Below are the real estate market conditions for the 9 months ending September for the Chesterfield County VA.  If you would like to find out what has been happening in your neighborhood or your market area, let me know and I will be happy to send you the information.  I hope you find this information helpful.

What does the above show?

For the first 9 months of 2009 there was not only a drop in the number of homes sold, but also an 13% decrease in the average price of the home sold.  Does this mean that all homes in Chesterfield County dropped in value this much?  No.  What this does tell me is that several things are happening ---

In the first 9 months of the year there was a marked increase in the number of foreclosures sold.  As you can see, in the first 9 months of 2008, only 113 of the 2,807 homes sold were foreclosures – this was about 4% of the total sales.  However, in 2009, you will see that the figure increased and coupled with the decrease in the number of homes sold, this increased the percentage way up – to 10% of the total sales.  Generally, when there is a foreclosure, the bank is usually negotiable on the pricing, and so many of these will be sold for well below the market value of the neighborhood, therefore affecting the overall average sales price for the entire area.

• Additionally, you will also see that there is a pretty significant increase in the number of homes sold that were priced under $200,000.  This lower price point includes many people who are buying their first homes or are downsizing their payment because of the economy.  Again, the increase in the number of homes sold at this lower price point has affected the overall average sales price for the entire county.

•  Another item which is impacting sales prices in Chesterfield County is the number of short sales we continue to see.  Although there is no firm number of homes which are being sold as potential short sales, since this is a pre-foreclosure sale, and foreclosures have risen in the county.  Again, with short sales, prices will generally be below market value for the neighborhood so that a quick sale can be generated.  This will also impact the average sales price for the entire area.

• Finally, a look at the months of inventory shows that this continues to be quite high – as of today (10/29/09) there are 2,384 single family homes active on the market.  If no other homes are listed for sale, it would take almost 9 months for these homes to be sold, based on the average number of sales per month we have seen for 2009.  A normal market is considered one in which there is about 6 months of inventory.  This is slightly better than the previous month’s figure, but it still shows that we have a long way to go to bring down the amount of inventory still available to the buyers out there.

Remember the old saying that all real estate is local?  Well, the same can be said for the real estate in the city of Richmond.  Looking at the various areas of Chesterfield County, you can see big differences in some of these figures.

• Area 52:  For the first 9 months of 2009 there were 585 homes sold (vs. 714 in 2008).  The price also showed a decrease – from $232,691 in 2008 to $199,889 in 2009.  This area of the county continues to have a high percentage of foreclosures & homes sold with a price point under $200,000, which will continue to impact prices in this area.  The area also has almost 11 months of inventory available for buyers.
• Area 54:  For the first 9 months of 2009 there were 788 homes sold (vs. 891 homes sold in 9 months of 2008).  The price also showed a pretty significant decrease – from an average price of $267,361 in 2008 to $239,780 in 2009.  This area also continues to have high foreclosure rates as well as a high number of homes sold under $200,000, which continues to impact the average price of the home sold in this area.  Currently, there is just over 9 months of inventory in this area.
• Area 62:  For the first 9 months of 2009, there were 787 homes sold (vs. 901 homes sold in the 9 months of 2008).  The price point here also showed a decrease – from $287,433 in 2008 to $256,982 in 2009.  Again, foreclosures & high number of homes sold priced under $200,000 continue to have the biggest impact on the average price of homes sold in this area.  The area has around 7 months of inventory still available, which is the lowest in the count but this will continue to put some downward pressure on pricing here.
• Area 64:  For the first 9 months of 2009, there were 295 homes sold (vs. 301 sold in the first 9 months of 2008).  Again, prices here also showed a decline of around 10%.  Here it seems that the rising foreclosures and short sales as well as the fact that almost all the sales in this area were priced under $200,000 seems to continue to impact pricing in this area.  This area also has 8 months of inventory.

As you can see, we continue to have a ways to go before the real estate market in Chesterfield County will return to a more normal state.  The continued pessimism and the continued fear of unemployment, as well as the rising foreclosure and short sale rate will impact prices in most of the areas of the county.  We have seen a very high increase in the number of homes sold that have been priced under $200,000 – much of this can be attributed to the $8,000 tax credit, which will expire on November 30.  Today I have seen a number of news reports that seem to indicate that the tax credit will be extended and possibly expanded or modified.  This should continue to help the housing market continue to rebound in 2010 and help to reduce some of the inventory we continue to see here, not only in Chesterfield County but in all other areas of Richmond. 

I welcome any comments and thoughts.  If you would like this information for your home, please don’t hesitate to contact me.