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The New Home market in Richmond Va is far healthier than it was during the market adjustment in 2007-2010. The overproduction of lots and speculative homes during the crash manifested itself in a dramatic and sometimes brutal price adjustment for those builders caught with unsold inventory. Many of these unsold lots and homes ended up on bank balance sheets only to be sold cheaply to the public or to other builders.
Beginning in 2011, with a general feeling that the market was attempting to find its bottom, the builders left standing began to accumulate lots at discounted prices from the banks or highly motivated developers. With lot pricing that had fallen (in some cases) by close to half, builders began to build homes that were smaller in scale than their pre-crash predecessors on lots that had been discounted by $50,000 or more. The new homes being built that used to retail for closer to $500,000, were now selling for considerably less.
New Homes For Sale
As with any Metro area, some neighborhoods recover more quickly than others. The same fundamentals that drive home values (schools, amenities, shopping, access, proximity and jobs) also drove recovery and the areas that were the strongest before the crash were the first to recover. Glen Allen, Midlothian and Mechanicsville have made back much of their losses while areas either further west (rural) or east of town are still lagging as excess lots still exist.