Market Conditions for Chesapeake, Virginia Reported by Wilma Clay, REALTOR, Broker, ABR, CRS, e-PRO, GRI Updated December 15, 2008.

Current Market Rating: 1 1 2 3 4 5 Buyer's Seller's

Current Price Trend: 2 1 2 3 4 5 Falling Rising

This is an exciting time for the buyer in Hampton Roads (Virginia Beach, Norfolk, Chesapeake, Portsmouth, Suffolk, Newport News, and Hampton) because we have low rates and healthy inventories. Factor in the lower interest rates and you will have increased your purchasing power into a nicer neighborhood.

BUYERS--still must be ready! Get an APPROVAL letter (NOT an "OPINION" letter) where your credit is fully approved, subject only to providing the address of the property you buy and obtaining an appraisal and good title. You probably should not type out the "approval" letter obtained at midnight in 10 minutes on the net. Some agents who represent the seller are requiring that your letter be from a LOCAL lender.

SELLERS--in particular--must also be ready! The time has passed where buyers snap up everything--even homes that haven't had love in a long time. Get your property shipshape with as few deficiencies and as little clutter as possible. Buyers can afford to be a lot "pickier" than last year and you do not want your home to always be a BRIDESMAID! Homes that languish on the market become stale and buyer's may get a "Why should I want it if no one else did" attitude.

Sellers should note that there are more homes for sale so buyers have numerous selections and they seem to want to "look some more to see if anything better turns up!" They are looking for homes in great condition that are priced correctly. You have COMPETITION! Motivated sellers lower their asking prices and offer inducements or incentives along with closing cost assistance to make their offerings compete better. Some court the real estate agent with a bonus or vacation trip offer. Be prepared for longer market times and more concessions to the buyer.
Should the buyer wait for further reductions in price or should buyers wait for a lower interest rate?
My advice: Do not wait! Today's rates are about as low as we have seen in the last 50 years. Rates are volatile. Don't bet against history. HOME PRICES are rising much more conservatively now, but you need the tax break as soon as possible and the satisfaction that accompanies home ownership affects your well being! Home ownership is historically SMART--a source of pride, comfort, and happiness and a necessary element of a smart retirement plan. Don't forget, too, how much we love to have Uncle Sam help with our payment since it is tax deductible!

Have you heard how difficult it is to "Time the Market?" Usually, this applies in relation to the stock market. In this case, I think this admonition applies to real estate also. Real estate has always been cyclical, but paves the road to wealth building. You get return on the entire value of the home for an investment of a small percentage of the value. Translated, this means you might earn 4% of $200,000 with a down payment of $20,000, so your return on your $20,000 investment is 40% (YES, this is a little rosy, because I have not deducted for repairs and upkeep and any negative cash flow from a higher payment or any expenses you will encounter for closing costs in buying and selling.).

The market, as it always does, will reach equilibrium again. Reset the panic button. Buy now, and take advantage of the next big boom. You KNOW it is coming! You can ride that wave to the top!

Call me at (757) 472-9595 or email me at Wilma@WilmaClay.com

Visit and view all the homes for sale at www.WilmaClay.com I can set up a system that emails you daily the new listings that meet your specifications. I can assist you with relocations (representing buyer or seller—as needed), 1031 Starker Tax Deferred Property Exchanges and property management.


ZIP Codes: 23320, 23321, 23322, 23323, 23324, 23325, 23501, 23502, 23503, 23504, 23505, 23506, 23507, 23508, 23509, 23510, 23511, 23512, 23513, 23517, 23518, 23462, 23464, 23451, 23452, 23454, 23455, 23456, 23459, 23460, 23461, 23457, PLUS, Portsmouth, Suffolk, Hampton, and, Newport, News, zip, codes

Approximate Location Boundaries: Hampton Roads, Norfolk, Virginia Beach, Chesapeake, Portsmouth, Suffolk, Newport News, Hampton

Location Characteristics: The Hampton Roads area is Virginia's most populated. Our crime rate is low in comparision to other metropolitan areas. We are blessed with a military presence and a tourism industry that helps our local economy. The area offers a wide array of recreational and cultural activities, excellent school systems and a moderate climate that is comfortable most of the year. There is ample opportunity for water activities, such as swimming, fishing and boating. We have the Atlantic ocean, the Chesapeake Bay, rivers, lakes and streams. It is small wonder that our area ranks as one of the most desirable places to live. Come STAY. If you cannot stay, please visit!

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