So what is the National Association of Real Estate Specialists Affordability Index?

So what is the National Association of Real Estate Specialists Affordability Index?   This index has been calculated each year for the last 40 years and the current index that was just released is at 192 and is the highest it has been in over 40 years.  What does this means to you and your clients?  For example back in 1981 when interest rates were around 18% the index was at 40.  That means it is over 4X more affordable to buy a home today than it was back in 1981.  Just recently in 2005 when rates were higher than they are today and before prices sky rocketed the index was only at 106.  The affordability index is based on interest rates, median home prices and qualifying median income.

One example for you to share with your clients:  if rates go up just 1% (4.5% to 5.5%) the price of the home would have to decrease by 11% to have the same affordability.  If rates go up by 2% (4.5% to 6.5%) the price of the home would have to decrease by as much as 23%.   No one has a crystal ball to foresee when rate are going to go up, but as you and I know they will not stay this low forever.  I hope this piece of information will help some of those buyers you might have on the fence make their decision.

Update courtesy of  Nevin Bunnell of Monarch Mortgage

Hampton Roads Housing Stats for April 2011.

April was the first month of 2011 to not have gains in under contract and settled sales, which is a major indicator that the housing market in Hampton Roads may not have bottomed out. Looks like we’re still on the road to recovery.

LISTINGS

Active listings decreased by 6.7% from 15,374 in April of 20110 to 14,338 in April of 2011.

PENDING  OR UNDER CONTRACT

Residential pendings decreased by 13.5% when compared to April of 2010.

SALES (TOTAL RESIDENTIAL SALES)

Property sales decreased by 3% when compared to April of 2010.

DISTRESSED SALES

The decline in the active distressed homne market and a drop in the number of distressed settled homnes are signs of stabilizing and home prices level off.

INVENTORY

Virginia Beach: 7.4 month supply of homes on the market.

Chesapeake: 8.51 month supply of hones on the market.

Norfolk: 10.87 month supply of home son the market.

**NOTE: All statistics provided herein were provided by Real Estate Information Network (REIN)

Representation isn’t pricey, it’s priceless…

A professional Real Estate Specialist isn’t “pricey but priceless” to most consumers if they’ve had the opportunity to work with a “true professional”.

Key Characteristics to Look For:

Problem solving – Daily we are faced with situations or objections, in which we must find a creative solution or remedy to. We look at the situation, step back and evaluate the options. One skill is the ability to solve problems, and create solutions that are satisfactory to our clients and their real estate goals.

“Most people spend more time and energy going around problems than in trying to solve them.” – Henry Ford

Honesty– This is so very important. Do you want a “yes” man/woman or do you want a Real Estate Specialist who will be honest to a fault? Don’t you want an agent who will give you both the good and bad news? Your agent should be transparent in their actions. The agent should ALWAYS put your interests above their own.

Communication – Since I started in the real estate business our means of communication have changed significantly. It’s so important these days for your real estate professional to ask you what means of communication you prefer, so that you receive the level of communication you’re most comfortable with. It’s also good to set expectations up front. How often do you expect to communicate with your agent?

Organization – Have you ever seen someone with a folder stuffed full of papers turned every which way with no rhyme or reason. Now, how efficient are they at locating a document in a timely fashion. Let’s really put this in perspective, buying or selling a home is one of the largest financial transactions you will make. Do you want your personal financial documents secured and safely filed in an organized fashion?

Tech Savvy – Is this person up on what’s new and emerging on the real estate front? What sites will your homes listing be syndicated to? Who is the target market and how do you identify that market? Do they spend time giving me updates and feedback on showings and online activity?

“In today’s market you need a progressive, aggressive, knowledgeable and experienced agent to get the job done. ”

November 2010 – Real Estate Sales Statistics

ACTIVE LISTINGS

NUMBER OF ACTIVE UNITS FOR SALE

NORFOLK  1900

VIRGINIA BEACH  3508

CHESAPEAKE  1985

PORTSMOUTH  986

SUFFOLK  983

UNDER CONTRACT OR PENDING SALES

Pending sales in Portsmouth and Chesapeake experienced the largest growth at 18.3% and 14.2% gains. Virginia Beach, James City County, and York County all showed positive results.

NUMBER OF UNITS UNDER CONTRACT IN NOVEMBER

NORFOLK  132

VIRGINIA BEACH  383

CHESAPEAKE  201

PORTSMOUTH  84

SUFFOLK  80

SALES

Residential settled sales dropped 34.4% in November when compared to the same month in 2009.

NUMBER OF UNITS CLOSED IN NOVEMBER

NORFOLK  139

VIRGINIA BEACH  402

CHESAPEAKE  211

PORTSMOUTH  81

SUFFOLK  75

CURRENT MONTHS SUPPLY OF INVENTORY

NORFOLK  11.7

VIRGINIA BEACH  8.07

CHESAPEAKE  8.69

PORTSMOUTH  11.81

SUFFOLK  11.01

PLEASE NOTE: REIN is the source and author of all statistics included herein.

And The Winner Is…

Drum roll please…..

 

Congratulations Skylar Martin of Virginia Beach, VA  you win $250.00 for Spiderman!  Great job!

Happy Halloween  Hampton Roads!

Eat, drink and be scary.  ~Author Unknown