Home Purchase Contracts Surge in June 2011 In Hampton Roads

Home Purchase Contracts Surge in June 2011 In Hampton Roads

Posted on July 11, 2011 by mrwilliamsburg

The Hampton Roads real estate market experienced a surge in under contract sales in June 2011 when compared to June last year. Meanwhile, the number of active residential listings for sale continued to decline, contributing to the lowering in the months’ supply of inventory on a month-to-month basis. However, the residential median settled sales price showed its lowest year-over-year percentage difference for the year to date in 2011.
The number of residential under contract listings was 28% higher in June when compared to the same time last year. This increase is the highest measured for a single month since April 2010 when there was a 34% year-over-year rise. However, June 2010 was partially lower than June 2011 due to the federal tax credit expiring two months prior and the fact that some of the potential home buyers had already signed contracts in earlier months in order to qualify for the tax credit. Under contract sales are a key leading indicator for the residential real estate market and the large magnitude of this increase should bode well for settled home sales in the near future.
The number of active residential listings for sale was 8.6% lower on a year-over-year basis in June. For the first six months of 2011, the monthly active listing activity has remained on par with the 2009 levels during the same time period. All seven of the area’s major cities (Norfolk, Virginia Beach, Portsmouth, Chesapeake, Suffolk, Hampton, and Newport News) experienced year-over-year declines in the number of active residential listings for sale. Virginia Beach saw the largest drop of 14.5% while Chesapeake had the smallest year-over-year difference of 1.3%. These declines contributed to the month-to-month drop in the months’ supply of inventory from 10.04 in May 2011 to 9.99 in June 2011.
Settled residential sales fell by 9.6% in June 2011 when compared to June 2010. This was the largest drop in settled residential sales since December 2010 and continues a trend of declining settled sales starting in February 2011. The median settled sales price for these same settled sales also fell to $199,900,or 13%, when compared to June last year. So far year-to-date 2011, the median settled sales price for residential settled sales has fallen 10.7%, to $192,000, when compared to the same time frame in 2010. The last time the median settled sales price was $192,000 was during 2005 when home prices were steadily rising towards their peak of $238,000 in 2007.
Distressed homes, those that are bank owned or short sales, declined to 29.7% of total residential settled sales in June 2011, dropping to below 30% of all residential settled sales for the first time since September 2010. Distressed homes comprised 29.7% of those homes settled in June, down from 31% in May.

Relocation Assistance To Borrowers Completing Short Sales

By: Heather Hill Cernoch 1/17/2011

The Department of Veteran Affairs (VA) has instructed mortgage servicers to pay relocation assistance to borrowers completing short sales or deeds-in-lieu (DIL) of foreclosure on VA loans.

“VA has a longstanding policy of encouraging servicers to work with veteran borrowers to explore all reasonable options to help them retain their homes or, when that is not feasible, to mitigate losses by pursuing alternatives to foreclosure,” according to the circular released by the federal agency.
VA is authorizing servicers to advance $1,500 in relocation assistance to borrower occupants who complete

a short sale with a VA compromise claim or who execute a DIL.
The transfer of ownership via DIL or short sale is typically shorter than a foreclosure time period, the VA explained, and the property is left in better condition via DIL. These options can also provide a better outcome than a foreclosure sale for borrowers, investors, and communities.
The amount of the indebtedness reimbursable on a claim after crediting it with the net value of the property (or the short sale proceeds, if larger) is limited to the maximum guaranty on the loan plus the cost of liquidation appraisals. The servicer must waive any amount on the loan not covered by the sum of the VA guaranty claim amount and the greater of the net value or sale proceeds.
VA expects servicers to notify eligible borrowers of the availability of foreclosure alternatives and encourage completion of a short sale or DIL by providing the homeowner with a written agreement describing the requirements for receipt of a relocation incentive. With a DIL, the agreement must specify that the property will be unencumbered by other liens or restrictions on title, it will be kept in good and safe condition, and it will be left ready for sale in “broom clean” condition upon homeowner departure.

Top 5 Reasons Every Home Buyer Needs Their Own Agent

by Ken Mascia on January 20, 2011

in Beverly Hills MI Real Estate,Birmingham MI Real Estate,Bloomfield Hills MI Real Estate,Buyer Information,Ken Mascia on Mortgages and Finance,Metro Detroit,Royal Oak MI Real Estate,Troy MI Real Estate

After financing homes for over 20 years I am still surprised when one of my borrowers says they want to buy a home using the Listing agent of the property. I ask them why, and the answer is always the same; “We’re going to be able to buy the house for less because the seller only has to pay the one commission.” For all you home buyers out there – this is not true!
When Real Estate is listed for sale the listing contract calls for the seller to pay a set commission to the Realtor’s involved in the transaction regardless of whether that is one real estate agent or two. This means the seller has to pay the same real estate commission whether the property is sold directly through the listing agent or through a buyer’s agent.
As a home buyer you need to have your own representation – an agent specifically working on your behalf. Here are the top 5 reasons to have your own agent:
1) A professional working specifically in your interest and on your behalf to help you find the right home at the right price.
2) The Buyer’s Agent‘s fiduciary responsibility (their loyalty) is to his/her client (you). The Listing Agent has already signed a contract to represent the seller and their first loyalty is to the seller. How can they represent the seller and you at the same time and still get you the best price on the home?
3) A stronger negotiating position and better contract protection for you. You have a separate agent negotiating the price on your behalf with the seller. You also get an independent purchase agreement contract drawn up by your agent to protect you. Plus, your agent holds the earnest money deposit as opposed to the listing agent controlling your money.
4) More candid comparable sales and market transparency. You have your own agent showing you recent sales of similar homes so you can determine the correct offer price.
5) Having your own agent comes at no additional cost to you! The seller has to pay the real estate commission on the sale of real estate so it is costing the buyer nothing to retain the services of a professional realtor.
The bottom line is that it is foolish to not utilize the services of a trained professional Realtor to help you unlock the door to your new home. As a buyer, you have nothing to lose and everything to gain. So, if you’re in the market to buy a house the first step should be to find the right Realtor to work with!