A Message From Woody Hogg

The Real Estate Firm-New Messages From Woody About The Real Estate Market

Richmond

Area

Market

Outlook

Summer 2009

Woody Hogg

Owner/Broker ERA Woody Hogg & Associates

The local real estate market has been in flux and is representative of what is happening in most areas of the country.  Prices have been receding according to local statistics and have dropped approximately 6% in the last 4 months.  If you are a seller, this not good news.  If you are a buyer, we may be in not only the best time to buy that we have seen in the last 6 or 8 years but this may be close to as good as it will be!

 

Interest rates have leveled off at just below 5% for a thirty year fixed loan.  Prices have receded to a level that is around 2004-2005 average.  When you consider that the interest rates were much higher in 2004-2005, this really makes owning attractive.  The first time buyers have the benefit of an $8,000 tax credit, which is real money back to them when they file their taxes.  This is historically unprecedented, as it has never been offered before.

 

There is currently an inventory of homes that further favors the buyers in most areas of the Richmond Metro area.  The influence of the number of foreclosures and short sales (where an owner owes more than the house could sell for and the bank is taking less than the mortgage amount to sell it) is adding to the buyers ability to a great buy.  At the height of the real estate market buyers that had a narrow selection and often bought a house that they really were not in love with.  That has changed because there is an abundance of inventory.

 

Many residential investors are entering the market today.  Three circumstances have made it very attractive time to invest.  First is price.  Houses are cheaper today and as the market recovers, they will increase.  Second is the interest rate.  Investors can cashflow because the payments are lower.  The third event is that the rental demand is high for single-family homes.

 

There are some good signs that the market is picking up.  Sales are up in the area by over 3%.  Surely as houses start to sell, prices will increase.  On the other side of the coin, as the economy improves, interest rates will go up.  This is a great time to buy!

Woody Hogg

Owner/Broker ERA Woody Hogg and Associates

2 CONVENIENT OFFICES TO SERVE YOU!

King William Office

12134 King William Road Suite 106

King William, VA 23086

804-769-2284

Fax: 804-769-4535

Hanover Location

9137 Chamberlayne Road Suite 100

Mechanicsville, VA 23116

804-559-4644

Fax: 804 427-5133