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

      Like Howard Beale, in the 1976 movie, Network, “I’m mad as hell and I am not going to take this anymore.” Well, Brick, you are an old curmudgeon; so what is it this time? It’s all this hubbub about sub prime mortgages. First, it was the years of predicting a housing bubble. Then it was the dire market reports all during 2006. Well, here’s what I want you to do from now on.

      Whenever you hear, see, or read anything about the housing market, I want you to envision a blinking red disclaimer of “DOES NOT APPLY TO THE RICHMOND REAL ESTATE MARKET” scrolling across your mind. The market here is fantastic. While inventory levels are high, activity is robust. Yes, days on market is up, but it is completely a factor of the inventory levels. More important numbers such as sales price/list price ratio shows insignificant pricing discounts. Dollar per square foot cost is and has been constant with modest increases. At mid-month, I will blog about the first quarter of 2007 in comparison to the same quarter in the record year of 2005 and 2006. If I have read my tea leaves correctly, I am confident that I will be reporting better numbers than in 2006 and ones rivaling 2005. Visit BrickSmith.com at mid-month or subscribe to my blog by visiting my site now.

 

     With the increased inventory levels, Buyers continue to enjoy multiple choices and the freedom to make their decision at their own pace. For Sellers, their days on market have increased, since obtaining the requisite number of showings to garner a contract takes longer due to inventory levels. While this condition is frustrating for Sellers, they must keep their perspective and realize the end result is still the same and their property will sell. The only difference from our recent boom market is that Sellers must keep their property in top showing condition longer due to their property showings being spread out over a longer period. And Buyers, don’t think the old rules don’t apply. The best properties still sell immediately. The old adage of “If you have to sleep on it (your decision), you won’t sleep in it (the home)” is as true today as it has ever been.

I also report statistics (i.e., average sales price, sales price to list price ratio, 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.