Richmond housing market improves during third quarter

Real estate in Richmond is showing marked improvements from where it was just one year ago. The Richmond Times-Dispatch reports that listing prices are up, housing inventories are down and the length of time a property is spending on the market before being purchased is down. These factors, combined with current affordable mortgage rates, could entice potential homebuyers to file an application for residential financing and make an offer for a home in Richmond.

"The area is stable and showing good price appreciation," local real estate expert Jennifer DuBois told the news source.

The state of the housing market in Richmond
According to ALTOS Research, the median price of a single-family home in Richmond was $159,776 as of October 19, 2012. Property values are up from the beginning of the year, when the median price of a single-family home was approximately $154,500 as of January 1, 2012. A potential homebuyer could break the cost of an median property in Richmond down by square foot to help determine if a home is appropriately priced. The median price paid per square foot in Richmond was about $95 as of October 19, 2012.

The average property in Richmond spent about 159 days on the market listed as for sale before a buyer completed the closing process as of October 19, 2012. At that time, there were 1,454 properties on the market in the city.

National residential financing figures point toward improving market
Residential financing experts at the Mortgage Bankers Association (MBA) predict $1.3 trillion in mortgage originations to occur during 2013. The large number of new mortgage applications expected to be filled out in 2013 is partially due to the spillover from 2012. Already the agency has had to revise its estimate of originations for 2012 to $1.7 trillion.

"We expected 2012 originations to be front-loaded in the first half of the year, with [refinancings] falling off with rate increases. Instead we saw the refinance market grow during the year due to a combination of low rates, thanks to QE3 and slowing global growth because of continuing problems in Europe, and adjustments in the HARP and FHA refinance programs," said Jay Brinkmann, MBA's Chief Economist.

The significant predicted volume of mortgage applications by the MBA for 2013 could indicate the continued positive growth of the real estate market throughout the U.S., as well as in Richmond.