Hello and welcome to the Market Trends section of my web site...
In the following articles you will find a month by month analysis of the local and national real estate market trends. Each month I intend to help my current clients and those interested in buying or selling a home to understand the shape of the local and national real estate market. I will discuss, in depth, how market changes affect the purchases and sales of homes, estates, land, lots, farms, farmettes, commercial property and business properties. All of the factors mentioned below affect the local real estate market, along with changes in mortgage interest rates and the Prime rate. This information mainly applies to the regions covered within the four MLS searches you find on this site. Cities and towns like Williamsburg, Virginia Beach, Norfolk, Newport News and Smithfield are part of the Hampton Roads and Tidewater area.
Market Trends Articles:
Virginia Real Estate Market Trends
Invest your money wisely! When you analyze the real estate market and decide to buy or sell a home there are three key words to remember:
Location! Location! Location!
As the current real estate market shifts nationwide, the nature of buying and selling homes is changing. To complete a successful home sale or purchase in the real estate market you must carefully choose a region in which property continues to gain value and appreciate. The Williamsburg area, James City County and York County are all considered "hot spots" based on the many benefits of these areas of Virginia. The following factors make the Hampton Roads and Tidewater areas particularly attractive and lucrative.
Geography and Climate:
Geographically, the Tidewater and Hampton Roads area of Virginia is an East Coast mid-point. There are four balanced seasons, including a mild winter and a temperate summer.
Family Friendly Communities:
Gloucester, James City, Williamsburg, New Kent, Isle of Wright, King William, Chesapeake Bay and other surrounding rural areas all have a reputation for being family oriented and appeal to many potential residents with children.
Higher Education Opportunities:
Virginia consistently provides a good education for all students. Virginia state colleges are some of the best in the nation. According to the Hampton Roads Economic Development Alliance (www.hreda.com) statistics more than 86,000 students are enrolled in the 11 colleges and universities found in the Hampton Roads region. Old Dominion University, Norfolk State University, The College of William and Mary and Christopher Newport University have as little as 4,500 and as many as 20,000 students enrolled.
The family friendly atmosphere, along with the climate, also creates a wonderful place for seniors to retire. The Tidewater and Hampton Roads area are not only rich in historical significance and properties, but are also home to many of the best, exclusive, golf communities. Virginia also offers everything from the beach to the mountains to the woods to open fields. The Hampton Roads and Tidewater area provides outdoor activities, shopping, sightseeing, music and fine arts. There is something for everyone, which makes retirement exciting.
Economics and Employment Opportunities:
The service industry and the military are two of the largest driving economic forces in the Hampton Roads and Tidewater region, claiming approximately 7) % of area workers. According to the Hampton Roads Economic Development Alliance, labor statistics for October 2005 showed that 20.01% of the workforce was employed by the government (Federal, State, and Local) followed by 18.67% in Trade, Transportation, and Utilities, 13.46% in Professional and Business Services, 10.83% in Educational and Health Services and 10.33 % in Leisure and Hospitality. There are also some counties where farming and forestry have great economic impact. The www.hreda.com web site also states that the Bureau of Labor Statistics reported the unemployment rate of the Hampton Roads and Tidewater area at 3.80%, this is lower than the national unemployment rate.
Historical and Modern Home Designs:
Virginia offers a wide variety of home styles to choose from. A home buyer can find colonial estates, modern condominiums, restored historic town squares and top-of-the-line innovative building methods for any type of home.
A New Emerging Real Estate Market!
Recently, the real estate market continued to correct itself across the United States. The fast paced seller's market is a thing of the past and a real estate market favoring balance between the buyer and the seller has emerged. You can see the affects of mortgage interest rate increases through simple observation. There are more open houses, home prices are being reduced, properties stay on the market for more time and homeowners are accruing less equity.
The real estate market correction is also causing real estate investors to change their strategies. Investors with distressed properties are quickly placing them on the market without complete renovations. This behavior influences the real estate market as a whole and continues to slow down property sales.
However, despite the national real estate market adjustment it seems financial success and profitability are still the future. David Lereah, the chief economist for the National Association of REALTORS®, was quoted on the NAR website as saying "The slowdown amounts to a tapping of the brakes on a hot market. Home sales are coming down from the mountain peak, but they will level out at a high plateau - a plateau that is higher than previous peaks in the housing cycle. This transition to a more normal and balanced market is a good thing."
The Right Real Estate Agent Is Your Best Friend!
Now, more than ever, is the time to be certain you have chosen the best real estate representation available. A knowledgeable and experienced REALTOR® observes the real estate market trends and keeps a close watch on regional patterns and changes. In Virginia approximately 95% of the real estate transactions completed are handled by approximately 10% of the real estate agents. The top 10% of real estate agents are your key to a successful, financially beneficial home sale or purchase. When choosing a real estate agent visit the Department of Occupations and investigate the real estate agent's background. Pay attention to any violation reported in the past. Remember, how and where you buy or sell your home impacts the real estate market both locally and nationally.