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

Smither named director of Henrico’s Department of Finance

Henrico County Manager John A. Vithoulkas has appointed Edward N. “Ned” Smither Jr. to serve as director of the Department of Finance, effective July 1.

Smither has served Henrico since 2013 as director of the Accounting Division in Finance. He will succeed Eugene H. Walter, who has delayed his retirement until June 30 to ensure an orderly transition within the department.
> Read more.

State honors EMS officials this week

There were nearly 1.5 million emergency medical services calls and 4,063 incidents per day in Virginia just last year.

This week, May 21-27, declared as National EMS week by Gov. Terry McAuliffe, recognizes the more than 34,000 EMS personnel and 631 agencies in the state and commends their efforts and commitment to Commonwealth citizens.
> Read more.

Norfolk man arrested at RIC after TSA catches him with gun

A Norfolk man was arrested at Richmond International Airport May 18 after Transportation Security Administration officers detected a loaded semi-automatic handgun in the traveler’s carry-on bag.

A TSA officer detected the .40 caliber semi-automatic handgun inside the man’s carry-on bag as it passed through the security checkpoint X-ray machine. The handgun was loaded with 13 bullets.
> Read more.

Police release photo of hoax bomb

Henrico Police have released a photo of the clock that resembled a bomb that led to the arrest of a Richmond woman in Shot Pump earlier this week.

The device, which the woman told police she purchased at a yard sale, was visible in her car at the Whole Foods at West Broad Village May 19, and a passerby called police, fearing it was a real bomb. Police responded as they would have had the device been real, they said, because they weren't sure if it was real or not.
> Read more.

Henrico school buses with compliance issue to be fixed this summer


The 176 Henrico school buses that have been purchased since March 2011 will be fixed during the summer, Henrico Schools spokesman Andy Jenks told the Citizen. The bus manufacturers will retrofit the buses at no cost to the school division, he said.

The brake interlock device is required on all automatic transmission buses in Virginia that were purchased after March 2011, which is when the device was added to the state Board of Education's requirements for school buses. As many as 4,000 school buses in the state may be affected, according to the Virginia Department of Education.
> 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

Senior citizens group Elderberries will meet at 11:30 a.m. at the American Legion Post #244, located at 2522 Indale Rd. in Glen Allen. Everyone is welcome. The group meets the second Wednesday of each month, year-round. For details, call Brenda Anderson at 672-0074. Full text

Your weather just got better.

Henricopedia

Henrico's Top Teachers

The Plate