August brought a rise in median sale prices across Virginia’s Eastern Shore Region, according to Long & Foster Real Estate’s Market Minute Report. In Northampton County, sale prices increased by 29% and Accomack County experienced an 11% increase.
Northampton County experienced a significant 81% uptick in the number of units sold compared to last year at this time, while Accomack County saw a 31% increase. Inventory continued a downward trend throughout the Virginia Eastern Shore region.
The fall housing market, which historically slows down, is expected to be quite strong this year. “In the fall of a presidential election year, we normally see a pull back in the housing market due to the uncertainty of the election,” said Gary Scott, president of Long & Foster Real Estate. “We believe this autumn will be different and we’re cautiously optimistic that low interest rates will drive the market, despite the pandemic, unemployment levels, social unrest and the upcoming election.”
With recent stock market volatility, consumers are taking advantage of low interest rates by purchasing real estate to diversify their portfolios. Real estate appreciates about 4% per year on average and generally does not go through massive price fluctuations, like the stock market.
“There’s never been a better time to borrow money, so it’s a great time to add an investment property to your portfolio,” said Scott. “Real estate investors can benefit from appreciation, depreciation, cash flow and equity build-up.” If you choose to diversify, it’s best to deploy your partners, such as your accountant and financial advisor, to help with your goals and objectives, Scott added.
COVID-19 (coronavirus) and low interest rates have changed consumer’s behavior very quickly. We are nearly at the highest rate of homeownership ever. Renters are determined to be buyers because of interest rates and others who were previously priced out of a certain market, can now afford to buy a home, resulting in higher homeownership rates.