Penguin, Other/Just Looking in Richmond County, VA

I noticed that the median Income of VA beach is around 38000$ (which is similar to Ohio).

Asked by Penguin, Richmond County, VA Fri Apr 18, 2008

but the median prices of Va Beach are double that of Columbus. I understand that during the past few years when lending standards were relaxed - people easily bought the homes.
Now that the lending standards are much tighter, do you see these prices sustaining in the near future in Va Beach?

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Answers

5
Thanks Ms. Faircloth. A very fair & balanced answer. You are absolutely right that interest rates might go up in future ( & that makes a huge differecene in the cost of the house). But I have noticed that the prices in Va Beach are stubbornly horizontal. Could you give me a few examples where the seller reduced the price.
Let me take an example: the house "2505 Windy Pines Bend, Virginia Beach VA 23456" is listed at $475,000. This house was bought in 2004 for $375,000 & $275,000 in 2001. Realisitically, this house should be priced at $350,000 at this stage & may be even less in future. Correct me if I am wrong.

Va Beach has participated in the house price rally (stands 11th across the nation in terms of price increase), but now when the prices are moving down in the rest of the country, the prices are pretty constant here.

I guess only time will tell.
1 vote Thank Flag Link Sat Apr 19, 2008
Great question. We have been watching the prices drop for several months now. With a 9.3 month supply of homes on the market and more coming on, we will see prices adjustments continue for a while.

I will caution you though, waiting for the prices to drop and intersect with low interest rates may be a gamble. A change in interest rates can make a HUGE difference in your monthly mortgage payment, it can make or break you. Right now realistic sellers know that competition is fierce and the market dictates closing cost assistance in some shape or form. I would seriously consider buying while rates are lower and sellers are motivated to make it work.
1 vote Thank Flag Link Sat Apr 19, 2008
It's simply ridiculous. I would love to buy a house right now, but apparently making more than twice the median income (which i believe is just over $50,000 in Virginia beach, not $38000) means I can only afford a 40 year old shack in Aragona, or 1200 sq foot home at the end of a Oceana NAS runway.
0 votes Thank Flag Link Tue Oct 28, 2008
Penguin,

Chris Faircloth had a good answer for your question. There are nearly 12,000 homes for sale in the Hampton Roads area (which Virginia Beach is a part of). The question of home prices goes back to supply and demand. As long as we have more homes for sale than we have willing buyers, there's a good chance the prices will continue to drop gradually. Tougher lending practices do not really affect home prices, unless they are so tight no one can get a loan which would cause standing inventory to rise even higher. I don't see a quick turnaround (near future) in the current supply and demand mode we are in, and I can't predict what the market will do in a year or so.

Another thing to consider as Chris pointed out is the interest rates. Typically when the economy is good, interest rates are low, but when the economy sours, interest rates start to climb. I'm currently looking to refinance my mortgage, so I'm keeping a close eye on the rates right now. I'm hoping they will drop here shortly, but I'm not going to risk waiting very long. The rates are still pretty good, but I have doubts that the economy will get better in the short run, so the rates won't come down much if they do at all.

Ed Graybill
Sales Associate
Wainwright Real Estate
0 votes Thank Flag Link Sat Oct 18, 2008
Hi Penguin,
6 months of realtors talking about rising interest rates... I hope you waited to buy, because interest rates went even lower. Maybe wait another year or two to buy. Interest rates may be even lower. Good Luck
0 votes Thank Flag Link Tue Oct 7, 2008
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