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.

Sat Apr 19 2008, 09:30

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.

Sat Apr 19 2008, 02:40