Home prices down 8% in metro Richmond

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

RICHMOND, VA (WWBT) – According to Clear Capital, a California based company that tracks real estate numbers, right now, greater Richmond is among the lowest performing markets in the country. Housing prices here have dropped nearly 8 percent in the last year.

Search online for homes for sale in Richmond, Virginia and you get thousands of listings across the region.

Look up the prices, and a California firm says those figures are down 8 percent from one year ago. Clear Capitol puts Richmond on a list of cities in danger of a double dip where numbers hit a low and bounce back before tumbling again.

"Because the double dip implies that we recovered, we started to go up and then we've started to go back down. And there's no evidence of that that I've seen," said John McClung with Zip Realty.

McClung's been studying the prices in the Richmond market for 14 years. He says there's been a steady and slow decline here, but nowhere near as big as the national numbers.

"We tend to be behind the curve, we were behind the curve as prices went up, we were behind the curve as prices went down," he said.

Laura Lafayette is with the Richmond Association of Realtors. She questions how Clear Capital compiled its numbers.

"Our average sales price is only off about 2 and a half percent, and considering the number of foreclosures that we've had in the market. This year, to only be off 2 and a half percent in average sales price from last year, I think is really phenomenal," said Lafayette.

Lafayette says prices in Chesterfield, Henrico, Hanover and Richmond are certainly lower than in past years, but are stable.

"Has it been a tough year? Yes it's been a tough year. Will 2011 continue to bring us challenges? Yes! But one person's challenges is another person's opportunity," she stated.

Nationally, experts are not expecting 2011 to start off much better. There are reports today that the US real estate market has declined 1.7 trillion dollars, worse than the losses suffered in 2009.

Other cities also watching housing prices tumble include Virginia Beach, Charlotte, Jacksonville, Miami, Tampa, Nashville and Philadelphia.

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