And the malaise continues…. Year to date, the number of sales for 2008 in the Metro Richmond Area trails 2007’s number by 34 %. As I have said before, this huge decline in number of sales should not continue through the entire year. Beginning in September of 2007, the final 4 monthly sales figure for sold units in 2007 are comparable to the monthly activity currently occurring. I am projecting that the metro Richmond market will finish 2008 with a decline of approximately 25 % in total homes sold.

     Now that the Democratic Party has a presumptive presidential candidate, I hope we will begin to see a more favorable news cycle. During the Clinton years, 5 % unemployment was referred to by the media as full employment. Therefore, our current 5.5 unemployment should not be portrayed as the end of the world. Currently, mortgage rates are fantastic, selection incredible and with the new FHA loan limit at $528,750, the Richmond market only lacks consumer confidence in order to return to its prior glory. Here are the numbers year to date. Please remember these figures are based on Richmond’s suburban areas and compiled using the Real Estate Zones of 10, 20, 22, 24, 30, 32, 34, 36, 40, 42, 44, 50, 52, 54, 60, 62, 64, and 66.

May YTD 2008 2007
Price Range  # of Sales % of Ttl Sales # of Sales % of Ttl Sales
0 - 99,999 153 4.43% 267 5.08%
100,000 - 199,999 1000 28.94% 1609 30.60%
200,000 - 299,999 1224 35.43% 1744 33.17%
300,000 - 399,999 516 14.93% 823 15.65%
400,000 - 499,999 248 7.18% 400 7.60%
500,000 - 599,999 133 3.85% 166 3.16%
600,000 - 699,999 65 1.88% 94 1.79%
700,000 - 799,999 42 1.22% 54 1.03%
800,000 - 899,999 27 0.78% 39 0.74%
900,000 - 999,999 6 0.17% 28 0.53%
1 Million plus 41 1.19% 34 0.65%
Total Sales/Pct. 3455 100.00% 5258 100.00%