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 utility services number for metro area

Richmond city, Henrico, Chesterfield and Hanover county natural gas customers have a new number to call for their utility services.

The City of Richmond Department of Public Utilities has replaced its old number, (804) 646-7000 as well as 311, with it's new number, (804) 646-4646 for all calls relating to utilities. Utilities include natural gas, water, sewer, storm-water and electric street-lighting. > Read more.

Henrico County property transactions, July 10-16


A sample of property transactions during this period appear below:

3714 Pemberton Ave.- $105,000, 720 SF (built in 1957), from William F. Patton Jr. to Jessica Garcia.

510 Besler Ln.- $121,000, 964 SF (built in 1986), from Joseph and Coral P. Bolden to Taneen Marlow.

3502 Westcliffe Ave.- $140,000, 1,564 SF (built in 1947), from Benny H. Wilson Jr. to Benjamin A. Nyannor. > Read more.

FirstComp Insurance Company, Markel Corp. named top insurance carriers


Two Glen Allen-based insurance carriers have been named among the top such companies in the nation.

Markel Corp. and FirstComp Insurance Company (now owned by Markel) are among 38 carriers recognized on the Insurance Business America list of the top insurance carriers in the country. > Read more.

Walmart honors Citizen’s ‘Top Teachers’ during grand opening


The much-anticipated new Walmart Supercenter in Eastern Henrico opened to busy crowds last week, and company officials welcomed a special group of shoppers, too. > Read more.

‘It’s such a blessing’


On Independence Day, a Brazilian-born Henrico resident took the Naturalization Oath of Allegiance on the steps of the Virginia Historical Society and felt peace finally settle around her.

Jeanette Hamlett’s journey to U.S. citizenship is a story of faith and love, which she told with her husband, John Hamlett, by her side. > Read more.

Henrico Business Bulletin Board

July 2017
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SPARC’s SummerStarz Touring Ensemble will present “James and the Giant Peach Jr.” at several venues throughout the Richmond region including two in Henrico County: July 24 – The Cultural Arts Center at Glen Allen at 7 p.m.; and July 26 – Regency Square Mall at 12 p.m. and 6:30 p.m. Based on the beloved book by Roald Dahl. All performances are free. The July 26 performances will be sign-interpreted. For details and to purchase tickets, visit http://www.sparconline.org/tickets. Full text

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