Home sales up, median price down in the Richmond area
Related Info
Home sales
Virginia home sales improved in 14 of 26 regions. Here’s a snapshot of sales and median sale prices, with half the sales for more and half for less, in the third quarter compared with the same period a year ago.
Richmond area: 2,783 closings, up 1.5 percent; $202,322, down 11.7 percent
Tri Cities: 278 closings, up 8.6 percent; $142,655, down 6.3 percent
Charlottesville area: 850 closings, down 5.7 percent; $255,000, down 3 percent
Fredericksburg area: 1,138 closings, up 6.7 percent; $214,867, down 13.9 percent
Northern Virginia: 5,550 closings, up 4.3 percent; $394,480, up 3.8 percent
Williamsburg: 417 closings, up 31.1 percent; $273,504, up 1.6 percent
SOURCE: Virginia Association of Realtors
The housing market in Virginia, including the Richmond area, has steadily improved this year and prices are stabilizing in some areas -- but not yet here, the Virginia Association of Realtors reported yesterday.
Sales rose in 14 of 26 areas in Virginia in the third quarter from the same period a year ago, the report said. But prices fell in 17 regions, including the Richmond area, where prices dropped nearly 12 percent from a year ago.
"There seems to be no doubt now that we have hit the bottom and are moving back up, in terms of both price and sales activity," said VAR President John Powell of Colonial Heights.
"We are now in our third consecutive quarter of marked improvement."
Sales in the Richmond area rose 1.5 percent from a year ago. But the median price, with half the houses selling for more and half for less, dropped 11.7 percent to $202,322.
By comparison, sales in Virginia dropped 2.2 percent from a year ago and the median price was $252,324, down 0.1 percent.
Karen Tilson Smith with RE/MAX Commonwealth blamed the lower prices here on rising foreclosures. She credited the increase in sales activity to an $8,000 tax credit for first-time homebuyers, which is set to expire Nov. 30.
Most of the home sales in the region were for houses less than $300,000, she said.
In a separate report yesterday, national home resales in September recorded the largest monthly increase in 26 years as buyers hurried to finish their purchases before the tax-credit deadline.
Sales across the country rose 9.4 percent in September from the previous month to a seasonally adjusted annual rate of 5.57 million last month, the strongest pace in two years and beating Wall Street estimates of 5.35 million sales, according to the National Association of Realtors.
"There's a miniboom going on in the housing market," said Thomas Popik, who conducts a monthly survey of real estate agents for Campbell Communications, a research firm.
Nationwide, sales are up nearly 24 percent from their bottom in January, but are still down 23 percent from four years ago. The median price last month was $174,900, down nearly 9 percent from $191,200 a year earlier.
In Virginia, sales are up 39 percent from the lowest point in fourth quarter of 2008, but down 38 percent from their peak in 2005.
In the Richmond area, quarterly sales are down 43 percent from a peak in 2005. The average price here is $238,347, down 20 percent from hitting a high in 2007.
John McClain, a senior fellow at George Mason University, Center for Regional Analysis, said in a conference call with the media that if people are thinking about buying, now is the time. Mortgage rates are still low, but they will not stay low forever, he said.
He said the economy is improving, except for the rising unemployment rate. And prices are stabilizing -- a sign that the market has turned, he said.
Contact Carol Hazard at (804) 775-8023 or
.
The Associated Press contributed to this report.
Advertisement
Reader Reactions
Anon… I do not understand how you can say your house is not your Piggybank. It is considered to be an investment, and if you do not want to call the investment a “Piggy Bank” than this is fine. Many bought homes in the 90s and in the past few years before the cost of house went through the roof.
I know of people whose homes tripled in value, and from this they did buy additional homes as an investment for rental property. More money for their Piggy Bank. I knew of one person who owned 22 homes and he was 20 years younger than I.
Unfornately, many who saw the value of their homes go up used the equity in their house. They would than refinace and again use the equity in the house as the value kepted climbing…. Some refinanced several times until the baloon busted….. They now owe more on the house than what it is worth, as the housing bubble busted and prices are coming down.
For those, the Piggy Bank is BUSTED! But for those who held onto their property without borrowing against it unless they bought new property… do have a nice Piggy Bank. The Renters not only pay for the mortgage of the houses bought, but they earn enough money to pay off their own home and retire or go into semi retirement.
The facts are facts and you cannot change what has happened. Many homes were sold to people who could not really afford the house. We haveto thank Barney Frank and Chris Dodd for the monster they created in this collasped housing market by making Fanny Mae and the other lending institution by forcing them to sell homes to people who could really ONLY afford a 50K house, but instead, they got a 300K house.
A good example is what is happening now is… the Gov’t. had to step in and save many people with refiancing of their loans to a lower rate in what they call is a “Loan Modification”.
Of course this is good for ONLY 5 years. At the end of the 5 years, we will have to wait and see what happens, as the gov’t. will probably have to step in again as many will not be able to afford thier house if the Mortgage payments double in costs.
The housing crises is not over and do not be fooled if you think it is… If the Gov’t. cannot fix a pothole in the roads and interstates, how do you think they will take care of the housing market.
Another good example of the Piggy Bank. My parents bought a custom made house in Canterbury in the westend of Richmond in 1966. They paid $39,500. for a brick, 3 story Dutch Colonial home on 3/4 of an acre. They sold the home in 2003 at a price of almost $300K. Now tell me… even after Capitol Gains, they still made a nice profit for the “Piggy Bank”. Enjoy!
With the prices and values of homes declining, I am curious as to why the City of Richmond INCREASED the assessment of my home this past year which, of course, raised my real estate tax! Since I was laid off from my job right before the tax bills were sent out and have been unable to find another job, that was a substantial amount of money to have to pay - out of my unemployment “benefits.“ I had to turn around and give all of it - and then quite a bit more - to the City.
MrCobray,
There you go again. A house isn’t a piggy bank. Sometimes it’s just a great big rental property - and you’re the renter. If you paid too much, you don’t get a Mulligan. Decisions are decisions. Contracts are contracts. Life is like that.
Home prices have dropped, but a concern with this is…. many of the owners owe more on the house than what it is worth. Because of this, many arfe leaving thier homes as they will never see it being paid off within the 30 year mortgage.
I feel we will see more housing on the market due to the foreclosures and those who are dumping their homes for their value. I think it will become worse before it gets any better.
Anon - New homes, depending on price, means present owners will move up allowing first time owners to buy there houses. From what I have heard, around the Richmond area, illegal immirgrants that were buying a couple of years ago have dried up. The first time homebuyers are young professionals and VHDA is providing 100% financing.
This just confirms that the price of houses is still more than the average income. When houses drop down enough to match the low wages paid now with little or no benefits the home sales will climb. I imagine somewhere around another fifty to sixty thousand dollars drop for an average home sale will do it. Lets face it the days of homes appreciating are over. The North American Free Trade Agreement has had disastrous results for this country and our economy.
mikeyt,
If we start building a bunch of new homes, it only means we’ll have more illegal immigrant construction workers to deal with. And oneuser will have another fit.
Home builders aren’t a privileged class, not like investment bankers. If demand for houses is less than the supply, prices go down. Can’t change that. Just have to wait while the market does it’s thing.
The tax credit is just to put a floor under the price of entry-level homes, so people know that they won’t be under water as soon as they close. It has nothing to do with making builders prosperous again.
Home stimulus can do more to keep the economy going than any other type of stimulus. Think of every industry that is connected in building new homes and in repairs to existing home sales. That means down to the nails and screws, tools, etc. Very seldom do you see a resale that does not need repairs after a home inspection is done.
4BonAir… if the credit is not extended, sales will collapse. Congress knows that, which is why you should hear this week that there is agreement to extend the tax credit until June 30 and open the credit to all homebuyers with certain income levels instead of just first-time homebuyers.
Can’t wait to see how much the sales will drop once that $8k tax credit goes away in November. Then you will actually see 11.7% or more decrease in sales. BTW - note to RTD editors… do your job and read what you write in the headline before posting.
Post a Comment(Requires free registration)
- Please avoid offensive, vulgar, or hateful language.
- Respect others.
- Use the "Flag Comment" link when necessary.
- See the Terms and Conditions for details.
Advertisement