Bailout Bill’s Impact On Virginia Beach Real Estate 

The Emergency Economic Stabilization Act of 2008, also known as ‘the bailout bill,’ has real estate leaders talking about its impact on the industry. Dave Liniger, chairman and co-founder of RE/MAX International, offers his thoughts about the bailout, what it means to consumers and the government’s new role in real estate in an interview with RISMedia.com. Here’s what Mr. Liniger had to say: 

RISMedia: What are your overall thoughts about the bailout? 

Dave Liniger: The fact that the House did not approve the first version of the bill tells me they were trying to listen to the public. I hope they continue to listen. This bill is likely to go through a few changes, and a new administration and congress in January will make a lot of changes that we can’t foresee right now. But if our legislators listen to the consumer and create legislation that is truly responsive, I think it has a very good chance of having a positive impact on our industry. 

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I wanted to follow up our blog post, Is Downsizing My Virginia Beach Home The Answer? with a reprint on a Money Magazine article from CNNMoney.com, When It’s Wise to Downsize. The article discusses the pros and cons of downsizing, pricing in today’s market, carrying costs involved and lessons learned from other empty nesters. 

Here is the article in its entirety (but don’t hesitate to visit the link to the original article to see the interesting graphs): 

Money Magazine) — Last year Rick and Suzanne Pepin moved from the four-bedroom 3,400-square-foot house in Minneapolis where they lived with their three (now grown) kids to a luxury condo that’s a third smaller and offers only a Murphy bed for guests. Still, the couple couldn’t be happier.

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Is Downsizing My Virginia Beach Home The Answer?

You dropped your youngest child off at college this past fall and have officially joined the ranks of the empty nesters. One of the first questions that usually comes to mind is should you downsize your Virginia Beach home. The kids are gone and we probably don’t need this big house. But is buying a smaller home right for you?

There are pros and cons to downsizing. Consider your finances and lifestyle before making a decision.

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Virginia Beach Real Estate: Fix It Or Leave it?

That is the question all Virginia Beach homeowners should ask themselves when they consider selling their home.

The first item on the fix-it list: clear the clutter! If your closets, attic, basement, garage, and other storage areas appear neat, half-full and organized, your house will seem to have more storage space. To accomplish the clutter – clearing task, empty the house, hold a garage sale, and use the profits to help offset the next set of fix-it priorities.

Check your house for “curb appeal”. The exterior is the first impression a prospective buyer has of your home. Make it as inviting as you can. Think of it as outside decorating. Clean (or paint, if necessary) the exterior, re-sod brown spots and crab grass, mow the lawn, pull weeds, remove dead trees or plants, and trim the shrubs.

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Pending home sales eased against a deteriorating economic backdrop but remain in a stable range, according to the National Association of Realtors®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in October, slipped 0.7 percent to 88.9 from an upwardly revised reading of 89.5 in September, and is 1.0 percent below October 2007 when it was 89.8.

Lawrence Yun, NAR chief economist, said a review of the past year is instructive. “Despite the turmoil in the economy, the overall level of pending home sales has been remarkably stable over the past year, holding in a generally narrow range,” he said. “We did see a spike in August when mortgage conditions temporarily improved, which underscores two things – there is a pent-up demand, and access to safe, affordable mortgages will bring more buyers into the market.”

Now, let’s take a look at Hampton Roads real estate sales statistics and see how 2008 sales compared to 2007.

The number of Virginia Beach homes sold in 2008 dropped by 1,433 homes or 20 percent in 2008. The median price of a Virginia Beach home dropped $7,600 or 3 percent, while the average price dropped $13,078 or 4 percent. At the same time, market times increased 11 days or 18%. 

Chesapeake home sales also declined in 2008 with 797 fewer homes sold resulting in a 23 percent decrease. The median price dropped $9,000 or 23% and average sales price dropped $15,099 or 5 percent. Market times increased by 15 days or 22 percent. 

Norfolk home sales declined 13 percent in 2008 with 322 fewer sales. The median price declined 3 percent or $4,000. The average price declined $6,616 or 3 percent and market times increased 16 days or 23 percent. 

Portsmouth also experienced a decline in 2008 home sales with a 22 percent drop in sales and 316 fewer homes sold. Unlike other Hampton Roads cities, the median price of homes in Portsmouth increased $2,600 or 1 percent. However, the average sales price declined $1,766 or 1 percent. Market times increased 18 days or 28 percent.

Suffolk home sales also dropped in 2008 by 401 homes or 26 percent. The median price declined $25,000 9 percent and the average sales price dropped $3,672 or 12 percent. Market times increased 21 days or 27 percent. 

Looks like Portsmouth was the only city in our area to experience a little gain in the market.  When you hear what is happening at the national level, our local Hampton Roads 2008 home sales could have been much worse.  

Now is a GREAT time to be buying a home in Hampton Roads, IF you are looking for a long term investment. Now is not the time to buy and flip…but to buy and hold for 3, 4 or 5 years. 

To learn more about Virginia Beach real estate, please contact us at 866-222-0158 #550 or visit ButlerTeamHomes.com. 

Interested in knowing what your home is worth? Visit HRHouseValue.com.

The National Association of Homebuilders has representatives in Washington DC pressing for passage of a bill, “Fix Housing First.” I’m behind it and encourage you to get behind it as well. In a nutshell, the two key provisions are:

(1) The federal government would offer a tax credit of between $10,000 and $22,000 (depending on locale) to anyone closing on the purchase of a home, new or resale, by December 31, 2009. The credit would not have to be repaid, which is a major upgrade from a tax credit passed last summer; and

(2) The government would provide a federally-subsidized 30-year fixed rate mortgage of 2.99 for all home purchases, new and resale, closing by June 30, 2009. After that, the rate would be 3.99 for purchases closing by December 31, 2009.

This legislation is crucial to the turn around of the Virginia Beach real estate market. Visit

Learn more about Virginia Beach real estate by visiting ButlerTeamHomes.com.

Search all Virginia Beach real estate and homes for sale.

www.FixHousingFirst.com for full details and a direct link to your Senator and Representative.