The real estate market of Virginia is characterized by an overwhelming skew towards the buyer. This is a classic economic phenomenon driven by a massive overabundance of available properties and an unwillingness of potential investors to provide the necessary capital. There are some indications that the market in Richmond has started to recover somewhat, and the National Association of Realtors indicated that existing home sales rose almost 2.5% over the last month. However, this is not nearly enough to eliminate the available supply of homes and condominiums in the Virginia Real Estate Market, which continues to be excessively high. The same general trend holds true for the other large communities of Virginia, especially Virginia Beach, Chesapeake, Hampton, and Norfolk, which are also experiencing gluts of available properties.
The US Weekly Averages place the interest rates of Virginia around the 5% mark, meaning that there are more substantial opportunities for potential buyers to acquire credit than, for example, there were last year. In Richmond specifically, there were about 3.5% less unsold homes on the Virginia Real Estate Market as opposed to the last month's figures, although the cumulative total is still far, far below the figures that would be expected in a normal market. According to Realtor Skye Bruce, “The Richmond market is still challenging but showing some positive signs in activity the last few months. Home sales in Virginia including the Richmond area - continue to fall along with housing prices, but there are some signs that the worst could be over. A good sign is that first time home buyers were getting into the market.”
One of the most plausible explanations for the nascent uptick in the Virginia Real Estate Market is the federal tax credit, which provides eight thousand dollars for first time home buyers. This, along with the low mortgage rates and glut of available homes, has led many real estate professionals and analysts to recommend home buyers to purchase properties. The fundamental question for Virginia Real Estate is whether the federal stimulus efforts intended to boost the lower portion of the market will eventually translate to stronger sales on the part of higher-end markets.