February 2023

Published On: February 14, 2023
Category: Front Porch News

Hi, I hope you have a wonderful Valentine's Day! Below you'll find the February newsletter chock full of Real Estate news for you.

FRONT PORCH NEWS

Denise Moxie
(757) 537-0410
Fit Realty

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If you hope to buy a home within the next 6 months (by July), you should get pre-approved soon. You can float your interest rate until you get closer to buying. Then, if rates drop, you can lock in the lower rate. If rates start to rise, you can lock in the current rate before it rises more. Plus, you’re ready to jump on the perfect house if you find it, rather than scrambling for a loan at the last minute. That’s nice peace of mind.

If you don't find a house in the time allotted by the lender's pre-approval terms, then you may need to provide additional documentation that your finances haven’t changed, and in some cases you may need to start over with a new pre-approval. While that can be a pain, on the plus side, it'll be easier the second time.

What if you have a house to sell first? Do you still need a pre-approval? Yes, you do. Anytime you make an offer on a house—if it involves you getting a mortgage—you’ll need a pre-approval. In fact, it may be even more important if want to put an offer on a new home before selling your current home.

If you need a pre-approval, I can refer your to some excellent local lenders. Call or text.
Denise (757) 537-0410

February Quiz Question

You can touch me, break me, and win me.
What am I?

Send your answer

Send your answer for a chance to win a $5 coffee card! Last month's Q&A: I can be beautiful and terrible, soft and sharp, heavy and light all at the same time. What am I? Snow. Congratulations to last month's winner!

Nuggets of News

What's happening in the local market??
Closings Dip While Pending Sales Rise

VIRGINIA BEACH, Va. (February 2023) – During January, the Real Estate Information Network (REIN) Inc. recorded 1,502 settled sales, or closings, of residential real estate in the Hampton Roads region. That’s the lowest recorded number of monthly settled sales in the region since February 2017. The decline in settled sales isn’t totally unexpected, since January is traditionally one of the slowest months of the year for real estate activity. However, pending sales for January were up month-over-month from December, which is a good sign, said REIN Board of Directors President Jon McAchran, of AtCoastal Realty. “Pending sales are often used as a forecasting tool for closings in the coming months. We like to see pending sales numbers increase since they usually represent a closed sale in the next month or two.” McAchran said he has seen offers and activity increase pretty dramatically from the first half of January into the second half and that he’s not sure the increase is being driven by interest rates alone. “I think buyers are getting used to the interest rate environment and that the market is starting to heat up due to the lack of inventory,” he said, adding that the spring market typically sees increases month-over-month. “Perhaps we are more in line with a typical pre-pandemic spring market,

January’s data points from REIN: ● Active residential listings totaled 3,266. That’s down slightly from 3,345 last month, and down year-over-year from 2,536 in Jan. 2022. ● Pending sales stood at 1,942. That’s up by 250 from 1,692 last month, and down by 448 from 2,380 last January. ● Settled sales during the month were 1,502. That’s down from 2,004 month-overmonth and down from 2,321 year-over-year. ● The median sales price (MSP) of homes sold in January was $303,000, down slightly from $306,000 in December, but up from $291,000 year-over-year. ● The Month’s Supply of Inventory (MSI) the month was 1.27. December’s MSI was also 1.27. However, year-over-year the MSI was up significantly from 0.79 in January 2022. MSI is a calculation used to identify how long there would be homes for sale on the market if no new inventory were added. ● Median days on market (DOM) for residential listings was 27 – the highest it has been in over two years. That’s up from 24 last month and 16 year-over-year. ● Residential new construction sold in the MLS during the month was 197. Last month it was 277, and last January it was 268.
REIN MLS

It’s time for your
Listing Consultation

It's not too soon to get the ball rolling if you'll be selling your home this year. You’ll need pricing data, information on how to stage your home, advice about timing your sale, and more. We can maximize your profits by planning well ahead. Call, text, or email me to arrange an initial consultation. Denise (757) 537-0410

Build your new home!
Welcome to the lovely Riley model, to be custom built just for you! Meet with the builders design team to modify to meet your needs and selections for your style. The Riley has a wide open Living room to the kitchen and dining area with french doors to the back patio. The kitchen is fully custom with 42in cabinets, granite or quartz countertops, backsplash and SS appliances. The peninsula in the kitchen can be modified to an island and both options give lots of barstool seating. The 2nd floor has a HUGE Primary Suite with walk-in closet and Spa-like bathroom with deep soaker tub and separate tile shower. The 2nd and 3rd bedrooms are across the hall and share a hall bathroom, the laundry room is also on the 2nd floor. Ask about adding 550sqft with the 3rd floor which adds 2 more bedrooms and a 3rd bath. LOTS of options with this fantastic floorplan. Drive by the lot and make an appointment at the builders showroom to get started.

Is buying a home with friends an option?

A 2022 survey found that of prospective home buyers, 19% intended to buy with a friend or relative in the next 12 months. Affordability and qualifying for a mortgage were cited as the top reasons. Now in early 2023 both challenges are even more acute.

If you are thinking of giving co-buying a try, my advice is to spend time going through a bunch of "what if" scenarios, like what if your buying partner takes a loan that results in a lien on the house? How will you finance repairs or remodeling? If you agree to flip the property in three years, what happens if one of you doesn't want to sell? What if one of you wants to Airbnb their rooms? What if one of you wants a dog?

Plan to sit down with me to discuss the real estate questions, including questions about zoning for various uses. For instance, if you’re planning to rent the house out, split the property, or do short-term rentals, you’ll want to know what’s possible before getting too far along. Call for an appointment anytime. (757) 537-0410

Just for Fun

The couple’s therapist asked, “What brings you two here today?” Wife: “It drives me crazy that he’s so literal.” Husband: “My truck.”
Wife: “Do you want dinner?” Husband: “What are my choices?” Wife: “Yes or no.”

Got Real Estate Questions? Email now!