The State of Virginia Beach Real Estate market.

As an analytic personality, I really like to look at what is happening in the markets that I provide service to, I generally want to no more about what is happening in terms of sales, pending sales now and contrasted to the year before. When I look at these number I am also looking at other indexes such as the DOW and S&P, the Fed and treasury policy. They all directly affect the real estate market, but they also affect the home buyer and seller.

For example interest rates are at the lowest point since we started to keep track in the 70's. A strong home buyer can get a loan in the 4's, but as evident in the number of sales, home buyers in Virginia Beach are not scrambling to take advantage the low interest rates.

In June 2010 there where 208 single family homes sold with a median sales price of $245,000 contrast this to the 415 single family homes that were sold at a median price of $235,000 when interest rates where higher.

A home purchased in June 2009 at at interest rate of 5.75% would result in a monthly payment of $1,372 when compared to a loan payment of $1,205 this is not only a huge saving to the home buyer, these artificially low interest rates will also increase the home buyers purchasing power.

What home buyers are unfortunately missing, due to what I believe is a barrage of negative information about the stock market, the economy etc is that interest rates need to go up very soon, and when they go up it is going to be like a rocket blasting off into space - it will be dramatic! I expect to see interest rates in the 8's and maybe the 9's! This change will be not only affect the home buyers ability to purchase a home, it will also affect the home sellers ability to sell the home. If interest rates increase to 8% home prices may fall by 10%, the net affect will be an increased home payment, and a smaller pool of qualified home buyers.

Virginia beach real estate market, and the rest of the South Hampton roads area, has benefits greatly from the large military presence. We have what many would consider a very healthy economy when compared to other regions of the United States. Our employment rate is about 96%, that is 96% of the work force is employed!

Virginia Beach offers many great reasons to make this your home. Virginia Beach offers its residents and visitors city parks and neighborhood parks, camp grounds, the ocean front. We are a 45 minute drive to Williamsburg, where you can spend several weekends exploring our history, enjoying the Bush gardens and Water Country USA.

Ready to buy a home in South Hampton roads, and to make it your home? Call me today, time is not on your side!