Home Sale Blues: Foreclosures Up, Recovery Stalled 

Some recent real estate statistics bode ill for Richmond's economy. A quarter of the houses sold are in foreclosure while a home-sales recovery appears to have stalled.

The bottom line appears to be that Richmond's recovery isn't creating many jobs, families remain either unemployed or must accept lower pay, and a real turnaround may be another nine months away.

RealtyTrac.com, a real estate data service, reports that new foreclosures reached a high point in Chesterfield County in May with 322, with Richmond reporting 241 and Henrico County 235.

Moreover, an improving trend in sales came to an end in April, says Laura Lafayette, chief executive of the Richmond Association of Realtors. “We don't have numbers for June yet but the pace has slowed,” she says.

She attributes the downturn in part to the end of President Barack Obama's housing tax credit of $8,000 to first-time buyers and $6,500 to sellers if they lived in their houses for more than five years. Buyers who wanted homes this summer may have bought early to take advantage of the credit, which expired April 30.

Richmond's high foreclosure rate could make for great buys, but it also tends to dampen sales prices, Lafayette says.

The news behind the number of foreclosures isn't good. Lafayette says a first round of foreclosures came when homeowners with adjustable-rate mortgages could handle rate hikes. This second round involves homeowners not finding new jobs after being laid off or having to accept new work that pays less — factors that indicate that Richmond's hard-hit economy has a way to go before recovering.


Latest in News and Features

Comments (3)

Showing 1-3 of 3

Add a comment

Subscribe to this thread:
Showing 1-3 of 3

Add a comment

Connect with Style Weekly

Most Popular Stories

  • Moving Pictures

    Moving Pictures

    Lucy Dacus revisits her Richmond upbringing on new album, “Home Video.”
    • Jun 22, 2021
  • COMMENTARY: Pedestals with Purpose

    COMMENTARY: Pedestals with Purpose

    Richmond should carefully examine what to do with the remaining pedestals from the Confederate monuments – considering each individually.
    • Jun 22, 2021
  • Power to the People

    Power to the People

    A new documentary about the rise and fall of the Confederate monuments offers a sweeping history of resistance.
    • Jun 8, 2021
  • A Vision in Black

    A Vision in Black

    From folk art to hip hop, VMFA’s “The Dirty South” is a wide-ranging meditation on Black culture and creativity.
    • May 25, 2021
  • More »

Copyright © 2021 Style Weekly
Richmond's alternative for news, arts, culture and opinion
All rights reserved
Powered by Foundation