I report monthly to Realty Times the market conditions for Richmond area. Below are this month’s comments for January:

     This month marks the first time that I have one year of data reporting in this current format. From this time on, I’ll be able to make meaningful year on year comparisons, which should allow me greater accuracy in reporting the current market trends. So just what can I glean from my ever growing databank about Richmond’s current market condition?

     The next few months will determine if our recent slowdown will continue. Year to year comparisons for January 06 to January 07 have some favorable indications. While overall inventory levels are substantially increased, the number of homes placed under contract for January 2007 match almost identically with 2006 figures. In January 2006, I felt we were finally overcoming the effects of Hurricane Katrina. In fact, I was surprised how strong the market was as 2006 began. What did not materialize in 2006 was the historic Spring Market. I firmly believe that we will see an above average Spring Market; not only because 2006 lacked one, but none of the historic factors for a real estate slowdown currently exist or have existed for the last 15 months. The fact that we are in a slowdown despite low interest rates, full employment, rising wages and an all time high stock market flies in the face of past slowdowns. What is absence is consumer confidence.

     Want to know what I am confident about?  If you’re a buyer and are still hem hawing around about buying, than I can assure you the home you want to buy will only get more expense. Why? Despite a slower 2006 compared to 2005, the average home sale price increased by approximately 13 % in 2006. Inventory levels are starting to moderate. Why not get out there while some real bargains still exist. If I am right about the Spring Market, there could be no better time than right now.

 

     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. You will need to scroll down beyond the generic introduction.