Amid the national financial uncertainties and news about the economy and stock markets, the Central Virginia and Richmond economy and housing market are out-performing the country and most metropolitan areas. It is expected that the area’s economy will continue to have moderate growth in spite of the national economic turbulence.
More significantly, the region’s housing market is showing signs that it may have passed the worst and may be starting the road back to being more normal, although it will take some time to overcome the national economic issues. It is also important to note that the 4th quarter of each year is usually slow, and that if better market conditions are on the horizon it would more likely be in the spring.
• Sales activity was significantly stronger in the 3rd quarter of 2008 than in the 1st half of the year. After substantial declines in sales in both the 1st and 2nd quarters of 2008 compared to 2007, sales activity in the 3rd quarter was down only slightly compared to 2007. Sales were up in the Richmond Metro and Tri Cities areas.
• Sales up in the MLS’s biggest markets. Compared with the 3rd quarter of 2007, sales in the 3rd quarter of 2008 were up by about two percent in Henrico County and the City of Richmond. Overall, sales in the Richmond Metro Area were up 1.6 percent in the 3rd quarter of 2008 compared with the 3rd quarter of 2007.
• Prices remained flat in the 3rd quarter of 2008. Continuing the trend in the first half of 2008, home prices in the Central Virginia MLS were relatively flat in the 3rd quarter of 2008 compared with a year earlier. Prices in the Richmond Metro Area were virtually unchanged while prices in the Tri Cities Area were up 1.4 percent.
• The foreclosure situation is abating. The Central Richmond area shows improvement since the mid-summer as foreclosures have declined 22 percent.
source: CVRMLS
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