Virginia Housing Recovery is Here - Picture Worth a 1000 Words

You know the old adage: A Picture is Worth a 1000 Words and in this case, it is also music to many an ear! According to the August/September Commonwealth Magazine published by the Virginia Association of Realtors, the Virginia Housing Recovery is here. Even though the picture points to the conclusion, it doesn't give you, the Richmond home buyer or Richmond home seller, the full story. Here is a summary for you:

-Unemployment is down. This may translate to fewer foreclosures.

-HARP is working. This is the Home Affordable Refinance Program established by the government. HARP allows home owners to refinance at lower rates keeping money in your pocket that you will spend elsewhere in the economy, giving other sectors a boost.

-Delinquencies are down. Home owners are making their loan payments and the National Consumer Credit Rate has shown that people are paying other bills on time such as credit cards.

-Interest rates are low. They are historically low. The article notes that rates may creep back up, but a 4.25% rate is still amazing when you consider past history when rates were as high as 18%.

-Rents are increasing. No doubt about it, the tables have turned and in many cases one may obtain a mortgage for less than their current rent payment! This is simply the law of supply and demand. When the housing bubble hit, many turned to the once less expensive option of renting and created more of a demand.

-Short sales are getting more efficient. Many a Realtor would say, "short sales should really be called long sales, because you just never know how long it will take to get through the red tape." However, the Housing Finance Agency has required lenders to act within faster time frames and it seems to be working. The article states that "RealtyTrac reported that short sales were up significantly," meaning less foreclosures.

-Inventory is down. From the duration of May 2011 until May 2012, Virginia inventory rates were down 37% or more. The Richmond Metro area inventory rates were down approximately 27%.

-"Shadow Inventory" never flooded the market. Shadow Inventory is homes that are not on the market but are lurking to hit the market. According to this article, shadow inventory was actually down 15% from last year.

-Buyers are back. Here in Richmond this can be seen in some areas experiencing multiple offer situations and even slight bidding wars. Many potential home buyers have simply waited long enough and are ready to take advantage of the low rates.

-Investors are in play. Many investors are taking advantage of the housing opportunities available right now and are becoming landlords as they rent their investments. Go back and read the "Rents are increasing" line and you will see why this is attractive.

-Forward-looking indicators are up. Mortgage applications are increasing, as well as permits and construction. The article notes 100,000 jobs have been created in construction employment.

These are just a few of the points from the Commonwealth Magazine article declaring the Virginia Housing Recovery is here. Of course, the article makes it clear there are still hurdles to face, such as pricing is still down and it will take time for them to rise, and not at the rate we saw within the housing bubble.

These are great indications that today is indeed a fabulous time to buy a home in the Richmond real estate market! If you are ready to take the next steps, contact me, your Richmond Realtor at Home Sweet Henrico with Keller Williams Realty Richmond West, to discuss your Richmond housing options today!

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*Originally published at: http://homesearchrichmondva.com/virginia-housing-recovery-is-here-picture-worth-a-1000-words/