Foreclosure Statistics – Virginia Beach, Norfolk, Chesapeake

Good afternoon, everyone!

Some stats about the Hampton Roads Foreclosure market (actually just Virginia Beach, Norfolk, and Chesapeake):

Number of Foreclosures that closed or either went under contract in the last 60 days:

343

Number of Norfolk, Chesapeake and Virginia Beach Foreclosures currently on the market:

354

Absorption Rate:

2.06 months

 

WHAT DOES ALL OF THIS MEAN?

The absorption rate tells us how long it would be before all of the homes currently for sale (Foreclosures, in this case) would be sold, or absorbed by the market.

Buying a Foreclosure In Virginia Beach

In general, we consider 4 to 6 months worth of inventory a balanced market – buyers and sellers work together to come to an agreement with regard to price and terms of the sale.

Under 4 months of inventory would be considered a SELLER’S MARKET – Sellers have the advantage since there are fewer homes on the market, and more buyers looking to purchase.

Over 6 months of inventory would be a BUYER’S MARKET – there’s a surplus of properties available for sale, and fewer buyers in the market.

HOW DOES THIS AFFECT YOU?

If you’re interested in buying foreclosures, with only about 2 months of inventory in the market, it’s a SELLER’S MARKET – you’re gonna have competition from other buyers. Banks are more realistic about the price of foreclosured homes that they’re selling, and as I mentioned in my blog post a few days ago (Virginia Beach Foreclosures 50% off? No.), foreclosures are selling for about 97% of the current listed price.

Knowing this, if you really want to buy a foreclosure, you should expect to pay close to the listing price…more in some cases. If you don’t, the chances are good that another buyer will come along shortly and buy it.

I hope the above helps to keep you informed about what’s going on here in Hampton Roads…knowing more about the market, current statistics, and how to interpret the data will help you make an informed decision about what price to offer on a property, and what to expect during the process.

Have a great day!!

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