Sales of existing homes and properties on lists of bank foreclosures surged by 14.5 percent in South Hampton Roads in Virginia. Data released showed that investors and first-time home buyers have showed interest again on the housing market, driving up home sales in the area.
The data indicated that in May, 963 existing homes and properties on lists of bank foreclosures were sold, an increase of 14.5 percent compared with April figures, but 3.6 percent lower than the total sales in May of last year.
Meanwhile the year-to-date sales drop by nearly 15 percent in the area, while the median home sale price was $219,900 in May, representing an increase of 2.3 percent from the previous month’s $215,000, but showing a 2.3 percent decline from a year earlier figures of $225,000.
The median home price is the middle point wherein half of the prices are lower and the other half higher.
According to industry experts, summer and spring months are usually the strongest in sales of existing homes and properties on lists of bank foreclosures.
Some first-time homebuyers said that they waited for their credit ratings to inch up so that they could avail of good deals and best interest rates. They pointed out that the collapse of the housing market provided them a chance to purchase a property.
Coldwell Banker Professional Realtors managing partner and chief executive officer Dorcas Helfant-Browning said that first-time homebuyers helped boost the local real estate market. She added that people who thought that they could not afford a house are the ones taking advantage of the government’s low interest rates and tax credit.
Helfant-Browning is referring to the federal tax credit of $8,000 made available to first-time homebuyers. Additionally, she said that many properties sold in previous months were mostly vacant, either because owners have moved out but could not sell immediately or the property has been placed on lists of bank foreclosures.
On the other hand, a strong presence of investors has been noted on the local real estate market. Helfant-Browning said that these investors are hoping to turn distressed properties into rental units.
The strongest area in South Hampton Roads in terms of sales is Virginia Beach, with 430 last month. All in all, homes on lists of bank foreclosures accounted for nearly 19 percent of the total sales last month.
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