Thursday, February 16, 2006

Region's median home price jumped 31.5 percent last year

This is the headline from Hampton Roads leading newspaper, the Virginian Pilot.

According to statistics from the National Association of Realtors, Hampton Roads ranked 7 out of 145 markets surveyed, in terms of median price increases for existing single-family homes in 2005. This ranking reflects a 31.5% increase over 2004 and a median price of $220,500. This compares to a national increase of 13.6%.

Hampton Roads, as well as the rest of the nation, experienced a slowdown in the market during the last few months of last year, but the "bubble is far from bursting".

The rise in prices in Hampton Roads is a result of supply and demand. There have been far more buyers in the market than homes available to purchase, resulting in frequent bidding wars with 8 to 10 contracts on a home in a matter of hours.

A strong sellers market like this is very frustrating to buyers and pushed many families into renting after losing house after house to higher bidders.

The current slow down is a healthy move towards a more balanced market and a cyclical correction that was long overdue. All predications for 2006, call for a slow down in appreciation not a downturn in the market.

This year those families who were forced into rentals will be able to enter the market again with a chance at ownership. And that is a good thing!

2006 is a great year to buy or sell a home. Supply is up which is good for buyers. Appreciation will most likely be less than the last couple of years, but, we should still see healthy increases, which is good for sellers.

Give us a call, 866-222-0158 #550. We'd like to help you take advantage of today's market!


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