Richmond city's housing market starting slow rebound

By Rachel DePompa - bio | email
Posted by Terry Alexander - email

RICHMOND, VA (WWBT) - Home sales are still down in the river city, but that doesn't mean the market's not looking up for people trying to sell.

"It's a one bedroom one bath in the heart of the Museum District," said Kaitlin Franco, Richmond Association of Realtors.

Kaitlin Franco's betting on a housing market turnaround. She just put her one bedroom, one bath, Kensington Avenue condo on the market.

"There definitely are people out there looking. There are people in the market. I've had several showings. I'm feeling really confident that the market is coming back and that the condo will go," she said.

A member of the Richmond Association for Realtors says Franco's may be on the right track, especially with the $8,000 tax credit to first time home buyers still available.

"It's probably a great time for her to attract those buyers who might be able to use the credit and take advantage of low interest rates. So, I think she's probably timed it right," said Laura Lafayette, Richmond Association of Realtors.

According to the city's office community development the local market is finally showing new signs of life. The agency reports homes are selling for an average of $195,000; the first increase in months.

And the number of foreclosures is also down drastically from this time last year.

"Once you see sale prices level off and begin to tick upwards that suggests that the market's moving in the right direction. People are going to have a lot more confidence that its OK if I buy today it's going to worth more next year," said Lafayette.

Lafayette says Metro Richmond was slow to get into the slump and will be slow getting out.
Kaitlin Franco's just hopes the end comes sooner than later.

"Most people are really hopeful we're on the upswing and getting out of it for sure," Kaitlin said.

The first time home buyer tax credit runs out this November. Experts say if you still want to take part in it. You'd have to begin the process of buying a home by the end of this month.

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