Sales of foreclosed and distressed properties continued to fuel the housing market in Southside Hampton Roads in March, according to a report just released.
Real Estate Information Network Inc REIN ( The area MLS for Southside and the peninsula). reported that 1,090 homes sold last month in the area, up 56.4 percent from February and 13.2 percent from 2010..It does depend on the city though with . Four of the seven major cities in the region experiencing gains. Norfolk had the highest percentage rise with 19.4% while Hampton saw the largest decline of 5.3%
A strong indicator of market direction is the number of homes under contract. That number increased almost 10 percent over March 2010 and points towards future strength in home sales in Hampton Roads.
One staggering statistic is that 43.3 % or three of every seven homes sold were bank-owned or were sold for less than the seller owed on the mortgage.( short sales). That is the highest monthly volume of foreclosures sales on record, up from 42 percent in February.
Sales of distressed properties have ticked up steadily in the past year. In March of 2010, foreclosures and short sales accounted for 25% of sales.
When we look at homes for sale ( Listings) the distressed homes have declined as a percentage of the active residential resale home market, down to 22.2%. This percentage has fallen three months in a row and may have peaked. The continued drop in the number of active homes for sale comprised of by distressed sales bodes well for the Hampton Roads real estate market and the region as a whole. As the supply of distressed homes dwindles, the percentage of home sales that distressed homes contribute should fall. The increase of non-distressed home sales should then cause the median settled sale price to climb as fewer distressed sales apply downward pressure.
As distress sales increase, housing prices continue to fall. Last month, the median price of homes sold dipped to $175,000, down 5.4 % percent from February and 15% from a year ago.. Although it varies by city. Portsmouth had the largest median sales price decline, 46%, while Suffolk had the smallest, 3%
Despite foreclosure sales, the market as a whole is still swollen with properties. Last month, 14,360 were for sale in Hampton Roads, up 1.3 percent from February and down 3.4 percent from a year ago. That represents about 10 months of inventory. Six months of inventory is considered normal.
It’s also taking longer to sell a home, on average. The average number of days a home stays on the market rose slightly in March to 107 days. That is the lengthiest average market time in more than four years.
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Filed under: hampton roads, Selling a home in Hampton Roads VA |
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