Housing market rebounding?

Laura Lafayette
The housing market in Henrico and metro Richmond area appears to be headed in the only direction it could go -- up. That was the general consensus of attendees at the Richmond Association for Business Economics’ luncheon last month at the Federal Reserve Bank of Richmond, following a presentation by Richmond Association of Realtors CEO Laura Lafayette.

“What I took away, and what I think [everyone else is] taking away as well is the real estate market has really bottomed out in the Richmond region,” said RABE president Charles Kennington. “And going forward, we’re going to see more good news than bad news.”

The numbers showed that the units sold in Virginia declined every year from 2005-2010, with last year showing the first signs of improvement (slightly more than 11,000 in 2011 compared to about 10,600 in 2010).

Lafayette pointed out that, while the units sold rebounded slightly in 2011, each county saw a significant drop-off in average selling price. Henrico witnessed the biggest decrease, with units selling at an average of $230,823 in 2011 compared to $250,535 in 2010, a decrease of nearly 8 percent.

While her overall comments were encouraging, Lafayette warned that the number of units sold in 2005 (just more than 20,000) was probably more than the Richmond area could maintain, adding that 2007 totals (about 15,800 units) were a more attainable goal.

“We’re just looking for the market to behave normally,” she said, “not take off.”

Henrico did rate better than the other counties in other categories, though, such as active listings (1,275 as of May 20), sold vs. listed percentage (60 percent) and average sales per month (245). Henrico also rated well in average days on market (DOM), with 70 the current average for May 2012.

Lafayette, though, told attendees not to pay attention to DOM because real estate agents “can be creative.” An agent can re-list a house by taking the property off the market for a couple hours and putting it back on. This process gives the property a new Multiple Listing Service (MLS) number and resets the DOM.

Lafayette stressed the significance of the average list price of newly constructed homes compared to that of resold homes (those built since 2006). New homes in Henrico were listed, on average, for $375,926 compared to $348, 937 for resold homes. Other counties saw an even larger difference.

“We need to get resale price closer to new price,” Lafayette said.

The big difference is scaring off potential new-home buyers because of the appearance that their investment almost immediately loses value, she said.

Nationally, the housing market had its best first quarter in five years, and foreclosures are down significantly, she said. In Virginia, the percentage of units sold has been up every month except for March, though Lafayette said she wasn’t concerned about the change (about half a percent).

There is a concern, though, that the good numbers for January and February may cause a softening in May and June, normally the highest selling months, she said.

There is a stubbornness on the part of some “boomers” to not sell their properties now because they’re bitter about the fact that they could have sold them for more years ago, she said.

“People’s 401k has become their 201k,” she joked.

RABE has about eight to 10 regular luncheons each year on topics relevant to the Richmond community, Kennington said.

“Clearly, real estate, having suffered the downturn that it did, is something we think is on the minds of our members and the public at large,” he said.

“When we reached out to Laura, we didn’t know what her message was going to be. So, whether it was good or bad, we just want to see what the facts are to inform our membership.”

Next month, RABE will host Virginia Secretary of Finance Ric Brown, Kennington said.
Bail Bonds Chesterfield VA

Crime Stoppers’ Crime of the Week: Sept. 18, 2017


Crime Stoppers is seeking information about a shooting in Richmond that resulted in an injured child and the murder of an adult.

At approximately 10:21 p.m., Sept. 9, Richmond Police were called to the 3200 block of 5th Avenue for a report of a person shot. They quickly located two victims suffering from gunshot wounds, a 57-year-old male and a 9-year-old female. > Read more.

Business in brief


Commonwealth Senior Living at the West End, located at 2400 Gaskins Rd., will hold their grand opening on Oct. 3 from 4:30 p.m. to 6:30 p.m. The community recently underwent a multi-million-dollar renovation which included the addition of a new memory care neighborhood, new resident suites, an expanded dining room, and brand-new courtyards and additional outdoor spaces. Commonwealth Senior Living associates will be on site to provide tours of the newly renovated community. > Read more.

Wegmans to sponsor Turkey Trot 10K


Wegmans Food Markets Inc. will become title sponsor of the Richmond Road Runners Club’s annual Turkey Trot 10K, a Thanksgiving Day tradition for many Richmond area runners.

Wegmans and RRRC have signed a three-year agreement whereby the race, beginning in November 2017, will be known as the Wegmans Turkey Trot 10K. RRRC will continue to manage race operations. > Read more.

Publix to open at Virginia Center Marketplace Oct. 11


Publix will open its next Henrico location at 10150 Brook Road in the Virginia Center Marketplace shopping center in Glen Allen Oct. 11 at 7 a.m. The store will host a grand opening ceremony at that time.

The location will be the Florida chain's fifth in Henrico, joining those already open at Nuckols Place and The Shoppes at Crossridge in Glen Allen, The Shops at White Oak Village in Eastern Henrico and John Rolfe Commons in the Far West End. > Read more.

Statewide tax amnesty period underway


Delinquent individual and business taxpayers in Virginia can pay back taxes with no penalties and half the interest from now through Nov. 14, as part of the 2017 Virginia Tax Amnesty Program, which began Sept. 13.

Approved by the 2017 General Assembly, the program assumes collection of $89.5 million for the general fund to support education, health, and public safety, as well as to provide a cash reserve. > Read more.

Henrico Business Bulletin Board

September 2017
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Lakeside Moose #1714 will present “Get Down in the Bottom” with The Embers, featuring Craig Woolard, from 2 p.m. to 5 p.m. at 1207 Hilliard Rd. DJ Tim Wade will open the event from 12 p.m. to 1:30 p.m. Food and drinks will be available for purchase. Tickets are $25 in advance and $30 at the gate. Proceeds benefit girls of the Virginia House at Moose-heart, a school founded in 1913 by the Moose fraternal organization that is home to children of all ages. Moose-heart, located just west of Chicago, is a place where children can stay in a safe, secure and nurturing environment while receiving a top-notch education. Open to the public. For details, call 266-4193. Full text

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