Reflections On Our Local Real Estate Market – May 2020

When I started my real estate career with Chorey & Associates Realty over 40 years ago, little did I know the “ups and downs” and dramatic changes the Suffolk, VA real estate business would have and now as I look back, I realize that the one thing that has remained consistent has been the fact that real estate values have continued to go up over those years!!!   How well I remember going door to door in the various neighborhoods off of Bennett’s Pasture Road, Wilroy Road, Holland Road, and “introducing myself”, literally house to house ringing doorbells, and simply inquiring if the homeowner “knew anyone who may be wanting to buy or sell their homes in the future”.  I remember like yesterday the homes in Nansemond Shores were selling for mid-upper $’20s, the homes in Lakeside were selling for $’40s, and those were the “fair market prices”. The average price of a home in this area was just over $38,000 and the average interest rate was 10% when I started my career in 1975. NOW, the average mortgage rate for a home mortgage is 3%, and the average price of a home in Suffolk is $290,000!

 

Concerning the “downs part” of the “ups and downs”, how well I remember the year 1981 when the 10 year Treasury bill, (which reflects on the home mortgage rate) was 15.8%, and mortgage rates were 18 ½% (no, that is NOT a typo!!). By the grace of God, I was still selling houses and staying as busy as I could be.  I recall a young couple who had just purchased a home in Oak Ridge here in Suffolk and they were using Home Federal Savings and Loan on N. Main Street (no longer in business). They were closing on the home I sold them, and they brought champagne with them to the closing to CELEBRATE buying a home at an interest rate LESS than the rate on their MasterCard!

 

The point I’m trying to make is to first acknowledge that these days with the COVD-19 virus scenario are scary for everybody and we are looking at a “new normal” for the foreseeable future and perhaps longer.  There will be ups and downs, and the real estate market is no exception, BUT the good news for buyers and sellers, is that interest rates are at a historic LOW, (the latest 10-year treasury rate was just under 7/10 of one percent), AND home values in Suffolk continue to go up, with MLS statistics showing almost a 7% increase of the median home price in April of this year vs April of last year!

 

NOW IS THE TIME TO BE BUYING AND SELLING

Billy ChoreyBilly Chorey, Owner/Broker

Chorey & Associates Realty, Ltd.

330 W. Constance Rd. Suffolk, VA 23434

(757) 539-7451

bchorey@choreyrealty.net