Long & Foster Richmond Housing Market Indicators

 

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 RICHMOND HOUSING MARKET INDICATES

INCREASING PRICES, STABILIZING INVENTORY

CHANTILLY, Va., August 26, 2010-

The greater Richmond real estate market, including Chesterfield, Henrico, Hanover and Goochland counties and Richmond City, has continued to experience stabilizing trends compared to July of last year, according to The Long & Foster Market Minute^TM reports. Though the pull-forward phenomenon of the homebuyer tax incentives continued to impact sales across the region in July, many areas in the greater Richmond region experienced increases in median sale price compared to a year ago.

The Long & Foster Market Minute^TM

reports are compiled from data from residential real estate transactions within specific geographic regions, not just Long & Foster sales.

In July, active inventory in some areas of the Richmond region decreased compared to July of last year due to the effects of the now-expired tax credit, as well as recent affordability conditions and record-low mortgage rates. In Goochland County, Hanover County and Richmond City, July's data suggests that active inventory may be moving toward stabilization, as these areas experienced year-over-year decreases of 13 percent, 3 percent, and 1 percent, respectively. In Henrico County, inventory was virtually unchanged versus July 2009 and Chesterfield County saw a modest 4 percent increase in total inventory.

The average number of days a house remained on the market before going under contract varied throughout the region, but generally the data indicates stabilization or improvement in days on market (DOM). In Richmond City, DOM fell to 58 days, down 19 percent year-over-year. Henrico experienced a 2 percent decrease in its DOM to 65 days. In Chesterfield County, DOM increased 14 percent compared to July last year to 80 days, and Hanover County saw an increase of 19 percent to 92 days. Goochland's DOM was up 11 percent year-over-year to 97 days.

Strong sales activity in recent months has driven increases in median sale price throughout the Richmond region, particularly in Henrico County and Richmond City, which experienced year-over-year median sale price increases in July of 18 percent and 13 percent, respectively, to $230,000 and $190,250. Hanover County's median sale price increased 5 percent year-over-year to $258,000 and Goochland's rose 9 percent in July to $392,000. Though median sale price in Chesterfield County fell 4 percent versus the same month a year ago, this area has been stabilizing since the start of the year. This is likely due, in part, to the demand spurred by the tax incentives and record-low mortgage rates.

As expected, the local market continued to feel in July the impact of the pull-forward phenomenon created by the tax incentives offered to homebuyers through the end of April, with year-over-year decreases in sales in most areas ranging from 34 percent to 44 percent. Other areas were less affected by the end of the tax-credit-inspired demand, according to July data, perhaps also a result of continued affordability conditions and dropping interest rates. Goochland County, for example, saw a 24 percent year-over-year increase in sales.

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Richmond Housing Market Experiences Increasing Prices 2

"We knew when we saw buyers rushing to the table this spring to take advantage of the tax credit that we would see some ripple effects throughout the summer in terms of sales," says Jeffrey S. Detwiler, president and chief operating officer of The Long & Foster® Companies. "But with ideal affordability conditions and mortgage rates remaining at record lows, we may see continued strengthening in the marketplace in the second half of this year."

"The Long & Foster Market Minute reports help consumers make educated decisions on how they can best fit into today's real estate market," says Barry Redler, chief marketing officer for the Long & Foster Companies. "With the guidance of their experienced Realtors, buyers and sellers are likely to find that, while national headlines are painting a picture of a down housing market, there are actually opportunities in the local marketplace worth exploring."

The Long & Foster Market Minute^TM

is an overview of market statistics based on residential real estate transactions and presented at the county level. The easy-to-read and easy-to-share reports include information about each county's units sold, active inventory, median sale prices, months of supply, new listings, new contracts, list to sold price ratio, and days on market. In addition to more than 100 counties in seven states it currently covers, The Long & Foster Market Minute will include more counties in future releases.

The Long & Foster Market Minute^TM reports, available at no charge at www.LongandFoster.com, is one tool of many that the firm provides its sales associates so that they can help homebuyers and sellers make informed decisions.

About Long & Foster® Real Estate, Inc.

Long & Foster® Real Estate, Inc. is the largest independently-held residential real estate company in the United States. The company is part of The Long & Foster® Companies, which also includes Prosperity Mortgage® Company; Walker Jackson® Mortgage Corporation; Long & Foster Insurance Agency, Inc.; and Long & Foster Settlement Services. Long & Foster Real Estate, Inc. represents more than 12,000 agents in seven Mid-Atlantic states, plus the District of Columbia. The company sold more than $25.3 billion worth of homes and helped people buy and sell homes 78,281times in 2009. The Long & Foster Companies 2009 combined sales for the year were in excess of $51.5 billion. Visit us at longandfoster.com.