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A Challenging Year in Real Estate( Richmond Va.) But Still Much To Be Thankful For in This Country

By
Real Estate Agent with Long and Foster Real Estate, Richmond Virginia 022 600 969 6 Virginia

This is an update on your market in  Richmond Va, and comments on the market in general.

Granted it has been a trying year, but Richmond has not fared badly. Average prices in the area are from 250-280 with many better than average deals out there. There is plenty of good inventory at premium prices as sellers are offering reasonable negotiations. Every month we list and every month we sell homes.

National Association of Realtors reports home sales in August were up 3.1 percent over July. We are selling 5 million plus homes a year. The median existing home price was 212,400. Down 7.1 % from last year. Even Florida and California are selling again. Builders are letting inventory drain off. That is good news for exiting home sales. This should help bring supply and demand back in to balance.

Interest rates remain in the 6's. My interest rate 15 years ago was 7.25. Yes, you need a down payment now.  No more 100 % loans. But we have found that people need to invest in their homes. They will have a financial loss, if they don't pay the mortgage.  And yes, people can no longer use their house as checking accounts. One buys a car with a car loan, one buys furniture by saving, and  one pays off credit cards as soon as possible. Since when is it okay to use your home as a bank. It's like putting a lien on your home, each time you write an equity line check.

Investments mean just that. You put a down payment on a property. You upgrade  where its needed, and you make repairs when it's needed. You live in it for 5-7 years, you sell it for a good price, and you make a profit. Then you reinvest with more money down the second time. Third time. Fourth time.


Let's all get back to the American dream of responsible home ownership. If you have friends or family who still rent and seek to improve their net worth; Encourage them to save and invest in America. Own a Home . Don't let politicians,wall street or nay-Sayers discourage them from doing what Americans have always done.  

It is firmly believed that April 2008 marked the bottom of the US housing market. Many of these mortgage companies have been holding on to bad debt with their head in the sand, hoping it would go away. That is why you are hearing so much about it now. The bottoming is happening right now. The mortgage companies are now acting more responsible. The housing bust is now 3 years old. Housing prices peaked in July 2005.  

The boom made housing un-affordable for many American families,especially first time home buyers. These first time home buyers are needed to keep the market viable.  As a result it now takes 19% of income of the average home buyer, and 31% of the first time home buyers monthly income to purchase a home. These were the levels of income needed in the 1990s and early 2000s for a home purchase.  With prices dropping 10-15 % in the last three years,homes are back to being affordable.  

Most home owners will now see a a slow increase in value, as buyers come back into the market. More home sales and smaller price declines means fewer homeowners will be upside down.  They will thus have less incentive to walk away and opt for foreclosure. When there is this stabilization of values, there will be a huge impact on economy.  Perceptions will change.


Yours Wanda Fears, Realtor ABR GRI CRS

"one of 4% of CRS designated agents in the country"

Please email or call me if you have questions about our market.


"We can work it out together" 804-909-2777 Wanda@wandafears.com  

    www.wandafears.com

Posted by

WandaFears, Realtor ABR CRS GRI WCR

Richmond, Va. Long and Foster Realtors

www.wandafears.com
wanda@wandafears.com


804-909-2777

www.facebook.com/wandafears

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