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1 1
The Greater Richmond Real Estate Market
Lacy Williams Joyner Fine Properties
December 2013
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2 2
Background • This report is designed to provide information on the Richmond VA
housing Market as well as the National Market. • Graphs in this report on the National Market are obtained from
Keeping Current Matters and from the National Association of Realtors (NAR). For additional information on Keeping Current Matters, or to subscribe to this service, please go to www.KeepingCurrentMatters.com. For additional information on the National Association of Realtors, go to www.realtor.org.
• The graphs and analysis of the Richmond area are produced by Lacy Williams of Joyner Fine Properties using the Central Virginia Regional Multiple Listing Service (CVRMLS) data. Data was extracted in December 2013 for most of the graphs. The Greater Richmond area is defined as the city of Richmond and the counties of Henrico, Chesterfield, Hanover, Goochland and Powhatan.
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3 3
The National Market
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4 4
Return on Investment
64.3
-.1
26
42.1
Dow S&P NASDAQ Real Estate
January 2000 – November 2013
MSN Money.com, Case Shiller
In spite of recent downturns, real estate continues to be the best long term investment even with the downturn from 2006 to 2012.
Source: Keeping Current Matters 11/13
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5 5 NAR 8/2013
Sales Started Sustained Recovery
September 2011
Prices Started Sustained Recovery
June 2012
Inventory Started Sustained Recovery
January 2013
National Real Estate Recovery
Source: Keeping Current Matters 9/13
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6 6
Post-WWII Rescissions
Source: Keeping Current Matters 12/13
This graph shows job losses in each recession since World War II. As you can see in red, this recession has been deeper and longer than any other recession. The housing market is largely dependent of employment and the number of jobs.
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Average Annual Appreciation
Home Price Expectation Survey 2013 4Q
Source: Keeping Current Matters 11/13
Nationwide average annual appreciation has been 5.1% for the past 2 years. Appreciation is expected to return to a normal level of 4.2% for the next few years..
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8 8 S&P Case Shiller 11/2013
Year-over-Year Change in Prices
Source: Keeping Current Matters 12/13
After sharp price increases in the spring of 2013, prices are returning to a normal escalation level.
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9 9
Home Price Expectation Survey
Projected Percentage Increase Home Price Expectation Survey 2013 4Q Source: Keeping Current Matters 11/13
The Home Price Expectation Survey is a yearly survey of over 100 leading real estate experts, economists, and financial analysts. This graph is the average of their predictions on price increases for the next 5 years.
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Home Price Expectation Survey 2013 4Q
Cumulative Appreciation by 2018
Source: Keeping Current Matters 11/13
The cumulative appreciation for the next 5 years (2014-2018) is expected to be 28%.
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11 11 FHFA 3Q Home Price Index11/2013
Year-over-Year Price Changes by Region
Source: Keeping Current Matters 12/13
Prices are now rising in all areas of the country.
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12 12
FHFA 3Q Home Price Index11/2013
Year-over-Year Price Changes by State
Source: Keeping Current Matters 12/13c
Overall prices rose by 4.8% in Virginia. The Richmond area is a little higher with year over year price increases at 6.5%
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13 13
Months Inventory of Homes for Sale
NAR 11/2013
5-6 Months = Normal Market Inventory
Source: Keeping Current Matters 12/13
Nationwide, inventory levels are at a normal level of 5 months.
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14 14 NAR 10/2013
35%
14%
Percentage of Distressed Property Sales
Source: Keeping Current Matters 11/13
Nationwide, Distressed properties continue to decline with monthly variations.
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15 15
CoreLogic11/2013
Distressed Properties
Months Supply
Virginia is also doing well in the reduced level of Distressed Properties.
Source: Keeping Current Matters 12/13
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16 16
$175K
$215K
By FSBO By AGENT
Nationwide, sales with a Realtor are higher than For Sale by Owner (FSBO). However, studies have shown that people are more likely to FSBO in markets with lower price points.
Typical Sold Price: FSBO vs. Agent
Source: Keeping Current Matters 11/13
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17 17
5
7
9
11
13
15
17
19
1991 1993 1995 1997 1999 2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
The percentage of homes selling as a FSBO has decreased from 19% to 9% in the last 20 years
FSBOs as a Percentage of all Home Sales
Source: Keeping Current Matters 12/13
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18 18
Mortgage Rate Projections
Analyst Projected Rate 3Q 2014
Fannie Mae 5.0% National Assoc of Realtors 5.4% Freddie Mac 5.1% Mortgage Bankers Assoc 5.0%
7/2013
Source: Keeping Current Matters 11/13
Mortgage rates have gone from approximately 3.5% to 4.5%. Mortgage rates are projected to go higher during the next 12 months as shown in this graph.
Property of Lacy Williams, Joyner Fine Properties
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19 19 Zillow 8/2013
3.2 million homeowners have been
freed from negative equity in the last twelve months.
million additional are expected to be freed in the next twelve months. 1.9
Negative equity occurs when the homeowner owes more on the house than it is worth. Negative equity has been one factor causing short sales and foreclosures.
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20 20
Greater Richmond Housing Market
Note: All Greater Richmond graphs include the city of Richmond and the counties of Henrico, Hanover, Chesterfield, Goochland and Powhatan. All data is taken from the Central Virginia Regional Multiple List Service (CVRMLS)
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21 21
Market Indicator #1: The Number of Sales is Up!!!
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22 22
Greater Richmond Single Family Closed Sales
1273715262 15533 16450 15074
126449482 9069 8574 9051 10177 10545
05000
100001500020000
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
(Thru
12/9)
Year
No o
f Clo
sed
Sale
s
Number of Single Family House Sales by Year
The number of single sales dropped every year from 2005 to 2010. The number of sales in 2010 was approximately half of the number of sales in 2005. After 5 straight years of declining sales, the number of sales in 2011 was 5.5% higher than 2010 and 2012 sales were 12.5 % higher than 2011 sales. Between 2010 and 2012, sales increased 18.7%. And Sales in 2013 are already higher than in 2012!!
Source: CVRMLS data 12/9/13
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23 23
Single Family Sales By Year and Quarter
Second quarter sales have risen for the past three years. 2013 second quarter sales were higher than 2010 sales when there was a Federal tax credit and were higher than the past five years. 2013 second quarter sales were 38% higher than in 2009.
Source: CVRMLS Data 10/2/13
The first Quarter of 2013 is 7% higher than 2012 and 26% higher than 2010.
Sales in the first quarter have risen for three straight years and are higher than the past 5 years.
Single Family Sales By Year in First Quarter
31612892
2088
1487 1612 1801 1924 2057
0500
100015002000250030003500
2006 2007 2008 2009 2010 2011 2012 2013
Year
No o
f Clo
sed
Firs
t Q
uarte
r Sal
es
Greater Richmond Singld Family Sales for Second Quarter
45673919
29102533
3013 26573069 3387
0
1000
2000
3000
4000
5000
2006 2007 2008 2009 2010 2011 2012 2013
Year
No o
f Clo
sed
Sale
s
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24 24
Third and Fourth Quarter Sales
Greater Richmond Single Family House Sales in Fourth Quarter by Year
3222
2362
1707
23571847
21232347
0500
100015002000250030003500
2006 2007 2008 2009 2010 2011 2012
Year
Num
ber o
f Sal
es
2012 is 11% higher than 2011.
Source: CVRMLS Data 10/2/13
Sales in the third quarter of 2012 were higher than sales for the past 5 years!! 2013 Third quarter sales are 60% higher than 2010 third quarter sales. 2012 fourth quarter sales are 10.6% higher than 2011 fourth quarter sales. Note that 2009 had a tax credit during the fourth quarter.
Greater Richmond Single Family Third Quarter Sales
41113421
2526 26921999
2508 27933180
0
1000
2000
3000
4000
5000
2006 2007 2008 2009 2010 2011 2012 2013
Year
Num
ber o
f Clo
sed
Sale
s
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25 25
Greater Richmond Single Family Sales by Month and Year
300
500
700
900
1100
1300
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Month
Num
ber o
f Sal
es 20092010201120122013
Number of Sales By Month
As shown above, the number of sales in October are lower than last year in October. The Real Estate market is affected by government budget crisis, the rising interest rate and other factors. Sales for the year are still significantly higher than last year.
Source: CVRMLS Data
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26 26
Pending and Closed Sales By Month
0200400600800
100012001400
Jan-
13
Feb-
13
Mar
-13
Apr
-13
May
-13
Jun-
13
Jul-1
3
Aug
-13
Sep-
13
Oct
-13
Nov
-13
Month
No
of S
ales
PendingClosed
Pending and Closed Sales By Month
Source: CVRMLS Data 12/9/13
This graph shows the number of pending sales by month in blue and the number of closed sales by month in pink for 2013.
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27 27
Greater Richmond Condominium/Townhouse Sales
17612035
17571382 1154 1093 1201 1420 1507
0500
1000150020002500
2005
2006
2007
2008
2009
2010
2011
2012
2013
(Thru
12/9/
13)
Year
Num
ber o
f Con
dom
iniu
m
Sale
s
Condominium Sales in Greater Richmond
In the condominium/townhouse market, after 4 years of dropping sales, 2011 sales (shown in light green) were 10% higher than 2010 and higher than 2009. And 2012 sales (shown in green) 18% higher than 2011 sales!!! And 2013 sales as of 12/9 are already higher than 2012 sales!!
Source: CVRMLS data 12/9/13
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28 28
Condominium Sales - First and Second Quarter
Greater Richmond First Quarter Condominium Sales by Year
428376
310
190 189242 275 294
0
100
200
300
400
500
2006 2007 2008 2009 2010 2011 2012 2013
Year
No o
f Firs
t Qua
rter
Sale
s
The second quarter of 2013 had more sales than the previous 5 years including 2010 when there was a federal tax credit. 2013 second quarter sales were 40% higher than 2009 second quarter sales.
Source: CVRMLS data
The first quarter of 2013 had more sales than the first quarter of the previous 4 years. 2013 first quarter sales were 4% higher than 2012 sales and 52% higher than 2008 sales..
2012 sales were 13% higher than 2011 sales.
Greater Richmond Townhouse/Condominium Sales for Second Quarter
601529
420324
431344
402456
0100200300400500600700
2006 2007 2008 2009 2010 2011 2012 2013
Year
Num
ber o
f Clo
sed
Cond
omin
ium
Sal
es
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29 29
Third Quarter Greater Richmond Condminium Sales
578499
355 345219
325393 446
0
200
400
600
800
2006 2007 2008 2009 2010 2011 2012 2013
Year
Num
ber o
f Sal
es
Source: CVRMLS data 10/2/13
Source: CVRMLS data
Third quarter sales in 2012 were higher than third quarter sales of the previous 4 years!!. Third quarter sales in 2013 were 103% higher than third quarter sales in 2010.
The fourth quarter of 2012 had 18% more sales than the fourth quarter of 2011.
Condominium Sales – Third and Fourth Quarters
Greater Richmond Condominium and Townhouse Sales in Fourth Quarter
424
339
233288
225287
338
0
100
200
300
400
500
2006 2007 2008 2009 2010 2011 2012
Year
Four
th Q
uarte
r Sal
es
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30 30
Year Over Year Change in Number of Sales
Number of Single Family House Sales in Greater Richmond
Price Range 12/11-11/12
12/12-11/13 Change
$0-$250,000 6826 7001 2.56%
$250,001-$500,000 2818 3440 22.07%
$500,001-$750,000 457 610 33.48%
$750,001-$1,000,000 110 125 13.64%
$1,000,001+ 50 52 4.00%
In the Condominium market, Year over Year number of sales by price point have increased in all price points with dramatic increases in the higher price points..
Source: CVRMLS data 12/9/13
In the single family market, Year over Year number of sales by price point have increased in all price points
Number of Condominium Sales in Greater Richmond
Price Range 12/11-11/12
12/12-11/13 Change
$0-$250,000 1102 1110 0.73%
$250,001-$500,000 303 435 43.56%
$500,001+ 34 68 100.00%
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31 31
Market Indicator #2: Inventory is Down!!!
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32 32
Months Market Pricing
1-4 Sellers Appreciation
5-6 Even The Norm
7+ Buyers Depreciation
Months Supply’s Impact on Price
Source: Keeping Current Matters 8/10
As shown on the graph, the amount of inventory determines if it is a Sellers or a Buyers market. In most areas of Richmond, we are now in a Buyer’s market.
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33 33
Inventory of Single Family Houses By Month
0.0
2.0
4.0
6.0
8.0
10.0
12.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month
Inve
ntor
y of
Hou
ses
2010
2011
2012
2013
Inventory of Single Family Houses by Month in Greater Richmond
The supply (inventory) of houses is determined by the number of active listings divided by the monthly sales rate for the past year. After 2+ years of inventory between 8 and 10 months, inventory began to drop in the later months of 2011 and has continued to drop in 2012 and 2013. Inventory has had a slight rise in the past few months as the market is returning to a normal market of 5-6 months of inventory. Inventory now is less than half of what it was three years ago.
Source: CVRMLS data
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34 34
Single Family Inventory by Area
Source: CVRMLS data 8/26/13
The inventory of single family homes in the city of Richmond, Henrico, and Chesterfield are indicative of a normal market or even a Seller’s market. Areas that are further out (Goochland, Powhatan) have higher inventories and fewer sales and are still Buyer’s markets..
Inventory of Single Family Houses in Greater Richmond (October 2013)
4.7 3.95.4
9.4
4.87.2
4.7
0.02.04.06.08.0
10.0
Richmon
d
Henrico
Hanove
r
Gooch
land
Chester
field
Powhata
n
All Rich
mond
Area
Inve
ntor
y (M
onth
s)
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35 35
Inventory of Townhouse/Condominiums by Year and Month in Greater Richmond
0.02.04.06.08.0
10.012.0
Jan
Feb Mar AprMay Ju
n Jul
Aug Sep Oct NovDec
Month
Mon
ths
of In
vent
ory
2010201120122013
Inventory of Condominiums
The inventory of condominiums (determined by the active listing and the sales rate) began dropping in the second half of 2011 and has continued to drop in 2012 and 2013. In April 2011, there were 966 active condominium listings in Greater Richmond and today there are 470. The inventory in August 2013 is more than 7 months less than in December of 2010.
Source: CVRMLS data
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36 36
Single Family Inventory by Price Range
Condominium Inventory By Price Range
Price Range Inventory
(Months) $0-$250,000 5.1 $250,001-$500,000 3.7 $500,001+ 6.2
Source: CVRMLS data 12/9/13
The inventory of houses and condominiums is lowest at the lower price points. There are clearly still challenges for Sellers at the higher price points. Houses in the higher price points must be competitively priced to sell.
Single Family Inventory by Price Range
Price Range Inventory (Months)
$0-$250,000 4.0 $250,001-$500,000 4.0 $500,001-$750,000 5.7 $750,001-$1,000,000 9.8 $1,000,001+ 15.2
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37 37
Market Indicator #3: Prices are rising!!!
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38 38
Average Sales Price By Month
$150,000$170,000$190,000$210,000$230,000$250,000$270,000$290,000$310,000$330,000
Jan-
06
Jul-0
6
Jan-
07
Jul-0
7
Jan-
08
Jul-0
8
Jan-
09
Jul-0
9
Jan-
10
Jul-1
0
Jan-
11
Jul-1
1
Jan-
12
Jul-1
2
Jan-
13
Jul-1
3
Month
Ave
rage
Sal
es P
rice
Single Family Average Sales Price By Month
The average sales price fluctuates monthly and has a yearly cycle.
Source: CVRMLS data 12/9/13
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39 39
Average Price Per Square Foot By Month For Closed House Sales in Greater Richmond
$80.00$90.00
$100.00$110.00$120.00$130.00$140.00$150.00
Jan-
06
Jul-0
6
Jan-
07
Jul-0
7
Jan-
08
Jul-0
8
Jan-
09
Jul-0
9
Jan-
10
Jul-1
0
Jan-
11
Jul-1
1
Jan-
12
Jul-1
2
Jan-
13
Jul-1
3
Month
Pric
e Pe
r Squ
are
Foot
For
C
lose
d Sa
les
Greater Richmond Single Family Price Per Square Foot by Month
Price per square foot is a good indication of what is really happening. Note that the trend is definitely upward. There are always seasonal variations with lower prices during the winter months.
Source: CVRMLS data 12/9/13
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40 40
Greater Richmond Single Family Price Per Square Foot For Closed House Sales By Year
$92.37$99.65
$107.60
$123.38$135.82$139.64
$132.43
$117.82$112.24
$104.98$106.16$113.09
$80$90
$100$110$120$130$140$150
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
(Thru
12/9)
Year
Pric
e Pe
r Squ
are
Foot
Average Price Per Square Foot for Single Family House Sales
Greater Richmond 2013 prices are 6.5% higher than 2012 prices. With a 25% decrease in prices between 2007 and 2011, prices are still between 2004 and 2005 levels as indicated in the red line on this graph.
Source: CVRMLS data 10/2/13
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41 41
Single Family Year over Year Price Change
Year over year price change shows that after 4 years of declines, prices started to increase in 2012 and have continued to increase in 2013.. In this graph, the 7.9% increase in 2003 is the increase in prices between 2002 and 2003 etc. In 2013, prices are up 6.5%.
Source: CVRMLS data 10/2/13
Percent Change in Price Per Square Foot From Previous Year for Closed Sales in Greater Richmond
7.9% 8.0%
14.7%
10.1%
2.8%
-5.2%
-11.0%
-4.7%-6.5%
1.1%
6.5%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013(Thru12/9)
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Greater Richmond Single Family Price Per Square Foot by Quarter
$75.00$85.00$95.00
$105.00$115.00$125.00$135.00$145.00
2007
-01
2007
-02
2007
-03
2007
-04
2008
-01
2008
-02
2008
-03
2008
-04
2009
-01
2009
-02
2009
-03
2009
-04
2010
-01
2010
-02
2010
-03
2010
-04
2011
-01
2011
-02
2011
-03
2011
-04
2012
-01
2012
-02
2012
-03
2012
-04
2013
-01
2013
-02
2013
-03
Quarter
Pric
e pe
r Squ
are
Foot
42
Single Family Price Per Square Foot By Quarter
First Quarter Sales
Second Quarter Sales
Fourth Quarter Sales
Third Quarter Sales
Source: CVRMLS data
When looking at this graph, look at one color at a time. First look at the first quarter prices in pink: dropping in 2008, 09, 10 and 11. 2013 is higher than the previous two years. Likewise, the second quarter sales in yellow dropped from 2007 to 2011 and 2012 is equal to 2011 and 2013 is a huge increase from 2012.. The third quarter is in blue and 2013 third quarter prices are significantly higher than 2012 third quarter prices. The fourth quarter is in green and 2012 fourth quarter prices are significantly higher than 2011 fourth quarter prices.
Source: CVRMLS data 10/2/13
The turn in the market!!!
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Change in Single Family Price Per Square Foot Between 12/11-11/12 and 12/12-11/13
11.45%
6.10%4.09% 3.75%
6.49% 7.52%
0.00%2.00%4.00%6.00%8.00%
10.00%12.00%14.00%
Richmon
d
Henric
o
Hanov
er
Goochla
nd
Cheste
rfield
Powha
tan
Area
Cha
nge
in P
rice
Per
Squa
re F
oot
2011 vs 2012 Prices By County
Prices have risen year over year in all areas with dramatic rises in the city of Richmond.
Source: CVRMLS data 12/10/13
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44 44
Change in Prices from Same Month in Previous Year
-6.1%
5.5%
-3.3%-3.0%-0.7%-0.3%
2.3%
-0.4%-0.6%
12.3%
5.2%2.8%
12.0%
6.8%6.6%8.6%8.0%
5.6%4.5%
10.7%
7.6%
3.1%0.3%
-10%
-5%
0%
5%
10%
15%
Jan
11-J
an 1
2
Mar
11-
Mar
12
May
11-
May
12
Jul 1
1-Ju
l 12
Sep
11-S
ep 1
2
Nov
11-N
ov 1
2
Jan
12-J
an 1
3
Mar
12-
Mar
13
May
12-
May
13
Jul 1
2- J
ul 1
3
Sep
12-S
ep 1
3
Nov
12-N
ov 1
3
Month
Chan
ge in
Pric
es
Monthly Change in Prices
Source: CVRMLS data 12/9/13
This graph shows the change in price per square foot from one month to the same month a year later. For example on the right of the graph, July of 2013 price per square foot was 7.45% higher than in July of 2012. There are a normal monthly fluctuation but the trend in prices is significantly up.
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45 45
Price Per Square Foot For Closed Condominium Sales in Greater Richmond
$100.00$110.00$120.00$130.00$140.00$150.00$160.00$170.00
Jan-
06
Jul-0
6
Jan-
07
Jul-0
7
Jan-
08
Jul-0
8
Jan-
09
Jul-0
9
Jan-
10
Jul-1
0
Jan-
11
Jul-1
1
Jan-
12
Jul-1
2
Jan-
13
Jul-1
3
Month
Pric
e Pe
r Squ
are
Foot
Condominium Price Per Square Foot
Condominiums and townhouse are showing a similar trend as single family homes with prices trending up for the past two years.
Source: CVRMLS data 12/9/13
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Price Per Square Foot for Condominium Sales By Year
$90.84$100.03
$113.32
$133.49$149.49$154.00$152.70
$135.62$131.55$119.16$121.13
$130.41
$70$80$90
$100$110$120$130$140$150$160
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
(Thru 12
/9/13
)
Year
Pric
e pe
r Squ
are
Foot
Price Per Square Foot for Greater Richmond Condominium Sales By Year
The price per square foot for condominium sales is almost at 2005 levels. But more significantly, prices in 2013 are 7.6% higher than 2012. Prices are expected to continue rising for 2013 and 2014. There was a 23% decrease in prices between 2007 and 2011.
Source: CVRMLS data 12/9/13
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Greater Richmond Year over Year Price Per Square Foot Change By Price Range
In the single family market, prices have increased in all price points except the highest price points. Remember that the highest inventory is also at the highest price points causing price pressure.. Source: CVRMLS data 12/9/13
In the condominium market, price per square foot is increasing in the lower and middle price points. There is still price pressure at the higher price points.
Single Family Condominium/Townhouse Price per Square Foot Change in Greater
Richmond
Price Range 12/11-11/12
12/12-11/13 Change
$0-$250,000 $86.61 $95.01 9.70% $250,001-$500,000 $122.25 $126.68 3.62% $500,001-$750,000 $149.80 $156.69 4.60% $750,001-$1,000,000 $173.01 $181.78 5.07%
$1,000,001+ $228.90 $211.86 -7.44%
Condominium Price per Square Foot Change in Greater Richmond
Price Range 12/11-11/12
12/12-11/13 Change
$0-$250,000 $106.51 $111.93 5.09%
$250,001-$500,000 $150.83 $157.39 4.35%
$500,001+ $190.86 $198.85 4.19%
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Richmond Real Estate Areas
The Richmond Association of Realtors (RAR) uses Real estate areas as shown in the graph. The following analysis covers areas 10, 20, 22, 24, 30, 32, 34, 40, 42, 44, 50, 52, 54, 60, 62, 64 and 66 shown on the map.
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Active Listings By Area (As of 12/12/13)
201
41
193 161 146104
223 232 194 192254
149
415503
184
355
138197
0100200300400500600
10 20 22 24 30 32 34 36 40 42 44 50 52 54 60 62 64 66
Area
Num
ber o
f Act
ive
Sing
le
Fam
ily L
istin
gs
Active Single Family Listings By Area
The number of active listings by area is shown. There are approximately 3560 fewer homes on the market than two years age. Inventory varies by area with area 54 having the highest number of homes for sale and Area 20 having the lowest.
Source: CVRMLS data 12/12/13
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Average Sales Price By Area For Single Family House Sales (8/1/12-7/31/13)
$238
,962
$446
,825
$316
,699
$410
,489
$148
,485
$149
,614
$326
,549
$286
,313
$143
,564
$113
,311 $2
34,9
76
$63,
172 $1
73,7
91
$216
,550
$201
,375
$250
,186 $3
57,3
95
$268
,781
$246
,454
$0$50,000
$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000
10 20 22 24 30 32 34 36 40 42 44 50 52 54 60 62 64 66
All
Ric
hmon
d
Area
Ave
rage
Sal
es P
rice
Single Family Average Sales Price By Area
Average sales price varies considerably by area with area 20 having the highest and area 50 having the lowest. The average single family house sale in greater Richmond for the past year is $246,454
Source: CVRMLS data 12/12/13
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Average Price Per Square Foot For Single Family House Closed Sales By Area (8/1/12-7/31/13)
$117
.19 $1
86.7
1
$130
.47
$130
.96
$84.
04
$95.
10 $124
.82
$116
.44
$82.
88
$69.
21 $112
.07
$45.
85 $87.
08
$97.
10
$102
.43
$105
.11
$116
.51
$115
.27
$107
.99
$0.00
$50.00
$100.00
$150.00
$200.00
10 20 22 24 30 32 34 36 40 42 44 50 52 54 60 62 64 66Al
l Ric
hmon
d
Area
Pric
e Pe
r Squ
are
Foot
Single Family Price Per Square Foot By Area
Price per square foot also varies by Area with Area 20 (West end of the city) having the highest price per square foot. The average across greater Richmond is $105.85.
Source: CVRMLS data 12/12/13
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Supply of Houses by Area in Months
3.9
1.32.0
8.3
4.53.1 3.0
5.05.7 5.9
4.9
7.8
5.0 4.7 4.13.3 3.1
6.8
4.1
0.0
2.04.0
6.08.0
10.0
10 20 22 24 30 32 34 36 40 42 44 50 52 54 60 62 64 66
All R
ichm
ond
Area
Inventory of Single Family Houses
As shown above, the supply of houses varies greatly in Greater Richmond. Generally, the areas that are further out have the largest supply of houses while those that are closer in have lower inventories of houses. Goochland (Area 24) and Powhatan (Area 66) have the higher supplies of houses at 9.8 and 7.2 months. Area 50 had a lot of foreclosures and it has a higher inventory at 7.1 months. The average inventory in Greater Richmond is 4.1 months which is better than an normal market.
Source: CVRMLS data 12/12/13
Red Line represents a normal market.
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Summary
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Existing Home Sales 14,767 US Homes Sell Every Day
and 10,631 Buyers Receive a Mortgage Every Day
NAR 12/2011
In spite of the recent downturn, home ownership continues to be the best long-term investment in the US!!!
Source: Keeping Current Matters
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Price Money Down Mortgage Interest
Rate Payment
(P&I)
Last Year* $187,800 $37,560 $150,240 3.5% $674.64
This Year* $213,500 $42,700 $170,800 4.5% $865.42
Next Year** $224,175 $44,835 $179,340 5% $962.74
*For the first two examples, we used the NAR’s Existing Home Sales Report to establish median price and Freddie Mac’s Primary Mortgage Market Survey to establish mortgage rate. We also assumed a 20% down payment in all examples.
**To establish next year’s pricing, we depended on the over 100 housing experts surveyed for the Home Price Expectation Survey who called for an approximate appreciation rate of 5% over the next twelve months. For the interest rate, we took the average of the projections from the Mortgage Bankers’ Association, Freddie Mac and Fannie Mae.
The Cost of Waiting
Source: Keeping Current Matters 9/13
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Reasons to Hire a Real Estate Professional 5
They help with all disclosures and paperwork necessary in today’s heavily regulated environment.
They are well educated in and experienced with the entire sales process.
They act as a ‘buffer’ in negotiations with all parties throughout the entire transaction.
They help understand today’s real estate values when setting the price on a listing or on an offer to purchase.
They simply and effectively explain today’s real estate headlines and decipher what they mean to you.
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“The housing market has bottomed. It's not
too late to get involved. I still think
buying a home is the best investment any individual can make. Affordability is still at
an all-time high. Buy a home and, if you can, buy a second home.”
John Paulson
Source: Keeping Current Matters 8/13
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Summary
• Sales are up • Inventory is down • Prices are rising. • The interest rate is rising • DO NOT WAIT TO BUY A
HOUSE!!! IT WILL COST YOU A LOT MORE NEXT YEAR!!