As you know, I report monthly market conditions to Realty Times. Here are my comments for August:

            Okay, Brick, you’re always so positive. So tell me something good about the Richmond Real Estate Market.
 
Where do you want to start? Rates are fantastic. Yes, you’ll have to put something into the transaction, but you’ve always known there was “no free lunch.” Besides, my lenders are hungry and they’ve got lots of innovative programs. The selection of properties is simply UNBELIEVABLE. A buyers’ real problem is separating the wheat from the chaff. There are so many good buys out there, but they’re lost among all the inventory. So instead of looking at 10-15 homes to make a decision, you should look at 30. And if your agent is any good, they’ll jump up and down when they think you’re passing up an opportunity. I know that’s what I would do. I’ll also bang on the desk, if you’re making a mistake. Want more?
 
I know I sound like a broken record, but sales price/list price ratio is showing very little discounting – under 2 % depending on the area. Believe it or not, dollar per square foot costs are very level; and in many areas, the cost is up for the year. Days on market for sold properties have stabilized at approximate 60 days.
 
The market is very bottom driven. Through August, 66 % of the total sales for the year sold at under $300,000 with 83 % of the sales at under $400,000. 1 in 3 sales for the year have had a sales price between $200,000 – $299,999.
 
While 2007 sales for the Richmond area are trailing 2006 sales by approximately 5% presently, August final numbers, which should be out in about a week, should equal August 2006 numbers. My real concern is for the final 4 months of 2007, since pending sales were off significantly in August. My projection for 2007 sales suggests we may end 2007 with 8 % less sales or 1,200 fewer sales. The difference between 2006 and the record year of 2005 was less than 400 sales, so this is a significant drop.
 
So why the big drop? Weak job market? Lousy mortgage rates? Horrible economy? No, no and no. It’s the media as usual. They’ve been calling for the real estate meltdown for 7 years. Well, now they’ve got it from hyping the sub prime mortgage markets. I hope every media person gets their dream job requiring relocation, but don’t get offered a relocation package and are then forced to sell their home in this market they have created.
 
If you’re a buyer, there are and will be some incredible opportunities arising as we progress through the year. “Must Sell” situations are increasing; and with them fantastic opportunities for “in the know” buyers. So how do you become an “in the know” buyer? Find a skilled negotiator and listen to what they have to say.
 
To assist you in becoming an “in the know” buyer, I am adding some new statistics to my monthly reporting. From now on, I will show the sale activity by price ranges with a percentage for what those price ranges comprise of the particular market. For buyers, you’ll be able to know if your desired price range can be obtained in particular area and how many homes have sold in that range. For you sellers, you’ll be able to project the type of activity you should see. For you homeowners, if your home’s value falls within a range with a particular high percentage activity, it may well be time to move up and pick off one of those "must sell" situations.
Here’s a sample of my new reporting. This breakdown is for the entire Metro Area (Richmond – Zones 10, 20, 30, 50, & 60; Henrico – Zones 22, 32, 40, & 42; Hanover – Zones 36 & 44; Chesterfield – Zones 52, 54, 62 & 64; Goochland – Zone 24; and Powhatan – Zone 66.
Metro Richmond Sales
Through August 2007
Price Range  # of Sales % of Ttl Sales
0 – 99,999 363 4.01%
100,000 – 199,999 2,567 28.38%
200,000 – 299,999 3,064 33.88%
300,000 – 399,999 1,520 16.81%
400,000 – 499,999 702 7.76%
500,000 – 599,999 320 3.54%
600,000 – 699,999 200 2.21%
700,000 – 799,999 112 1.24%
800,000 – 899,999 71 0.79%
900,000 – 999,999 47 0.52%
1 Million plus 78 0.86%
 
Now more than anytime recently, sellers need a seasoned agent. Pricing and marketing homes to sell is learned through experience. Don’t trust your largest asset to some green agent and certainly not to any agent who tells you exactly what you want to hear. Hire a PRO. I am and have been one for years.
I also report statistics (i.e., average sales price, sales price to list price ratio, median sales price, days on market, average size, and average dollar per square foot costs) for various submarkets (i.e., Chesterfield, Glen Allen, Mechanicsville, and Midlothian.) If you have an interest in these stats, you may find them here.  My new reporting on price range sales and their percentage of the particular market will also be found there. You will need to scroll down beyond the generic introduction.