Positive Signs in Housing Market

The data is in and we wanted to be the first to share the good news with you! The positive first quarter results indicate that our region's housing climate is on the road to recovery. Sales for Metropolitan Richmond (City of Richmond, Chesterfield, Hanover and Henrico) were up 9% over first quarter 2009. Moreover, pending sales demonstrated even greater improvement with a 22% increase - a strong indicator of next quarter's sales.

We are pleased as punch to share this good news about the current housing market in Richmond. And while the sales data is improving daily, we must realize that the recession was deeper than most thought and that recovery will not be a "V", but rather it will be more gradual growth.

What does that mean for Buyers and Sellers?
"If Sellers will take note of the overall economy and the housing market we're in and PRICE their homes accordingly, and if Buyers will recognize that now is the time to buy before interest rates climb, then we should continue to see solid market growth" stated Karen Smith, 2010 President of Richmond Association of REALTORS. Central Virginia including Metro Richmond are still in a state of flux and will most likely remain so for the next six months or longer. While we are seeing signs that sales are improving, it remains unclear how much is due to federal government efforts and the homebuyer tax credit. We attribute the increase in sales to still-low interest rates and pent up demand. We know we have been preaching to you over and over to act now if you are a Buyer- Prices have now reached levels that have not been seen since before the housing bubble! And if you are a Seller, your house may be worth more today than in the next year. Why? Because as the sales data improves, homeowners gain confidence and will likely put their homes on the market. Supply of homes will increase dramatically and create a surplus of inventory thus creating further downward pressure on price.