Yesterday, the Virginia Association of Realtors announced that home sales for June 2006 were down 19% from June last year. There is no question that the Richmond area has been in a softer market for some time now. For most of the country, this is true, too. Here, the softness began shortly after Hurricane Katrina, when the national media terrified the public with stories of unaffordable gasoline and winter heating fuel costs. As the media saw it, we would not be able to afford the gas to get to work much less the fuel necessary to heat our homes for winter.

    Balderdash said the public. By Christmas, buyers were back out in force and it appeared 2006 forebode a strong market. While the Winter and early Spring markets were steady, the Richmond real estate market did not exhibit the frenetic nature which has driven it for the last few years. Buyers actually had a few days to decide on a property rather than a few minutes. All year inventory levels have increased. We are now in a very neutral market, where buyers have an array of good product and relaxed environment in which to make a decision.