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.
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Preschoolers give pillows to families in need


A group of preschoolers from Chesterbrook Academy Preschool donated 56 pillows to local families in need at the Housing Families First shelter. The shelter is always in need of pillows and linens as, since families take the donated ones with them to their new homes.

Housing Families First provides shelter and support for homeless families and assist them in finding a permanent housing solution. The shelter serves people year-round, said Terri Iguina, operations and volunteer manager at Housing Families First. > Read more.

Dairy Queen’s Blizzard sales July 27 to benefit Children’s Hospital of Richmond


Dairy Queen’s 13th Annual Miracle Treat Day – Thursday, July 27 – will raise fund to benefit sick and injured children being treated at Children's Miracle Network hospitals throughout the United States. Locally, $1 or more from every Blizzard Treat sold at participating locations will be donated to the Children's Hospital of Richmond at VCU. Last year, the event raised more than $14,400 for the hospital. > Read more.

Crime Stoppers’ Crime of the Week: July 24, 2017


Crime Stoppers needs your help to find the person who struck a pedestrian in the City of Richmond.

On July 21 at 12:52 a.m., a woman was crossing the street at Forest Hill and Sheila Lane when she was struck by a dark colored four-door sedan that was traveling eastbound on Forest Hill. She was transported by ambulance to Chippenham Hospital for minor injuries and released. > Read more.

Henrico Police locate missing man

Henrico Police have located a missing 46-year-old Henrico man.

Police had reported Kevin William Cannelli missing this weekend, after he was last seen July 18. He was located safe in the Richmond area July 24. > Read more.

Business in brief


For the ninth year in a row, Puritan Cleaners is conducting a one-day-only community program that offers everyone in Richmond a free cleaning of one pair of pants. The event, called Free Pants Wednesday, will be held on Wednesday, Aug. 2. The offer is good at all 13 Puritan locations throughout the greater Richmond area with no strings attached. There are no minimums or other stipulations (other than suede and leather pants are excluded). This year, Puritan has partnered with the Richmond SPCA to help raise awareness for the Free Pants Wednesday program while also raising awareness for homeless kittens awaiting adoption at the Richmond SPCA’s humane center. The two organizations collaborated on a short movie which can be viewed at http://www.puritancleaners.com/community/free-pants-wednesday. This video is the latest in the light-hearted, low-budget, and intentionally campy videos associated with the Free Pants Wednesday program. Previous versions have featured racing at Richmond Raceway, ex-VCU basketball coach Shaka Smart, Todd “Parney” Parnell and the Flying Squirrels, and Bill Bevins and Shelly Perkins of Easy 100.9. > Read more.

Henrico Business Bulletin Board

July 2017
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Claire Lynch will perform at 8 p.m. at The Tin Pan, 8982 Quioccasin Rd. Lynch is a three-time IBMA Female Vocalist of the Year, a 2014 IBMA Song of the Year winner and Grammy nominee. Her latest album, the Grammy-nominated “North By South,” is a collection of tracks paying homage to some of her favorite Canadian songwriters, interpreting songs from “greats above the Great Lakes” like Gordon Lightfoot and Ron Sexsmith and infusing them with her signature acoustic treatment. Doors open at 6 p.m. Tickets are $22 in advance and $27 at the door. For details, call 447-8189 or visit http://www.tinpanrva.com. Full text

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