There is good news and bad in the local real estate market. The bad news is that sales are down, but the good news is that the sky is not falling. Decreases in sales are limited and significant price reductions are not expected.

The Southside Virginia Association of Realtors® has released sales data for the first quarter 2008.  

Chesterfield is not seeing a tremendous downturn in sales. “Chesterfield County sales are down 31% when compared to the first quarter of 2007.  This market area continues to show average sales on the mid $200s. The stability is in the average sales price where statistics reflect just a 2% decrease.”

“Although first quarter sales for the Tri-Cities (Colonial Heights, Dinwiddie, Hopewell, Petersburg, and Prince George) are down 36% when compared to the first quarter of 2007, this is not cause for alarm,” comments Shanna Wiseman, 2008 President of SVAR.   “While the national economy and the national real estate markets have slowed considerably, and many regions that experienced dramatic run-ups in housing costs are now experiencing double-digit decreases in sale prices, that is not the case in the Tri-Cities.”  

“Market activity slowed in late 2007, and that slowness is reflected in the first quarter 2008 sale numbers.  But the good news,” continues Wiseman, “is that we have held steady with our home sale prices, seeing only a 1% decrease in the Tri-Cities from 2007 compared to the same time period in 2008.  Moreover, as is typically the case, we have seen sales pick up from January to March and recent, strong activity in April reflects the traditional spring market of increased activity.”

“While we do not expect 2008 numbers to match those of 2007, we do expect solid market activity and sale prices that remain stable.  Because of current and projected job growth as well as population growth [locally]; and the demand that both of these place on housing, there is no expectation that our market will see significant price reductions.  As the current inventory of homes is gradually reduced, prices will likely increase.  So if buyers are out there watching and waiting, I would suggest to them that now is the time to enter the housing market,” concludes Wiseman.

Where are home prices headed throughout the state? According to the Virginia Association of Realtors®, the housing market in the state of Virginia is in a period of transition; however, it is unlikely that the overall market is going to worsen considerably. While some have argued that Virginia will have one of the steepest price declines, the state’s economic stability and the current housing market trends belie that prediction. Some local markets — particularly those that have been hard hit by foreclosures — will see dramatic price drops. Foreclosures in Chesterfield are extremely low. Overall, prices in many parts of the state including Chesterfield may drop only a little or stay flat in 2008.

The Southside Virginia Association of Realtors® represents over 700 Realtors®. For more information, contact the association at 452-0505.

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