For residents of Southeastern Virginia, there has never been a better time to sell their homes. Need a reason? In most places, home values match or even exceed their pre-recession values. For instance, a Virginia Beach home on zillow.com recently sold for just over $260,000. In 2009, that house was appraised at $190,000. Here are three more factors contributing to the current Virginia selling frenzy.
Homebuyers are feeling financially secure
REIN (Real Estate Information Network, Inc.) recently reported, “Median home prices in Hampton Roads rose 5.7 percent to $206,001 compared with a year ago, and the number of homes sold increased 4.7 percent.” And these days, more and more people are finally feeling financially secure enough to venture into home buying again. This means there is more demand than supply, which makes selling your home easier than ever before.
“If they’re priced right and they show well, they sell instantly,” Barbara Wolcott, CEO of Berkshire Hathaway HomeServices Towne Realty told The Virginian-Pilot earlier this month. In Virginia Beach, the average home sells in a record 4.1 months — just enough time for you to pack your bags and figure out where you’ll move to.
House flipping is on the rise
Another reason homebuying is in top form may have something to do with the surge in house flipping in recent years. As cnbc.com reported, “Flips made up 5.5 percent of all sales last year, and that is the first increase in the flip share after four years of shrinking. Flipping increased in 75 percent of U.S. markets, and the profits are growing as well.”
A flip is a house that’s bought and then resold within a year of the purchase date. House flippers make their money by remodeling or upgrading the home to give it better curb appeal and the move-in-ready status many homebuyers are looking for.
“As confidence in the housing recovery spreads, more real estate investors and would-be real estate investors are hopping on the home-flipping bandwagon,” explained Daren Blomquist, senior vice president at RealtyTrac, in an interview with CNBC.
Homeownership can be cheaper than renting
Another factor in the current house-buying frenzy throughout the U.S. is that renting is more expensive than ever. Ralph McLaughlin, housing economist at Trulia, told CNN Money that rents are likely to continue to climb through 2016. This means that in many places, it is cheaper to buy than to rent. McLaughlin estimates interest rates would have to reach 6.5 percent on a national level before renting would be cheaper than buying.
One way to take advantage of this seller’s market is to contact Berkshire Hathaway Home Services today to discuss how easy it will be to sell your current home and find your dream home.
Images and sources: Riverbender.com, Medicinenet.com, University of Florida
Do you have questions for Berkshire Hathaway HomeServices Towne Realty?
Let us know via our Contact An Expert form or on Facebook or Twitter.