Richmond housing construction numbers improve

The latest data on the housing market indicates that the real estate market has steadily improved in metros across the United States. Home prices are increasing, inventory levels are decreasing and the number of distressed properties on the market has declined.

"If there was any doubt that the housing market was undergoing a recovery, even a modest one in the face of the terrible 2008 decline, those doubts should be erased by now," Dan Greenhaus, chief global strategist at BTIG, told The News & Advance.

A recent report from the Department of Housing and Urban Development and the U.S. Census Bureau indicated a strengthening market. The Huntington News claims that a 15 percent gain in new housing construction has brought the seasonally adjusted annual rate of growth to 872,000 units. An 11.6 percent increase in the permit issuance pace to 894,000 units has led to improvements in the national construction rate.

Both single- and multifamily construction starts increased in every region except in the Northeast, which underwent a 5.1 percent decline. Combined single- and multifamily starts rose in the South by 19.9 percent. The South also saw permit issuance improve by 10.5 percent, which could indicate a rise in construction projects in the region in the upcoming year.

Housing construction rates increase in Richmond
According to the Home Building Association of Richmond, the number of new homes sold in the greater Richmond area increased 12 percent during the 12-month period that ended June 30, 2012. The volume of home building permits submitted for the same period rose 14 percent, The News & Advance reports.

"That is an encouraging sign," Craig Toalson, executive vice president of the Home Building Association of Richmond, told the news source. "When building permits are ahead of closings, then (more) closings are coming."

The median price for a single-family home in Richmond was $159,776 as of October 19, 2012. According to ALTOS Research, the average property in Richmond spent approximately 159 days on the market before a buyer completed the closing process. This figure, when combined with the number of properties listed on the for-sale listings, could give potential homebuyers the edge in the marketplace. As of October 19, 2012, there were 1,454 homes for sale in Richmond