2020 has proven to be a banner year for both buyers and sellers in the Suffolk area! I would have never guessed when C-19 was “announced” back in Feb/March, that the housing market would take off as it has done in this area. For buyers, the catalyst came from the extraordinarily low mortgage interest rates available to them and for sellers, the “cause and effect” by those incredibly low rates (less than 3.5%) generated an unprecedented demand for those houses. With that avalanche of buyer demand, came an increase in sales prices, as suddenly buyers were “bidding” on homes such as what happened in the insane 2005-2007 cycle, but this bidding scenario came under different circumstances. Buyers benefited by locking in interest rates close to 3% for 30 years, and sellers benefited by getting top values for their homes!!
Local statistics have shown the above to be true as home inventory in Hampton Roads is 32% lower than it was at the same time last year, and prices have increased almost 13% compared to the exact same time last year, according to the local MLS system.
The good news is that most local economists fully expect the same trend to continue into 2021. Just last month, according to the National Association of Realtors and the Mortgage Bankers Association, the 30-year mortgage rate is expected to average 3.075% which is slightly down from the current rate of 3.125%! What that means in layman’s terms, is for every $1,000 a buyer borrows for a mortgage, the principle and interest payment is ONLY $4.26! In other words, if a buyer borrows $250,000, his P and I payment would only be $1,065, which is probably much lower than the monthly rent one would expect to pay for a similar dwelling unit!!! PLUS, buying gives the tax benefits of interest deductions and the property increasing in value (remember the 13% increase in value of homes from just one year ago!)
I’ve been in this business now going on 45 years, and I quite frankly have never seen anything like it where a market is so mutually beneficial for BOTH buyers and sellers. At some point, I’m sure it’s going to end, but in near term foreseeable future, I see it continuing and I encourage those who are even contemplating a move, whether one is buying or selling, that NOW is the time…………Don’t wait as I fear you may regret it!
Chorey & Associates Realty, Ltd.
330 W. Constance Rd. Suffolk, VA 23434