Hampton Roads Real Estate Market Update [June 2022]

What’s happening in real estate in 2022 here in Hampton Roads I’m Rachel Beasley with That Fit Team and I’m about to tell you. According to the S&P CoreLogic home price index home prices have increased 34% since the start of the pandemic. Home prices have increased 19.9% in the last 12 months. That is incredible. You guys before the pandemic the median home sales price as of February 2020 was like 281 and now by the end of March 2020 we’re looking at 318 as a median sales price that is a huge increase you guys now we all know interest rates have been rising and shooting up since the beginning of the year and interest rate on a 30 year fixed mortgage was like around 3% and now it’s definitely risen as of like June 2022 we’re looking at about 5% interest rates. It could be a little scary you guys. I understand interest rates are higher than they’ve been in a couple of years, but the reality is over a stretch of time, if you look at the last 15 years a five, a 5.4% interest rate is still lower than what we were looking at in 2008,2009,2010 market.

So in the grand scheme of things, guys, here’s what the brass tacks really is. Your home value will continue to rise. The interest rate really might end up being a moot point. But the reality is we’re not going to quite see a huge drop in home prices or home values. What we’re actually going to see is they’re going to slow down a little bit, but keep and hold their value unlike what happened in the crash in 2008, when home values just went way, way, way, way down, people can still afford the homes that they’re buying. And that is the main difference. We might see home values and the prices of homes steady down just a little bit. But the reality is the values, there, home values are still going to rise and your asset is going to be protected because of appreciation. Another question I get all the time is if I buy a house right now at the peak of the market and interest rates keep rising and maybe it slows down the market a little bit, will my home decrease in value?

The answer to that question honestly is I don’t know. I don’t have a crystal ball. Is it possible yes. But again, if you look at it over years instead of just over months or even just a short year, talked to people who bought a home five and ten years ago, they all have a crazy amount of equity in their home and a lot of them refinanced, sold and bought a new house. Real estate is always a good asset to own. No matter what the market is doing. So please give us a call. We would love to be your go to real estate team. We are professionals in real estate, so we know what to do we know exactly how to help you reach your home goals. If you’re looking for your dream home and you’re willing to pay whatever it costs, we’ll help you do that.