Home Prices Fall Again in Richmond, VA 3rd Quarter

The National Association of Realtors just came out with their numbers for the 3rd quarter. The year over year numbers show housing prices declining 8.8% in Richmond area. This number is measured by the average median house price in the area which fell to $217,900. Nationally the median price fell to $200,500 which was down 9 percent.

A lot of the fall in home prices has occurred because of distressed home sales including both foreclosures and short sales. Short sales are where a lender agrees to accept less money that what is owed on a mortgage to prevent a foreclosure. These distressed sales bring down all home prices because they are now comparables when selling your house.

In addition to distressed sales, market conditions also are a driving force bringing down prices. These market conditions are greatly affected by homeowners not being able to qualify for mortgages. Over 25% of people that could qualify for a mortgage last year can longer qualify. This is causing many mortgage brokers to go out of business.

There really is no end in sight for these challenging times. Unless lenders are willing to loosen their standards (Not likely because that is what got them in the mortgage crisis to begin with) and lend money to marginally qualified buyers the market will continue to decline. It really becomes a supply and demand issue. When the price of homes gets cheap enough then the buyers will come. How low prices go or how long it takes are questions that no one can answer.

Our business is still buying homes and we are one of very few investors that have survived this chaos. If you would like a FREE special report sent to you on "How to Sell Your House in 8 Days" email us at info@EagleBuysHouses.