Hello Hampton Roads,
How did the Hampton Roads real estate market do at the end of 2010? When I look at the Hampton Roads housing market, I like to consider the indicators below to gauge the temperature of the market and advise my clients on the best strategy whether they are buyers or sellers. Let's take a look at these indicators:
- Inventory
- Median Sales Price
- Absorption Rate
- Distressed Property Sales
Our MLS recently released statistics from the end of last year; let's take a look at each.
Inventory
The Inventory of Listings includes number of Active, Pending & Sold listings compared from the same time last year. The number of homes for sale has increased as has the number of pending homes (homes under contract) but the number of homes sold has decreased.
Median Sales Price
For the year 2010, the median sales price for homes in Hampton Roads declined 1.38% while comparing December 2010 to December 2009, the decline is steeper at 5.5%.
Absorption Rate in Months
The Absorption Rate--the amount of time it would take to sell all the homes on the market if no other property was listed. In all of Hampton Roads there is currently about 9.7 months of inventory on the market which is an increase of 19.6% from December a year ago (2009). See the table below for current absorption rates for each of our 7 cities:
In each case the absorption rate has increased from December a year ago. When we start seeing a decrease in these numbers more towards a 6 month absorption rate we will know we are in a balanced market but with increasing time frames, the buyer's market is holding firm.
Distressed Property Sales
The presence of Distressed Property Sales are those sales which are foreclosures or short sales. The percentage of distressed property sales accounted for 35.3% of all homes sold in the region and 25% of all homes actively listed.
With the shadow inventory (foreclosed homes that are not yet on the market) from banks expected to come on the market, this current trend will probably continue in 2011. However, it is important to remember the real estate market is cyclical and no matter where you are in the cycle there is always opportunity for those ready, willing and able to take advantage of it.
Thanks for Reading,
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Serving your Hampton Roads and Virginia Beach Real Estate needs.
