"Tighter credit for home mortgages will measurably dampen home sales in the short term and postpone an expected recovery for existing-home sales until 2008, according to the latest forecast by the National Association of Realtors®.
Lawrence Yun, NAR senior economist, said unusual disruptions in the mortgage market are dampening the outlook for home sales, notably for August and September."
How is tighter credit affecting southside Hampton Roads home sales? Let's take a look at August sales statistics.
Residential sales in Virginia Beach dropped by 16 percent in August compared to August 2006, causing the average market time to increase 30 percent, from 46 days to 60 days.
The median price remained unchanged and the average sale price decreased 3 percent to $308,482.
Virginia | Sold | Median | Average | Average Days |
August 2007 | 624 | $260,000 | $308,482 | 60 |
August 2006 | 745 | $259,900 | $318,212 | 46 |
Chesapeake residential home sales also decreased in August by 13 percent, with market times increasing 36 percent. The median price declined 2 percent, while the average sales price increased 2 percent.
Chesapeake | Sold | Median | Average | Average Days |
August 2007 | 336 | $289,900 | $308,535 | 68 |
August 2006 | 388 | $285,000 | $303,615 | 50 |
Norfolk experienced a 21 percent decline in sales in August. Market times increased 31 percent. The median price increased 10 percent to $215,000 and the average sales price increased 8 percent to $248,918.
Norfolk | Sold | Median | Average | Average Days |
August 2007 | 231 | $215,000 | $248,918 | 68 |
August 2006 | 293 | $194,900 | $231,082 | 52 |
Portsmouth home sales also decreased by 24 percent in August and market times increased 35 percent compared to August 2006. The median price decreased to $169,000 or 3 percent and the average sales prices decreased 6 percent to $188,100.
Portsmouth | Sold | Median | Average | Average Days |
August 2007 | 115 | $169,000 | $188,100 | 62 |
August 2006 | 152 | $173,950 | $200,013 | 46 |
Suffolk also experienced a decrease in sales of 15 percent compared to August 2006. Market times increased, also, 74 days vs 55 days in August 2006.
The average sales price increased in Suffolk to $322,598 or 3 percent while the median price remained relatively unchanged.
Suffolk | Sold | Median | Average | Average Days |
August 2007 | 140 | $292,740 | $322,598 | 74 |
August 2006 | 165 | $294,010 | $313,805 | 55 |
Sales prices in August were once again all over the board, with some cities increasing and some decreasing. Pricing and condition remain critical. If your home is priced right and shows well, it will sell in a reasonable amount of time. If not, it will sit with no activity.
If you are in the market to sell a home, we have the experience and market knowledge needed to help you with pricing and staging. Give us a call to get your home SOLD! Interested in a current home valuation for your home. Just visit HRHouseValue.com and your valuation will be emailed to you.
Statistics compiled from Real Estate Information Network. They are deemed reliable, but not guaranteed.
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