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

     For me, I am tired of hearing from every newbie agent, the news media or any Tom, Dick or Harry you might meet on the street that the Richmond Real Estate Market like other areas of the country has tanked, so I am adding a new statistic to my monthly reporting. From now on, I will report a Sales Price to List Price Ratio. If we were in as dire a market as the public is being led to believe, you would be witnessing larger discounts off the list price of properties. For the month of October 2006, the largest discount in the 5 submarkets of the greater Richmond area on which I report was 3.17 % in Glen Allen. For the other 4 areas, the discounts ranged from 0.61 % to 2.10 %. Historically, 2.5 % off the list price has been considered an appropriate discount in a market, which is in equilibrium.
 
     Numerous other factors belie the dire market scenario for the Richmond area. Cost as valued in Dollars per Square Foot is up across the board for the year. My lender contacts are reporting many clients doing “cash outs” where owners are taking maximum mortgages on their properties. Obviously, the “smart money” believes that their equity can be hedged for a higher return elsewhere. Finally and most importantly, our million dollars sales are already 25 % higher than last year’s record number and we got 2 months left in the year! If we were in the tank would the highest end of the market be performing so well?
 
     I know I sound like a broken record, but for Buyers, there is more inventory than at any point in last 5 years currently available. Besides wonderful inventory, there is an extremely relaxed environment in which to make an informed and unrushed decision. Rates continue to track downward and with increased inventory, there are more “must sell” opportunities. For sellers, they are still discovering buyers want “perfection” and a fair market price. Homes in prime condition are the ones with the sales advantage.
    I also report statistics (i.e., average 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.