Remember when the stock market crashed in 2002? People pulled what money they had left in the stock market and put it in real estate because over the long haul, it is very secure. Well that created the wanna-be investor and flipper heaven. Everyone seemed to be or know someone who was buying real estate as an investment. That created a shortage of available properties for the buyer of the primary residence. In turn, home values steadily rose in the majority of communites. The investor continued to reinvest every dollar they could get their hands on in as much real estate as possible which meant getting second and third mortgages and home equity lines. At the same time, mortgage companies relaxed their lending guidelines and created new and unbelievable programs that seemed to good to pass up. While all this was going on, incomes were increasing but not nearly at a level that home prices increased. Therefore, the market started to slow down but still investors continued to buy. As the war in Iraq continued to strain government resources, the news that many of the oil fields have either peaked, meaning that basically they are halfway empty, and the inevitability of India and China's growing use of oil, causing the world to focus on future resources causing the gas prices to skyrocket. Increased negative media about possible foreclosures due to adjustable rate mortgages brought home prices to a halt. Lack of return on investment because the investors gain was coming from the equity and not the rent caused investors to start dumping their properties which increased inventory. Due to this excess inventory, the market turned from a seller's market to a buyer's market within months. For a time, it seemed as the phone stopped ringing and the buyers were non-existant. Agents continue to educate themselves on short sales, foreclosures, and dealing with sellers in dire situations. Its not fun but its what we have to do. People who have bought in 2005 and later are hit the hardest right now.

As for the houses in Virginia Beach which are built in the 50's there are not too many. Aragona sticks out in my mind of the 1950's neighborhood. It is a very large area but there are trade offs with everything. I was born in Norfolk where most of the houses were built prior to World War II specifically for the military. Most of my family and friends grew up in a 1940-50 home where many have added room additions and bathrooms, I moved to Virginia Beach in 1991 because things were newer and prettier, the schools were better, and I got better service a restaurants. Norfolk has done many things to improve the city since then and I have thought about one day moving back but I am staying put for now. The only problem in Virginia Beach is there is so much to do. You may never know your neighbor more than a wave because eveyone is so busy. In Norfolk, you know everyone on your block and their children.

I see houses everyday and I can tell you most neighborhoods in VB are not shabby.

Thu Jul 10 2008, 14:04

I'm not sure by your question, which direction you are looking to see the prices move, but as a real estate agent who is involved in the market on a daily basis, there's no doubt in my mind that prices are moving and they are moving down. They are not dropping like in some of the worst hit areas in the country such as Northern Virginia, Southern California, or Phoenix Arizona. I believe that's due in part to the high density of the military population coming and going from Hampton Roads.
Buyer demand is low throughout the country due to the slow economy, fear of the current mortgage market and a "wait and see" attitude. There are over 11,000 homes for sale in Hampton Roads and until buyer demand picks up to lower those numbers, I believe we'll continue to see some more falling prices.
As to your second question, maybe you just aren't looking in the right neighborhoods! Even in some of the lower priced housing areas, you can still find some homes with curb appeal.

Tue Jul 8 2008, 12:32

In many areas of Virginia Beach, housing prices have remained stagnant as Seller's try to hold on to property values. Unfortunately in many areas, pride of ownership is not exemplified. However, there are homes and areas where equity and opportunity flourishes. Also do keep in mind that according to the Bureau of Labor and Statistics, Hampton roads ranks top 100 in the nation for the highest median salary, 16th highest ranked in salary growth amongst 359 US metropolitan areas in the nation and is slightly above the national average for cost of living expenses. Not bad at all. Our school districts are some of the best in the nation and we have much to offer in the way of entertainment, education and job growth.

Find yourself a dynamic Realtor who is dedicated enough to thoroughly look for that property (home) that best meets your needs and wants. Keep in mind that it is important to review neighborhood statistics and property reports before choosing the area to live in.

I wish you all the best, Rebecca

Tue Jul 1 2008, 20:37

$165 sq ft for some 1950's dump. i agree with you. i live in a newer apt. its about the same size as those houses and 1/2 the price per month. renting is the way to go in hampton roads area. prices have a long way to drop before they are aligned correctly with rent and income. i would have to rent over 10 years before i start losing money vs buying one of these depreciating houses.

Fri May 23 2008, 12:24

Like many areas of the country, the housing prices in Virginia Beach have remained pretty stagnant for the past few months. Fortunately, due to the transient nature of our local economy, we have not seen the downturn experienced by some other markets.

To answer the 2nd part of your question, the majority of homes in Virginia Beach were actually built during the military buildup of the 1980's. Unfortunately, the housing need produced quick, inexpensive homes which do not have a lot of architectural character. Our area is definitely not known for our incredible architecture! Just like any large city, we have neighborhoods that are impeccably maintained and show pride of ownership and we have areas that could use some attention.

Sat Apr 12 2008, 10:40