NORFOLK, Va. — According to local agents, historically, spring and summer are the busiest times in the real estate market.
As we're halfway through the year, I wanted to see how things are looking for buyers and sellers in our area.
Sellers like Dawn Peters say it has been an interesting time to join the market. Her family is selling their Norfolk home and looking to downsize.
“We were trying to decide if we're going to buy or rent but rents are so crazy. That part of me is like, 'I really don't want to spend that much money on rent, I might as well buy something,' but then interest rates are higher,” says Peters.
Peters is working with Christy Allen, Associate Broker at Decker-Allen Realty. Allen and I sat down to discuss what it's like to be a buyer or seller in today's market.
“I think it's safe to say we're still in a seller's market. I think we're inching closer to being a little more balanced than in the last couple of years, but it is still a seller's market because we're still seeing multiple offers, we're still seeing market price list prices, plus a little,” says Allen.
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The offers, Allen says, are still competitive.
“The thing that surprises me the most is the amount of cash in the market — people are buying properties with cash,” she says.
As more people buy with cash, Allen encourages people to put their best offer first.
I also met with Gary Lundolm, the President of the Real Estate Information Network. REIN is the largest provider of real estate data in Hampton Roads.
“I’ve seen ebbs and flows [and] multiple recessions over those years. I think we are going in the right direction," Lundholm says.
He tells me the median price of a home in our area is $352,000, which is up about $17,000 from last year.
“For buyers, we've seen some challenges over the last couple years, but we're also starting to see some improvements,” he says.
Lundholm points to more inventory as active listings have increased by 33%. REIN reports that interest rates are also moderating.
“If you're in a position to buy a home right now and the right home comes along, buy it with the idea that at some point in time, you can refinance,” says Lundholm.
REIN reports government loans are at 6.5% and conventional loans are at 7%.
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Allen tells me she's also been dealing with more assumable loans for people who bought a house when the rates were around 3%.
“Such as the home we're sitting in right now. They have an assumable loan, so someone could come over and take over the balance of that loan, and pay the seller the difference,” Allen says.
That's a possible option for Peters as she waits to see what happens next.
Another change this summer is how agents will get paid their commission.
Starting in August, sellers will no longer be responsible for paying their agent and the buyer’s agent. Now, buyers could have to pay their agent if a seller isn't willing.
“Real estate commissions always have been and always will be negotiable, but there was just an industry standard that most people assumed they had to pay a certain amount,” Allen says. “The new regulations are just making it more transparent — who pays who, for what.”
Lundholm says agents’ expertise in understanding the market is invaluable.
"You want somebody with experience. They're going to be able to guide you through that situation and do a good analysis of the property," he said.
