Is the real estate market across Hampton Roads really changing or are the numbers misleading? Let’s start with the latest year over year (July 2020 compared to July 2021) statistics found here:
An argument could be made that the market is “slowing down” but we aren’t ready to say that yet. New construction numbers are down because builders sold through a good part of the available inventory, and we believe not having enough homes to sell is the same reason pending sales are down. Even though the number of homes under contract are decreasing, the median sales price continues to increase. In June 2021 the median sales price was $298,470, and in July 2021 it was an even $300,000. It is only about half a percent difference but it shows a steady rise.
We’ve seen this trend before but there are significant differences in this cycle. From 2000 to 2005 the total number of homes sold across Hampton Roads went up each year, increasing the inventory. In both 2006 and 2007 the numbers of homes decreased, but the median sale price increased each year. In fact, over 20% fewer homes were sold in Hampton Roads in 2007 than in 2005, but the median sales price of the homes that sold in 2007 was over 10% higher. Locally prices didn’t start to go down until 2008. Lender standards are much tighter now than they were in 2005-2007, so hopefully history will not repeat itself in such a dramatic fashion.
These statistics represent averages across Hampton Roads and your individual real estate needs might be different. If you are thinking about moving and you would like to discuss your personal real estate needs, please reply to this email, or give us a call (757-726-7653 for Lee, 757-434-9084 for Harry). We love talking real estate, so don’t hesitate to give us a call if you have questions. Thanks,
Lee and Harry
What is pre-approval?
A mortgage pre-approval carries more weight and goes a step further than pre-qualifying. We will take more of a deep dive into your financial health, your income and assets, employment and debts. Essentially, your loan is going through upfront underwriting and puts you on the fast-track to homebuying.
What you need for a pre-approval
Here’s where you need to provide:
Employment verification (W-2’s or 1099s)
Bank statements
Retirement and Brokerage account statements
Other assets
Current real estate debt or rental statements
Monthly debt payments (student or auto loans, credit card or utility bills etc.)
Our team looks at your entire financial make-up to get a complete picture of your buying power. Once you’ve given us everything we need, we will give you a pre-approval letter that shows you how much you can afford based on your current financial health. This is invaluable to agents you meet along the way on your house hunt! If you’re serious about purchasing a home, and you’re ready to take the next step in the process before falling in love with your dream home, then getting pre-approved is the natural next step! Let’s get you on your way to finding the home of your dreams!
Bill Duggan Sr. Mortgage Banker 757-615-5172 or billduggan@atlanticbay.com
Taste of Suffolk Downtown Street Festival
Taste of Suffolk is back in Downtown Suffolk for the 15th year! This annual street festival tradition spans Main Street from Finney Avenue to Washington Street.
Taste treats from local restaurants and see crafters, vendors and merchants. Taste of Suffolk has something for the whole family with a great children’s area and live entertainment by The Whiskey Rebellion, Rajazz, Jason Cale Band, Brianna Marie, and Anthony Rosano. Enjoy contests and games, a beer garden, and a new vehicle exhibition.
Head downtown on Saturday, September 11th from 11:00sm to 5:00pm.
This weekend I (Lee) was visiting friends who are also past clients. They bought a new home in 2019 but made the joke that even though they had been too busy to get their old home ready for sale, it will be to their benefit because prices have increased so much over the last year. Based on the information from the Real Estate Information Network (our local MLS) the Median Sales price for Hampton Roads is up 13.66% from June 2020 to June 2021. Using the median sales price that is a difference of $35,871!
Most of those gains have occurred in 2021. Prices were trending up during 2020 and they continue to rise in 2021. Prices have increased by 9.3% when comparing the median sales price of a Hampton Roads home during the first week of January 2021 to the first full week of June 2021.
Things are moving quickly now but August is usually a slower time of year for real estate sales so it will be interesting to see if that trend prevails in the current market. There continues to be an increased amount of demand from buyers and a lack of homes listed for sale. There were 27.80% fewer active listings in June 2021 than their were in June 2020. Those factors could combine for a busier than average August!
As the year goes on, the year over year comparisons will be skewed due to the Covid shutdowns but it is clear we are still in a hot seller’s market.
If you are on the fence about selling, we are always happy to give you a free market analysis on your home. There is no obligation on your part and you might be surprised to see what your home is worth in today’s market. Reply to this email or give us a call (757-726-7653 for Lee, 757-434-9084 for Harry). We love talking real estate and are always happy to talk!
It’s Time for the 32nd Nansemond Indian Pow Wow
All are welcome at this family-friendly event featuring Native American song, dance, food, and crafts. Admission is free.
Saturday: 10am-6pm (Grand Entry at 12pm) Sunday: 10am-5pm (Grand Entry at 1pm)
The Pow Wow grounds are located at 1001 Pembroke Lane, Suffolk, VA, 23434.
For more information, visit Nansemond.org. Public health protocols will be in place. No drugs, alcohol, or pets.
Summer Family Movie Series
Time for Trolls World Tour!
Join the Suffolk Center for Cultural Arts, as they proudly present Trolls World Tour on Sunday, August 8, 2021. Admission is $1 per person, and the movie will begin at 2pm.
The movie is filled with music by the talented cast that includes Anna Kendrick, Justin Timberlake, James Corden, Rachel Bloom, and Kelly Clarkson. This film is rated PG and has a running time of 90 minutes. All children must be accompanied by an adult.
For more information or to purchase tickets, please contact the Suffolk Center for Cultural Arts box office at 757.923.2900 or visit SuffolkCenter.org.
The Hampton Roads market hit a median list price of $300,000 over the last week in April. Keep in mind that it was only one week, and it was the list price, not the final sales price. April’s median sale price was $285,000, which is an almost 12% increase from April 2020 prices.
Of course, as we go over the next couple of months, we have to keep in mind that year over year numbers are going to be skewed by Covid. Here is the chart for April’s numbers:
Inventory, the number of homes available for sale at any given time, has been slightly increasing. Across Hampton Roads, there are roughly 12% more homes listed for sale in April 2021 than we had in February 2021. This is not at all unusual for this time of year, and based on local market trends the number of homes listed does go up during the late spring and early summer.
While it is a very challenging market for buyers due to the low inventory, we can make a good case that if you are planning to buy a home this year, you should think hard about getting started sooner rather than later. We are hearing that folks are concerned about selling their home and not being able to find a home they want to purchase. While buying is a challenge in this market, we have a couple of different strategies we have been using very effectively for our clients.
Of course, every situation is different and our careful and up to date market analysis means that as the facts change, our advice may change as well. If you are thinking about moving, and you would like to discuss your personal real estate needs, please reply to this email, or give us a call (757-726-7653 for Lee, 757-434-9084 for Harry). We love talking real estate, so don’t hesitate to give us a call if you have questions.
Mortgage Loans with Little to No Down Payments
We have all been there — living with messy roommates, feuding with loud upstairs neighbors, or trying to get your landlord to fix something, anything. We get it. It is time to get your own place. Maybe you are ready to move out of that rental and you are thinking about buying your own place. But if the thought of a down payment is a bit intimidating? It does not have to be. There are plenty of little to no down payment options that make homeownership even more attainable now.
What is a down payment?
When you buy a home, you know to expect a monthly mortgage payment that will be yours for 15 or 30 years, or until you have paid off the loan balance. The down payment, on the other hand, is a one-time cost that you will be responsible for paying at closing. Depending on the loan program you choose, your down payment could range from nothing all the way up to 20% of the purchase price (or even more, if you choose). Fortunately, there are many mortgage programs available that meet the needs of most homebuyers.
So how much do you need?
Generally, a conventional loan will require at least 3% down. Or, if you want to avoid Private Mortgage Insurance (or PMI), 20% down is required. But if you are not able to put that much down at once, there are some government-backed loans that range from 0-3.5% down. A few government-insured options that you may consider include:
FHA loan – This program requires buyers to put down 3.5% of the home’s purchase price and will come with monthly mortgage insurance.
USDA loan – This program has no down payment, but mortgage insurance is required and can be paid upfront or financed into the loan for borrowers buying a home in an eligible rural area.
VA loan – This program is tailored specifically to active-duty military, their families, and veterans and requires no down payment or monthly mortgage insurance, but the VA Guarantee Fee replaces mortgage insurance and is paid upfront.
So how much do you need?
Generally, a conventional loan will require at least 3% down. Or, if you want to avoid Private Mortgage Insurance (or PMI), 20% down is required. But if you are not able to put that much down at once, there are some government-backed loans that range from 0-3.5% down. A few government-insured options that you may consider include:
FHA loan – This program requires buyers to put down 3.5% of the home’s purchase price and will come with monthly mortgage insurance.
USDA loan – This program has no down payment, but mortgage insurance is required and can be paid upfront or financed into the loan for borrowers buying a home in an eligible rural area.
VA loan – This program is tailored specifically to active-duty military, their families, and veterans and requires no down payment or monthly mortgage insurance, but the VA Guarantee Fee replaces mortgage insurance and is paid upfront.
Start Saving
It is never too early to contact a mortgage banker to talk about your options. Once you have determined the amount of home you qualify for, you can see if you are ready to buy now, or if it would be smarter to wait a while longer and keep saving money for a down payment. So, what are some ways to start saving now? Save your tax refund. If you are getting a large refund, put that directly into your savings as if you never had it to spend. Might be hard, but it is a good chunk to start with. Reduce expenses. Take a look at how you’re spending your money. Listing out your expenses can really be an eye-opening exercise on your spending habits. Sell your stuff. But remember, this is not spending money, it is saving money now. When you are ready to take the first step toward homeownership, contact a mortgage banker to get started.
Think you know every nook and cranny in Suffolk? Come prove it at the library’s sixth annual Amazing Peanut Chase! This year’s city-wide scavenger hunt will have ySummer Family Movie Seriesou road tripping all over town solving clues. Then join us outside for the socially-distanced after party!
Join Suffolk Tourism, in partnership with the Suffolk Center for Cultural Arts, as they proudly present The Addams Family on Sunday, June 13, 2021.
Admission is $1 per person, and the movie will begin at 2pm. Please note that only 160 seats are available, to allow for social distancing in the 530-seat Birdsong Theater; masks are required.
For more information or to purchase tickets, please contact the Suffolk Center for Cultural Arts box office at 757.923.2900 or visit www.SuffolkCenter.org.
The Hampton Roads market hit a median list price of $300,000 over the last week in April. Keep in mind that it was only one week, and it was the list price, not the final sales price. April’s median sale price was $285,000, which is an almost 12% increase from April 2020 prices.
Of course, as we go over the next couple of months, we have to keep in mind that year over year numbers are going to be skewed by Covid. Here is the chart for April’s numbers:
Inventory, the number of homes available for sale at any given time, has been slightly increasing. Across Hampton Roads, there are roughly 12% more homes listed for sale in April 2021 than we had in February 2021. This is not at all unusual for this time of year, and based on local market trends the number of homes listed does go up during the late spring and early summer.
While it is a very challenging market for buyers due to the low inventory, we can make a good case that if you are planning to buy a home this year, you should think hard about getting started sooner rather than later. We are hearing that folks are concerned about selling their home and not being able to find a home they want to purchase. While buying is a challenge in this market, we have a couple of different strategies we have been using very effectively for our clients.
Of course, every situation is different and our careful and up to date market analysis means that as the facts change, our advice may change as well. If you are thinking about moving, and you would like to discuss your personal real estate needs, please reply to this email, or give us a call (757-726-7653 for Lee, 757-434-9084 for Harry). We love talking real estate, so don’t hesitate to give us a call if you have questions.
Mortgage Loans with Little to No Down Payments
We have all been there — living with messy roommates, feuding with loud upstairs neighbors, or trying to get your landlord to fix something, anything. We get it. It is time to get your own place. Maybe you are ready to move out of that rental and you are thinking about buying your own place. But if the thought of a down payment is a bit intimidating? It does not have to be. There are plenty of little to no down payment options that make homeownership even more attainable now.
What is a down payment? When you buy a home, you know to expect a monthly mortgage payment that will be yours for 15 or 30 years, or until you have paid off the loan balance. The down payment, on the other hand, is a one-time cost that you will be responsible for paying at closing. Depending on the loan program you choose, your down payment could range from nothing all the way up to 20% of the purchase price (or even more, if you choose). Fortunately, there are many mortgage programs available that meet the needs of most homebuyers.
So how much do you need? Generally, a conventional loan will require at least 3% down. Or, if you want to avoid Private Mortgage Insurance (or PMI), 20% down is required. But if you are not able to put that much down at once, there are some government-backed loans that range from 0-3.5% down. A few government-insured options that you may consider include:
FHA loan – This program requires buyers to put down 3.5% of the home’s purchase price and will come with monthly mortgage insurance.
USDA loan – This program has no down payment, but mortgage insurance is required and can be paid upfront or financed into the loan for borrowers buying a home in an eligible rural area.
VA loan – This program is tailored specifically to active-duty military, their families, and veterans and requires no down payment or monthly mortgage insurance, but the VA Guarantee Fee replaces mortgage insurance and is paid upfront.
Start Saving It is never too early to contact a mortgage banker to talk about your options. Once you have determined the amount of home you qualify for, you can see if you are ready to buy now, or if it would be smarter to wait a while longer and keep saving money for a down payment. So, what are some ways to start saving now? Save your tax refund. If you are getting a large refund, put that directly into your savings as if you never had it to spend. Might be hard, but it is a good chunk to start with. Reduce expenses. Take a look at how you’re spending your money. Listing out your expenses can really be an eye-opening exercise on your spending habits. Sell your stuff. But remember, this is not spending money, it is saving money now. When you are ready to take the first step toward homeownership, contact a mortgage banker to get started.
Bill Duggan Sr. Mortgage Banker 757-615-5172 or billduggan@atlanticbay.com
Amazing Peanut Chase
Think you know every nook and cranny in Suffolk? Come prove it at the library’s sixth annual Amazing Peanut Chase! This year’s city-wide scavenger hunt will have you road tripping all over town solving clues. Then join us outside for the socially-distanced after party!
Join Suffolk Tourism, in partnership with the Suffolk Center for Cultural Arts, as they proudly present The Addams Family on Sunday, June 13, 2021.
Admission is $1 per person, and the movie will begin at 2pm. Please note that only 160 seats are available, to allow for social distancing in the 530-seat Birdsong Theater; masks are required.
For more information or to purchase tickets, please contact the Suffolk Center for Cultural Arts box office at 757.923.2900 or visit SuffolkCenter.org.
March was roaring and April is hopping! April is normally one of the busiest months in the real estate world and, based on a local study we did a few years ago, it is the month when the largest number of new homes are listed. This chart shows just how busy March was and that April is following suit.
While an almost 48% percent decline in active listings is eye catching, it does not mean that the number of people who want to sell has been cut in half this year. Across Hampton Roads, there were actually 60 more homes listed in March 2021 than in March 2020. Buyer demand is driving the huge reduction in active listings and the increase in the median sale prices.
Keep in mind as the spring numbers come in, the year over year comparisons will be skewed due to the Covid shutdowns last year. No matter how skewed the numbers may be, it is clear we are in a screaming hot seller’s market.
If you are on the fence about selling we are always happy to give you a free market analysis on your home. No obligation on your part, but you may be surprised to see what your home is worth in today’s market. Just reply to this email, or give us a call (757-726-7653 for Lee, 757-434-9084 for Harry). We love talking real estate, so don’t hesitate to give us a call if you have questions.
Work With What You Have!
Since 2020, we’ve been seeing record low housing inventory. We know how frustrating this is for you and your clients on the hunt for their dream homes. A solution: Work with what you have.
When the perfect home isn’t on the market, renovation loans can help your clients achieve their homeownership dreams.
How a buyer can benefit:
Customize the home to their preference
Finance the cost of repairs, remodeling, or energy improvements
With a variety of renovation loan options to choose from, we’ve got you covered. Reach out to me to talk about how we can work together in today’s market! Bill Duggan Sr. Mortgage Banker 757-615-5172 or billduggan@atlanticbay.com
Let’s Go To The Movies!
Shrek At the Park
Load up the kids and head to Bennett’s Creek Park on Saturday, May 8, 2021, for a Carpool Cinema showing of a family favorite, Shrek.
This event is FREE and open to the public, however pre-registration is required by car.
To register, click “Register Here” under Carpool Cinema at SuffolkVa.us/Parks. After registration, save your confirmation email for entry into the event.
Who doesn’t love this classic romantic comedy? Boy meets girl complicated by life in a swamp, an evil lord and a talking donkey. Voices include Mike Myers, Eddie Murphy, Cameron Diaz, and John Lithgow.
Bennett’s Creek Park is located at 3000 Bennetts Creek Park Road, in northern Suffolk. For more information about this event, contact Suffolk Parks & Recreation.
The Farmer’s Market is Back!
Opening on Saturday, May 1st from 9am until 1pm, the Farmers Market is back at the Suffolk Visitor Center Pavilion. Located at 524 North Main Street in Downtown Suffolk, the Market will continue each Saturday through November 20, 2021.
Admission is free and open to the public. This family friendly market offers an array of fresh local meat and produce, plants, flowers and other artisan crafts. For a complete list of vendors and ongoing activities, visit SuffolkVaFarmersMarket.com
Opening day will feature live music by singer/songwriter Justin Luke McCurry; complimentary balloon creations by Animals & Arches; gourmet grilled cheese sandwiches and soups will be available for purchase from Jessie Lou’s Food Truck. Special guests include Suffolk’s Early Childhood Development Commission, Suffolk Master Gardeners, and local authors, Sarah Newland and Wanda Roberts.
Multiple hand sanitizing stations will be located throughout the Pavilion. Social distancing and face coverings are strongly encouraged.
For more information, visit SuffolkVaFarmersMarket.com or call the Suffolk Visitor Center at 757.514.4130. The Suffolk Farmers’ Market is produced by the City of Suffolk Division of Tourism.
Last month we wrote about the snow and now I am writing this with my window open to enjoy the sunshine. I enjoy snow so much that I am known to track multiple weather forecasts in hopes of seeing it on the way but it seems that, at least for our region, spring is moving in. Big snow isn’t likely however the change in seasons tends to be positive in our industry – traditionally houses sell better in the spring!
Just as you get differing weather forecasts from various sources, you will also get differing opinions on the housing market depending on the economist and/or real estate expert you consult. Before we tackle those varying opinions, take a look at last month’s stats from the Real Estate Information Network Inc. (our local MLS).
All of our local numbers point to a very hot seller’s market. Nationwide, the real estate market is also on fire. According to numbers from Barry Habib, who runs a national real estate and mortgage prediction service, 76% of all the homes that are listed are going under contract within two weeks. Also, about 50% of those homes are getting more than one offer, and first time home buyers are making up about one third of the buyers. The number of new home buyers is higher than normal, which is important because when a second or third time buyer purchases a house, they almost always sell a home a well. By definition a first time home buyer doesn’t have a house to sell, so when the percentage of first time buyers increases the supply of homes for sale tends to go down.
The national experts are all over the map with their predictions for the future of real estate prices. I can show you charts and quotes saying we are heading into another real estate bubble but there are many others taking the opposite view. It is hard to rely on any one forecast as their track record of accurate predictions is not strong. What we do know as your time-trusted hometown professionals is that Hampton Roads is currently in a screaming seller’s market. If you are thinking about moving, and you would like to discuss your personal real estate needs, please reply to this email, or give us a call (757-726-7653 for Lee, 757-434-9084 for Harry). Of course, every situation is different and our careful and up to date market analysis means that as the facts change, our advice might as well. We love talking real estate, so don’t hesitate to give us a call if you have questions.
Loan Approval in a Seller’s Market
We are approving customers without the contingency of selling their current residence. Being able to do this in a sellers market is another way to make your offer to purchase a little stronger and stand out from the rest. This also leads to the question of how can I get the equity from my current home and apply it towards the new mortgage. There are a couple of paths we can explore.
1 – if you’re doing a conventional loan for the new purchase you can ask the loan servicer to process a “recast” of your loan. You make a large principal payment after you receive the proceeds from the sale of your prior residence and apply it to the new loan as a large principal payment. Once that is done the loan servicer can reamortize your loan and adjust your monthly principal and interest payment.
2. We can explore a bridge loan for your current residence. This enables you to obtain a home equity line of credit on your current residence and use those funds for the down payment on the new home.
Give us a call to discuss your homeownership goals and we can get you pointed in the right direction- Bill Duggan Sr. Mortgage Banker 757-615-5172 or billduggan@atlanticbay.com
Suffolk Restaurant Week Is Coming
The 2021 Spring Suffolk Restaurant Week is slated for March 20-27. During this culinary showcase, participating eateries offer chef-created delicacies and simple three-course, price fixed menus at the DELUXE ($10 lunch/$20 dinner), PREMIER ($15 lunch/$30 dinner) or ULTIMATE ($20 lunch/$40 dinner) levels for lunch and/or dinner. No coupons, vouchers or tickets are needed—simply order from the Suffolk Restaurant Week menu at each location.
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.
