The Seller's Market Survives in Tidewater/Hampton Roads Virgnia

The National Real Estate Perspective

Each month I write an article explaining various aspects of national real estate market trends and the market trends within my local region, the Tidewater/Hampton Roads area of Virginia. Over the last six months I have seen many changes, read many opinions and confronted a variety of consumer fears. One fact that is clear: the experts believe the real estate market is still strong and the slowdown many areas of the country are experiencing is a natural adjustment and should be expected after the boom of 2005. David Pressly, president of the National Association of Home Builders (NAHB), in a March 31 press release on the NAHB web site stated “understandably, some consumers are concerned about the housing market right now.” “But the recent decline is certainly no cause for alarm," Pressly continues, "The past year was a remarkable one for home builders, but the extremely high sales numbers would be hard pressed to continue at that pace. Even as we transition to more realistic sales numbers in 2006, buying a home will remain an excellent investment.” This is good news for sellers.

Long Term Mortgage Rates Hit A Four Year High

In the month of April there have been noticeable increases in mortgage rates across the nation. According to the April 14, 2006 Realty Times report the Primary Mortgage Market Survey released by Freddie Mac indicates long term mortgage rates are higher than they have been in four years. The 30-year fixed-rate mortgage averaged 6.49 percent, a high not reached since the week of July 12, 2002. The 15-year fixed-rate mortgage averaged 6.14 percent, a high last reached on July 13, 2002. Freddie Mac currently predicts 30-year mortgage rates will move between 6.25 percent 6.75 percent during 2006. Adjustable Rate Mortgages have also increased when compared to April of 2005. To learn more about the difference between long term and adjustable rate mortgages read my article "More Bang For Your Buck With Mortgages". This increase in mortgage rates shouldn't scare sellers though. David Lereah, NAR’s chief economist, states, “economic growth and job creation are providing a favorable backdrop for the housing market, but rising interest rates have an offsetting effect." “Home sales will move up and down somewhat over the remainder of the year but stay at a high plateau, meaning this will be the third strongest year on record,” continues Lereah.

The Real Estate Scene in Tidewater and Hampton Roads, Virginia

Across the United States the real estate market has slowed. However, in the Tidewater and Hampton Roads region of coastal Virginia, which includes Williamsburg, Virginia Beach, York County, Smithfield and many other wonderful locations, the real estate market continues to favor sellers while adjusting. Although mortgage rates continue to increase, home values also continue to rise. The explosive nature of the sellers market in 2005 seems to have dissipated, however, in places like York County buyer overbidding on a prime property is not unheard of. In York County the Grafton School district makes real estate highly desirable for families. As always the key to real estate is three words: LOCATION, LOCATION, LOCATION! In the Hampton Roads/Tidewater area a strong economy, supported by the military and tourism industry, and access to a variety of activities such as golf, water sports, hiking, boating, fishing, historical sights and the arts attracts a wide variety of home buyers, from retirees to families, relocating to the region. Selling your home in the Tidewater/Hampton Roads area can be very lucrative, especially if you work with a knowledgeable real estate agent and follow some simple advice.