Tag Archives: market info

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!

Does Moving Up Make Sense? 

Couple moving houseThese questions will help you decide whether you’re ready for a home that’s larger or in a more desirable location. If you answer yes to most of the questions, it’s a sign that you may be ready to move.

  1. Have you built substantial equity in your current home? Look at your annual mortgage statement or call your lender to find out. Usually, you don’t build up much equity in the first few years of your mortgage, as monthly payments are mostly interest, but if you’ve owned your home for five or more years, you may have significant, unrealized gains.
  1. Has your income or financial situation improved? If you’re making more money, you may be able to afford higher mortgage payments and cover the costs of moving.
  1. Have you outgrown your neighborhood? The neighborhood you pick for your first home might not be the same neighborhood you want to settle down in for good. For example, you may have realized that you’d like to be closer to your job or live in a better school district.
  1. Are there reasons why you can’t remodel or add on? Sometimes you can create a bigger home by adding a new room or building up. But if your property isn’t large enough, your municipality doesn’t allow it, or you’re simply not interested in remodeling, then moving to a bigger home may be your best option.
  1. Are you comfortable moving in the current housing market? If your market is hot, your home may sell quickly and for top dollar, but the home you buy also will be more expensive. If your market is slow, finding a buyer may take longer, but you’ll have more selection and better pricing as you seek your new home.
  1. Are interest rates attractive? A low rate not only helps you buy a larger home, but also makes it easier to find a buyer.
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!

Cash Flow and Equity Build-up

Cash Flow.pngMany years ago, Las Vegas hotels would entice customers with inexpensive rooms, meals and entertainment so they would gamble. It may have worked initially but if you’ve been to Las Vegas recently, the bargains are gone. Hotels expect each division to be a profit center on its own. As a consumer, I might not like the changes but as an investor, I’d have to be pleased with increased profitability.

Years ago, real estate investors used to accept negative cash flow buoyed by tax incentives in hopes of making a big payday due to appreciation when they sold it. Today’s investors are focusing on tangible, current results like cash flow and equity build-up.

Cash flow is the amount of money you have left over after collecting the rent and paying the expenses. Since rents have gone up considerably due to supply and demand in the last few years and mortgage rates are at near record lows, income is up and expenses are down, making the cash flows attractive.

If the cash flow is sufficient, you could have a good investment even if the value of the property never increased. Cash on Cash doesn’t consider appreciation and measures the cash flow before tax advantages by the initial investment. A rental with $3,170 CFBT divided by an initial investment of $29,000 would generate a 10.93% Cash on Cash rate of return.

Low down payments on investor properties are also a thing of the past. Non-owner occupied mortgage money is available but the investor should expect to put down 25-30%. An advantage of having a smaller mortgage is a lower payment.

Most mortgages are amortized loans with both principal and interest due with each payment. The forced savings of the principal contribution builds equity in the property and can be considered a part of the rate of return.

A $100,000 mortgage at 4.5% for 30 years would have $1,613.29 applied to principal in the first year. Divide that by the same $29,000 initial investment and the amortization would generate another 6%.

Without factoring in appreciation or tax advantages, this rental example generates much more than most alternative investments. There certainly are many different aspects that affect the risk and return on rental investments. If you haven’t scrutinized single-family rental opportunities in a while, you should look again.

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!

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!

What is a Seller’s Market?

iStock_000030508968Small-250.jpgIt is generally considered a seller’s market when the conditions favor the seller. This condition exists when demand is high and supply is low without any significant adverse economic conditions taking place.

Demand is determined by ready, willing and able buyers. Low interest rates with indications that they will begin to rise fuels part of this demand. Rising prices also creates a sense of urgency to avoid higher housing costs.

Inventory is currently below what is considered balanced in most areas. In some areas and price ranges, homes are selling very quickly, with multiple offers and sometimes at above the listing price. When too many buyers are chasing too few properties, things get competitive and the seller is the beneficiary.

Even when buyers and sellers come to an agreement on price and terms, a challenge can occur if the appraisal doesn’t meet the sales price. Either the purchaser has to come up with the additional cash or the purchase price has to be renegotiated.

A typical seller wants the most money possible for their home in the shortest time frame with the fewest inconveniences. A Seller’s Market provides the most likely environment for this to happen.

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!