2010 has started off more like a lamb than a lion!  Between the continued uncertainty in the job market, the continued foreclosures & short sales and the abnormal weather we have had in Richmond lately, it seems like things are moving very slowly as we start off this new year.  But over the past few days, the weather has turned springlike and buyers seem to be moving off the fence and starting to get serious about looking at homes.  How much of this is due to the weather, how much is due to the homebuyer tax credit that is set to expire on April 30 I can’t say.  But I thought that as we come into the spring selling season, it would be good to take a look at the yearend Chesterfield stats and how 2010 is starting off, as this can have a big impact on buying and selling decisions!  I would love to hear your thoughts.

 2009 Summary

In 2009, for the 12 months, there were a total of 3,300 homes sold in all of Chesterfield County.  Area 52 had 821 homes sold, Area 54 had 1,038 homes sold, Area 62 had 1,041 homes sold and Area 64 had 400 homes sold. 

Of the 3,300 homes sold in Chesterfield County last year, only 333 were foreclosure sales, which is a foreclosure rate of around 10% for 2009.  Foreclosures by area were:

• Area 52:   121 foreclosures out of 821 homes sold (15% foreclosure rate)
• Area 54:   114 foreclosures out of 1,038 homes sold (almost 11% foreclosure  rate)
• Area 62:   80 foreclosures out of 1,041 homes sold (almost 8% foreclosure rate)
• Area 64:   18 foreclosures out of 400 homes sold (almost 5% foreclosure rate)

 Although the foreclosure rate in Chesterfield  County was well below the foreclosure rate that we continue to hear about on the national media, this figure does not include short sales.  Homes in the eastern side of Chesterfield as well as south of Hull St. seem to be taking the biggest hit with foreclosures.  This could be a double edged sword.  On one hand, these areas may present some great opportunities to pick up some good deals, since these homes may be priced exceedingly well and for the buyer who is looking for something that they can put their own personal touch on, it is possible to find a very good deal in these areas.  However, for sellers, these foreclosures may be impacting the pricing in these areas & until the foreclosures & short sales reduce, this may continue to put some downward pressure on pricing in these areas.

 For the 3,300 homes sold in Chesterfield County last year, the average sales price was $251,031.  By area, these prices were:

•  Area 52:    Average price was $202,129
• Area 54:     Average price was $237,679
• Area 62:     Average price was $256,333
• Area 64:     Average price was $372,251

 For the 3,300 homes sold in Chesterfield County, there were 1,435 homes sold that were priced under $200,000 – this is almost 44% of the total sales in the county were at a price point that appeals to many first time homebuyers.  For many buyers out there, they need to be aware of the price differences between the different areas, as this will help them determine where they will be looking to purchase their homes.

•  Area 52:                 Of the 821 homes sold in 2009, 495 were priced under $200,000
• Area 54:                 Of the 1,038 homes sold in 2009, 488 were priced under $200,000
• Area 62:                 Of the 1,041 homes sold in 2009, 361 were priced under $200,000
• Area 64:                 Of the 400 homes sold in 2009, 81 were priced under $200,000

2010 Chesterfield VA Real Estate

So as we begin 2010, how are things going?  Well, sales have been very slow for the first 2 months.  As I said before, part of this may be due to the weather we have had, but it is also the slowest selling time of the year traditionally.

For the first 2 months of 2010, there have been 307 homes sold in all of Chesterfield County.  This is around 9% of the total homes sold last year.  Hopefully, as we come into the spring selling season and people move off the fence to try to get the homebuyer tax credit, this will start to pick up. 

For the first 2 months of the year, foreclosures sold have risen to just over 17% of the homes sold this year.  I think we will continue to see the number of foreclosures rise this year, as well as the number of short sales in the area.  By real estate area:

• Area 52:  84 of the homes sold in the first 2 months, 14 are foreclosures (17% foreclosure rate)
• Area 54:  101 of the homes sold in the first 2 months, 24 are foreclosures (24% foreclosure rate)
• Area 62:  88 of the homes sold in the first 2 months, 14 are foreclosures (16% foreclosure rate)
• Area 64:  34 of the homes sold in the first 2 months, 1 is a foreclosure (3% foreclosure rate)

 So as you can see, the foreclosures appear to be rising; however, I don’t think 2 months of information should send anyone into a panic just yet.  However, we should continue to monitor this trend as this will have impact on pricing strategies, both for the sellers and the buyers.

 For the first 2 months of the year, of the 307 homes sold, 146 of these were priced under $200,000.  This is slightly higher than it was for last year, showing that the strongest part of the real estate market in Chesterfield County continues to be the first time homebuyer.  There are many reasons for this:  the high number of foreclosures & short sales that are priced down & attracting buyers who may not have been able to afford a home in the past, the continued low interest rates, the continued availability of special financing programs such as the grant money and VHDA and FHA loans, the first time homebuyer/move up homebuyer tax credits, and the large amount of inventory on the market.  Looking at this by area:

•  Area 52:    Of the 84 homes sold in the first 2 months, 51 were priced under $200,000
• Area 54:     Of the 101 homes sold in the first 2 months, 52 were priced under $200,000
• Area 62:     Of the 88 homes sold in the first 2 months, 32 were priced under $200,000
• Area 64:     Of the 34 homes sold in the first 2 months, 11 were priced under $200,000

 So how are prices holding up in 2010?  As of February, the average sales price is:

•  Area 52:   Average price $190,066 (last year it was $202,129)
• Area 54:    Average price $221,213 (last year it was $237,679)
• Area 62:    Average price $232,763 (last year it was $256.333)
• Area 64:    Average price $422,843 (last year it was $372,251)

 I don’t know that with only 2 months of information, that I would be reading too much into this difference.  Part of this may be due to the higher number of foreclosures & short sales and the high number of homes priced under $200,000 that have closed this year, which is driving down this price.

 Finally, I think it may be interesting to see just how many months of inventory there is in Chesterfield County.  As of March 12, there are a total of 2,455 active listings in the Central Virginia Richmond MLS.  In 2009, there were 3,300 homes sold, which means that for all of Chesterfield, there were an average of 275 homes sold/month.  This means that, as of March 12, Chesterfield has an average of 8.9 months of inventory available for sale.  This means, that if no other homes come on the market, it would take an average of almost 9 months for all the inventory to be sold.  This shows that Chesterfield is still in a strong buyers market.  By area:

•  Area 52:   As of March 12, there is 10.2 months of inventory
• Area 54:    As of March 12, there is 9.6 months of inventory
• Area 62:    As of March 12, there is 7.8 months of inventory
• Area 64:    As of March 12, there is 7.6 months of inventory

 So you can see, there is very high levels of inventory in most of Chesterfield County, and this will continue to put some pressure on housing prices, especially in the eastern end of Chesterfield County.

 If you would like information on what is happening in your area, don’t hesitate to let me know and I would be happy to get you the information!  Enjoy the beautiful spring day!