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

New law paves way for delivery robots

Having your groceries delivered by a robot sounds like something out of The Jetsons, but that prospect is not as futuristic as you may think.

For the second year in a row, the Virginia General Assembly has passed a law to legalize the operation of autonomous vehicles. Beginning July 1, “electric personal delivery devices” will be allowed to operate on sidewalks and other shared-use paths throughout Virginia.

> Read more.

Virginia schools must soon test for lead in water

With the water crisis in Flint, Michigan, safe drinking water is a high priority nationwide, especially for children. Beginning July 1, schools in Virginia will be required to test their potable water for lead.

Senate Bill 1359, which Gov. Terry McAuliffe signed into law on March 20, seeks to ensure that local school boards test the drinking water in schools and that it meets federal guidelines. The Food and Drug Administration recommends that the level of lead not exceed 15 parts per billion. > Read more.

Business in brief


The Virginia Society of Certified Public Accountants (VSCPA) has announced its officers and Board of Directors for the 2017–18 fiscal year. At-large Board members include: Anne B. Hagen, CPA, of Masonic Home of Virginia in Henrico. The officers and directors were sworn in at the VSCPA’s annual business meeting on May 16 in Williamsburg. > Read more.

Free weekly 5k coming to Henrico

The Richmond metro area is no stranger to 5k races and events. To participate in most 5k events, runners must register and pay a fee. But the Parkrun organization will be providing Henrico County with a free 5k every Saturday at Deep Run Park starting June 3.

Parkrun began in England in 2004 and eventually found its way to the U.S.

The Deep Run Parkrun program will be the 10th one in the U.S., said Darrell Stanaford, the country manager for Parkrun USA. > Read more.

State Police urge motorists to #MoveOver during Memorial Day weekend

Memorial Day signifies the official start of summer, and Virginia State Police officials are urging motorists to "do what’s right when they see lights" and move over.

The “Move Over” law is a lifesaving law intended to protect public safety professionals and highway workers who help to maintain the safety of the Commonwealth’s roads. State Police are using the #MoveOver hashtag on social media to promote the law. > Read more.

Henrico Business Bulletin Board

May 2017
S M T W T F S
·
1
·
·
·

Calendar page

Classifieds

Place an Ad | More Classifieds

Calendar

West Broad Village’s Rock & Roll Summer outdoor concert series continues at “The Pad,” adjacent to Aloft Hotel at 3939 Duckling Dr., from 7 p.m. to 10 p.m. Even Better Than the Real Thing, a U2 tribute band, will perform. The concert is free and open to the public. Several parking decks feature free parking. The series continues every other Friday through August. For details, visit http://www.shopwestbroadvillage.com or www.facebook.com/WestBroadVillageShopping. Full text

Your weather just got better.

Henricopedia

Henrico's Top Teachers

The Plate