive through the neighborhood to spot For Sale signs. If you see a home you like, write down the address and the name of the listing agent. Your real estate agent will schedule a showing.
  4. Be ready to make a decision. Spend a lot of time in advance deciding what you must have in a home so you won’t be unsure when you have the chance to make an offer.
  5. Bid competitively. You may not want to start out offering the absolute highest price you can afford, but don’t go too low to get a deal. In a tight market, you’ll lose out.
  6. Keep contingencies to a minimum. Restrictions such as needing to sell your home before you move or wanting to delay the closing until a certain date can make your offer unappealing. In a tight market, you’ll probably be able to sell your house rapidly. Or talk to your lender about getting a bridge loan to cover both mortgages for a short period.
  7. Don’t get caught in a buying frenzy. Just because there’s competition doesn’t mean you should just buy it. And even though you want to make your offer attractive, don’t neglect inspections that help ensure that your house is sound.
All my best,
Myra Spano, REALTOR®
 

About the Author:
 
Myra Spano is a service and results oriented real estate agent with her client’s goals as top priority.  Myra is recognized as a top producing agent in her office in Virginia Beach and enjoys working with both buyers and those selling their homes.
 
For information about purchasing a home in Virginia Beach, visit her website.  This site is focused on homes available for sale in Hampton Roads, Virginia.  Email, call or text to make an appointment begin your home search.
 
If you are considering selling your home in Virginia Beach or one of the surrounding areas, visit the seller’s website to request a Free Market Analysis of your property.
 
Myra Spano & Berkshire Hathaway HomeServices Towne Realty is awaiting to provide the real estate guidance you need.  Contact us now to make your home dreams come true!

A Positive Month for Hampton Roads Real Estate

A Positive Month for Hampton Roads Real Estate
Virginia Beach, Virginia – July 2014
 
Statistical reports for June 2014 are indicative of a positive real estate market for Hampton Roads. A majority of the metrics that measure the local housing market show clear-cut growth, with residential listings, pending sales and settled sales all experiencing increased year-over-year results. The distressed market continues to improve as well.
 
Residential active listings increased 12.04% when compared to June 2013. Each of the region’s seven major cities (Chesapeake, Hampton, Newport News, Norfolk, Portsmouth, Suffolk, Virginia Beach) saw year-over-year increases in the number of homes for sale. Similar to the previous month, Chesapeake and Suffolk saw the largest year-over-year increases at 18.97% and 18.70% respectively. The months’ supply of inventory for residential homes for sale is currently 6.98 months, which is a mild 7.88% increase from June 2013’s 6.47 months.
 
The number of residential pending sales for the region swelled 15.68% from the year prior, with Newport News and Portsmouth contributing impressive increases of 44.70% and 30.63% respectively. In fact, all seven of the region’s major cities saw year-over-year increases in pending sales, a statistic that often influences settled sales over the next 30-90 days.
 
For the first time this year, residential settled sales increased year-over-year. June 2014 saw a 1.22% uptick in the number of residential settled sales when compared to the same period of time in 2013. Portsmouth experienced the most dramatic improvement, with a gain of 30%. Newport News and Norfolk followed with the next highest increases of 6.75% and 5.98% respectively. Conversely, Chesapeake, Suffolk and Hampton suffered declines in their settled sales.
 
The region’s median sales price is currently $217,500, down 3.33% from June 2013. Individually, of the area’s major cities Portsmouth has the lowest median sales price of $134,950 and Chesapeake has the highest at $259,208.
 
Distressed homes, those that are either short sales or foreclosures, had less significance on the region’s market during June 2014. Distressed homes accounted for just 17.36% of all residential active listings for the month, which is down 4.32% from the same period of time last year, and marks the sixth consecutive month they’ve declined. June’s distressed homes accounted for 20.08% of all residential settled sales, a decrease of 2.76% from June 2013, and down 9.41% from the beginning of the year.

June 2014 Summary
All Categories
June 2014
June 2013
Percent Change
Total Property Active Listings
15,131 13,581 11.41%
Total Residential Active Listings
12,336 11,010 12.04%
Total Property Pending Sales
2,283 1,973
15.71%
Total Residential Pending Sales
2,176 1,881
15.68%
Total Property Sales
2,173 2,130
2.02%
Total Residential Sales
2,081 2,056
1.22%
Total Residential New Construction Sales
248 300
-17.33%
Median Residential Sales Price
$217,500
$225,000
-3.33%
Months’ Supply of Inventory
6.98
6.47
7.88%
* Total Property statistics include all property types (Residential, Commercial, Duplex, Apartment and Land & Farms), resale and new construction.
 
* Months’ Supply of Inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months average sales activity.
 
All my best,
Myra Spano, REALTOR®
 

About the Author:
 
Myra Spano is a service and results oriented real estate agent with her client’s goals as top priority.  Myra is recognized as a top producing agent in her office in Virginia Beach and enjoys working with both buyers and those selling their homes.
 
For information about purchasing a home in Virginia Beach, visit her website.  This site is focused on homes available for sale in Hampton Roads, Virginia.  Email, call or text to make an appointment begin your home search.
 
If you are considering selling your home in Virginia Beach or one of the surrounding areas, visit the seller’s website to request a Free Market Analysis of your property.
 
Myra Spano & Prudential Towne Realty is awaiting to provide the real estate guidance you need.  Contact us now to make your home dreams come true!
 
About REIN:
 
Real Estate Information Network, Inc., (REIN) serves real estate brokers in the Tidewater / Hampton Roads area of Virginia from Williamsburg east to Virginia Beach and south to the North Carolina border. REIN is an independent MLS owned by broker stockholder members. Currently there are approximately 530 real estate firms with 650 offices, 6100 real estate agents, and 155 appraiser members using REIN. For more information visit http://www.REINMLS.com.

Distressed Listings Activity Lowest in 4 Years

Distressed Listings Activity Lowest in 4 Years
(Virginia Beach, Virginia – June 2014)

To-date, the Hampton Roads real estate market has avoided the pitfall of too few listings, as experienced in other parts of the country. In fact, residential active listings increased significantly in May 2014 from the prior year. Unfortunately residential pending and settled sales have not kept pace, and experienced declines for May. Good news for the sales statistics is that distressed sales activity is dropping as well.

Last month’s residential active listings increased 9.54% when compared to May 2013. Each of the region’s seven major cities (Chesapeake, Hampton, Newport News, Norfolk, Portsmouth, Suffolk, Virginia Beach) saw year-over-year increases in the number of residential homes for sale. Suffolk and Chesapeake were dominant contributors to this jump, with increases of 17.82% and 17.05% respectively. The months’ supply of inventory of residential homes for sale is currently 6.9 months, up 4.86 % from May 2013 when it was 6.58.

Residential pending sales decreased year-over-year for the second time in 2014, with a slight 1.83% decline for the region in May. Despite the regional drop, Newport News, Portsmouth and Virginia Beach saw gains in pending sales of 35.37%, 20.49% and .33% respectively. Suffolk and Hampton experienced the largest declines of 15.03% and 11.04%.

For the fifth consecutive month residential settled sales have declined from the prior year. Norfolk and Virginia Beach were major contributors to the region’s drop, with year-over-year declines of 12.99% and 10.89%. Going against this trend, Suffolk, Newport News and Hampton saw increases of 28.70%, 9.09% and 7.56% respectively. While May’s sales may be down, the region’s median sales price for a residential home is currently $210,000, up 2.44% from May 2013’s median sales price of $205,000.

Distressed homes, those that are either short sales or foreclosures, had considerably less impact on the region’s real estate market during May 2014. Distressed homes accounted for only 17.97% of all
residential homes for sale in May 2014, down 4.44% from May 2013. The percentage of distressed homes as active listings has steadily declined each month in 2014, and has now reached its current level which is the lowest reading in 4 years, when it was 17.39% in May 2010. In the arena of residential settled sales, distressed homes accounted for 21.26% of all sales during May 2014, which is down 4.99% from May 2013, and down 8.23% from the beginning of the year.

May 2014 Summary

All Categories May 2014 May 2013 Percent Change
Total Property Active Listings 15,019 13,753 9.21%
Total Residential Active Listings 12,173 11,113 9.54%
Total Property Pending Sales 2,319 2,322 -0.13%
Total Residential Pending Sales 2,204 2,245 -1.83%
Total Property Sales 2,044 2,123 -3.72%
Total Residential Sales 1,953 2,030 -3.79%
Total Residential New Construction Sales 217 236 -8.05%
Median Residential Sales Price $210,000 $205,000 2.44%
Months’ Supply of Inventory 6.9 6.58 4.86%

* Total Property statistics include all property types (Residential, Commercial, Duplex, Apartment and Land & Farms), resale and new construction.
* Months’ Supply of Inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months average sales activity.

About REIN
Real Estate Information Network, Inc., (REIN) serves real estate brokers in the Tidewater / Hampton Roads area of Virginia from Williamsburg east to Virginia Beach and south to the North Carolina border. REIN is an independent MLS owned by broker stockholder members. Currently there are approximately 530 real estate firms with 650 offices, 6000 real estate agents, and 155 appraiser members using REIN. For more information visit http://www.REINMLS.com.

All my best,
Myra Spano, REALTOR®
 

About the Author:
 
Myra Spano is a service and results oriented real estate agent with her client’s goals as top priority.  Myra is recognized as a top producing agent in her office in Virginia Beach and enjoys working with both buyers and those selling their homes.
 
For information about purchasing a home in Virginia Beach, visit her website.  This site is focused on homes available for sale in Hampton Roads, Virginia.  Email, call or text to make an appointment begin your home search.
 
If you are considering selling your home in Virginia Beach or one of the surrounding areas, visit the seller’s website to request a Free Market Analysis of your property.
 
Myra Spano & Prudential Towne Realty is awaiting to provide the real estate guidance you need.  Contact us now to make your home dreams come true!