In this weeks most viewed Trulia Voices Q&A post, Mindy from Virginia Beach asks, “Will the house prices in VA Beach go back to 2001-02?” With 21 answers thus far, our community has provided some very insightful feedback to Mindy’s question about home prices in Virginia Beach, Virginia.
Thoughts from our Trulia Voices Real Estate Community
Alvin, a real estate agent from Viginia Beach said, “Hi Mindy, doubt that low…I think we have flat lined, and will now move over to the more traditional/historical gains of 2-5% annually…but of course everyone has their opinions!”
Drew Hitt, a real estate Investor from Virginia Beach says, “Absolutely not. The only way that would be possible would be a complete financial collapse of all the nations banks at once. The government came in and prevented a global collapse here. We’re still not seeing prices of late 2005! At least it depends on what price range you are seeing. Under 250k, you’re sitting pretty. I wouldn’t say you’ll have appreciation, but you’ll be protected for the most part.
Got a house over $275k in Virginia beach and you will probably see a value decrease. Some dropping to 2005 prices, but financing is still low and more affordable housing is still in demand.
Hypothetically if you saw prices drop to 2001 levels while rents stayed high, you wouldn’t see properties for sale, landlords would buy them all up, which would increase demand and inflate prices. So no we will not see 2001 prices……
Real estate agent Timothy Jenkins from Hampton Roads, Virginia said, “The national averages point to prices currently being around summer of 2004 levels. We are still well above that point. Here is how sales price per square foot has trended over the last 7 years in a typical, non-new construction subdivision in Virginia Beach… June 01 - June 02 $76, 02-03 $83, 03-04 $99, 04-05 $128, 05-06 $145, 06-07 $162, 07-08 $15″
Bill Byrd, a real estate agent from Virginia Beach said, “Great question Mindy! That’s a question we actually hear a lot! Prices have already come back quite a bit in most neighborhoods but the truth of the matter is that with lots of inventory, great interest rates and a stable local economy and real estate market locally. This is actually one of the best times to buy that I’ve seen in 21 years in the bz!
The smart money out there is taking advantage of this “move up” market and trading up! What do they say in the stock market “buy on the dips”…well…we’ve got a dip!
Regarding the declining market, we have been in the current shift since August 05 and according to my sources in the mortgage industry we have already seen the worst of the resetting loans here in fact I have been told that Fannie Mae and Freddie Mac have had VB off the “declining market” status for some time now!”
Jim Dunio, a real estate Agent from Chesapeake, Virginia said, “First let me say I am an optimist and see the glass as half full.There are more positives than negatives in the market. Interest rates are still good,Supply is good,prices of homes are down,Sellers are making concessions (closing costs,repairs,warranties,etc.),The government is offering 1st time home buyers a $7,500.00 tax break.”
Lori Jeltema, a real estate agent from Yorktown, Virginia said, “2001? No, I don’t think so. Take a neighborhood in VABCH and look at sales from 2001. The prices had nearly doubled in some by 2005. At that point, the market should have slowed to a normal growth but didn’t. If prices went back to 2001, the homes that are on the market for $300 now would be closing at $125.”
My Thoughts
There are many opportunities out there today for home buyers and home sellers are adjusting to the local market conditions. With all that is happening in the current housing and financial markets, there is no better time than now to use a local real estate agent to help guide you through the home buying or home selling process. As illustrated by many of the answers given, local agents have their pulse on the Virginia Beach real estate market.
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November 3rd, 2008 at 3:13 pm
You got 6 opinions from 6 real estate agents. I’m not surprised by the response. Their livelihood depends on people buying now.
In the words of Warren Buffet: “Never ask a barber if you need a haircut”.
November 3rd, 2008 at 6:54 pm
Actually you’ve got 5 real estate agent opinions, and 1 real estate investor, myself. My livelihood doesn’t depend on people buying, it depends on people needing to sell, and everyone has to sell at some point. While my service isn’t for everyone, I am necessary to some. So my view of the market isn’t slanted one way or another, if you sell to me great, if you don’t, that’s fine. Whether agent or investor, we’re needed in every market, sometimes one more than another. Just remember, markets are LOCAL!
November 4th, 2008 at 10:25 am
My livelihood doesn’t depend on people buying right now. Thought I’d lead with that. I am an investor, as well. We just wrote a contract on a home in Norfolk for about 43% of its market value. It was a bank owned property. Why on earth would someone not take advantage of this market? Consumers are typically pretty educated when it comes to making what usually amounts to the largest purchase in their life. The internet, namely Trulia, allows consumers to obtain far more information about buying a home than people buying even 5 years ago. However, Jakob’s opinion is a little out of touch. Maybe you wouldn’t ask a barber if you need a haircut, but would you ask a doctor if you needed medication? Would you ask a mechanic if you needed an oil change? Would you ask the court if you should have representation in the courtroom? Experts are just that… experts. We Realtors live in this field 24/7. I read and study more statistics and neighborhood trends than I ever thought would be necessary. Why? To beat my competition. Not to make a quick buck as Jakob would indicate. Longevity is the key to any successful professional. I make sure my clients get the best deal possible every time so they come back and don’t go elsewhere. If anyone is ever skeptical about anything, they should ask questions, demand answers, and be willing to walk away if they aren’t satisfied. Never write off an entire field of professionals because Warren Buffett has his own opinion of when to get a haircut.
November 4th, 2008 at 11:06 am
Drew and Timothy, fair enough. You sound like intelligent investors/agents. I do realize not all realtors are perma-bulls but we have our fair share out here. I see now my comment was perhaps overly aggressive. It’s nice to know not all agents are as clueless as the NAR ads that proclaim “It’s a great time to buy or sell a home”.
December 13th, 2008 at 2:25 am
In my area we are already seeing pre-2004 prices