Mission Realty

Richmond Real Estate Blog

Market Update - September 2018

The national real estate market has rebounded significantly since the "Great Recession", and as a result, home values in Richmond, Virginia have increased nearly to post recession highs.  The reasons for the continued recovery are as follows... 

  • Solid Economic Growth
  • A healthy Labor market
  • A large milennial population

In addition, there are a number of factors that could create a significant slow down in the postive equity trend that we have experienced in Richmond, Virginia.  

  • Rising Mortgage Interest Rates
  • Unforseen economic circumstances
  • Rising National Debt

The fact remains that year-over-year home prices have increased in both the luxury, or high end markets, as well as the lower price range, or first time home buyer markets.  The actual numbers in Richmond, Virginia show a year-over-year % change in price of +2.5%.  The average year-over-yeaer equity gained per houshould is $6,000 according to core logic.  In fact, according to Daren Blomquist from Attomdata, "the number of equity rich homeowners is more than twice the number of seriously underwater homeowners."  While it is safe to say that we have recovered from the devestating impact of the recession, we should still pay attention to the fact that mortgage interest rates are rising, and as a result, consumers have ...

Why Owning a Home Is Cheaper Than Renting

In Richmond, buying a home is still cheaper than renting one.

One of the main reasons is because of these historically low interest rates that we have been experiencing for the last eight years or so. Nationally speaking, buying is actually 36% cheaper than renting.
From a national perspective, interest rates would need to rise to 10.6% for renting to actually be cheaper than buying a home. We haven't seen interest rates that low since 1989, so the odds of interest rates going back to that level anytime soon are highly unlikely.
If you're on the fence about buying a home, it makes a lot of sense to make a move now. 
According to the National Association of Realtors, the average family's home is $225,000 if they own a home versus only $5,000 if they don't own a home. Now, some people are at a stage in life where they're not ready to own a home and renting is a better option, and I understand that. However, if you are in a position to own a home, the numbers are clearly in your favor.
While interest rates are this low, you can benefit by owning a home not only to build your net worth but also simply for the fact that it's cheaper than renting. Why pay off someone else's mortgage when you could pay off your own?
If you're thinking about buying a home or you have questions about the Richmond real estate market, give me a call. I'd be happy to help.

How Buyer Representation Protects You

Why is it important to be represented by a buyer’s agent when looking to buy a home?

When I got into the real estate industry in the smoking hot 2005 market, one of the things that I ran into early was a lot of dual agency. Basically, this is when home buyers and sellers would work with the same Realtor. This never made sense to me, and I very quickly made the decision to never do it in my business.
I think that it’s important for home buyers to have independent representation on their side when deciding to purchase a home for a few different reasons:
1.  Listing agents are working for the seller. The seller’s agent has a fiduciary responsibility to protect that seller’s best interests and get them the most money possible for their home. How is it possible for an agent with that kind of responsibility to get you the best deal possible as a buyer?
2.  Dual agency is illegal in eight states. Because there is such a clear conflict of interest, dual agency has been banned in eight states.  
3.  When looking at new construction homes, going directly to the builder poses the same problem. The builder’s representative has the same contractual fiduciary responsibility to the builder to look out for their best interests, not yours.
4.  A buyer’s agent has experience working with buyers. Negotiating terms and...
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