What is the Housing Market like in Virginia Beach, VA?

One question: is the Tax Credit Stimulus helping home sales in our area? Did we see a peak when we thought the tax credit was going to expire? The number of homes that sold went up 23%, so I would say, YES!

Did we slow down in fall and winter due to school starting back up and the holidays like norm? No…

 

May-08

May-09

June-08

Jun-09

Jul-08

Jul-09

DOM

109

120

98

108

109

120

# SOLD

509

484

528

639

602

608

Median LP

289

263

283

260

285

270

Median SP

247

236

250

243

255

245

 

Aug-08

Aug-09

Sep-08

Sep-09

Oct-08

Oct-09

DOM

108

113

127

101

114

103

# SOLD

519

503

456

558

444

573

Median LP

279

280

294

252

270

250

Median SP

256

245

250

240

244

230

DOM= Days on the market; LP= List Price; SP= Sales Price

We have had a steady decrease in prices at the beach. From May 2008 to October 2009, the median sales price has dropped 4% on average.

But, the number of homes sold has gone up 10% from May 2008-October 2009. That is great news. So, are homes moving, yes. Are they going down in price, slightly.

I would like to compare the median asking price versus sales price to see if the gap is closing. Buyers want to know if sellers are getting more realistic about pricing.  According to this, they are getting closer. 

The difference in the median list price vs. the median sales price for 2008 was 12%. In 2009, the difference was 9%. Is that a huge deal? Well let's break it down. In 2008, someone was asking 250K (assessed at 240K) and got $220,000. 30k is a lot, so that is huge. So, in 2009, another seller was asking 250K (assessed at 260K) and got 227,500. Still $22,500. However, the gap is getting a little bit smaller. Pricing are coming down. In 2009, sellers are still chasing the market, but they are getting a little bit more aggressive in pricing their homes.

Funny, though the days on the market average the same. 110 days for each year. It is taking almost 4 months on average to sell.

After all this, we still know real estate is a long term investment that pays. Case and point: a buyer paid 105,000 in 1998 and sold it for 275,000 in 2008. That is a gain 162% in 10 years. They made 170K. 4% down, 162% up-you do the math.

A great slide from Case Shiller.

www.724-1064.com Foreclosures

Data on the excel chart is derieved from REIN, MLS. All figures are deemed accurate, but not guaranteed.