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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Henrico Schools to host College and Career Night Nov. 1


Students of all ages are invited to investigate options for life after high school at Henrico County Public Schools’ 2017 College and Career Night. The annual countywide event offers a chance to talk with representatives of more than 100 universities, colleges and professional programs, as well as about 50 representatives of career options such as businesses and branches of the military.

College and Career Night will take place Wednesday, Nov. 1 from 6 p.m. to 8 p.m. at Henrico High School, 302 Azalea Ave. > Read more.

Business in brief


Henrico-based nonprofit Commonwealth Autism recently received the Standards for Excellence Institute’s Seal of Excellence for successfully completing its accreditation program. Commonwealth Autism voluntarily opened itself to analysis by a peer review team during the last 18 months that examined the organization’s compliance with the “Standards for Excellence: An Ethics and Accountability Code for the Nonprofit Sector.” These standards cover areas such as: mission, strategy and evaluation; leadership – board, staff and volunteers; legal compliance and ethics; finance and operations; resource development; and public awareness, engagement and advocacy. Commonwealth Autism was one of six organizations in the Richmond region to be recognized and the first in the region to achieve full accreditation. In addition to this accreditation, Commonwealth Autism is recognized as an Accredited Charity with the Richmond Better Business Bureau and holds accreditation from the Code of Ethics for Behavioral Organizations (COEBO). > Read more.

Purify Infrared Sauna opens at GreenGate


Purify Infrared Sauna recently opened its second Henrico location at GreenGate Shopping Center in Short Pump.

Owner Mary Woodbridge opened her first Purify location on Patterson Avenue in July 2015. The new store is located at 301 Maltby Boulevard, Suite C, west of Short Pump Town Center. > Read more.

Henrico Master Gardener training program accepting applications through Oct. 27


The Henrico County Office of Virginia Cooperative Extension is accepting applications for its next volunteer Master Gardener training program, which provides instruction in all aspects of horticulture.

Applications for the 2018 training program will be accepted through Friday, Oct. 27. Classes will be held from 9 a.m. to 12:30 p.m. Tuesdays and Thursdays from Jan. 16 through March 22. > Read more.

Henrico Schools to host Oct. 30 job fair


Henrico Schools will host a job fair Oct. 30.

The event, to be held from 10 a.m. to 2 p.m. at the Fairfield branch library, is designed to attract potential full-time and substitute registered nurses, instructional assistants, bus drivers and school nutrition workers. > Read more.

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October 2017
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The American Heart Association’s 2017 Richmond Heart Walk will start at 8 a.m. in West Creek Parkway (next to Richmond Striker’s Fields). Options include a 5K or a 3.1-mile non-competitive walk. Proceeds support life-saving cardiovascular research and community education programs in Central Virginia. Activities include an educational area, Kids’ Zone, tribute area, Stroke Center’s “Spot a Stroke F.A.S.T.” display, hands-on CPR training, entertainment and more. For details, visit http://tinyurl.com/HeartWalk2017. Full text

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