Cheers to 2021 and Goodbye to 2020!

Hello Hampton Roads, 

Cheers to the New Year! May your 2021 be filled with Joy, Happiness and Prosperity and most of all Peace. 2020 was a challenging year, filled with potentially chaotic changes:  a contentious election, a global pandemic and shutdowns, a movement for social change and justice that spread across the nation, and not least, the cybersecurity risks exposed from the hacking of our government's networks (including the Departments of Homeland Security and Defense, the Federal Reserve and the CDC) and of private businesses and Fortune 500 companies (such as Microsoft, Visa, Mastercard, and Cisco). 2020 tested our limits on many levels, exposed our vulnerabililties and also pushed and stretched us to adapt.  And,  we made it through the year!

Despite all these challenges, 2020 also had some bright spots especially in real estate!  We saw historically low interest rates, a rise in home ownership and increasing sold home prices. 

• Interest rates below 3%:   Low interest rates caused housing affordability to increase.  Today, according to Bankrate.com, 30 year fixed interest rates are below 3%!  The rule of thumb is that for every 1% drop in interest rate, affordability increases by 10%.
• Increase in homeownership: The American dream of homeownership is alive and well. According the the US Census Bureau, the 3rd quarter of 2020 showed  a home ownership rate of 67.9% which is an increase from 65.3% from the 1st quarter of 2020. 
• Increasing sold home prices: Throughout the year, Hampton Roads experienced a strong seller's makret with tight inventory; many homes sold quickly with multiple offers above asking. According to the latest MLS statistics, from November 2020, the median sales price for residentail properties was $275.500 vs $242,325 from the same time last year. This is an increase of 13.69%.

Let's take a closer look at sales activities in the following specific cities: 

• Virginia Beach
• Chesapeake
• Norfolk
• Portsmouth
• Suffolk
• Hampton

You'll notice that median sold prices are up, days on market are down and sold prices are in line with list prices.  This means that very rarely will you see a house sell for less than the list price, especially if new on the market.

Home sellers in this market made nice gains and home buyers, though the atmosphere was competitive, were able to buy more home for the money as interest rates were in their favor.  But what about 2021 you ask?

Well there's one more metric we didn't yet discuss and that is the beginning of a trend for increased inventory.  If you look at the numbers for each of the seven cities, you'll notice that in quite a few inventory is starting to creep up.  Whether this will be sustainable for the year is unknown but for the near future, it means that buyers have more choices!  More inventory means less competition and buyers that were outbid or priced out of the market over summer may find respite this winter and in the beginning of the new year.

If you are home buyer in today's market it is important to understand market forces and also to put yourself in the best position to buy.  Let's talk about your home-buying plans by scheduling a call here: https://calendly.com/liz-schuyler

Happy New Year and Thanks for Reading,

_________________________

View all homes for sale at https://www.hamptonroadsrealestate.us/  and discover your home's worth below: