I report monthly market conditions to Realty Times. Here are my comments for June:

     Two months in a row. Brick isn’t happy and don’t mean I am one of the Seven Dwarfs unless it is Grumpy. I was convinced at the beginning of ’07 that Richmond would have a great Spring Market after a somewhat lackluster Spring Market in 2006.  Maybe 2006 wasn’t so lackluster after all. While May saw 100 + less homes sold in comparison to May ’06, my preliminary numbers for June indicate 2007 will lag June ‘06’s numbers by almost 350 units. Although I won’t be certain about these figures until CVMLS (Central Virginia Multiple Listing Service) reports its numbers to VAR (Virginia Association of Realtors) at mid-month, there is little doubt that 2007 sales are trailing 2006 sales by almost 5 %. Holy cow, Batman, we’re only halfway through the year. No kidding – and considering 2006 year end sales lagged the record 2005 sale year by 3.5 %, ‘we’ve got trouble - right here in River City.’ (My apologies to Harold Hill and The Music Man.)
 
     May through August sales are historically about 40 % of the entire year’s sales. Should July or August continue the May and June trend, the Richmond market could well end the summer in 7 – 8 % deficit for total sales in ’07 versus ’06. The Richmond real estate market is just awash in inventory. The inventory level at its highest point in 2006 was approximately 9,600 properties for sale.  Today, this figure is over 11,500. Frankly, there is just too much choice out there for buyers and buyers have absolutely no motivation to make a decision. When you add in any uncertainty in consumer confidence, than the market’s ennui is understandable. Daily I am seeing an increasing number of properties “expiring” unsold, more and bigger price reductions, increased incentives from builders, and even (gasp) lenders offering concessions. 
 
     Despite these current cloudy skies, there are a several silver linings to be found. Dollar per square foot for sales has increased all year. Sale prices have remained constant with little discounting. My list price/sale price ratio reveals discounting at under 2 % for the 5 municipal areas I cover. Million dollar sales continue to blowing away 2006’s record pace. Days on market, for what is selling, is unchanged.
 
     So what should we look for going forward, Brick? If you’re a buyer, there are and will be some incredible opportunities arising as we progress through the year. Sellers across the board are slowly realizing the market has turned and it’s a buyer’s market. “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. Personally, this isn’t the first time I’ve been to the rodeo. If you, too, had been a real estate agent in the Jimmy Carter years and survived, than you know this market ain’t nuthin’   
 
     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 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.