Mindy, Home Buyer in Virginia Beach, VA

What are the current Virginia Beach market conditions (MARCH 2010)?

Asked by Mindy, Virginia Beach, VA Mon Mar 8, 2010

I have been in the area for about 2 years and have been waiting for the market to bottom out. Are we there yet? Is this a good time to buy SFH in the 23456/54 areas?

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Are we at the bottom, nope. At least not until after 2011 when the Option Arms Reset and we move through foreclosure inventory. This recent tax credit is also hurting prices. How do I know? Because I have houses for sale now and I see the hit. Less than perfect buyers are using the credit to buy home, since they don't have perfect credit and tons to put down they don't qualify for much. So what do they do? They make offers on houses just above their price range, lets say they qualify for 140k. Well they make an offer for 140k on a 150, 160k house. Why, because they want a deal, and sellers want to sell. So sellers take that offer, after all, that may be the only offer they get! So boom, new comparable sale trending down. Appraisers now have to disclose whether the market is trending down, and in doing so they are adjusting the price by a number now! Before they would just say the trend is down, now they put a dollar figure on it. I buy houses for a living, and sell them, I see both sides and values aren't headed up anytime soon.

So if you can afford a large down payment, I say buy. But make sure everything in your life is stable right now and plan to buy a home to stay in at least 5 years. Remember the cost to sell a house is over 15% these days, so your house needs to increase in value 15% just to break even on what you put into it. Most agents don't even know about this cost to sell. So if you've got the cash go ahead and buy for your own stability. Rents will most likely decline when the market keeps softening, never try to time the market, just buy when it makes sense to you in the long run.

-Drew
0 votes Thank Flag Link Mon Mar 8, 2010
Mindy:

Home prices in our area will drop slightly or remain stable through 2011 at least as a best case scenario but are forcasted to drop another 5% or so in VA Beach. So the bottom line is that you are not facing any rush to buy currently. The current RE market reality is that this is going to take 5 years or more to work through, not months or even a few years.

Also, if interest rates rise, home values decrease proportionately, thats just the way the market works. It's the same with the tax credit to some extent too, as soon as the credit goes away, the sellers are going to be faced with making more concessions to make a sale. As far as the interest rate rise scare tactics used by realtors, that is just plain non-sense with the current government administration. Does anyone really think the Obama administration would allow another death blow like increasing interest rates to happen with the RE market still on the rocks? Not a chance.

Anja below gave an example of what you might get for your money. Do you think you can find something you really like in a $1,000 monthly payment range? If so, it wouldn't hurt to start looking. Be realistic on the area and home you want, prime locations in our area still cost quite a bit to own.

Drew, you always have the educated and honest answers.
0 votes Thank Flag Link Tue Mar 30, 2010
Hi Mindy,

I wanted to ask you a question based on Non's response. First let me say that in the past 6 months we have seen prices dropping in this area and it may continue for a while longer. Here is my question:
Should prices continue to decline on the homes in the price range that you are looking at, perhaps another $10, $20 or even $30,000 but the interest rates increase from 5% to 6.5%, would you consider that purchase a better deal than purchasing a home now? I suggest you crunch some numbers or even ask a loan officer to give you different scenarios based on different prices & interest rates. That way you will be able to choose the option that best meets your needs. I think you will find that everyone in the real estate industry agrees that interest rates will increase significantly by the summer. Of course, no one really knows the future so it comes down to how much you are willing to gamble. Good Luck :)
0 votes Thank Flag Link Mon Mar 15, 2010
Non:
Could you please explain the reasons?
Thanks :)
0 votes Thank Flag Link Fri Mar 12, 2010
Wait to buy, prices are declining. Good Luck
0 votes Thank Flag Link Tue Mar 9, 2010
Hi Mindy!
I have to say that I agree with the other answers you have received so far. No one will know when we hit "the bottom" until we look back once prices start to rise again. Our area, Hampton Roads, has been sheltered from the severe market drop that some other areas around the country have experienced. Because there are quite a few homes available, sellers who want to sell have lowered their prices. Lower prices along with historically low interest rates make owning a home very affordable. oO course you may qualify for one of the homeowner tax credits which will be an extra incentive to purchase along with the tax benefits you will discover that homeowners receive that renters cannot. All in all I can't think of a single reason NOT to purchase a home right now unless you are not able to qualify for a loan.
I would love to help you find a home that meets your needs. Please contact me if I can be of assistance or visit my website to check out all available homes in the Hampton Roads area at BarbaraTerranova.com
0 votes Thank Flag Link Mon Mar 8, 2010
Hello Mindy,
In response to your second question-
"Is it better to rent Vs. buy in this current market condition in VA Beach? I pay almost $1110 on rent."
I just sold a nice home that was biking distance to the beach with no association fees and was previously a yearly rental property at $950/month for $155,000! This was a great buy with a positive cash flow opportunity for an investor or second home. The tax credit is still available as long as you close by the end of June for 1st time and existing homeowners and as long as you wait at least three years to sell it that is money you don't have to pay back. While interest rates and home prices are still low why would you not want to buy?
0 votes Thank Flag Link Mon Mar 8, 2010
Hello Dear Mindy. I hope this finds you and yours well. As the others have stated below, now is a wonderful time to invest in real estate. When reviewing information on the housing market, you'll find many different opinions and statistics regarding the market nationally. Thank goodness our area has always been a rather protected market due to our military influence and economy. We have not been hit as hard as many of the markets have been. Reasons to puchase: low interest rates which will probably increase by mid spring, housing inventory over the norm for our area, $8,000. tax credit if you are a first time homebuyer (but you need to be under contract by April 30, 2010 and close by July 1, 2010) or a $6500. tax credit (if you've owned and lived in your present home for the past 5 years.) Virginia Beach has areas where we are seeing a slight increase in price so don't wait too long. You may just pass your window of opportunity! If I can be of assistance please don'e hesitate to call or send an email. As always, we consider it a privlege to counsel and represent our "soon to be" homeowners. Thank you Mindy and I hope to hear from you soon.
Candy C. Dennis
Sales Manager, Long and Foster Realtors
candy.dennis@longandfoster.com
757-623-2500
0 votes Thank Flag Link Mon Mar 8, 2010
Hi Mindy,
I love the picture. I have a Yorkie too. The interest rates and prices are very low right now. It is anticipated that the interest rates will go up soon. Now is the time to buy to take advantage of the $8,000 tax credit. You need to be under contract by April 30th. Contact me today and we can get started...RobinSellsHomes@cox.net
0 votes Thank Flag Link Mon Mar 8, 2010
Hi Mindy: If you are going to be in the area for several more years it is certainly to your advantage to purchase rather than rent. However, if you plan to move within the next few years you may want to consider continuing to rent. We do have a great deal of inventory and sellers have begun to see that they have to be competitive to sell their homes. If you have not owned a home in the past three years you can also qualify for the $8,000 tax credit.

As many experts will tell you, no one knows where the bottom is. The only way you really know we have hit bottom is when it starts to come back then you have missed it. Interest rates are great right now and even if the home price comes down a little more and you have to pay a higher interest rate you may still lose out in the long run. A home is a longtime investment and now is a great time to become a homeowner.

Let me know how I may help you,

Nelene Gibbs, Realtor
William E. Wood & Assoc.
757 672-3232
mail to: nelene@homesbynelene.com
http://www.nelenegibbs.com
Web Reference: http://www.nelenegibbs.com
0 votes Thank Flag Link Mon Mar 8, 2010
Hi Mindy, Cute doggie, my daughter has two Yorkies. Honestly, with the position of the rates right now and the drop in prices I don't think we will see a better time to buy for many years. The $8,000 tax credit is a bonus to boot?

Sounds like you know where you want to be, but if you let me know bdrms, bths, sq ft, price range or even subdivisions I would be happy to send you some homes that are on the market. You can also check out my website to search the MLS on your own: http://rick.bluskyyrealty.com

Have a great day!

Rick Giannascoli
Blu Skyy Realty
2622 Southern Blvd., Suite 103
Virginia Beach, Va 23452
Cell (757) 572-0672
0 votes Thank Flag Link Mon Mar 8, 2010
It's always better to purchase and pay your own mortgage. And with the $8,000 tex credit, it's even more beneficial now!

Jennifer Bryant, Assoc. Broker
The Real Estate Group
(757) 749-3987

http://www.FlemingsRealEstate.com
0 votes Thank Flag Link Mon Mar 8, 2010
If you are waiting for prices to bottom out...in my opinion, don't wait too much longer. Federal subsidies are keeping interest rates at an all time low...at or below 5%...but this will be coming to an end soon. Historically, when interest rates rise, they do so quickly ...and dramatically. So you should also consider how much it will cost you to purchase the home (your monthly payment, and the total cost of the loan). It will cost your more to own the home at the higher interest rate, even though the price of the property may be a little lower than what it is today.

I can demonstrate this to you , and show you many homes available in Virginia Beach.

Mike Grandelli
Rose & Womble Realty
757-573-5373
0 votes Thank Flag Link Mon Mar 8, 2010
Market conditions for buyers are excellent. I'll be happy to talk with you if you have questions about particular neighborhoods or porperties.

Peggy Moses
Keller Williams Elite Realtors
(757) 567-8456
peggymoses@cox.net
0 votes Thank Flag Link Mon Mar 8, 2010
Is it better to rent Vs. buy in this current market condition in VA Beach? I pay almost $1110 on rent.
0 votes Thank Flag Link Mon Mar 8, 2010
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