Richmond, VA - 2009 4th Quarter Housing Update

The numbers are in and home sales nationally have improved in the second half of the 2009!

Sales Activity in the Richmond Metro Area for the 4th quarter, was up 38% over 2008! More than half the homes sold in this quarter were priced below $200,000. By contrast, in 2008, only 40% of homes sold were under the $200,000 price range. The uptick in sales activity was driven by the 1st Time Home Buyers Tax Credit.

Home Prices in Central Virginia including Metro Richmond were down 14% in 2009 compared with 2008. Prices were down in every quarter of 2009 and there is still little evidence that they have reached a turnaround point.

The Outlook for 2010....calls for an increase in sales activity for the first half of 2010. As the number of potential buyers increases in early 2010, so will the confidence of potential sellers. As a result, it is expected that the number of listings will multiply, giving buyers more options.

While sales activity will likely continue to improve, it is not certain that prices will rise. Foreclosures remain a potential problem as the economic recovery continues to unfold. These homes will generally be lower-priced and will continue to dampen prices in the overall market. Second, sellers have been holding off listing their homes, therefore, it is possible that the new supply of homes may be greater than demand, keeping prices from rising appreciably.